INDUSTRIAL PSYCHOLOGY ORGANISATIONAL

PSYCHOLOGY READING PACKAGE

STUDY GUIDE FOR

IOPS 311 A
*IOPS311A*

&
IOPS 311 EB
*IOPS311EB*

FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES

Originally drafted by:
Prof S Rothman and Prof G vd M Sieberhagen
Edited 2009 by:
Mr G.H. Rabie

Page layout by Elsabé Botha, graphikos.

Printing arrangements and distribution by Department Logistics (Distribution Centre).
Printed by The Platinum Press (018) 299 4226.

Copyright 2009 edition. Date of revision 2009.

North-West University, Potchefstroom Campus.
No part of this book may be reproduced in any form or by any means without written
permission from the publisher.

ii
MODULE CONTENTS
Introduction ............................................................................................................................ vi
Study unit 1 Study unit 1 ...................................................................................... 1
1.1 Definition of an organisation .............................................................. 1
1.2 Definition of organisational behaviour ................................................ 1
1.3 Organisational behaviour as a field of study ...................................... 4
1.4 The most important historical developments in the
organisational development field ....................................................... 6
1.5 How organisations shape organisational behaviour ......................... 19
1.6 Model of organisational behaviour ................................................... 20
Study unit 2 Study unit 2 .................................................................................... 29
2.1 Motivation: Different strokes for different folks ................................. 29
2.2 Work motivation theories ................................................................. 33
2.3 Job satisfaction................................................................................ 53
2.4 An integrative view of the satisfaction-motivation-
performance/productivity relationship .............................................. 57
Study unit 3 Study unit 3 .................................................................................... 60
3.1 Definition and different approaches to occupational stress .............. 60
3.2 The major causes (sources) of occupational stress ......................... 62
3.3 Individual differences which moderate the influence of the
causes (sources) of stress ............................................................... 69
3.4 The effects of occupational stress ................................................... 72
3.5 Managing occupational stress ......................................................... 75
Study unit 4 Study unit 4.................................................................................... 78
4.1 Importance of groups....................................................................... 78
4.2 Definition of terms ........................................................................... 78
4.3 Types of groups............................................................................... 80
4.4 Models of group behaviour .............................................................. 80
4.5 Explaining work group behaviour ..................................................... 82
Study unit 5 Study unit 5 .................................................................................. 100
5.1 What is leadership? ....................................................................... 100
5.2 Does leadership matter? ............................................................... 101
5.3 Leadership theories ....................................................................... 101
Study unit 6 Study unit 6 .................................................................................. 111
6.1 Power ............................................................................................ 111
6.2 Organisational politics ................................................................... 113
6.3 Conflict .......................................................................................... 116

iii
Study unit 7 Study unit 7 .................................................................................. 123
7.1 The nature of decision-making ...................................................... 123
7.2 Characteristics of decisions ........................................................... 125
7.3 Characteristics of decision makers which influence decision-
making........................................................................................... 129
7.4 How the quality of decisions is determined .................................... 131
7.5 Models of decision-making ............................................................ 132
7.6 The role of information in decision-making .................................... 142
7.7 Processes which take place once a decision has been made ........ 144
7.8 How decision-making can be improved ......................................... 146
Study unit 8 Study unit 8 .................................................................................. 148
8.1 Definition of communication........................................................... 148
8.2 The importance of communication in organisations ....................... 149
8.3 The nature of the communication process ..................................... 150
8.4 Methods of organisational communication ..................................... 154
8.5 Communication networks .............................................................. 158
8.6 Managing organisational communication ....................................... 161
8.7 Improving interpersonal communication ........................................ 164
Study unit 9 Study unit 9 .................................................................................. 171
9.1 Definition of organisational design ................................................. 171
9.2 Micro and macro perspectives on organisational design ................ 171
9.3 The basic dimensions of an organisational structure ..................... 173
9.4 Influence of structural dimensions on organisational design .......... 176
9.5 Approaches to organisational design ............................................. 177
9.6 Specific organisational designs ..................................................... 189
9.7 The implications of organisational design for performance and
satisfaction .................................................................................... 198
Study unit 10 Study unit 10 ................................................................................ 200
10.1 Introduction ................................................................................... 200
10.2 Definition of organisation development .......................................... 202
10.3 The characteristics of organisation development ........................... 202
10.4 The emergence of organisation development ................................ 203
10.5 The organisation of the twenty first century ................................... 203
10.6 The systems approach to organisation development ..................... 204
10.7 Stages in organisation development .............................................. 207
10.8 Management of change ................................................................. 214
Study unit 11 Study unit 11 ................................................................................ 221
11.1 Definition of organsational culture.................................................. 221

iv
11.2 Organisational culture and climate................................................. 222
11.3 Components of organisational culture ........................................... 222
11.4 Characteristics of organisational culture ........................................ 223
11.5 The effects of organisational culture .............................................. 225
11.6 The development of organisational culture .................................... 226
11.7 Changing organisational culture .................................................... 227

v
 INTRODUCTION
This package is supplementary to the study guide and the prescribed textbook. You will be
referred to this package from time to time in your preparation during each study unit.

vi
 Study unit 1

1 STUDY UNIT 1

1.1 DEFINITION OF AN ORGANISATION

Buchanan and HuczynskI(1985:5) give the following definition of organisations: “Organisations
are social arrangements for the controlled performance of collective goals.” (Italics in the
original; the bold-face type was added.) These two writers continue by pointing out that we may
find many social arrangements of people where collective goals are being sought, but that not all of
them stress the aspect of controlled performance to the same degree.
Because these two writers equate controlled performance with preoccupation with performance
and the need for control, they are reluctant to call the Molape family, the Barolong tribe, the baby-
sitting circle and Maritzburg clan an organisation. Do you agree with them? Is it not possible for a
baby-sitting circle to be concerned with controlled performance?
Baron and Greenberg (1990:7) propose the following broad definition: “an organisation is any
social structure or system consisting of two or more persons who are somehow interdependent
and who work together in a coordinated manner to attain common goals”.

1.2 DEFINITION OF ORGANISATIONAL BEHAVIOUR

Baron and Greenberg (1990:8) make an important statement when they say: “... because of its
deep commitment to the practical use of knowledge, OB usually focuses on work-related
organisations. However, many of the principles and findings discussed apply to organisations
generally, and may extend beyond the world of work.”
There is a fine line between what we normally call organisations and the many other social
contexts, which actually are characterised by some degree of organisation. Thus, behaviour in
organisations is not radically different from behaviour in many other settings. Hitting a baseball is
different from hitting a tennis ball, but the fundamental principles are much the same. OB assumes
that certain fundamental principles underlie behaviour in any context and readily turns to those
disciplines that have long studied such principles (Organ & Bateman, 1986:7). Quite soon we shall
be looking at those different disciplines, and the contributions they make to understanding
organisational behaviour.
What is also true, however, is the fact that the formal (work) organisation should be viewed as a
special kind of environment. Normally this kind of environment does place a lot of constraint
on human behaviour, through such things as rules and regulations, and formal structures. Also,
in formal organisations we find that there are purposes for existing and goals which must be
reached. One such goal might be to make a profit. Because of these purposes and goals, we
tend to evaluate behaviour in organisations. The question which we usually ask is the following:
Does this behaviour help or hinder the reaching of goals?
As is the case with many concepts used in the behavioural sciences, every writer and researcher
on the subject of organisational behaviour has his/her own definition of organisational behaviour.
Let us take a look at some of these definitions.

1
 Study unit 1
Moorhead and Griffin (1989:6-7) defines organisational behaviour as “...the study of human
behaviour in organisational settings, the interface between human behaviour and the organisation
and the organisation itself”. (Italics added.)
According to these authors, the nature of organisational behaviour can be depicted as follows:
Figure 1.1: The nature of organisational behaviour (Moorhead & Griffin, 1989:7)

From Figure 1.1. we can deduce that each of the three entities (that is human behaviour, the
interface between human behaviour and the organisation and the organisation itself) is in
interaction with the other. Therefore, although it is possible to study each of these entities on its
own, they should be studied in interaction with the other entities.

Note that an organisation and subsequently organisational behaviour cannot be studied in

isolation, because an organisation is also in interaction with the environment in which it (the
organisation) operates. Note also that individual behaviour forms a very important part of the
field of organisational behaviour. It is important to note that this aspect refers to the contents of
module BSKT 111 (BSKP151 & BSKP161) However; we shall not be going into aspects of
individual behaviour which have been discussed in BSKT 111 (BSKP151). We will come back to
this aspect later.
What is important to note at this stage is the fact that every individual brings to the organisation
certain personal characteristics, personal experiences and a unique perspective. When studying
organisational behaviour, one should take these characteristics, experiences and perspectives into
consideration.
Individuals work in the presence of other people and in work groups and they come into contact
with various aspects of organisations, such as formal policies and procedures. This implies that
the interaction between individuals and between (an) individual(s) and an organisation should also
form part of the study of organisational behaviour.
In the previous paragraph we have referred to policies and procedures which form part of an
organisation. This, together with aspects such as performance evaluation systems, reward
systems, decision-making systems, communication systems and the formal organisational system,
and the way these aspects influence individual and group behaviour should also be taken into
consideration when studying organisational behaviour.

Robbins (2009:7) definition of organisational behaviour fits in with what we have been discussing
thus far:

2
 Study unit 1
“Organisational behaviour (frequently abbreviated as OB) is a field of study that investigates the
impact of individuals, groups, and structure on the behaviour within organisations with the purpose
of applying such knowledge toward improving an organisation's effectiveness.” (Bold-face type and
italics in the original.)

This definition implies that organisational behaviour is a distinct area of expertise with a
common body of knowledge, and that this knowledge is used to make organisations function
more effectively. A little bit further on we are going to return to this point.

Robbins (1996:10) also refers to the different topics which are usually studied in organisational
behaviour:
“While there is still considerable debate about the relative importance of each, there appears to be
general agreement that OB includes the core topics of motivation, leader behaviour and power,
interpersonal communication, group structure and process, learning, attitude development
and perception, change processes, conflict, job design, and work stress.” (We added the
bold-face type.) Some of these topics have already been discussed in the module BSKT 111,
(BSKP151 & BSKP161) and most of the rest will receive attention in this module - but more on this
at a later stage.

To a certain extent Baron and Greenberg (1990:4) expand upon the above-mentioned definition of
Robbins when they give a “working definition” of the field of organisational behaviour:
“The field of organisational behaviour seeks knowledge of all aspects of behaviour in
organisational settings through the systematic study of individual, group, and organisational
processes; the primary goals of such knowledge are enhancing organisational effectiveness and
individual well-being.” (Italics in the original.)

Organ and Bateman (1986:5) on their part define organisational behaviour in the following way:
“Organisational behaviour (OB) may be regarded as a set of phenomena, an area of study, and
a community of interest groups.” (We added the bold-face type.)
Organ and Bateman (1986:8-9) refer to two criteria that ultimately provide the bases for
evaluating phenomena in organisations. The one criterion is performance, which can be
translated into organisational effectiveness. The other criterion is member welfare, which can be
translated into individual well-being. In Figure 1.2 we find an elaboration of each of these two
criteria.

3
 Study unit 1
Figure 1.2: Criterion values in the study of organisational behaviour
(Organ & Bateman, 1986:10)

Figure 1.1.2 also refers to the aspect of phenomena. In this regard Organ and Bateman (1986:5)
make the following statement: “OB is a label used to refer to the behaviour of individuals and
groups in the organisational environment.” and “when these behaviours have organisational
relevance - either because they effect organisational functioning or because they are shaped by
organisational forces - they qualify for inclusion in those phenomena.”

These authors express the view that it is rather difficult to separate organisational behaviour
from “non-organisational” behaviour. A case in point is family conflicts. In a direct sense it
cannot be regarded as organisational behaviour, but such conflicts may have an influence on a
person's work performance.
Behaviour is organisational in character to the extent that (1) the organisation, or some aspect of
the organisation, is the occasion (cause) that elicits or facilitates the behaviour; (2) the behaviour is
either the cause or the result of some organisational process; or (3) other members of the
organisation attribute organisational meaning or relevance to the behaviour.

1.3 ORGANISATIONAL BEHAVIOUR AS A FIELD OF STUDY

In the previous section it was stated that organisational behaviour can be seen as an area of study
and as a distinct area of expertise with a common body of knowledge, and that this knowledge is
used to make organisations function more effectively. In this sense we referred to the field of
organisational behaviour as being the application of concepts, theories, methods and empirical
generalisations from the behavioural sciences to the analysis of behaviour in organisations (Organ
& Bateman, 1986:5-6).
When we refer to the words “concepts” and “theories”, we think about a structure or a framework
which we can use to organise our thoughts about behaviour in organisations. Without this

4
 Study unit 1
structure or framework we shall be lost in a sea of “facts” about behaviour in organisations, without
seeing the “big picture” and without seeing the relationships between different facts and between
different phenomena.
When we use the word “methods”, we are actually referring to the use of the scientific methods
which are used to gather “facts” about behaviour in organisations and the scientific methods which
are used to test or verify these “facts.” Why do we put the word facts in inverted commas? Yes,
you are quite correct. It is because we are studying human behaviour and human behaviour
changes from time to time. It is not all that fixed. However, these facts still need to be gathered in
a scientific way.
Organisational behaviour rests firmly on the findings and methods of the behavioural sciences.
Given this fact, it should not be surprising that modern OB, like these closely related fields, is
scientific in orientation. It, too, seeks increased knowledge through an empirical science-based
approach. While OB is certainly scientific in orientation, it is far from rigid in this regard.
Practitioners recognise the complexities of applying such (scientific) methods in actual
organisations, and the limits this may imply. Further, many believe that important ideas and
valuable insights can sometimes be gained through other means (e.g. from the comments of
experienced, practising managers; from information about the conditions present at the time some
important event or change occurred (Baron & Greenberg, 1990:4).
The same authors continue by pointing out that such sources of information are not viewed as a
substitute for the findings of systematic research. On the other hand, they should not be ignored.
They also refer to the fact that qualitative data about organisation behaviour can be used to
supplement purely quantitative data. We must, however, hasten to point out that there are also
scientific methods available by which qualitative data should be gathered.
We use the words “empirical generalisations”, rather than the word “facts”, for the reasons set
out in the previous paragraph. This does not mean to say that there are no facts in organisational
behaviour. What is of greater importance, though, is the conclusions which can be drawn from
facts. Say, for instance, that in different organisations we find that people who resigned from their
jobs reported significantly lower job satisfaction before resigning than those people that did not
resign. From these facts we can make a tentative generalisation that job dissatisfaction is related
to turnover. We cannot, however, be one hundred percent sure that this will be true in all
situations at all times. At the same time, it does seem logical that job dissatisfaction should be
related to turnover. In further empirical investigations we would, for instance, try to establish the
different circumstances under which this will be true.
According to Baron and Greenberg (1990:6) there is general agreement that scientifically gathered
knowledge about organisations and organisational behaviour should be put to practical use. One
reason for this is the fact that common sense is not enough for understanding the complexities of
organisational behaviour. We could well replace common sense with “intuition” or “gut feeling.”
When we use the word “behavioural sciences”, we refer to the different disciplines which
contribute to our understanding of organisational behaviour. In organisations, people learn how to
do things, form impressions of others, influence one another and develop ties to groups. They
experience stress and are motivated to act in certain ways. People do all these things at home,
with friends, and in the pursuit of hobbies. Thus, human behaviour in organisations should have
many similarities to behaviour in other settings, and we would expect to find much of value in the
behavioural sciences for understanding behaviour in organisations.
In Table 1.1 we find the related disciplines from the behavioural sciences which contribute to our
understanding of behaviour in organisations.
Table 1.1: Related behavioural science disciplines which contribute to our
understanding of behaviour in organisations
(Organ & Bateman, 1986:7)
Related Disciplines Contributing to Organisational Behaviour

5
 Study unit 1
Discipline Relevant Topics
Experimental Psychology Learning; motivation, perception
effects of physical environment
on psychomotor performance;
stress
Social Psychology Group dynamics; attitudes and
attitude change; impression
formation; personality;
leadership
Clinical Psychology Human adjustment; emotional
stress; abnormal behaviour;
human development throughout
the life cycle
Sociology Socialisation processes; social
satisfaction; status systems;
effects of major social
institutions such as family,
community, religion,
organisation structure
Political science Interest groups; conflict; power;
bargaining; coalitions, strategic
planning, control
Anthropology Comparative organisational
structures; their functions in
varying cultures; cultural
influences on organisations;
adaptation of organisation to
environment
Economics Human resource planning;
labour market changes,
productivity analysis; cost/
benefit analysis

1.4 THE MOST IMPORTANT HISTORICAL DEVELOPMENTS

IN THE ORGANISATIONAL DEVELOPMENT FIELD
In a certain sense organisational behaviour has been important since time immemorial. From the
earliest times people were interested in understanding the behaviour of people in organisations.
Some of the bigger “organisations” of earlier times were of a military type. In these types of
organisations the leaders held supreme and practically unquestioned authority. It has only been
since the Industrial Revolution of the nineteenth century that relatively large numbers of people
started working together voluntarily in manager-subordinate relationships. Much of our current
knowledge of organisational behaviour comes from studying organisations, the individuals and the
groups in those organisations in which influencing behaviour consists of more than just the giving
of orders (as it were in the case of military organisations) (Gray & Starke, 1980:6).

6
 Study unit 1
1.4.1 Scientific Management
The Industrial Revolution brought much technological change to the work-place. As in the
past, the emphasis was on the job being performed, not on the person performing the job. That is
why engineers applied the latest technological knowledge to the development of ever-more
efficient machines. They argued that if the machines which were used for the production of goods
could be improved, greater efficiency would be the result. Sometimes this did not happen. This
led engineers to start considering the people who were operating the machines. This, in turn, led
to the implementation of time and motion studies. Through these studies attempts were made to
design jobs so that they could be performed in the most efficient manner possible (Baron &
Greenberg, 1990:10-11).
This concern for productivity paved the way for the emergence of a major new approach - one
known as scientific management (Baron & Greenberg, 1990:11). Although many people
practised it, the most famous advocate of scientific management was Frederick Winslow Taylor.
Perhaps we should first take a look at Taylor, the man himself, to understand the influence which
he had on the field of organisational behaviour. Gray and Starke (1980) (see Box 1.1) present us
with some information about the character of this remarkable person (whose ideas were often
misunderstood and misinterpreted).
Box 1.1: The man Frederick Winslow Taylor (Gray & Starke, 1980:7)

Fred Taylor took a lot of flack during his heyday. Unions were suspicious
of him, employers were sceptical of his claims, and the government
thought he needed to be investigated. Taylor's philosophy permeated his
whole life. Kakar, in his study of Taylor (Frederick Taylor: A Study in
Personality and Innovation [Cambridge: MIT Press, 1970], notes that he
did such strange things as experiment with his legs on cross-country
walks to discover the step which would cover the greatest distance with
the least expenditure of energy; as a young man, before going to a dance,
he would conscientiously and systematically list the attractive and
unattractive girls with the object of dividing his time equally between them;
and he often incurred the wrath of his playmates when he was more
concerned that the playing field for sports be scientifically measured than
he was with actually playing the game.

Today we would call Taylor an efficiency expert. As an industrial engineer, he was concerned with
inefficiencies in manual labour jobs and believed that by scientifically studying the specific motions
that made up the total job, a more rational, objective, and effective method of performing the job
could be determined (Gray & Starke, 1980:6).
As is evident from the information contained in Box 1.1, already early in his life Taylor developed
an interest in efficiency and productivity. While he was working as a foreman at the Midvale
Steel Company in Philadelphia from 1878 to 1890, he became aware of a phenomenon he called
soldiering. By soldiering is meant that a person is working much slower than he/she can. The
managers at the steel company were unaware of this phenomenon, mostly because the jobs had
never been studied scientifically and because there were no objective ways of measuring worker
productivity.
Taylor did several things to improve the situation. He studied all the jobs at the steel company and
he developed a standardised method for performing each one. He also implemented a piece-
rate pay system. In this system each worker was rewarded on the basis of the amount of work
he/she completed. This was in contrast to the previous method of payment, which was based on
the amount of time spent on the job. Because of these changes, productivity increased
dramatically (Moorhead & Griffin, 1989:10-11).

7
 Study unit 1
After leaving the Midvale Steel Company, Taylor started working as a management consultant for
industrial firms. He acted in this capacity for the Bethlehem Steel Company, where he developed
several efficient techniques for loading and unloading rail cars. At the Simonds Rolling Machine
Company he redesigned jobs, introduced rest periods to combat the development of fatigue, and
implemented a piece rate pay system. Taylor claimed that his methods and ideas greatly
improved worker output in every case (Moorhead & Griffin, 1989:11).
He outlined his ideas in his book the Principles of Scientific Management, which was published in
1911. The phases of scientific management are summarised in Figure 1.3.
Figure 1.3: The phases of scientific management (Moorhead & Griffin, 1989:12)

From Figure 1.3 we can see that the manager is supposed to act as planner and co-ordinator.

Scientific management was thus concerned with maximising efficiency and getting the highest
possible production out of employees. To reach these goals, a lot of emphasis was put on the

8
 Study unit 1
design of jobs, so as to ensure that work tasks were planned in a systematic manner (Baron &
Greenberg, 1990:11).
Scientific management also contained two “new” features which, taken together, focused
attention on employees and on their work. The first feature was that employees were to be
carefully selected and trained for their jobs. This stood in contrast to the idea and practice of
moving employees from job to job, without taking the importance of the “matching” of person and
job into consideration.
Taylor also realised that motivation in work settings was very important. He firmly believed that if
workers' motivation could be raised, it would lead to higher productivity. He took a rather
simplistic view of motivation, because he assumed that motivation stems mainly from the desire
for money. We now know that people actually strive to reach many different goals through their
work. To Taylor's credit, it must be noted that he did grasp the importance of motivation in
organisational settings (Baron & Greenberg, 1990:11).
Taylor's ideas had a profound influence on the management practices and business thinking of his
time, because it facilitated job specialisation and mass production. As was pointed out in Box
1.1.1, Taylor was not without his critics. Labour unions opposed his ideas, because the goal of
scientific management was to get more output from employees. Some government members
thought that the implementation of his ideas would lead to the dehumanisation of the work-place
and to workers becoming a little more than robots.
We have already mentioned the fact that Taylor's ideas were often misunderstood. We shall
also, in one of the next sections, see that the human relations movement that subsequently
developed was, in a certain sense, seen as the “answer” to the “dehumanising” effects of the
implementation of the principles of scientific management. Despite all the criticisms, the
misunderstandings, the more “enlightened” management practices which followed the human
relations movement, as well as subsequent developments in the field of organisational behaviour,
one tends to wonder with Gray and Starke (1980: 7) whether Taylorism is really dead today. In
this regard, please refer to Box 1.2.
Box 1.2: Is Taylorism really dead? (Gray & Starke, 1980:7)

Taylor's "one best way" philosophy has often been

misunderstood; though he believed that in terms of physical
motions there should be "one best way," he also recognized that
the equipment needed to perform the "one best way" would vary
from person to person. His famous example of equipping a large
man and small man with shovels of different size to match their
respective strengths proved how important it was to match the
equipment with the person. While it is fashionable today to blast
Taylor as being insensitive to human needs and treating people
like machines, it is painfully obvious that his influence is probably
as great now as it ever was. For example, though Taylor is
criticized for treating man only as an economic being, surveys
show that not much has changed, particularly in manufacturing
organizations. If one includes managerial personnel who are on
some type of bonus or profit-sharing scheme, then we probably
have more people today on incentive systems than ever before.
Also, manufacturers are making every attempt possible today to
"tailor-make" (no pun intended) their product for the individual.
Automobiles, sports equipment, work tools – anything that is an
extension of man's activity – reflect the Taylor philosophy of
individualizing the human/physical relationship.

9
 Study unit 1
1.4.2 Classical organisation theory (Structural theory)
Parallel to scientific management, another school of management thought also developed. This
school of thought is called classical organisation theory. While scientific management
concentrated on the relationship between a person and his/her job, classical organisation theory
concentrated on structuring organisations effectively. Thus, scientific management was
concerned with the question as to how to make individual workers more efficient, while classical
organisation theory was concerned with the question as to how large numbers of workers and
managers could be effectively organised into an overall organisational structure (Moorhead &
Griffin, 1989:13).
While there were different people who contributed to the thinking concerning classical organisation
theory, a person by the name of Max Weber was perhaps the most prominent of all contributors.
Weber proposed a “bureaucratic” form of organisation structure. He was of the opinion that this
type of organisation structure would work for all types of organisations, and that it would be the
most efficient approach to use. Nowadays we tend to associate the words “bureaucratic” and
“bureaucracy” with organisations which are characterised by lots of paperwork, lots of “red tape”,
and general inflexibility and inefficiency. Weber's ideas on organisations, however, embraced
logic, rationality and efficiency (Moorhead & Griffin, 1989:13). Figure 1.4 is a summary of the
elements of Weber's ideal bureaucracy.
Figure 1.4: A summary of the elements of Weber's ideal bureaucracy (Moorhead &
Griffin, 1989:14)

Nowadays it is accepted that different types of organisational structures may be acceptable in

different situations. In study unit 9, where we shall be discussing organisational design, we shall
return to this topic.
It is interesting to note that Moorhead and Griffin (1989:8-17) view scientific management and
classical organisation theory as being part of the historical roots of organisational behaviour.
However, they view the precursors of organisational behaviour, the Hawthorne studies and the

10
 Study unit 1
subsequent human relations movement (which we shall be discussing in the next section) as being
part of the emergence of organisational behaviour.

1.4.3 The precursors of organisational behaviour

Moorhead and Griffin (1989:13) point out that the central themes of both scientific management
and classical organisation theory were rationality, efficiency and standardisation. The roles of
individuals and groups in organisation were either ignored altogether or received very little
attention. Even before the heydays of scientific management and classical organisation theory
there were, however, a few writers and managers who recognised the importance of individual
and social processes in organisations. One of these people was Robert Owen, a British
industrialist, who attempted to improve the lot of workers by improving working conditions, raising
minimum wages for hiring children, introducing meals for employees and shortening working hours.
Early in the 1900's Hugo Munsterberg, a German psychologist who subsequently emigrated to
the United States of America and who is regarded by some as one of the “founding fathers” of
industrial psychology, argued that the field of psychology could provide important insights into
areas such as the selection of new employees and the motivation of employees. At the same time
a vocational guidance expert by the name of Mary Parker Follett argued that organisations should
strive harder to meet their employees' human needs and that management should become more
democratic in its dealings with employees (Moorhead & Griffin, 1989:13-14).
At that time there were very few practising managers who shared the views of Owen,
Munsterberg and Follett. It was only during the 1930's that changes in managements' perceptions
of the relationship between the individual and the workplace took place (Moorhead & Griffin,
1989:14). The reason for these changes can be found in our discussion in the next section.

1.4.4 The Hawthorne studies and the human relations movement

The Hawthorne studies were carried out between 1924 and 1932 at Western Electric's
Hawthorne plant at Cicero, near Chicago, Illinois, United States of America. Initially, General
Electric sponsored the research, but withdrew its support after the first study was completed.
Sometimes the Hawthorne studies are also called the Harvard studies, especially because two
well-known members on the staff of the Harvard University, namely Elton Mayo and Fritz
Roethlisberger, were, from 1927, very much involved in the Hawthorne studies. Actually, though,
one should regard the Hawthorne studies as being part of the Harvard studies, because Mayo
actually started the Harvard studies during 1923-1924 at a textile mill in Philadelphia. At that mill
he investigated the problem of labour turnover. Another person who was intimately involved in the
Hawthorne studies was William Dickson, chief of Hawthorne's Employee Relations Research
Department. Subsequently, Roethlisberger and Dickson wrote a book with the title Management
and the Worker, which was published in 1939. This monumental book gives a full account of the
Hawthorne studies (Moorhead & Griffin, 1989:15; Robbins, 1996:9).
The first of the Hawthorne studies were designed by Western Electric's industrial engineers.
They wanted to study the effects of different levels of lighting (illumination) on productivity. They
used an experimental group and a control group of women workers for this experiment. The
control group worked in a control room in which the lighting was kept constant. The
experimental group worked in a test room in which the level lighting was systematically
manipulated. At first, the lighting in the test room was systematically increased. Much as had
been expected, the productivity in the test room increased. But then the unexpected happened:
the productivity in the control room also increased! What was in a certain sense more
surprising was the fact that when the lighting in the test room was subsequently decreased, the
productivity in both rooms continued to increase! The productivity increased until the lighting
in the test room had become as dim as moonlight!
These results were of course quite baffling to the engineers. It was fairly obvious that something
else beside the lighting levels was playing a role. Using scientific language, we would say that

11
 Study unit 1
something else was not being held constant. As Luthans (1992:18) puts it: “This something else,
of course, was the complex human variable.” (We added the boldface type.)
We would like to further quote Luthans (1992:18): “It is fortunate that the illumination experiments
did not end up in the wastebasket. Those responsible for the Hawthorne studies had enough
foresight and spirit to accept the challenge of looking beneath the surface of the apparent failure
of the experiments. In a way, the results of the illumination experiments were a serendipitous
discovery, which, in research, is an accidental discovery. The classic example is the
breakthrough for penicillin, which occurred when Sir Alexander Fleming accidentally discovered
green mould on the side of the test tube. That the green mould was not washed down the drain
and that the results of the illumination experiments were not thrown into the trash basket, can be
credited to the researchers not being blinded by the unusual or seemingly worthless results
of their experimentation. The serendipitous results of the illumination experiments provided the
impetus for the further study of human behaviour at work and, most scholars would agree, marked
the beginning of the field of organisational behaviour.”
Enter Elton Mayo and his associates! Because the officials at the Hawthorne plant were very
puzzled by the results of the lighting/illumination experiments, they called in a team of experts
headed by Mayo. Mayo started a series of studies which got the name of the Relay Room
experiments/studies. The subjects in these experiments were again female employees who worked
in a special test room. In these studies, the impact of thirteen different factors on productivity was
examined. These factors included the (varying) length of rest pauses, length of the work-day,
length of the work-week, method of payment, place of work and even a free mid-morning lunch.
Once more, the results were baffling: the productivity of the group increased with almost every
change in work conditions. Even when the initial standard conditions were again instituted,
productivity continued to increase (Baron & Greenberg, 1990:12). The results of the Relay Room
experiments are shown in Figure 1.5
Figure 1.5: The puzzling results of the Relay Room experiments (Baron &
Greenberg, 1990:12)

More confusion was added by the next series of experiments, generally known as the Bank Wiring
Room study. In this case, a separate room was also used to carry out the experiments, but,
unlike the Relay Room experiments, The Bank Wiring Room “involved no experimental changes
once the study had started. Instead, an observer and an interviewer gathered objective data for
study” (Luthans, 1992:23). The interviewer interviewed the subjects during non-work times. As the
experimenters wanted to keep the situation as realistic as possible, they used the department's

12
 Study unit 1
regular supervisors. These supervisors' main function was to maintain order and control. The
group they had to supervise included nine males who had to assemble terminal banks for
telephone exchanges. A piecework incentive payment system was introduced at the start of
the experiment. Because of this payment system, it was expected that each man would work as
hard as he could to maximise his own personal income. Much to their surprise, the researchers
instead found that the group as a whole established an acceptable level of output for its
members.
Luthans (1992:23) gives the following information concerning the Bank Wiring Room Study: “By
scientific management analysis - for example, time and motion study - the industrial engineers had
arrived at 7312 terminal connections per day. This represented 2½ equipments. The workers had
a different brand of rationality. They decided that 2 equipments were a “proper” day's work. Thus,
2½ equipments represented the management norm for production, but 2 equipments was the
informal group norm and the actual output.” Workers who failed to meet this output of 2
equipments were dubbed “chiselers,” while those who exceed it by too much were branded “rate
busters.” As Moorhead and Griffin (1989:15) put it: “A worker who wanted to be accepted by the
group could not produce at too high or too low a level. Thus as a worker approached the
acceptable level each day, he slowed down as to not to overproduce.”
One must also mention the fact that the men in the Bank Wiring Room used social ostracism,
ridicule, and name-calling as major sanctions to enforce the restriction of 2 equipments per
day. “In some instances, actual physical pressure in the form of 'binging' was applied. In the
game, a worker would be hit as hard as possible, with the privilege of returning one 'bing,' or hit.
Forcing rate busters to play the game became an effective sanction. These group pressures had a
tremendous impact on all the workers. Social ostracism was more effective in gaining compliance
to the informal group norm than money and security was in attaining the scientifically derived
management norm.” (Luthans, 1992:24.) (bold-face type added.) One should bear in mind that the
Bank Wiring Room experiments were carried out during a period of great economic depression.
Thus, even while there was the possibility that these men in the Bank Wiring Room could lose their
jobs, they still restricted their output.
Baron and Greenberg (1990:13) ask the following question: “Why did these workers (in the Bank
Wiring Room) restrict their output while those in the Relay Room experiments did not? The same
authors continue (p. 13): “Gradually, Mayo and his colleagues arrived at the following answer:
Work settings are complex social systems. In order to fully comprehend behaviour in them, it is
necessary to understand worker attitudes, communication between workers, and a host of
other factors.” (We added the words in brackets, as well as the bold-face type.)
In most of the books which try to provide an answer to that question, mention is made of the fact
that the women in the Relay Room reacted favourably to the experimental conditions because
they knew they were being studied (the men in the Bank Wiring Room also knew that they were
being studied!), because of the novelty of the situation, and because of the attention they
received. Usually these three factors are associated with the so-called Hawthorne effect, and it
remains a real problem when doing research with human experimental subjects.
One should, however, take note of what Luthans (1992:24) states in this regard: “One clue to the
answer to this question (that is the same question we referred to in the previous paragraph) may
be traced to the results of a questionnaire administered to the women in the relay room. The
original intent of the questions was to determine the health and habits of the women. Their
answers were generally inconclusive except that all the operators indicated that they felt “better” in
the test room. A follow-up questionnaire then asked about specific items in the test room situation.
In discussions of the Hawthorne studies, the follow-up questionnaire results, in their
entirety, usually are not mentioned. Most discussions cite the women's unanimous preference
for working in the test room instead of the regular department. Often overlooked, however, are the
women's explanations for their choice. In order of preference, the women gave the following
reasons:
1. 1. Small group

13
 Study unit 1
2. 2. Type of supervision
3. 3. Earnings
4. 4. Novelty of the situation
5. 5. Interest in the experiment
6. 6. Attention received in the test room”

(We added the underlining as well as the bold-face type)

From the above-mentioned list it is quite clear that those reasons which are usually associated with
the Hawthorne effect only received the fourth, fifth and sixth positions. Thus Luthans (1992:25) is
quite correct when he states: “ ... to say that all the results of the relay room experiments were due
to such an effect (the Hawthorne effect) on the subjects seems to ignore the important impact of
the small group, the type of supervision, and the earnings” (bold-face type and the words in
brackets were added).
Follow-up interviews were conducted with thousands of workers at the Hawthorne plant. From the
results of these interviews “... the Hawthorne researchers concluded that the human element in the
workplace was considerably more important than previously thought.” (Moorhead & Griffin,
1989:15.)

Of course, the Hawthorne experiments were not without flaws. The people who were subjected to
the experiments were not representative of all the workers in the plant. Women worked in the
Relay Room, while men worked in the Bank Wiring Room. No efforts were made to ensure that
the rooms in which the subjects worked were identical in all major respects to those in other parts
of the plant. Despite these flaws, the Hawthorne experiments had a profound effect on the
developments in the field of organisational behaviour, because they underscored the fact that
human behaviour in organisational settings is complex.
The fact that people became aware of the complexity of human behaviour in organisational
settings led to the development of a new perspective, namely that of the human relations
approach. This approach paid much more attention to aspects such as human needs, attitudes,
motives, and relationships than did the scientific management movement and classical
organisation theory. If one wanted to have lasting changes in productivity and satisfaction, one
could only effect those changes through appropriate changes to the aspects mentioned in the
previous sentence, as well as to related aspects. In this way, the human relations movement
established a close link between the emerging field of organisational behaviour and several
behavioural sciences, such as anthropology, psychology, and sociology (Baron & Greenberg,
1990:13). According to this approach, people respond primarily to their social environment,
motivation depends more on social needs than on economic needs, and satisfied employees
work harder than dissatisfied workers (Moorhead & Griffin, 1989:16).
The values of the human relations movement are, to a certain extent, best mirrored by the so-
called Theory Y of Douglas McGregor that he set out in his book called The Human Side of
Enterprise, and which was published in 1960. In this book he identified two opposing
perspectives which he believed typified managerial views of employees. Theory Y represents an
optimistic and a positive view of human nature. McGregor also refers to his so-called Theory X,
which represents a much more negative and pessimistic view of human nature. In many ways
it is consistent with the assumptions of scientific management (Moorhead & Griffin, 1989:16).
Theory X and Theory Y is summarised in Table 1.2

14
 Study unit 1
Table 1.2: A summary of Theory X and Theory Y (Moorfield & Griffin, 1989:17)

Theory X assumptions
1. People do not like work and try to avoid it.
2. People do not like work, so managers have to control, direct, coerce,
and threaten employees to get them to work toward organisational
goals.
3. People prefer to be directed, to avoid responsibility, to want security:
they have little ambition.
Theory X assumptions
1. People do not naturally dislike work: work is a natural part of their
lives.
2. People are internally motivated to reach objectives to which they are
committed.
3. People are committed to goals to the degree that they receive
personal rewards when they reach their objectives.
4. People will both seek and accept responsibility under favourable
conditions.
5. People have the capacity to be innovative in solving organisational
problems.
6. People are bright, but under most organisational conditions their
potentials are underutilized

The human relations movement is also not without its critics. We now know, for instance, that a
happy (satisfied) worker is not necessarily a productive worker. In some instances it might
turn out that “because” a worker is being able to be productive, he/she might be satisfied. The
human relations movement in some instances led managers to believe that workers wanted them
(the managers) to act as mothers/fathers towards the workers. Generally, we call this practice
paternalism. Most often workers resent a paternalistic manager.
Many of the assumptions of the human relations movement were also rather simplistic and
situation specific. Because there was plenty of room for refinement and development in the
emerging field of human behaviour in organisations (Moorhead & Griffin, 1989:17) it is small
wonder that different other approaches started to develop. In the next sections we shall be
paying attention to these other approaches in the field of organisational behaviour.

1.4.5 Integrative perspectives

In contrast to an emphasis primarily on structure or the human side of organisations, organisational
thought in the past few decades has emphasised the integration of these two perspectives.
The socio-technical systems approach
In the 1950's several theorists studied technology as a key facet of structure and emphasised its
interaction with the human component. Trist and others recognised that managers could exclude
neither technology, nor human relations when trying to understand a work system.
Trist and Bamforth described a change in technology in a British coal mine. In the mine, workers
were used to working independently in small, self-contained units in which they organised the work
themselves. However, the technology for mining coal improved in a way that required
management to increase job specialisation and decrease the workers' participation in job
assignments. The coal miners hated the specialisation, because they preferred working closely

15
 Study unit 1
with each other and performing a variety of tasks. The researchers compared the performance of
work groups, the jobs of which had become specialised by the new technology to work groups
which had kept their former social structure. They found that absenteeism in the specialised
group was several times greater and productivity much lower than in the groups that had
maintained their group organisation. The socio-technical systems researchers concluded that
technological changes must be made in conjunction with a strong social system.
Systems theory
Systems theory offers an integrated and comprehensive view of organisational functioning. The
general systems model, described by Katz and Kahn, represents an organisation as an open
system, one that interacts with environmental forces and factors.
A system has four characteristics. Firstly, the system comprises a number of interdependent
and interrelated subsystems. Subsystems vary in size, from an individual cell to a major division
of an organisation. To trace subsystems in an organisation, the observer specifies significant
individuals and groups of organisations and examines their interdependence. Typical subsystems
in organisations include individual employees, work teams, departments and management groups.
For example: The marketing, production and human resource departments are all subsystems and
are interdependent parts of a larger system (the organisation).
Secondly, a system is open and dynamic. An organisation as a system, is also open and
dynamic. The organisation continually receives new energy in the form of new resources (people,
materials and money) or information (concerning strategy, environment and history) from the
environment. This new energy, called inputs, is then transformed into new outputs (see Figure
1.6). Transformation processes include the interactions between the tasks, individuals, formal
organisational arrangements and the informal organisation. The transformation of inputs creates
changes in individual, group and organisation behaviour and attitudes (for example, performance,
morale, satisfaction, turnover and absenteeism).
Figure 1.6: The systems model

Thirdly, the system strives for equilibrium. When organisations receive new inputs or experience
certain transformations, they simultaneously seek balance or equilibrium. When organisations
become unbalanced or experience disequilibrium, such as when changes in the environment make
current staffing inadequate, organisations attempt to return to a steady state, which may differ from
the original state of equilibrium. They use information about their outputs, called feedback, to
modify their inputs or transformations to result in more desirable outcomes and equilibrium. For
example, the performance of workers in an organisation declines significantly. This information
cues the organisation to examine the nature of its inputs or transformations for a cause.

16
 Study unit 1
The feedback may pinpoint changes in the organisation's training or reward systems as causes.
Fourthly, the system has multiple purposed, objectives and functions, some of which are in
conflict. Organisations may employ a variety of means to achieve their desired objectives. No
single structure results in a predetermined set of inputs, outputs and transformations.
Organisations which survive adapt to a particular situation. They respond to changes in the
environment with appropriate changes in the system.
Contingency theory
The word “contingency” means eventuality or circumstance. In organisations, contingency
theory emphasises the fit between organisational processes and the characteristics of the
situation. Therefore there is no best way to manage people or situations. The best way to
manage people or situations depends on the situation in which you find yourself.
Early contingency research looked at the fit between an organisation's structure and its
environment. Burns and Stalker (1961) described two different types of management systems:
mechanistic (machine-like) and organic (living, human and flexible). Mechanical systems have
characteristics such as those described in the scientific and classical management traditions.
Organic systems are much more flexible and loosely structured, and allow more employee
influence over decisions than do mechanistic systems. Mechanistic systems are appropriate to
stable environmental conditions, while organic systems are appropriate to changing organisations.
Mintzberg (1983) emphasised the importance of fitting organisation structure to various
contingencies. Thus contingency theory has also extended to leadership, group dynamics, power
relations and work design. Fiedler developed a contingency theory of leadership, which states that
leadership effectiveness depends on the situation in which the leader finds himself or herself
(including the characteristics of followers).
Figure 1.7: The contingency approach

New developments
The following developments in the field of organisation development have contributed to the field of
organisational behaviour:

17
 Study unit 1
Interest in organisational transformation
7. Organisational transformation is a multi-dimensional, multi-level, qualitative, discontinuous,
and radical organisation change. Transformation is needed when the environment in which
organisations operate, change. The new government in South Africa and the new constitution are
two examples of changes which will demand that organisations transform.
Interest in organisational culture
An increased emphasis is placed on organisational culture. Efforts to define, measure, and
change organisational culture have become more sophisticated. Schein (1985) has done much
work on organisational culture, and has devised interventions to help leaders and employees
identify those cultural assumptions which will assist the organisation in attaining its goals. This is
done through a joint exploration to identify sequentially the organisation's artefacts (such as office
layout and status symbols), the values underlying these artefacts and the assumptions behind
those values. Others have helped organisations focus on culture through the use of
questionnaires which are aimed at identifying actual and desired norms. Organisational culture will
be discussed in study unit 11.
Interest in the learning organisation
Stimulated by the works of Argyris (1990), Argyris and Schon (1976) and Senge, there has been
considerable interest in the conditions under which individuals, teams and organisations learn. It is
clear that some organisations learn better than others.

A learning organisation is an organisation which has developed the continuous capacity to adapt
and change.

Argyris (1990) has focused on the defensive routes of organisation members, or “master
programs in their heads that tell them how to deal with embarrassment and threat.” According to
Argyris, people follow these rules:
Bypass embarrassment and threat whenever possible.
Act as though you are not bypassing them.
Don't discuss steps 1 and 2 while they are happening.
Don't discuss the undiscussability of the undiscussable.

Workshops with top management teams are designed to simultaneously tackle major tasks such
as strategy formulation, and learning how to recognise defensive routines towards improvements
in communication as well as the quality of decision making.
Senge (1990) writes about the learning disabilities which plague organisations. One learning
disability is exclusively focusing on one's own job with little sense of responsibility for the collective
product. Another is to do a lot of blaming of “the enemy out there” for things which are wrong,
whether it's another department in the same organisation or a competitor overseas. Senge is well
known for his workshops in which games and exercises are used to create an awareness of these
disabilities and to develop different ways of thinking about complex problems.
The characteristics of a learning organisation is as follows:
There exists a shared vision that everyone agrees on.
People discard their old ways of thinking and the standardised routines they use for solving
problems.

18
 Study unit 1
Members think of all organisational processes, activities, functions and interactions with the
environment as part of a system of interrelationships.
People openly communicate with each other without fear of criticism.
People work together to achieve the organisation's vision.
Intensified interest in teams
Although the study of teams was always important in Organisational Behaviour, there is currently a
deepened interest in self-managed or self-directed teams. This interest was caused by the
pressure on organisations to improve quality, to become more flexible, to reduce layers of
management and to enhance employee morale.
Laboratory training methods have been found to be useful in training team members in effective
membership and leadership behaviour, and in training supervisors and managers in delegation and
empowerment. Team-building approaches are used to assist self-managed teams in getting
started.
Total Quality Management
Total quality management is a company-wide effort seeking to install and make permanent a
climate where employees continuously improve their ability to provide products and services, which
customers will find of value, on demand. An important element of these programmes is a particular
set of values about the individual and his/her role in the organisation. Total quality programmes in
successful companies encourage employee involvement, demand teamwork, seek to push
decision-making power to lower levels, and reduce barriers between people.

1.5 HOW ORGANISATIONS SHAPE ORGANISATIONAL

BEHAVIOUR
It is true that the people (actions, motivation and commitment) shape an organisation. However,
individuals, in turn, are often effected by being in them. There are several reasons why this is so.
Organisation structure – Formal dimensions. Organisations have a formal structure –
an internal arrangement of divisions, departments and work teams. This internal structure,
which is often represented by an organisational chart, indicates how tasks and
responsibilities are to be divided, how communication is supposed to take place, and where
power or authority rests. This structure effects the persons within the organisation,
determining the kind of work they do, with whom they come in contact and to whom they
report. Some organisations adopt a system where the chain of command is long (i.e.
where many levels separate positions), while others have a short chain of command. In
some organisations, many subordinates report to a single supervisor – the span of control is
wide. In others, only a few subordinates report to a single supervisor – the span of control
is narrow.
Organisation structure – Informal dimensions. Many informal networks and structures
exist in addition to the formal organisation structure. Sometimes these are more important
than the formal ones. Information frequently flows more quickly through the informal
grapevine than through more formal channels of communication. Persons who appear to
have power over others on the organisational chart may merely be figureheads with little
influence or power.
Organisation culture. Organisations effect the behaviour and attitudes of their members
through the organisation culture. This term refers to the beliefs, values, attitudes and
expectations shared by most organisation members. Such views can profoundly effect
persons who are entering the organisation. Only if they adapt to these views, they can
become accepted members of the organisation or work group.

19
 Study unit 1

1.6 MODEL OF ORGANISATIONAL BEHAVIOUR

A model is an abstraction of a real world phenomenon. Robbins (2007:17) proposes a model
consisting of three levels in analysing organisational behaviour. These levels - individual, group
and organisation – are analogous to building blocks (see Figure 1.8). Each level is constructed
on the previous level. Group concepts are built on individual behaviour, and organisation
behaviour is built on individual and group behaviour.
Figure 1.8: A model of organisational behaviour (Robbins, 2003:15) (Also see
Robbins, 2009:17)

These three independent variables are used to explain dependent variables which are important in
organisations (see Figure 1.9).

20
 Study unit 1
Figure 1.9: A comprehensive model of organisational behaviour (Robbins, 2003:18)
(Also see Robbins, 2009: 21)

1.6.1 Model of organisational behaviour: Dependent variables

Dependent variables are the key factors which you want to predict. The basic dependent variables
in organisational behaviour are productivity, absenteeism, turnover and job satisfaction.
Productivity
An organisation is productive when it achieves its goals. Productivity implies a concern for
effectiveness and efficiency. In IPB 211 (BSKP211 new code IOPS211) we said that the
characteristics of effective organisations include profitability, return on investment, market share,
growth, adaptability and innovation and survival.

21
 Study unit 1
An organisation is effective when it offers its consumers the services and products desired with
reasonable conditions of price, quality and delivery date. Effectiveness stems from both efficiency
and equity.
Absenteeism
It is important for organisations to keep absenteeism low. An organisation will find it difficult to
operate smoothly and to attain its objectives if employees fail to report to their jobs. The results of
absenteeism are that the workflow is disrupted, and that important decisions have to be delayed.
Absenteeism will have a greater effect on some organisations (e.g. those using assembly-line
technologies) than on others.
Turnover
A high rate of turnover in an organisation means increased recruiting, selection and training costs.
The efficient running of an organisation is usually disrupted when knowledgeable and experienced
personnel leave and replacements must be found.
Job satisfaction
Job satisfaction can be defined as the difference between the amount of rewards employees
receive and the amount they believe they should receive. Job satisfaction represents an attitude
rather than behaviour. It is believed that satisfied employees are more productive than dissatisfied
employees.

1.6.2 Model of organisational behaviour: Independent variables

The independent variables in the organisation behaviour model of Robbins (2009) (described
above) include the individual, group and organisation. Some of the individual-level variables
were described in IPB 211 (BSKP211 new code IOPS211). Other variables (e.g. motivation) will
be added to you knowledge base in this module. Therefore we will summarise the individual-level
variables, and indicate the aspects of the model which this course will focus on. Furthermore, in
line with Robins’ model of organisational behaviour (see Figure 1.8), reference will be made to
group and organisational-level variables as well.

Firstly, individual-level variables are discussed:

Individual-level variables
People enter organisations with certain characteristics which will influence their behaviour at work.
The following individual-level variables may effect organisational behaviour:
Biographical characteristics
Biographical characteristics are readily available to managers. They represent information
contained in the personnel file of an organisation.
Aptitude
Aptitude refers to the inherent skills and abilities a person brings to the job. These include
physical and mental capabilities, but for many people-orientated jobs, they also include
personality characteristics. A person can enhance most of his/her inherent capabilities through
education and training. Many of our inherent abilities can be traced to previous skill-enhancement
experiences, such as modelling the social skills of parents. Nevertheless, it is useful to consider
training as a separate component of ability, since it represents an important mechanism for
improving employee performance. An assessment of ability should be made during the job-
matching process by screening applicants against the skill requirements of the job. If he/she has
minor deficiencies in skill aptitude but other desirable characteristics, an intensive training
programme can increase his/her qualifications to do the job.

22
 Study unit 1
Motivation
Motivation represents an employee's desire and commitment and is manifested as effort. Some
people want to complete a task but are easily distracted or discouraged. They have a high desire
but a low commitment. Others plod along with impressive persistence, but their work is uninspired.
These people have high commitment but low desire. Motivation will be discussed in study unit
3.
Personality
A review of the personality literature offers general guidelines which can lead to effective job
performance. Because personality characteristics create the parameters for people's behaviour,
they give us a framework for predicting behaviour. For example, individuals who are shy,
introverted and uncomfortable in social situations would probably be ill-suited as salespeople.
It is important to exercise caution in the use of information about others' personalities. Such
information can be revealing, but it should only be employed when three conditions are met: (1)
The information should be accurate (reliable and valid). (2) The information must have direct
bearing on performance or other key aspects of organisational behaviour. (3) The persons who
interpret and use it should have sufficient training and experience to do so adequately.
Although we cannot predict high performance on the basis of personality characteristics alone,
knowledge of these characteristics can aid in reducing mismatches. This may contribute to lower
turnover and higher job satisfaction. The concept and theories of personality were discussed
in other modules. We will therefore only focus on a few personality characteristics which have
implications for organisational behaviour.
Cognitive style

Cognitive style consists of many cognitive factors which relate to the way in which individuals
perceive, interpret and respond to information. Every individual is faced with an overwhelming
amount of information, and attention can only be paid to part of it and acted upon at any time.
Individuals, therefore, develop strategies for reducing and interpreting the information they receive.
About 80 percent of individuals develop, mostly unconsciously, a preferred set of information-
processing strategies, and these make up their particular cognitive style.
Carl Jung's theory distinguishes between two dimensions of cognitive style, information-
gathering and information evaluation. The information-gathering dimension is divided into
intuition and sensing, while the information evaluation dimension is divided into thinking and
feeling.
An employee who prefers intuition, looks at the whole picture and emphasises
commonalties and generalisations, that is, the relationships among the various elements of
data. Intuitive thinkers have preconceived ideas about what information may be relevant,
and they look at the information to find what is consistent with their preconceptions.
An employee who prefers sensing, focuses on detail (parts of the whole), or on the specific
attributes of each element of data, rather than on the relationships among the elements.
Sensing thinkers are rational and have few preconceptions about what may be relevant, so
they insist on a close and thorough examination of the information.
An employee who prefers thinking, evaluates information using a systematic plan with
specific sequential steps. Individuals who use a thinking style rely on objective data,
appropriate methods and logical progressions. Attempts are made to fit problems into a
known model or framework. They decide impersonally, sometimes paying insufficient
attention to people's wishes and feelings.
An employee who prefers feeling, approaches a problem by “gut feel” and by looking at the
underlying values in the situation. Feeling individuals prefer organising and structuring
information to decide in a personal value-oriented way. They work best in harmony with

23
 Study unit 1
others and enjoy pleasing people. They often let decisions be influenced by their own and
other peoples' likes and dislikes.
The Big Five model

According to the five-factor model of personality (called the “Big Five”), five basic personality
dimensions underlie all others. The Big Five factors are:
Extroversion (a personality dimension describing someone who is sociable, talkative and
assertive).
Agreeableness (a personality dimension describing someone who is good-natured, co-
operative and trusting).
Conscientiousness (a personality dimension describing someone who is responsible,
dependable, persistent and achievement oriented).
Emotional stability (A personality dimension which characterises someone who is calm,
enthusiastic, secure (positive) to tense, nervous, depressed and insecure (negative).
Openness to experience (a personality characteristic which characterises someone who is
imaginative, sensitive and intellectual).
Self-awareness and self-esteem

Students of human behaviour have long known that knowledge of oneself is essential to one's
productive personal and interpersonal functioning and in understanding and empathising with
other people. Erich Fromm was one of the first behavioural scientists to observe the close
connection between one's self-concept and one's feelings about others: “Hatred against oneself is
inseparable of hatred against others.” Carl Rogers (1980) later proposed that self-awareness and
self-acceptance are prerequisites for psychological health, personal growth, and the ability to know
and accept others. Rogers suggested that the basic need is for self-regard, which he found more
powerful than physiological needs.
There is little question that the knowledge which we possess about ourselves, which makes up our
self-concepts, is central to improving supervisory and management skills. We cannot improve
ourselves or develop new capabilities unless we know what level of capability we currently
possess. On the other hand, self-knowledge may inhibit personal improvement rather than
facilitate it. The reason is that individuals frequently evade personal growth and new self-
knowledge. They resist getting additional information to protect their self-respect. If they get
new knowledge about themselves, there is always the possibility that it will be negative or that it
will lead to feelings of inferiority and weakness, so they avoid it. Seeking knowledge of the self,
therefore, seems to be an enigma. It is a prerequisite for and motivator of growth and
improvement, but it may also inhibit growth and improvement. It may lead to stagnation because
of fear of knowing more. How can improvement be accomplished?
One answer relies on the idea of sensitive line. This idea refers to the point at which individuals
became defensive when encountering information about themselves which is inconsistent with
their self-concept or when encountering pressure to alter their behaviour. The more discrepant the
information or the more serious its implication for your self-concept, the closer it would approach
your sensitive line, and you would feel a need to defend yourself against it. For example, having a
manager judging you incompetent as a worker may cross your sensitive line if you think you have
done a good job. This would be especially true if the manager was an influential person. It seems
that the self-concept becomes rigid under threat. If an individual encounters discrepant information
which is threatening, the current self-concept is reasserted with redoubled force.
Information which is verifiable, predictable and controllable is less likely to cross the sensitive
line than information without those characteristics. If an individual can test the validity of the
discrepant information, if the information is expected, and when there is some control over what,
when and how much information is received (e.g. if it is requested), it is more likely to be heard and

24
 Study unit 1
accepted. Other people can play a role in helping insight to occur. It is almost impossible to
increase skill in self-awareness without interacting with and disclosing ourselves to others. Unless
one is willing to open up to others, to discuss aspects of the self that seem ambiguous or unknown,
little growth can occur. No amount of introspection of self-examination is sufficient to know
yourself.
Beliefs about one's ability to perform specific tasks are an important aspect of the self-concept -
individuals' conceptions of their own abilities, traits and skills. Another aspect concerns self-
esteem – the extent to which people hold positive or negative views about themselves. Persons
high in self-esteem often report higher levels of job satisfaction and motivation than persons low in
self-esteem do. They also perform better in some tasks and settings.
Salutogenesis

The term “salutogenesis” originates from the Latin: salus (health) and the Greek: genesis (origin),
emphasising the origins of health or wellness (Strümpfer, 1995). In his research on the individual
experiencing stress of different kinds, Antonovsky (1979) noticed that stressors are omnipresent
and many individuals survive in spite of them. He refers to the poor who are “screwed every step
of the way”, to Afro-American slaves and concentration camp survivors who coped in spite of their
circumstances. The focus is on the origins of health, rather than the origins of disease.
Salutogenic constructs include the following:
Sense of coherence. Sense of coherence is defined as a global orientation that expresses
the extent to which an individual has a pervasive, enduring feeling of confidence that (a) the
stimuli deriving from the internal and external environments in the course of living are
structured, predictable and explicable (comprehensibility); (b) the resources are available
to the individual to meet the demands posed by these stimuli (manageability), and (c) these
demands are challenges, worthy of investment (meaningfulness) (Antonovsky, 1979).
Hardiness. Hardiness is a personality style consisting of interrelated orientations of
commitment, control and challenge (Kobasa, 1979). Persons high on hardiness involve
themselves in whatever they are doing (commitment), believe and act as if they can influence
the events forming their lives (control), and consider change to be not only normal but also a
stimulus to development (challenge).
Locus of control. Locus of control refers to the attitude people develop regarding the extent
to which they are in control of their own destiny (Rotter, 1966). When people receive
information about the success or failure of their own actions, or when something changes in
the environment, they differ in how they interpret that information. People receive
reinforcement, both positive and negative, as they attempt to make changes around them. If
the individual believes that he or she receives the reinforcement because of his or her own
actions, he or she has an internal locus of control. The individual with an external locus
of control believes that outside forces are the cause of the reinforcement.
Research has shown that individuals with an external locus of control are less satisfied with their
jobs, have higher absenteeism rates, are more alienated from the work setting and are less
involved in their jobs than internals. Individuals with an internal locus of control search more
actively for information before making a decision, are more motivated to achieve and make a
greater attempt to control their environment. Those with an external locus of control, on the other
hand, are more compliant and willing to follow directions.
Managers with an internal locus of control are more inclined to engage in actions to improve their
environment and place emphasis on achievement. It should be realised that locus of control can
shift over time, particularly as a function of position held at work. External locus of control does not
inhibit individuals from attaining positions of power and influence at the top of organisations.
Self-efficacy. Self-efficacy refers to an individual's belief in his/her capacity to mobilise
cognition resources and to take action to take control over task demands (Bandura, 1982). A

25
 Study unit 1
high level of self-efficacy can be achieved in three ways, namely performance attainments,
vicarious experiences and social influence. Performance attainments refer to doing
something competently. This is a result of the availability of appropriate resources, and an
absence of barriers to engage in a given activity. Vicarious experiences refer to seeing
someone similar to oneself succeed by sustained effort. Self-efficacy is also promoted when
a credible person persuades individuals about their capabilities of performing a task.
Self-efficacy has implications for several organisation processes (Gist, 1987). It has an
important role in motivation, and may effect performance on different tasks. Low self-efficacy
with respect to specific tasks may help pinpoint areas in which additional skills are needed.
Self-efficacy may also be related to reactions to performance appraisals. Individuals high in
self-efficacy may respond to negative feedback in more constructive ways than those low in
self-efficacy.
Values

Values are among the most stable and enduring characteristics of individuals. They are the basis
upon which attitudes and personal preferences are formed. An organisation, too, has a value
system, usually called its organisational culture. Employees who hold values which are
congruent with their organisation's values are more productive and satisfied. Holding values
which are inconsistent with company values is a major source of conflict, frustration and non-
productivity. People sometimes lose touch with their own values, behaving in ways which are
inconsistent with those values. Not being aware of one's own value priorities can lead to
misdirected decisions and frustration in the long term. Because values are seldom challenged,
people forget value priorities and behave in ways that do not fit the values. Until people encounter
a threat to their values, they seldom seek to clarify them. Becoming mature in value development
requires that individuals develop a set of internalised principles by which they can govern their
behaviour. The development of those principles is enhanced and value maturity is increased as
value-based issues are confronted, discussed and thought about.
Type A and B personality

A type A individual is involved in struggle to achieve more and more in less and less time. Type
A's are always moving, walking, and eating rapidly, feel impatient with the rate at which most
events take place, and strive to do two or more things simultaneously. Type B's do not suffer from
a sense of time urgency (and impatience), play for fun or relaxation, and can relax without guilt. In
spite of the hard work of the Type A's, Type B's appear to make it to the top. The reason for this
lies in the tendency of Type A's to trade off quality of effort for quantity.
Machiavellianism

In 1513 the Italian philosopher Niccolo Machiavelli published a book entitled The Prince. He
outlined a ruthless strategy for seizing and using political power. He suggested that other persons
could be readily used or manipulated by adhering to the following principles: (1) Never show
humility – arrogance is more effective when dealing with other people. (2) Morality and ethics are
for the weak – powerful persons feel free to lie, cheat and deceive whenever this suits their
purpose. (3) It is much better to be feared than loved. Unfortunately, it seems that there are many
people choosing to live by the ruthless, self-serving creed proposed by Machiavelli.
Persons with a Machiavellian orientation are pragmatic. As far as they are concerned, any means
is justified as long as it helps them towards their goals. These persons often possess
characteristics associated with successful persuasion, including confidence, expressiveness and
competence. These traits, combined with their pragmatism, can be devastating.
Social skills

Research (Riggio, 1986) indicates that being liked by others is often a better predictor of success
than intellectual brilliance, high motivation or other desirable characteristics. One of the most

26
 Study unit 1
important factors influencing whether a person is liked or disliked by others is social skills
(Friedman, Riggio & Casella, 1988). Such skills centre on personal characteristics which enable
individuals to communicate effectively with others. According to Riggio (1986) six components of
social skills are most important:
Emotional expressivity – the ability to express emotions non-verbally (e.g. through
gestures).
Emotional sensitivity – the ability to “read” the emotional and non-verbal communication of
others.
Emotional control – the skill to control spontaneous expressions when this is necessary.
Social expressivity – the ability to speak fluently and engage others in social interaction.
Social sensitivity – the ability to understand others' verbal statements.
Social control – the skill to present oneself to others in favourable light and to play various
roles.
Interpersonal orientation
Interpersonal orientation relates to behaviour and relationships with other people and not just one's
personal inclinations. All individuals seek to establish compatible relationships with other
individuals in their social interactions. As people form relationships, the following three
interpersonal needs develop that must be satisfied if the individual is to function effectively.
Need for inclusion. Everyone needs to maintain a relationship with other people, to be
included in their activities, and to include them in one's own activities. Individuals differ in
their expressed inclusion and wanted inclusion.
Need for control. This is the need to maintain a satisfactory balance of power and influence
in relationships. All individuals have a need to control and direct other people. They also
have a need to be controlled and directed by others. Individuals differ in their expressed
control and wanted control.
Need for affection. This is the need for physical affection, warmth, intimacy and love.
Individuals differ in their expressed affection and wanted affection.
These three dimensions determine an individual's interpersonal orientation. Your highest score
may show the need which is least satisfied.
Learning
An observable change in a person's behaviour is evidence that learning has take place. Various
learning principles were discussed in IPB 211 (BSKP211 new code IOPS211). The following
insights are, however, important:
Positive reinforcement is a powerful tool for modifying behaviour. By identifying and
rewarding performance-related behaviour, management increases the likelihood that it will be
repeated.
Reinforcement is a more powerful tool than punishment. Punished behaviour tends to be
temporarily suppressed rather than permanently changed. Punishment may also cause
lower morale, and higher absenteeism or turnover.
Employees' behaviour is influenced by those who serve as models. Managers should
expect that employees will look to them as models.
Group-level variables
The behaviour of people in groups is more than the sum total of each individual behaving in his/her
own way. Individuals in groups are influenced by the patterns of behaviour they are expected to
exhibit, what the group considers to be acceptable standards of behaviour, and the degree to

27
 Study unit 1
which group members are attracted to each other. Group processes influence the behaviour of the
group. Group-level variables will be discussed more comprehensively in study unit 4.
Organisational-level variables
The design of the formal organisation, technology, work processes, jobs, the organisation's human
resource policies and practices, the internal culture, and levels of occupational stress have an
influence on the dependent variables. These organisational-level variables will be discussed in
study unit 9, 10 and 11.

28
 Study unit 3

2 STUDY UNIT 2

2.1 MOTIVATION: DIFFERENT STROKES FOR DIFFERENT

FOLKS
According to Luthans (1992:146) many theories of motivation can be identified: “Today, virtually all
people -- practitioners and scholars -- have their own definition of motivation (in organisations).
Usually one or more of the following words are included in the definition: 'desires,' 'wants,'
'wishes,' 'aims,' 'goals,' 'needs,' 'drives,' 'motives,' and 'incentives.' Technically, the term
motivation can be traced to the Latin word movere, which means 'to move.'” (The italics are in
the original text, but the words in brackets, as well as the bold-face typing were added).
It seems as that this dilemma has been with us for some time. For centuries, psychologists and
philosophers have tried to explain why some objects or outcomes seem to be desired by people
while others are not (Lawler, 1995:3). According to Lawler (1995:3) an adequate explanation of
why certain outcomes are desirable must deal with three separate but interrelated questions.
What is it about the nature of individuals that causes outcomes which are desirable to them?
What general classes or groups of outcomes do people find desirable or undesirable?
What influences the desirability of outcomes: that is, how does the desirability of outcomes
change over time and why do individuals differ in the importance they attach to different
outcomes?
Have you noticed something about the above-mentioned statement of Lawler? It seems as if
Lawler is also working within a certain “normative” paradigm. Why do we say “normative”?
Because Lawler states that, in order for an explanation of motivation to be accepted, certain
conditions must exist. Intuitively, it is possible that the desirable outcomes in this case might have
something to do with satisfaction.

2.1.1 Early views of the motivational process

Over the years, several theories, which could serve as explanations of motivation, were
advanced.
During the early part of this century the instinct theory of motivation was rather popular. It was
based on Charles Darwin's idea that much of human behaviour may be determined by instincts.
This implies that instincts are inborn/innate tendencies to act in certain ways. One such instinct
might be the survival instinct. The survival instinct manifests itself in different ways in human
behaviour. Under normal circumstances we might say that a person needs to work in order to
survive. Under abnormal circumstances an individual might exhibit “abnormal” behaviour in order
to survive. A case in point in this regard is when survivors of a plane crash in the Andes mountains
started eating the flesh of those passengers who had died in the crash. From this rather bizarre
example one can already gather that motivation has something to do with goal-directed
behaviour.

29
 Study unit 3
The behavioural scientist who first developed the instinct theory was William McDougal. He
started off with a list of about twelve instincts which could explain all human behaviour, and ended
up with a list of about nineteen. Other psychologists of that era added more instincts to the list,
which eventually contained something like six thousand instincts, “...including the 'instinct to avoid
eating apples in one's own orchard'”(!) (Murray, 1964: Motivation and emotion, p. 6 as quoted by
Lawler,1995:4). From this last example it is clear that the instinct theory does not explain
satisfactorily why a person acts in a certain way. It is also makes it difficult to predict what goals
(outcomes) a person will seek in accordance with a specific instinct.
According to Atkinson (1964: An introduction to motivation as quoted by Lawler, 1995:5) the origins
of the most contemporary viewpoints regarding motivation can be traced to the principle of
hedonism. In short, this principle entails that people seek pleasure and try to avoid pain.
According to Lawler (1995:5) the hedonistic principle does not answer any of the three previously
mentioned questions adequately. What is true, however, is the fact that people do direct their
behaviour towards goals which are pleasurable and away from goals which lead to the
experiencing of “pain”. The modern motivation theories specify in advance how attractive specific
goals will be to particular individuals and how the attractiveness of goals will change.
Another one of the “earlier” motivational theories is called “drive theory”. In a certain sense
“drive” replaced “instinct”. The big proponent of drive theory was Hull, who assumed that
humans are motivated by what he called primary drives (those drives which are biologically
based) and secondary drives (which are “learned” drives, based on their association with a
primary drive). An example of a primary drive is the need for food (hunger). An example of a
secondary drive is the need for money, because money can be used to buy food to satisfy
hunger. In this context, most of the rewards that people receive in organisations can be viewed as
being secondary rewards. It must be noted that workers continue to work for more money even
when their basic needs are met. Sometimes people will work simply in order to develop their skills
and abilities and in order to become more competent at their jobs (Lawler, 1995:5-7).

2.1.2 Definitions of motivation

Behavioural scientists offered various definitions of the concept of motivation. Let us look at them
more closely.
Robbins (2003:131) (also see Robbins 2009: 144) defines motivation (in organisations) as the
process that account for an individual’s intensity, direction, and persistence of effort towards
attaining a goal. While general motivation is concerned with effort towards any goal (in this case
organisational goals). The three key elements in the above-mentioned definition are intensity,
direction, and persistence.
Intensity / effort has to do with the way in which an individual exerts him/herself. The more a
person is motivated, the more he/she will exert him/herself. But, in order for this exertion to be
effective, it must lead to an improvement in the performance of the individual. In this way the
organisation in which the individual works also reaps the benefits of the individual's exertion.
Therefore, it means that the quality of the effort of the individual must also be taken into account,
not only the intensity of the effort. Individual effort can be directed in many ways. That is why
mention is made of “organisational” goals. It also implies that the individual's needs must be
compatible with those of the organisation. We know for instance that individuals (also) have social
needs which they want to satisfy at work. One such social need might be the need to talk to other
people. Some people spend most of their time at work speaking to others about non-work related
topics, to the extent that they and the people they talk to are unable to do the work they were
employed for. In this case there is a lot of effort noticeable, but this effort does not lead to the
attainment of organisational goals. (Note that not all social talk at work is condemned here - social
talk plays an important role in work settings.) The persistence dimension is a measure of how long
intensity / effort can be maintained by the individual. Motivated people will achieve their goals if
they stay with a task long enough.

30
 Study unit 3
According to Robbins (1995:213) a need refers to some internal state that makes certain outcomes
appear attractive. Unsatisfied needs create tension that simulates drives within the individual,
which in turn generate search behaviours to reach particular goals that, if attained, will satisfy
needs and lead to the reduction of tension. Have you noticed that mention is made of the
satisfaction of a need?
A definition of motivation which is in accordance with the above-mentioned definition is the one
supplied by Luthans (1992:147). According to him, motivation is the process that starts with a
physiological or psychological deficiency or need that activates behaviour or a drive that is aimed
at a goal or incentive. The key to understanding the process of motivation lies in the meaning of,
and relationship between needs, drives and incentives.
Luthans (1992:147) does, however, point out that, although psychological needs may be based on
a deficiency, sometimes they are not. A case in point is an individual who has a history of
consistent success, but who still shows a strong need to get ahead. Note that Luthans equates
incentives with goals that the individual wants to achieve.
Baron and Greenberg (1990:75) define motivation as the set of processes that arouse, direct, and
maintain human behaviour toward attaining a goal.
The aspect of arousal can be connected to the fact that the person experiences a need for
something and this need constitutes a drive. This definition also implies that motivation also
involves the direction behaviour takes. There might be different directions which behaviour can
take: A hungry person can go about different ways to satisfy his/her hunger. This goal-directed
behaviour should be maintained; if not, the goal will not be reached.
Baron and Greenberg (1990:76) raise two important points, namely that: (1) motivation and job
performance are not synonymous and that (2) motivation is multi-faceted.
Note that sometimes there is indeed a direct relationship between motivation and job performance.
In such cases it means that the more a worker is motivated, the better he/she performs. In other
cases a worker might be highly motivated, but there might be other factors which inhibit his/her
performance. Such factors might be a lack of ability or training, or even inadequate equipment.
By saying that motivation is multi-faceted we mean that in one worker different motives may be
operating at the same time. Baron and Greenberg (1990:76) give the following example: A
worker might be motivated to be very productive, but on the other hand he/she might also be
motivated not to antagonise his/her co-workers by being more productive than they are. (Do you
recall the behaviour of the workers in the Bank Wiring Room in the Hawthorne studies?) In this
case a conflict of motives exists in which case the worker might experience anxiety in trying to
handle this conflict.
The above-mentioned two points give an indication of the complexity of motivation in
organisations. It also explains why there are no ready-made answers to complex human
problems in organisations.
Still another definition of motivation in organisations is that of Moorhead and Griffin (1989:103),
who define it as the forces that cause people to behave in certain ways.
They expand their definition into a motivation framework, in which the concepts of need
deficiencies and goal-directed behaviour comes to the fore. For these writers the starting point in
their motivation framework (which we might also call a motivation cycle) is a need, which is simply
a deficiency experienced by an individual. In your own case, you might have been experiencing a
need to equip yourself with the necessary skills of human behaviour in organisations. This
deficiency or need led you to seeking ways in which to satisfy the need or deficiency.
Perhaps in your own case you investigated different means to gain the necessary knowledge and
skills. Eventually you decided to opt for this module which could make it possible for you to equip
yourself with knowledge and skills to work with human behaviour in the world of work and to apply
some of the skills you already have. This decision can be equated with what Moorhead and Griffin

31
 Study unit 3
call goal-directed behaviour. At the moment you are busy studying towards your degree. This
might be called performance. Once you complete the requirements, you will be rewarded with the
degree. At that stage you will be able to (re)assess to what extent the degree has satisfied your
need when you are required to apply your knowledge and skills in a work team for example. The
basic motivation framework is depicted in Figure 2.1.

Figure 2.1: The basic motivation framework (Moorhead & Griffin,1989:105)

We have been mentioning goal-directed behaviour several times. Actually, in the literature on
motivation in organisations, this is not a new concept. Already in 1973 Lawler pointed out that
there seemed to be some agreement that the distinguishing characteristic of motivated behaviour
was that it is goal-directed. In this regard, Barnard (1995:1) points out that the concept of action is
central to motivation. However, it is important to note is that a person's action does, however,
exhibit purposefulness, direction and perseverance. Thus, a person can motivate him/herself and
can only be motivated if he knows him/herself as an integrated totality. This means that the
individual must be in touch with his/her cognitive (mental), affective (emotional), conative (voluntary
behaviour) and physical attributes in order to function interactively.

Buchanan and HuczynskI(1985:56) define motivation as a decision making process through which
the individual chooses desired outcomes and sets in motion the behaviours appropriate to
acquiring these desired outcomes.

32
 Study unit 3

2.2 WORK MOTIVATION THEORIES

2.2.1 Content theories of work motivation
The hierarchy of needs theory of Maslow
You most probably have already come across this theory during your studies. Sometimes this
theory is also discussed in popular literature. More often than not, people are not aware of the
origin of this theory. Maslow was not an industrial psychologist, but developed his theory chiefly
out of his experiences from a study of neurotic people in a clinic, (Gray & Starke, 1980:38;
Luthans, 1992:156).
Moorhead and Griffin (1989:109) state that Maslow was influenced by the “human relations” school
of thought or viewpoint. Do you recall what the human relations school of thought is? Because
Maslow was influenced by the human relations school of thought he was of the opinion that human
beings have innate (inborn) desires to satisfy a given set of needs (ShanI& Lau, 1996:6-32).
As the name of this theory implies, Maslow proposed that the needs of a person are arranged in a
hierarchical order of importance. This hierarchical order is depicted in Figure 2.2.
Figure 2.2: Maslow's hierarchy of needs (Moorhead & Griffin, 1989:110)

The most important needs appear at the bottom of the hierarchy. This implies that some needs
takes precedence over others or, to put it differently, that at a certain point in time, some needs are
more important than others. This means that at a certain point in time the physiological needs are
more important than the security needs. A case in point is a situation in which a person is so
hungry that he/she is only concerned with satisfying the need for food - he/she is not concerned
with the need for security. Luthans (1992:157) points out that Maslow believed that once a given
level of need is satisfied, it no longer serves to motivate. The next higher level of need has to be
activated in order to motivate the individual.
It is also important to take note of the fact that Maslow did not intend that his need hierarchy be
directly applied to work motivation. It is also a fact that he did not delve into the motivating aspects
of humans in organisations until about twenty years after he originally proposed his theory
(Luthans,1992:157). This fact is confirmed by Gray and Starke (1980:38) when they point out that
Maslow himself cautioned against using the hierarchy to formulate theories of work motivation.
Note that in the original theory the security needs were known as safety needs, and that the
belongingness needs were known as the love needs. Nowadays the belongingness needs are

33
 Study unit 3
also known as social needs, the esteem needs are also known as esteem and status or ego
needs and the self-actualisation needs are also known as self-fulfilment or self-realisation
needs.
Let us take a closer look at these different needs:
Physiological needs
According to the theory, the physiological needs are the most basic of all the needs. Examples of
these needs are the needs of hunger, thirst and sleep. These needs roughly correspond to the
unlearned, primary drives which we referred to earlier. As long as these needs are not satisfied
to a reasonable degree, they tend to dominate a person's behaviour. That means that such a
person will concentrate all his/her efforts on satisfying those needs. Also, the next level of needs
does not play an important role in human behaviour unless these physiological needs are fulfilled
to a reasonable degree. What is also important is the notion that once a person's physiological
needs are satisfied to a reasonable degree, they stop influencing his/her behaviour or, to put
it another way, they stop acting as “motivators.”
Safety/security needs
In his original theory Maslow stressed the importance of both emotional and physical safety
(Luthans,1992:156). This means that once the basic physiological needs are met, the person
seeks a secure environment, one which is free from threats of physical or psychological
harm. According to Barnard (1995:41) these needs “...involves the protection from physical
danger and economic instability, whereby circumstances which may lead to physiological handicap
can be avoided. Here the issue is actually the expectation that the material needs will be provided
for in the future. The appropriate encouragement in this field is stable working conditions
(security), the prospect of increasing cost of living being covered by an increase in salary, that
provision will be made for illness, disability and old age by contributing towards medical, insurance
and pension schemes. Furthermore, the discipline must be fair and consistent, without any
discrimination, except where job achievements are concerned.”
As in the case of physiological needs, once these safety/security needs are met, they no longer act
as “motivators” of human behaviour in organisations.
Belongingness/social/“love” needs
Maslow theorised that the belongingness/social/”love” needs come to the fore once the
physiological and the safety/security needs are met. Social needs refer to the need to affiliate
with other people. It refers to the need to have friends, to be loved by others and to be
accepted by other people. Of course, these needs can, to a great degree, be met outside the
work situation, for example in the presence of family members and friends. Because an employee
spends quite a lot of time at work, these needs should also be satisfied in the work situation. In
this case the (work) group of which the individual is a member plays a very important role in
satisfying these needs. Also, an employee may be a member of an informal group at work.
Although (as we shall later see) informal groups sometimes are dysfunctional as far as work
performance is concerned, they do play an important role in helping to satisfy social needs of
employees. This implies that social interaction between members of formal work groups as well as
members of informal groups should not be discouraged - with the provision that this social
interaction does not become dysfunctional. (Do you still remember the example of the person who
spends too much time on socializing, to such an extent that he/she and the people he/she talks to
do not do the work they are supposed to be doing?)
Baron and Greenberg (1990:80) point out that research has shown that social needs are
especially likely to be aroused when job security is threatened. This happens when a merger
of two or more organisations or the take-over of one organisation by another organisation becomes
a possibility. Such circumstances increase the possibility that some employees might lose their
jobs. In such circumstances one will find that there is a heightened search by employees of the
company of other employees in order to gather information. Please note that under these

34
 Study unit 3
circumstances the satisfaction of both the physiological and the safety/security needs is
threatened, and that they (once again) become important. This phenomenon is in accordance
with the basic propositions of Maslow's theory.
Baron and Greenberg (1990:80) quite rightly point out that the physiological needs, the
safety/security needs and the belongingness/social/”love” needs, taken together as a group,
constitute what is known as “deficiency” needs. These writers point out that Maslow's idea was
that without having these needs satisfied, the person will not be able to develop into a healthy
person. The satisfaction of these “deficiency” needs serves as a basis for the development and
fulfilment of the “higher” needs.
Let us now take a look at these “higher” needs:
Esteem/ego needs
These needs can be divided into two groups, namely self-esteem needs and needs concerning
(receiving) esteem from others. The first group is concerned with needs which are related to a
person's self-value and self-respect. These include the need for achievement, independence,
freedom, knowledge and confidence. The second group is concerned with needs that are
related to reputation or prestige that others ascribe to the person. These include the need for
status recognition, attention, respect and appreciation by others (Barnard,1995:42).
Self-actualisation/self-realisation needs
The self-actualisation/self-realisation needs are found at the top of the hierarchy of needs. These
needs are aroused only after all the lower-order needs are met. But as far as these needs are
concerned one should keep in mind that although all of the needs prior to this level have been
satisfied, a person can still feel unsatisfied. Because self-actualisation needs are sometimes also
referred to as self-fulfilment needs, they are associated with the desire to become all that one
is capable of being. At this level of need-fulfilment the individual wants to develop his/her
potential to the fullest. He/she wants to be as creative as he/she can.
An organisation should have incentives in place which could help the person to grow and to
develop his/her potential. When people are working at their maximum potential they become
valuable assets to the organisation. This also implies that an organisation is making effective use
of its human resources.
One can expect that when the educational level of people increases they will tend to seek
opportunities for self-actualisation. Some people might even seek more challenging tasks purely
out of the need for self-actualisation (and not necessarily out of the need for more pay/a bigger
salary). This implies that organisations should cater for the needs of these people, by creating
conditions in which these needs can be met. This is all the more important when the lower-level
needs of these people have been met and when we accept Maslow's notion that a satisfied need is
not a motivator of behaviour.
Evaluation of Maslow's theory
In spite of its intuitive appeal and wide acceptance as an explanation of human behaviour,
Maslow's theory has not been subjected to much research, and even in the cases where its has
been researched in organisations, the data gathered does not seem to strongly support the theory.
It seems as if the hierarchy of needs is a relative issue. There seems to be an overlap between
the different categories of needs. Some people are of the opinion that the physiological and the
safety/security needs should be grouped together in one category, and that the “higher” needs
should be grouped together in another category.
It is also possible that (under normal circumstances) many of people's different needs may be
partially satisfied and partially unsatisfied at the same time. It is also true that we will most
probably find that lower level needs tend to be better satisfied than high-level needs.

35
 Study unit 3
We might also find that for some people it is not important to have the lower level needs
satisfied before they move onto the higher-level needs. A case in point is a dedicated scientist
who works on his own in a laboratory. He/she might literally forget to eat for a long time while
he/she is concentrating on his/her experiments. He/she might not experience the need for social
interaction. For this person the satisfaction of the esteem and self-actualisation needs might be of
the utmost importance.
In some other cases we might find that a person whose physiological and security/safety needs are
(now) being met to a large extent does not “move up the hierarchy” regarding the satisfaction
of his/her “higher” needs, because of previous deprivation regarding the physiological and the
security/safety needs for an extended period of time.
Barnard (1995:45-46) also points out that the social and cultural environment in which a person
grows up, influences his/her behaviour at all motivational levels, but especially at the higher levels.
He refers to one study which compared the need hierarchy of American and Mexican workers
whose working conditions were the same. In the case of the Americans, there was hardly any
evidence that their need for self-actualisation was being met. In the case of the Mexicans this
need was satisfied the second best of all their needs.
Sometimes the fact that unsatisfied needs tend to dominate the behaviour and experience of a
person is seen as a criticism of Maslow's theory. We do not see this as a point of criticism, but
actually as a confirmation of the theory, because Maslow postulated that lower level needs have to
be satisfied to a large extent before the higher level needs come into play.
Baron and Greenberg (1990:81) state that “research testing Maslow's theory has supported the
distinction between deficiency needs and growth needs. Unfortunately, the research has
shown that not all employees are able to satisfy their higher-order needs on the job.” In all fairness
to Maslow, this last fact is not his (Maslow's) fault, but that of the organisations these people find
themselves in!
What the theory of Maslow does do is to make one aware of the diverse needs of humans in
organisations.
A theory which is related to, and to a certain extent an expansion of the need hierarchy theory of
Maslow, is the two-factor theory of Herzberg et al.
The two-factor theory of Herzberg et al

Background to the theory

Frederick Herzberg proposed this theory, also known as the motivation-hygiene theory. Herzberg
believed that an individual's relation to his/her work is a basic one and that his or her attitude
toward his/her work can very well determine the individual's success or failure (Robbins,
2009:146). He wanted to know the answer to the following question: What do people want from
their jobs?
Herzberg and his colleagues started off by interviewing about 200 engineers and accountants in
the Pittsburgh area in Pennsylvania. (This is the reason why Herzberg et al.'s studies are known as
the Pittsburgh studies.) He used the so-called critical incident method to gather his data. The
research subjects were essentially asked two questions:(1) to describe occasions when they had
felt particularly good about their jobs and (2) to describe occasions when they had felt particularly
bad about their jobs. Interviews were then conducted to determine why the persons had felt as
they did, and whether their feelings of satisfaction had had an influence on their work
performance, their interpersonal relationships and their feelings of well-being. They were thus
asked to also indicate what the effect and duration of these incidents had been on their attitudes
and work performance. Their answers were subsequently classified in terms of the factors which
had emerged from the descriptions they gave of the critical incidents. Incidentally, many people
regard the study carried out by Herzberg et al. as one of the most sophisticated studies to have
been conducted in the field of motivation in organisations (Barnard, 1995:47).

36
 Study unit 3
Results of the research
The responses that the research subjects gave were tabulated and categorised in terms of the job
factors that emerged from the descriptions they gave. When these responses were analysed it
became clear that the responses the research subjects gave when they thought back on when they
had felt good about their jobs differed significantly from the responses they gave when they
thought back on when they had felt bad about their jobs. It seemed as if certain job characteristics
tended to be consistently related to job satisfaction, while others tended to be consistently related
to job dissatisfaction. The job factors which tended to be consistently related to job satisfaction
were achievement, recognition, the work itself, responsibility, advancement, and growth. The job
factors that tended to be consistently related to job dissatisfaction were company policy and
administration, supervision, interpersonal relations with supervisor, work conditions, salary, factors
in personal life, status and job security. It also became clear that when the respondents had felt
good about their jobs, they tended to attribute these characteristics to themselves. Sometimes
these factors are also called intrinsic factors. In the same vein, when the respondents had felt bad
about their jobs, they tended to attribute these characteristics to factors outside themselves.
(These are also called extrinsic factors.)
The above-mentioned findings led Herzberg and his colleagues to make a distinction between
what they called “motivators” and “hygiene’s”, because the factors which lead to satisfaction and
thus to motivated behaviour (the motivators) (if they are present) are distinct from those that lead to
dissatisfaction (the hygiene’s) (if they are absent). Also, based on the above findings, Herzberg
and his colleagues were led to believe that the opposite of satisfaction (when the motivators are
present) is not dissatisfaction, but rather “no satisfaction” (when the motivators are absent), and
that the opposite of dissatisfaction (when the hygiene’s are absent) is not satisfaction, but rather
“no dissatisfaction” (when the hygiene’s are present).
The implication of this belief is that the factors which lead to job satisfaction (the motivators
need to be present) are separate and distinct to those which lead to job dissatisfaction (when
the hygiene’s are absent). The further implication of this is that when one really wants to
“motivate” a worker, one should give attention to these two groups of factors separately.
Firstly, one needs to eliminate the factors which lead to job dissatisfaction (the hygiene’s), or, to
put it another way, one should see to it that these factors are attended to so that they do not lead
to dissatisfaction. Once this is done, the worker will be “not dissatisfied”, but he/she will not be
“satisfied.” In order for the worker to become “satisfied” (that is “motivated”) one should attend to
the factors which lead to feelings of satisfaction (the motivators). In this way, once the “hygiene’s”
are in order, they form a kind of a base or a platform on which to build the “motivators.” This idea is
depicted in Figure 2.3

37
 Study unit 3
Figure 2.3: Successful motivation (Barnard, 1995:49)

The factors effecting job attitudes as reported in 12 research investigations that were undertaken
by Herzberg and which included a large variety of careers and types of people are illustrated in
Figure 2.4.
Figure 2.4: Comparison of motivators and hygiene’s (Robbins, 1996:216 Also see
Robbins 2009: 147)

38
 Study unit 3
From Figure 2.4 it is clear that, although the “motivators” appear to be distinct from the “hygiene’s”
(81% of the factors which contributed to job satisfaction were motivators, and 69% of the factors
which contributed to dissatisfaction were hygiene’s), “hygiene’s” sometimes lead to satisfaction
(19% of the factors which contributed to job satisfaction were hygiene’s), and that “motivators”
sometimes lead to dissatisfaction (31% of the factors which contributed to dissatisfaction were
motivators).
The implications of the two-factor theory for motivation in organisations
Barnard (1995:50) points out that Herzberg and his colleagues discovered that the traditional wage
incentive systems, as well as the “human relations” approach did not really motivate employees.
They were also of the opinion that programmes such as sensitivity training, two-way
communication and employee counselling could not give the complete answer to the question of
how employees should be motivated.
Herzberg placed a lot of emphasis on personal growth as a motivating factor, because the need for
personal growth can never be completely satisfied. There are, however, limits to what can be
achieved in organisations regarding making use of the “motivators”, especially if one wants to
implement it by way of changing the nature of the jobs of employees. Jobs can be changed or
enriched, but this results in other changes which have to be effected. There might be employees
who do not wish to have their jobs enriched or changed. Some employees do not have the skills
needed to handle these enriched or changed jobs. There are also limits to the amount of
responsibility people can accept within organisations.
Criticism of the two-factor theory
The two-factor theory is not without its critics. Some of the main criticisms directed at the theory
are the following (taken verbatim from Robbins, 2003:133) (also see Robbins 2009:177-148):
The procedure which Herzberg used is limited by its methodology. When things are going
well, people tend to take credit themselves. Contrarily, they blame failure on the external
environment.
The reliability of Herzberg's methodology is questioned. Since raters have to make
interpretations, it is possible that they may contaminate the findings by interpreting one
response in one manner while treating another similar response differently.
The theory, to the degree it is valid, provides an explanation of job satisfaction. It is not really
a theory of motivation.
No overall measure of satisfaction was utilised. In other words, a person may dislike part of
his or her job, yet still think the job is acceptable.
The theory is inconsistent with previous research. The motivation-hygiene theory ignores
situational variables.
Herzberg assumes a relationship between satisfaction and productivity. But the research
methodology he used looked only at satisfaction, not at productivity. To make such research
relevant, one must assume a high relationship between satisfaction and productivity.

On the positive side, one should mention that the two-factor theory led to something like 40
research studies. Also, most managers are familiar with Herzberg's recommendations. The theory
was probably largely responsible for job enrichment projects being carried out from the mid-1960's,
which allowed workers a greater responsibility in planning and controlling their own work (Robbins,
1996:217-218).

39
 Study unit 3
A comparison of the theories of Maslow and Herzberg
There are indeed some similarities between these two theories. Both assume that specific needs
direct behaviour. There also seems to be a great deal of agreement as to the totality of human
needs (Gray & Starke, 1980:41). The agreement between the two theories might be explained by
referring to Figure 2.5.

Figure 2.5: A comparison of the theories of Maslow and

Herzberg (An adaptation of Barnard, 1995:51, and
Gray & Starke, 1980:41)

According to Figure 2.5 Herzberg's motivators satisfy Maslow's higher order needs, i.e., ego and
self-fulfilment, while the hygiene factors are the equivalent of the physiological, safety, and the
social needs of the need hierarchy.
The differences between the theories of Maslow and Herzberg are set out in Table 2.1.

40
 Study unit 3
Table 2.1: Differences in Maslow's and Herzberg's motivation theories (Gray &
Starke, 1980:43)

Issue Maslow Herzberg

1. Type of theory Descriptive Prescriptive

2. The satisfaction Unsatisfied needs Satisfied needs cause

performance energise behavior; performance
this behavior causes
performance

3. Effect of need A satisfied needs is A satisfied need

satisfaction not a motivator (hygiene) is not a
(except self- motivator; other satisfied
actualisation) needs are motivators

4. Need order Hierarchy of needs No hierarchy

5. Effect of pay Pay is a motivator if it Pay is not a motivator

satisfies needs

6. Effect of needs All needs are Only some needs are

motivators motivators

7. View of motivation Macro view – deals Micro view – deals

with all aspects of primarily with work-
human existence related motivation

8. Worker level Relevant for all Probably more relevant

workers for white collar and
professional workers

Gray and Starke (1980:42) point out that despite the obvious differences in important underlying
assumptions of these two theories, many managers and academics seem to accept both theories.
These two writers find this strange, because “while this may not be quite so illogical as it appears
at first glance, the fact remains that many individuals apparently have not clarified their own
assumptions about work motivation prior to assessing the theories. Thus, the popular acceptance
of these motivation theories may be based more on ease of understanding than on clear thinking.”
(!) (the brackets and the exclamation mark was added).
Alderfer's ERG theory
Alderfer's theory may be viewed as an extension of both Herzberg's and especially Maslow's
theories. Alderfer identified three groups of important needs, namely existence, relatedness and
growth, hence the ERG. The existence needs are concerned with survival or physiological
well-being of the individual, and they correspond to Maslow's physiological and safety/security
needs. The relatedness needs are concerned with interpersonal and social relationships, and
they correspond to Maslow's social needs. The growth needs are concerned with a person's
desire for personal development, and they correspond to Maslow's esteem needs and self-
actualisation needs. It is even possible to compare the need categories of the ERG theory with the
two-factor theory of Herzberg (see Figure 2.6).

41
 Study unit 3
Figure 2.6: The relationship between Alderfer's ERG needs, Maslow's five-level
hierarchy, and Herzberg's two-factor theory (Luthans, 1992:161)

There are, however, important differences between the theories of Maslow and Alderfer.
According to the ERG theory, more than one need may be in operation at a given moment. This
implies that a lower level need need not be substantially gratified in order for a higher level need to
come into operation. A more important difference is the fact that Alderfer in his theory included a
frustration-regression dimension. The frustration-regression dimension implies that if an
individual is unable to satisfy a higher level need, the individual's desire to satisfy a lower level
need increases. The ERG theory does, however, as does Maslow's theory, include a satisfaction-
progression dimension. This dimension implies that after satisfying one level of needs the
individual moves on to the next (higher) level of needs. The aspect of frustration and satisfaction
of needs (according to Alderfer) is depicted in Figure.2.7.
Figure 2.7: The effect of the frustration and satisfaction of needs according to
Alderfer's ERG theory (Moorhead & Griffin, 1989:115)

42
 Study unit 3
According to Robbins (2003:134) ERG theory is more consistent with our knowledge of individual
differences among people. Variables such as education, family background and cultural
environment can alter the importance or driving force that a group of needs holds for a particular
individual. Several studies have supported the ERG theory, but there is also evidence that it
doesn't work in some organisations. Overall, however, ERG theory represents a more valid
version of the need hierarchy.
McClelland's theory of needs

Background to the theory

Murray developed the Thematic Apperception Test (TAT) in the late 1930's. This test consists
of twenty “pictures.” (Actually, they are ambiguous “drawings” which depict different scenes.)
These pictures are then shown to subjects, and they are asked to make up a dramatic story about
each one of the pictures. In writing the stories, they are to answer the following questions: (1)
What is happening here? (2) What has led to this situation? (3) What will the outcome (result) of
this situation be? At that time Murray was of the contention that about twenty basic human needs
which motivated behaviour could be identified. In the early 1950's McClelland and his colleagues
started doing extensive research about three of these needs: the need for power, the need for
affiliation and the need for achievement.
Let us now take a closer look at each of these needs.
The need for power (nPow)
This need is characterised by the desire to have impact, to be influential and to have control
over one's environment. This environment includes financial resources, material resources,
information, and other people. To people with a high nPow, the actual achievement of a goal is not
as important as the means (the exercise of power) by which the goals are reached. According to
Robbins (2003:135) “individuals high in nPow enjoy being in charge, strive for influence over
others, prefer to be placed into competitive and status-oriented situations, and tend to be more
concerned with prestige and gaining influence over others than with effective performance.” (Also
see Robbins 2009: 148).
According to Moorhead and Griffin (1989:122) people with a high need for power can be
successful managers if three conditions are met. (1) They must seek power for the improvement
of the organisation, rather than for the improvement of their own interests. (2) They must have a
fairly low need for affiliation, because when someone has a strong personal need for power he/she
might alienate other employees. (We shall discuss the need for affiliation in the next section.) (3)
They need to be able to exercise plenty of self-control, so that they can curb their desire for power
if there is a possibility that it (the desire for power) may interfere with effective interpersonal or
organisational relationships. In another publication McClelland refers to the exercise of power in
this way as “the positive face of power” (McClelland, 1976:306).
The need for affiliation (nAff)
The need for affiliation has to do with the desire to form strong interpersonal ties and to get
close (on a psychological basis) to other people. It thus is a need for human companionship,
and to be liked and accepted by others (Gray & Starke, 1980:43; Moorhead and Griffin,
1989:122; Robbins, 1995:221). Robbins (1996:221) describes them as people who strive for
friendship, prefer co-operative situations rather than competitive ones, and desire relationships
involving a high degree of mutual understanding. (Also see Robbins 2009: 148)
The need for achievement (nAch)
McClelland is perhaps best known for his work on the achievement motive, although his theory
(that is, the theory about all three motives) is actually concerned with the matching of individuals'
motivation patterns to the organisations in which these individuals are working.

43
 Study unit 3
There are different ways in which to describe the need for achievement. Basically it has to do with
the desire to reach goals or to accomplish tasks more effectively than in the past. The
principal characteristics of an individual with a high need for achievement are depicted in Figure
2.8.
Figure 2.8: Principal characteristics of a person who has a high need for
achievement (Moorhead & Griffin, 1989:120)

A person with a high need for achievement sets him/herself goals which are neither too easy
(because then there is very little challenge involved) or too difficult (because then there is little
chance that he/she will reach the goal). At the same time these goals should constitute a
challenge to the person, so that he/she needs to make use of his/her abilities.
Such a person also wants immediate and concrete feedback on his/her performance. Such a
person is likely to take a job where he/she can get this feedback directly from the job itself (as in
the case of a sales job) or where someone (like a supervisor or a manager) is able to give
feedback as quickly as possible.
A person with a high need for achievement tends to be preoccupied with his/her work, even
when away from the work situation. He/she is forever thinking about his/her work, and does not
like to leave a part of the work unfinished.
The last principal characteristic of a person with a high need for achievement is the tendency for
such a person to take personal responsibility for getting things done. This might constitute a
problem, because such a person does not like to delegate a part of the work to someone else.
McClelland is also of the contention that a person can be trained to become more (or less)
achievement-oriented. The same goes for the need for power and the need for affiliation. This is
done (as was previously pointed out) to achieve a better match between an individual and the
organisation which employs him/her.
We have now discussed four content theories of motivation in organisations, namely Maslow's
theory of a need hierarchy, Herzberg's two-factor theory, Alderfer's ERG theory and McClelland's
theory of needs. Is there any relationship between these different theories? Figure 2.9 is an
attempt to depict the parallels between these different theories.

44
 Study unit 3
1. Figure 2.9: Parallels among the content theories of motivation (Moorhead
& Griffin, 1989:124)

2.2.2 Process theories of work motivation

Equity theory
Equity theory is based on the principle of perceived fairness of procedures; people want to be
treated fairly. Equity is defined as the belief that we are being treated fairly in relation to
others, and inequity as the belief that we are being treated unfairly in relation to others
(Moorhead & Griffin, 1989:133). Gray and Starke (1980:46) state that “the original statement of
equity theory is generally credited to Adams, but other researchers have also contributed to its
development.” (bold-face type added).
Equity theory (as a motivation theory) is thus “... based on the assumption that individuals are
motivated by their desire to be equitably treated in their work relationships. When employees work
for an organisation, they basically exchange their services for payment and other benefits. Equity
theory proposes that individuals attempt to reduce any inequity they may feel as a result of this
exchange relationship. For example, if employees feel either overpaid or underpaid, equity theory
predicts that they will be motivated to resolve the inequity.” (Gray & Starke, 1980:46.)
How do people decide whether they have been treated fairly? They compare themselves with
other people/situations. This comparison takes into consideration the input(s) the person makes
in relation to the outcome(s) he/she receives from these inputs. This “ratio” (outcomes to inputs) is
compared to what he/she (the person) see as the ratio of outcomes to inputs of the
person/people/situation(s) he/she compares him/herself with. This equity comparison
appears as follows: (Moorhead & Griffin, 1989:135)

Outcomes (self compared to Outcomes (other)

Inputs (self) Inputs (other)

45
 Study unit 3
The inputs are the characteristics the person brings with him/her to the job. This includes
characteristics such as race, sex, age, education or experience. What is important to note here is
the fact that these characteristics are subjectively perceived by the person. The outcomes are
those “things” the individual receives from the job, such as pay/salary, promotions and
fringe benefits. Again it is important to note that the person subjectively perceives these
outcomes (Gray & Starke, 1980:46).
What is rather complicated about equity theory is the role of the specific person or situation which
the individual chooses to compare him/herself to (this person/situation is called the referent). It
thus implies that the referent (also called the comparison other) who or which is chosen plays an
important role in equity theory.

Robbins (2003:139) and Robbins (2009: 155) refers to four different

referent comparisons a person can use:
Self-inside: A person compares his/her input to output to that
of experiences in a different position inside his/her current
organisation.
Self-outside: A person compares his/her input to output to
that of experiences in a situation or position outside his/her
current organisation.
Other-inside: A person compares his/her input to output to
that of another individual or group of individuals inside his/her
current organisation.
Other-outside: A person compares his/her input to output to
another individual or group of individuals outside his/her
current organisation.
This implies that a person might compare him/herself to a whole
array of different people or situations: friends, relatives, neighbours,
co-workers, colleagues in his/her own organisation or in other
organisations, and jobs that he/she has held in the past. Figure
2.10 is an illustration of how equity perceptions are formed.

Figure 2.10: The formation of equity perceptions

(Moorhead & Griffin, 1989:134)

The above-mentioned comparisons can result in any of three states (Baron & Greenberg,
1990:82):
Overpayment inequity: This occurs when a person's outcome/input ratio is greater than the
corresponding ratio of the other person with whom that person compares him/herself.
According to equity theory such a person will tend to feel guilty.

46
 Study unit 3
Underpayment inequity: This occurs when a person's outcome/input ratio is less than the
corresponding ratio of the other person with whom that person compares him/herself.
According to equity theory such a person will tend to feel angry.
Equitable payment: This occurs when a person's outcome/input ratio is equal to the
corresponding ratio of the other person with whom that person compares him/herself.
According to equity theory such a person will tend to feel satisfied.
The above-mentioned comparison can also be illustrated by way of Figure 2.11.
Figure 2.11: The comparison process according to equity theory (Baron &
Greenberg, 1990:83)

Now what happens when a person feels inequity? Yes, you are quite right: he/she is
motivated to reduce this inequity. It is considered a truism that the greater the perceived
inequity, the greater the motivation to reduce it (Gray & Starke, 1980:47). On the other hand, if a
person feels equity he/she tends to try and maintain the current situation. The possible responses
to felt equity and inequity are depicted in Figure 2.12.

47
 Study unit 3
Figure 2.12: Responses to felt equity and inequity
(Moorhead & Griffin, 1989:135)

The first two methods of reducing inequity is rather straightforward. (1) A person may
increase/decrease his/her effort, depending on the type of inequity that is felt. (2)A person might try
to alter the outcomes. This may take on a demand for a higher pay/salary, seeking other ways in
which to develop and grow, or it might even go as far as stealing! In these two ways a person
alters his/her own ratio.
A more complex situation arises when a person wants to alter the perceptions of self and of
others. This means that a person has to (3) change his/her original view of the ratio between
his/her own outcomes and inputs, or (4) change his/her original view of the ratio of the comparison-
other regarding the comparison-other's outcomes and inputs.
Another way of lessening inequity is to (5) exchange the current comparison-other for another
comparison-other, who would provide a more valid basis for comparison. Of course, a person
might, as a last resort, simply decide to (6) leave the situation, by resigning or by asking for a
transfer to another job or department (Moorhead & Griffin, 1989:136).
From the above-mentioned methods of reducing inequity it is clear that some involve behavioural
responses (like stealing) while others involve psychological responses (like thinking differently
about the situation). Because many people would feel uncomfortable with stealing from their
organisation (as they indeed should!), they might try to deal with it by thinking differently about the
situation. This implies some kind of psychological process of altering their perception. Another
way of looking at the possible reactions to felt inequity is depicted in Table 2.2.

48
 Study unit 3
Table 2.2: Another way of depicting possible reactions
to felt inequity (Baron & Greenberg, 1990:84)
Possible Reactions to Inequity : A Summary
TYPE OF REACTION
TYPE OF BEHAVIORAL (WHAT PSYCHOLOGICAL
INEQUITY YOU CAN DO IS …) (WHAT YOU CAN
THINK IS …)
Overpayment Raise your inputs (e.g., Convince yourself
Inequity work harder), or lower that your outcomes
your outcomes (e.g., are deserved based
work through a paid on your inputs (e.g.,
vacation) rationalize that you
work harder than
others and therefore
deserve more pay)
Underpayment Lower your inputs (e.g., Convince yourself
Inequity reduce effort), or raise that others' inputs
your outcomes (e.g., get are really higher
a raise in pay) than your own (e.g.,
rationalise that the
comparison worker
is really more
qualified, and so
deserves higher
outcomes)

When one wants to evaluate equity theory, it becomes clear that most of the research thus far
has concentrated on pay/salary and equity/inequity. In general the research confirms the
propositions of equity theory, especially in the case of underpayment.
Baron and Greenberg (1990:85-86) report that the results of an experiment carried out by
Greenberg confirms that feelings of inequity can be created by factors other than the amount
of money received. The participants in the experiment were life insurance underwriters whose
offices were being refurbished. They were temporarily (for a two-week period) relocated to offices
of one of their co-workers. Some were assigned to the offices of higher-status persons, and were
thus considered to be overpaid. Others were assigned to the offices of lower-status persons, and
were thus considered to be underpaid. Still others were assigned to offices of equal-status
persons and were considered to be equitably paid. Finally, a control group continued to work in
their own offices for the two-week period. The results of the experiment are depicted in Figure
2.13.

49
 Study unit 3
Figure 2.13: Responses to inequities in office assignment
(Baron & Greenberg, 1990:86)

Baron and Greenberg (1990:86) not only found that: “..these findings lend strong support to equity
theory, but they show us that people respond to inequities created not only by the money they
receive, but by other rewards as well - such as the status value of their workplaces.”
What are the most important implications of equity theory for organisational behaviour?
Moorhead and Griffin (1989:138) offer the following ideas: It is important that everyone in the
organisation understands the basis/bases on which people receive rewards, whatever form these
rewards may take. One should also take into consideration that people take a multifaceted view of
their rewards; they perceive and experience a variety of rewards, some tangible and others
intangible. Finally, it is very important to remember that people's feelings of equity and inequity are
based upon their subjective perceptions of reality. This again illustrates that there are no easy
answers to organisational behaviour problems.
Expectancy theory
Introduction
The different themes in organisational behaviour can all be approached from different angles or
viewpoints. The same goes for expectancy theory. As the name implies, expectancy theory is
about expectations that people hold, and how these expectancies influence their behaviour in
organisational settings. Actually, there is much more to it (as we shall see). Expectancy theory is
much more complex than equity theory, but at the same time it is also regarded as one of the
theories which perhaps gives the best explanation of the complexities of human motivation and
human behaviour in organisations.
Because expectancy theory is rather complex, one should accept that it is rather difficult to explain
it in a simple manner. What expectancy theory asks for, is some “mind stretching” and the putting
to work of the “little grey brain cells.” Here goes!
Right from the start we need to point out that there are actually different expectancy theories. The
first person to develop an expectancy theory directly aimed at work motivation was a person by
the name of Victor Vroom. What we present now is an adaptation of his original theory in order to
make it more understandable. What thus follows is an effort to make the concepts used in Vroom's
expectancy theory a bit more “user friendly”, but they are basically used in the same sense that
Vroom intended them to be used.

50
 Study unit 3
An “adaptation” of Vroom's expectancy theory
According to expectancy theory, motivation is the result of three different types of beliefs that
people have. Each of these beliefs also implies a certain relationship. The three types of beliefs
and the implied relationships are the following:
Expectancy: This is the belief that one's effort will result in performance. This belief implies an
effort-performance relationship. To take a practical example: If a person believes that the
harder he/she works, the more he/she will accomplish, then one can say that such a person holds
a high effort-performance expectancy. On the other hand a person might be able and willing to
work hard, but he/she might not have the necessary skills or training, or she has to work with faulty
equipment. In this case such a person is more likely to hold a very low effort-performance
expectancy.
Instrumentality: This is the belief that one's performance will be rewarded. This belief implies a
performance-reward relationship. To take a practical example: Even if a person works hard and
performs at a high level his/her motivation is likely to decrease if that performance is not suitably
rewarded by the organisation. In this instance the person is likely to hold a low belief that high
performance is instrumental in bringing about rewards. A case in point is when a person has
reached the top of his/her salary scale, and no further advancement opportunities exist for him/her.
Valence: This belief has to do with the perceived value or attractiveness of the received rewards to
the recipient of the rewards. This belief implies a rewards-personal goal relationship - that is,
the degree to which organisational rewards satisfy an individual's personal goals or needs and the
attractiveness of those potential rewards for the individual. To take a practical example: If a person
would rather like to receive a promotion as a reward for his/her efforts, but he/she knows that the
reward will (only) be in the form of a bonus, such a person is likely to hold a low rewards-personal
goal belief. Such a person's motivation is likely to be low.
According to expectancy theory “motivation is a multiplicative function of all three components.
This means that higher levels of motivation will result when valence, instrumentality and
expectancy are all high. The multiplicative function of the theory also implies that that if any one
of the components is zero, then the overall level of motivation will be zero.” (Baron &
Greenberg, 1990:89.) (bold-face type added).
Figure 2.14 shows the interrelationships of the components of expectancy theory.
Figure 2.14: The interrelationships of the components of expectancy theory (Baron
& Greenberg, 1990:89)

51
 Study unit 3
Figure 2.14 also shows that, according to expectancy theory, motivation is not equal to job
performance. Motivation is only one of several factors which influence job performance. As can
be seen from Figure 2.14 skills and abilities, and role perceptions also play an important role in job
performance. In one of the examples we have already mentioned something about the role of
skills and abilities. Role perceptions have to do with what people think is expected of them. If a
person thinks that he/she is expected to carry out certain tasks, but his/her supervisor expects
him/her to do other tasks, then such a person might be seen as not performing his/her work
adequately (Baron & Greenberg,1990:89-90).
Thus far we have, to a large extent, concentrated on the “traditional” model of expectancy theory.
(We did include the aspects of skills and abilities and of role perceptions.) Next, we pay attention
to the “extended” version of expectancy theory, namely that of Porter and Lawler.
The Porter-Lawler extension of expectancy theory
The “extended” version of expectancy theory is depicted in Figure 2.15
Figure 2.15: The Porter-Lawler extension of expectancy theory (Moorhead & Griffin,
1989:143)

From Figure 2.15 we can gather that initially an individual's effort to a great degree depends upon
the attractiveness (valence) of the potential reward (for example a bonus) he/she can expect if
he/she exerts him/herself (working hard). It also depends upon the perceived probability
(expectancy) that the effort (working hard) will lead to a certain reward (a bonus). Together with
the individual's abilities and traits and role perceptions, effort (exerting him/herself) leads to
performance, which in turn leads to receiving of rewards (a bonus). The individual then judges
how equitable the rewards are. If the rewards are perceived as being equitable, the individual will
feel satisfied. Next time around, the degree of satisfaction with the rewards (a bonus) influences
the value that the individual attaches to the rewards. Also, the performance that followed from the
effort influences the way in which the individual perceives the probability that a certain effort will
lead to certain rewards.
From Figure 2.15 and from the above-mentioned information it is clear that according to the
“extended” expectancy theory performance leads to rewards, and these in turn lead to
satisfaction with the rewards. It is also clear that satisfaction indirectly influences (future)
performance. Also, it is clear that this version of expectancy theory incorporates some of the
notions of equity theory.

52
 Study unit 3
Luthans (1992:165-166) states that Porter and Lawler recommend that one should attempt to
measure the values of possible rewards, the perceptions of effort-reward probabilities, and role
perceptions. Organisations should also take a critical look at the way in which employees are
rewarded. They also stress that one should look closely at the relationship between levels of
satisfaction and levels of performance.
Luthans (1992:166-167) also refers to certain recommendations (which flow from the extended
version of expectancy theory of Porter and Lawler) which have been made to improve the
utilisation of human resources in organisations.
Regarding the relationship between motivation and performance, barriers to performance
should be overcome by ensuring that
people possess the necessary abilities, skills and knowledge to do their jobs;
it is physically and practically possible for people to carry out their jobs;
the interdependence of jobs with other people or activities are taken into account;
ambiguity surrounding the job requirements is kept to a minimum.
Regarding the relationship between performance and satisfaction the following guidelines have
been suggested:
determine what rewards each employee values;
define what the desired standard of performance is;
make it possible for employees to attain the desired standard of performance;
link the valued rewards to the attained levels of performance.
Towards the end of the next section where we refer to job performance we shall be returning to
some of the above-mentioned recommendations.

2.3 JOB SATISFACTION

2.3.1 Factors which influence job satisfaction
Luthans (1992:114) also points out that there are three important dimensions to job satisfaction.
These dimensions are the following:
(1) Because job satisfaction is an emotional response to a job situation, it cannot be seen. This
means that we have to make an inference from an employee's behaviour to determine
whether he/she is satisfied or dissatisfied. Sometimes we try to determine job satisfaction by
asking employees to complete questionnaires which contain questions about a person's
general level of job satisfaction, or about satisfaction with specific aspects of the job/job
situation.
(2) As we have seen from the discussion of the extension of expectancy theory by Lawler and
Porter, job satisfaction is often determined by how well outcomes meet or exceed
expectations. Thus, if some employees feel that they are working much harder than some
of their co-workers, but that they are receiving fewer rewards than the less-hardworking co-
workers, they will most probably be quite dissatisfied with their work, their supervisor and/or
their co-workers. If they, however, feel that they are being treated equitably, they will most
probably be experiencing job satisfaction.
(3) Job satisfaction represents several related attitudes. These attitudes are about five job
dimensions that represent the most important job characteristics. The five job dimensions
are the following:

53
 Study unit 3
The work itself: this is the extent to which the job gives the employee the opportunity
to do interesting work, to learn and to accept responsibilities.
Pay: this refers to the amount of money received and the degree to which it is
perceived as equitable.
Promotion opportunities: the chances for advancement in the hierarchy of the
organisation.
Supervision: this dimension refers to the ability of the supervisor to provide technical
assistance and behavioural support.
Co-workers: this refers to the degree that co-workers are seen as technically proficient
and socially supportive.
To a large degree the five factors which can be seen as the main factors which influence job
satisfaction. Let us take a closer look at the influence these factors exert.
The work itself seems to be a major source of job satisfaction, especially if the work contains
certain characteristics. These characteristics are the following: feedback an employee receives
from the work itself (“telling” him/her how he/she is doing), interesting and challenging work, work
which is not boring, and work which provides status to the employee.
Pay also seems to be a major factor in job satisfaction, because (as we have already pointed out)
the money a person receives not only gives him/her the opportunity to satisfy his/her basic needs,
but also to satisfy higher-level needs. On the other hand, you will most probably remember that we
previously named money the “problematic motivator” (for precisely the same reason we mentioned
in the previous sentence). One can thus assume that pay can sometimes also be a source of
dissatisfaction.
According to Luthans (1992:121) promotional opportunities seem to have a varying effect on job
satisfaction. The reason for this can perhaps be found in the fact that promotions may take on
different forms and may be accompanied by different types of rewards. For example, employees
who are promoted on the basis of work performance tend to experience more job satisfaction than
those promoted on the basis of seniority. Also, a promotion which is accompanied by a 10% rise in
pay will probably not be as satisfying as one which is accompanied by a 20% rise in pay.
Supervision is a moderately important source of job satisfaction (Luthans, 1992:121). It seems as
if there are two dimensions of supervision, or rather supervisory style, which influence job
satisfaction, namely employee-centeredness, and participation or influence. Employee-
centeredness means the degree to which a supervisor takes a personal interest in an employee's
welfare. This personal interest is shown when a supervisor checks to see how well an employee is
doing, when a supervisor provides advice and assistance to the employee, and when the
supervisor communicates with the employee on both a personal and an official level. Participation
or influence manifests itself when a supervisor allows an employee to participate in decisions
which effect his/her (the employee's) own job. In this regard it seems more important for the
supervisor to create a climate of participation, than to let employees take part in specific decisions.
It seems as if co-workers, or rather the work group of which an employee is a member, is a
modest source of job satisfaction (Luthans, 1992:122). The work group can be seen as a source
of support, comfort, advice and assistance. This leads to the employee finding the job more
enjoyable. Apparently, this factor is not essential to job satisfaction. At the same time, though, if
the work group is difficult to get along with, it will have a negative effect on job satisfaction.
An aspect which was not mentioned as part of the five dimensions that were listed in the previous
section, is working conditions. It seems as if working conditions only have a modest effect on job
satisfaction (Luthans, 1992:122). Their effect on job satisfaction works in much the same way as
the work group. This implies that if working conditions are fine, there will be no job satisfaction
problems: If they are poor, there will be. It actually seems as if employees generally do not give
much thought to working conditions, unless they are extremely bad. Also, when employees

54
 Study unit 3
complain of working conditions, something else is usually bothering them. In such cases they use
working conditions as a kind of a smokescreen.
According to Moorhead and Griffin (1989:89) a person's needs and aspirations can effect
satisfaction. If a person wants to be in a high-status position, gaining such a position will probably
enhance that person's level of job satisfaction. The instrumental benefits of the job or the
extent to which it (the job) enables the employee to achieve other ends also play an important
role in satisfaction. A person who is studying towards a degree might take a particular job on a
temporary basis because it allows him/her to attend classes while paying enough to cover his/her
costs of studying. He/she may be quite satisfied with the job as long he/she is studying but might
be considerably less satisfied with the same job on a permanent basis.

2.3.2 The consequences of job satisfaction and job dissatisfaction

In the literature on organisational behaviour mention is usually made of two main consequences
of job satisfaction and job dissatisfaction. These two consequences are employee turnover and
employee absenteeism.
It seems as if there is a moderate inverse relationship between satisfaction and turnover. We
say this because high job satisfaction does seem to help to keep turnover low, but will not, in and
of itself, keep it low (Luthans, 1992:123). If, on the other hand, there is high job dissatisfaction,
turnover is likely to be high. The reason for this moderate relationship between satisfaction and
turnover is the fact that a host of other factors play a role in an employee's decision to keep or quit
his/her job. One obvious factor is the state of the economy, which influences the scarcity or
abundance of jobs. Any person will think twice about quitting his/her job when the economy is
tight.
From the research which has been done it seems clear that there is (also) an inverse relationship
between satisfaction and absenteeism. That is, when employees are highly satisfied, they tend
to be less absent from work; when they are highly dissatisfied, they tend to be more absent from
work. Again, there are other factors which influence this relationship. One such factor might be
the degree to which an employee feels that his/her work is important. If a person feels that his/her
work is important, he/she will be less likely to be absent from work. Much as is the case with the
relationship between turnover and satisfaction, high job satisfaction will not necessarily result in
low absenteeism, but low job satisfaction is likely to bring about high absenteeism (Luthans,
1992:123-124).
If one equates “the factors which influence job satisfaction” with “causes of job satisfaction” one
can perhaps summarise that which we have been discussing thus far in the last two sections by
making use of Figure 2.16.

55
 Study unit 3
Figure 2.16: Causes and consequences of job satisfaction (Moorhead & Griffin,
1989:89)

A more “problematic” relationship is that of satisfaction and performance/productivity.

When we were discussing the human relations approach to behaviour in organisations the notion
that a satisfied worker is also a productive worker, came to the fore. On the other hand, when
we were discussing the “extended” expectancy theory of Lawler and Porter, mention was made
of the possibility that performance might lead to satisfaction. Which of these two notions is the
correct one? There is no simple answer to this question.
What is true, however, is the fact that research results show us that in some cases there is a
negative relationship between satisfaction and performance (Perhaps the employees are so
satisfied that they do not work!), in some cases there is a positive relationship between
satisfaction and performance (the more satisfied a person is, the better he/she performs), and in
some cases there are very few signs of such a relationship. During the mid-1950's Brayfield and
Crockett made a summary of all the research that had been done up to that time on the
relationship between satisfaction and performance. They found that the median (or middle value)
correlation between satisfaction and performance was something like 0,12, which is extremely low.
This implies that there are other factors which play a role in this relationship. What is more
important, however, is the fact that the following question still remains: Does satisfaction lead
to performance, or does performance lead to satisfaction?

Gray and Starke (1980:54) are of the opinion that, instead of asking “Is a satisfied worker a
productive worker?” we should first ask, “Is a satisfied worker a motivated worker?” They say that
this question should come first because motivation to perform is normally a prerequisite for
performance on the job. (See discussion of expectancy theory.) Upon examination, the above-
mentioned seemingly simple question becomes quite complex.”

After discussing the implications of Maslow's theory of a need hierarchy and Herzberg's two-factor
theory for answering the above-mentioned question, Gray and Starke (1980:55) conclude that an
individual with a high level of overall job satisfaction is more likely to continue employment. (We
have also earlier on established this “fact”!) Through continued employment and the exhibition of
job behaviour, this individual will receive certain job rewards and experience some level of need
satisfaction in the work place. The level of need satisfaction in the work place and the equity of
these rewards lead to a general attitude towards the job. This attitude can be regarded as the
overall job satisfaction of the individual.

56
 Study unit 3
In general, a satisfied individual is not necessarily motivated. However, an individual who
experiences overall job satisfaction is more likely to remain with the particular organisation (all
other things being equal). In this way the individual is able to exhibit job behaviour that is indicative
of job motivation. Thus, Herzberg's assumption that a satisfied individual is a motivated one may
be interpreted as correct in this context. What is also true, however, is the fact that the relationship
between overall job satisfaction and motivation is quite indirect and tenuous.
The link between motivation and performance/productivity is also not a simple one, because
there are many other important factors which influence employee performance, besides
motivational levels. These factors are the following (Gray & Starke, 1980:55-57):
We have already referred to the role of task and technology: In this instance poorly/well-
designed tasks and poorly/well-functioning machinery hinders/helps performance.
We have also previously referred to the fact that individual abilities and role perceptions
play an important role in performance.
The same goes for the role of group norms (remember the men in the Bank Wiring
Room?). To this we can add the importance of within-group co-ordination where
applicable. This simply means that in some instances it is important to co-ordinate the efforts
of individual members of a group in order to ensure high performance by the group in its
totality.
Another factor, between-group co-ordination, is one of an organisational nature. In this
case it means that the efforts of different groups within an organisation need to be co-
ordinated in order to ensure high performance by the organisation in its totality.
Environmental factors also influence an individual's performance. These environmental
factors include the clients or customers of an organisation, or individuals, groups or
organisations with which the individual's organisation has dealings: “The ease with which
inputs are obtained from these other social entities aids or hinders individual productivity
irrespective of motivational levels.” (Gray & Starke, 1980:57.)

2.4 AN INTEGRATIVE VIEW OF THE SATISFACTION-

MOTIVATION-PERFORMANCE/PRODUCTIVITY
RELATIONSHIP
Figure 2.17 is an effort to integrate motivation, performance,/productivity and satisfaction in one
model.

57
 Study unit 3
Figure 2.17: An integrative model of the satisfaction-motivation-
performance/productivity relationship (Gray & Starke, 1980:58)

According to Figure 2.17 we need firstly to determine what the interrelationship of need
satisfaction, need structure and job motivation is for employees. If we are unable to influence
motivation in this way, we need to look toward other work-related areas. For instance, it might be
necessary to improve the design of jobs. These steps should help us to clarify the link between
motivation and satisfaction.
Next we need to look at the link between motivation and performance/productivity. In the
previous paragraph mention was made of different factors which might influence this link. The
role of specific factors needs to be determined for each situation.
We also need to keep in mind that the level of performance in an organisation is one of the
factors which determine the rewards individuals receive. This implies that the level of rewards is
also one of the factors determining need satisfaction. In some cases the relationship between
performance and rewards is a rather direct one. A case in point is where someone is paid on the
basis of a piece-rate system. In some other cases this relationship is indirect. This, for instance,
would be the case where a manager receives a bonus based upon the performance of his
department. In some cases people even receive rewards just by staying on in their jobs.
In general, then, rewards and need satisfaction follow performance and do not precede it: On
the other hand, the continuous circle of need structure, motivation, productivity, and need
satisfaction seems to indicate that prior levels of need satisfaction effect later levels of productivity.
Note that need satisfactions are distinct from overall job satisfaction. The former has to do with the
level of need fulfilment whereas the latter is an attitude. (Gray & Starke, 1980:58).

58
 Study unit 3
We also need to take into consideration that, according to equity theory, when a person receives a
reward, he/she generally makes comparisons to see whether the reward is equitable: “The
greater the agreement (as subjectively perceived by the employee) between the expectations of
rewards and the rewards actually received, the greater the probability that overall job satisfaction
will result. Thus, need satisfaction (or dissatisfaction) and perceived equity of rewards cause
overall job satisfaction with pay, supervision, co-workers, and so on. Research indicates that
there are two distinct aspects of job satisfaction: facet satisfaction (i.e., satisfaction with specific
facets of the job, of which pay is one) and overall job satisfaction (a composite of all the
individual facets). Despite satisfaction with some facets of the job, an employee may be
dissatisfied with the overall job and vice versa.” (Gray & Starke, 1980:58-59.) (We added the bold-
face type.)
According to Figure 2.17, a person's overall job satisfaction plays a role in his/her continued
employment. We have already seen that overall job satisfaction is related to turnover. If a person
remains in the organisation, he/she continues to receive rewards which are associated with
continued employment. Note that, according to Figure 2.17, need satisfaction appears in the
causal chain for productivity; overall job satisfaction does not. Perhaps this distinction between
need satisfaction and overall job satisfaction helps to explain some of the inconsistencies
regarding the relationship between satisfaction and performance.

59
 Study unit 3

3 STUDY UNIT 3

3.1 DEFINITION AND DIFFERENT APPROACHES TO

OCCUPATIONAL STRESS
As in the case of stress in general, different definitions can be used for occupational stress. Stress
in general differs from occupational stress in the sense that occupational stress is related to factors
at work. Different definitions of stress can be attributed to the different approaches researchers
have taken toward the concept of stress at work. Traditionally, research has focused on the
person-environment fit approach (French, Kaplan & Harrison, 1982) towards the explanation of
stress at work. Here, stress is viewed as the result of a non-fit between the individual’s attributes
and the demands of the environment. In the demand-control model (Spielberger & Vagg, 1999:4)
stress is the result of high demands placed on the individual where the individual has little control
over the situation. More recently, researcher has focused on the transactional approach (Cooper,
Dewe & O’Driscoll, 2001:12) where stress is viewed as a transaction between the individual and
his/her environment. In this approach, the individual makes a cognitive appraisal of his/her
interaction with the environment and attempts to deal with this interaction by selecting the
appropriate resources at his/her disposal.
But what do these different approaches mean in terms of our understanding of occupational
stress? At this juncture it is important to note that these approaches towards stress and work are
based on different assumptions about the nature of the occupation-stress relationship. In the
person-environment fit models, stress is assumed to be attributed to factors within the
individual. Development of theories along these lines focused on the identification of individual
characteristics that could predispose individuals to experience stress at work. The demand-control
model of stress assumes that stress is the result of environmental factors which renders the
individual vulnerable to the experience of stress, in other words in situations where little or no
control or influence over their environment exists. Theory development proceeded to identify
situational factors where little or no control to influence their environment exists for the individual.
Broadly speaking, these approaches towards occupational stress can be broadly characterised as
an interaction-approach towards occupational stress.
According to Cooper, Dewe and O’Driscoll (2001:11) approaches to the study of occupational
stress can be viewed from either an interaction or transaction perspective. The interaction
perspective takes a stimulus-response approach to the study of the occupation-stress
relationship, in other words the environment provides the stimulus and the individual responds in a
certain manner.
The transactional perspective views the relationship between an individual and their environment
as a dynamic, ongoing transaction; the individual process the stimuli from the environment and
decide how to respond to stimuli; the relationship is not a passive, once-off response to the
environment as is the case in the interactionist approach.
In the transactional approach, the relationship between work and stress is taken a step further,
beyond the identification of general attributes and situational variables. In this approach it is

60
 Study unit 3
assumed that the relationship between work and the experience of stress is a dynamic one.
Therefore, the individual interacts with his/her environment and cognitively evaluates their
experience with the environment by determining which resources are available to deal with
the environmental stressor. Stress is then assumed to be the result where the individual
perceives the demands of the environmental interaction too great for the available resources to the
individual’s disposal. Theory development therefore, takes the individual attributes, the situational
demand as well as the process of interaction into account.
These models/approaches represent different ways in which the relationship between stress
and work can be understood. None of these are more correct than the other, but represent
different assumptions about the occupation-stress relationship which has shaped theory
development.
Luthans (1992:400) defines occupational stress as an adaptive response to an external situation
that results in physical, psychological, and/or behavioural deviations for people who work in
organisations. This implies that people respond in different ways to adapt to the fact that they are
subjected to certain “stressors” (external situations) at work. These responses may result in
something physical (for example high blood pressure), something psychological (for example
anxiety), and/or in the person exhibiting (a) certain behaviour(s) (for example acting erratically).
What approach does this definition take? Yes, you are right – this definition views occupational
stress from an interaction perspective, because the response of the individual to stressful stimuli in
the environment is taken as a point of departure.

According to Robbins, Odendaal and Roodt (2003: 420) stress “…is 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”.

Luthans (1992:400) also points out that it is important to note that stress is not the following:
Simply anxiety: According to Luthans anxiety operates solely in either the emotional or
psychological sphere, whereas stress operates in both these spheres, but also in the
physiological sphere. Stress may be accompanied by anxiety, but the one should not be
equated with the other.
Simply nervous tension: Nervous tension may result from stress, but the two are not the
same. Luthans refers to the fact that sometimes people who are unconscious exhibit stress.
Also, sometimes people keep stress bottled up. This means that they do not reveal the
stress through the display of nervous tension.
Necessarily something damaging, bad or to be avoided. Most probably you will recall
that eustress (“good” stress) is not damaging or bad and that it is something that people
should seek out rather than avoid. The important point here is how one handles the stress,
because stress is inevitably part of organisational life. On the other hand, distress should be
prevented or effectively controlled.

61
 Study unit 3

3.2 THE MAJOR CAUSES (SOURCES) OF OCCUPATIONAL

STRESS
3.2.1 Causes/sources of occupational stress that lie outside
organisational boundaries
According to Luthans (1992:401) people often ignore the important role which outside forces can
play in occupational stress. When we regard an organisation as an open system (which is the
stance we take in this module), it is inevitable that forces outside the organisation can play an
important role in the occupational stress which employees experience inside the organisation.
The rate of social and technical change
Despite the fact that people nowadays have a much longer life expectancy due to advances in the
medical sciences, better nourishment and the like, the modern employee is subjected to the so-
called “rat-race” and the fast pace of life. This has led to a decrease in personal wellness. This
personal wellness is defined as a harmonious and productive balance of physical, mental, and
social well-being (Luthans, 1992: 402). The “rat race” and the fast pace of life have also increased
the potential for occupational stress.
The family
Family situations (crises, strained relations), relocation of the family, and changes in the financial
situation of the family can act as significant stressors for employees. Sometimes these stressors
are called unresolved environmental demands that require adaptive behaviours in the form of
social readjustments that employees need to make.
Life changes
As these life changes have already been mentioned in previous modules,, we will not be
presenting them again. What is important though, is the possibility that these changes cause the
person who is being effected by them sometimes to not be capable to focus on his/her work.
Race, sex, social class and community
Sometimes minority groups are subjected to more stressors than majority groups. It seems as if
women experience more psychological distress than men. Especially in the case of professional
women the sources of stress are located in discrimination, stereotyping, balancing the demands of
work/career and family and experiencing social isolation. Men are more likely to suffer from severe
physical illness due to stress. It may also be that people in different socio-economic classes
(lower, middle and higher) are exposed to different groups of stressors. People in a certain
community might also be subjected to particular kinds of stressors. Such stressors might include
bad housing conditions, lack of services, and noise and air pollution.
Environmental factors
Robbins (2003:420) and Robbins (2009:5001) refers to the following environmental factors which
might act as stressors: economic uncertainty, political uncertainty and technological
uncertainty. Technological uncertainty arises from the fact that technological changes and
innovations can make a person's skills and knowledge obsolete/unusable. Such innovations
include the use of automated production processes, the use of robots in production processes, and
the use of computers and computer technology. These changes and innovations lead to the fear
of losing one's job, which in turn might lead to the experiencing of stress. You have most probably
noticed that in a certain sense some of these “environmental” factors can also be regarded as
organisational factors. During times of economic uncertainty people tend to become worried
about their work security, which might lead to feelings of stress. Political uncertainty may have
much the same effect, such as the political turmoil that a country such as Zimbabwe experienced
during the elections in 2002.

62
 Study unit 3
3.2.2 Organisational causes (sources) of occupational stress
Introduction
There are different ways of categorising and discussing organisational causes/sources of
occupational stress (also called stressors). Luthans (1992:404) refers to four main groups of
organisational stressors, with each group containing a list of specific stressors. The four main
groups of stressors are policies, structures, physical conditions and processes. These four groups,
together with the specific stressors, are depicted in Figure 3.1.
Figure 3.1: Organisational stressors (Luthans, 1992:404)

Baron and Greenberg (1990:226-231), Organ and Bateman (1986:386-392), Robbins (2003:421)
and Robbins (2009: 501) refer to the following organisational factors which may act as stressors:
task demands, role demands, responsibility for others, interpersonal demands, organisational
structure, organisational leadership, lack of participation in decision-making, the organisation's life
stage, and the nature of specific jobs. Let us take a closer look at these factors. According to
Cooper, Dewe and O’Driscoll (2003:43-52) organisational factors should also include career
development and the home-worklife interface (home-worklife balance).

63
 Study unit 3
Task demands
Task demands are directly related to a person's job, and include aspects like job design, working
conditions and the physical layout of the work place.
Job design refers to aspects such as the degree of autonomy the person is allowed, the variety of
tasks which he/she has to perform, the amount of tasks that has to be performed and the degree to
which he/she has to keep up with the speed of something like an ever-moving assembly line.
When a person perceives that the speed of an assembly line is excessive, this leads to the
experiencing of stress. Generally speaking, the less autonomy a person is allowed, the more
stress he/she experiences. Most people like to have some variety in their work, but sometimes
people experience too much variety in their tasks as being stressful. When there is great
interdependence between the person's tasks and the tasks of others, the person is likely to
experience stress. In terms of the amount of work that has to be completed, it can be said that
both too much tasks (overload), stress can be experienced. In the case of too little tasks
(underload) feelings of anxiety due to boredom can also result in stress being experienced. Finally
working in an overcrowded room, or where one is visible to everybody else, can also cause
feelings of stress. Excessive heat, cold, humidity, dryness in the air (perhaps due to the
malfunctioning of air conditioning), and noise can also increase stress. (Remeber the discussion on
the Hawthorne-experiments in study unit 1 where working conditions were studied with regards to
it’s effect on performance).
Role demands
Role demands relate to pressures which are placed on a person because of the particular role
he/she plays. The following role demands are often mentioned: role conflict, role ambiguity, and
role overload/underload.
Role conflict
A person experiences role conflict when different people hold different expectations of what a
particular person should do, and it is difficult for that person to satisfy or reconcile the different
expectations. Role conflict can also be defined as “... the simultaneous occurrence of two (or
more) sets of pressures such that compliance with one would make more difficult, or impossible,
compliance with the other” (Organ & Bateman, 1986:388-389). An example of the experiencing of
role conflict is when a supervisor is being pressurised by his/her superiors to get the maximum
production out of his/her subordinates, but at the same time he/she needs to be on the lookout for
signs of dissatisfaction in his/her subordinates, because that might lead to turnover and
absenteeism.
It seems as if role conflict can be associated with greater levels of interpersonal tension, lower job
satisfaction, lower levels of trust and respect for persons exerting the conflicting role pressures and
a decrease in confidence in the organisation in question. It seems as if role conflict cannot be
completely eliminated from organisations. What is most probably true, however, is that it can be
kept under reasonable control by taking into account the various roles which a person has to play,
the relationship between these roles and the relationship between different roles in an
organisation. These aspects should be taken into account when one is busy with an aspect such
as organisational design (Organ & Bateman, 1986:389). In study unit 9 we will be discussing
organisational design.
Role ambiguity
When a person does not clearly understand what he/she has to do or what is expected of him/her,
role ambiguity develops (Robbins, 2003:421; Robbins, 2009:501). Another way of putting it is to
say that role ambiguity constitutes the uncertainty that surrounds one's job definition. This is
uncertainty regarding the expectations that others hold of one's job performance, the steps one
needs to take to meet those expectations, and the consequences of one's work behaviour. It is
important to take note of role ambiguity, because you will remember that motivation has to do with
goal-directed behaviour. It is also important to remember that efficient goal-directed behaviour is

64
 Study unit 3
based on the predictability of future events (Organ & Bateman, 1986:389). Organ and Bateman
(1986:389) continue: “To this might be added the observation that instrumental behaviour depends
on achieving some degree of clarity on what goals are relevant and on what behaviour is essential
in moving towards those goals. A person with a high degree of role ambiguity simply has no plans
to guide behaviour.”
Due to the uniqueness of each person, individuals differ vastly in the extent to which they find role
ambiguity stressful. Some individuals seem to thrive on role ambiguity, while others need structure
in their lives at work.
There are also other organisational factors which play a role in the degree to which role ambiguity
is being experienced as stressful. One of these factors is the general level of pressure that is
associated with demands which are made on individuals within an organisation. In cases where
the consequences of one's actions are evaluated in a rather harsh manner, it is to be expected that
role ambiguity is viewed as something negative and stressful. If one works in a situation where the
climate is more protective and supportive, one might find that role ambiguity is more tolerable. In
such a situation, one might sometimes even find role ambiguity preferable to highly structured
ways of carrying out one's tasks. This is understandable, because when one experiences quite a
bit of freedom, autonomy and discretion in one's job, one can surely expect to find that it is
accompanied by some degree of ambiguity. Organ and Bateman (1986:389) quite rightly point out
that, generally speaking, the least ambiguous organisational roles are those associated with
assembly line work or clerical office work, but that these types of work are not sought by people
who like to be creative in their work.
We have already pointed out that role ambiguity is sometimes unavoidable in organisational
settings. In these situations a more supportive climate has to be provided, or special attention and
guidance should be given to people who have a low tolerance for ambiguity.
Role overload
Under normal circumstances each of us has a rough idea of what constitutes “a good day's work”.
Under these circumstances we have enough work to keep us busy for the whole work-day. At the
same time we are able to attend to the necessary detail of our work. At the end of such a normal
work-day, we still have enough energy left to attend to personal matters and also to partake in
leisure activities. Alas, for some of us the situation we have just described remains a dream. Most
of us have so much to do, and so little time in which to do it. When a person is expected to do
more than the time available permits him/her to do, he/she is experiencing role overload. It is true
that almost everybody experiences role overload from time to time, but for some people role
overload is a chronic thing they have to contend with. For these people role overload can be seen
as a stressor, because it places a demand on them to adapt to the situation (Organ & Bateman,
1986:386-387).
There are different ways of classifying role overload. To put it another way: there are different
types of role overload. Organ and Bateman (1986:387-388) distinguish between the following
types of overload: working long hours, meeting deadlines and responding to time pressures,
qualitative overload, and having many separate, essentially unrelated tasks to perform. Let us take
a closer look at each of these.
Having to work long hours on a single task or a group of closely related tasks is probably the
simplest type of role overload. Perhaps it is also the easiest type of role overload to deal with.
A more problematic type of role overload is the meeting of deadlines and the experiencing of time
pressures. It is important to realise that deadlines in themselves are not regarded as stressors.
They only become stressors when the person/s that are subjected to them perceive them to be
unreasonable.
A person experiences qualitative overload when he/she does not have the skills to meet the
requirements of the job. There can be different reasons for such a situation. It might occur when a
person who is not yet familiar with all the aspects of the job is given a very difficult task to execute.

65
 Study unit 3
It might occur when something went wrong during the selection process, when either the person in
question “oversold” him/herself, or the organisation erred by selecting a person who was obviously
not suited for the job. There might also be other reasons. Perhaps the person was selected on the
basis of potential, but this potential had not been developed. Whatever the reason, the result is a
person who is forever struggling to cope with this job, and who is experiencing constant stress and
anxiety
Sometimes an individual has to carry out many separate, essentially unrelated tasks. It is not
simply a case of spending long hours at work, or having to meet deadlines or being unable to carry
out the tasks. The problem is that the nature of the work is such that it forces the individual to
constantly shift his/her attention to the different tasks and to handle interruptions. Every time the
person shifts his/her attention, he/she invests “start-up time” in order to orientate him/herself to the
new task/situation, and this leads to the experience of stress. People who do general
administrative work (such as lower-level supervisors) are especially prone to this type of role
overload. It really becomes problematic when the following happens:
When the individual is unable or unwilling to delegate some of his/her tasks to his/her
subordinates.
When the individual is unclear as to where the real responsibilities of his/her job begin
and end, and is likely to accept more and more responsibilities.
When the individual is unable to say no to new requests because he/she is afraid of
receiving a reprisal or of alienating someone, or of creating a bad image.
One striking characteristic of this type of overload is the fact that it is something which develops
slowly. At first, the individual in question is willing to carry out (or even volunteers to carry out)
different tasks which come his/her way, because he/she views these tasks as being of a limited
nature. As the individual tries to carry out these different tasks to his/her best ability, other people
start viewing this individual as one who can be counted on. The more the individual lives up to this
expectation, the more other people bring him/her tasks to carry out. Thus this individual is caught
up in a vicious spiral, to such an extent that he/she starts doing tasks which are falling outside the
boundaries of his/her job description. This might mean that the individual has to work longer hours
to accomplish all these tasks that leave him/her with less time for relaxation/leisure, to spend with
his/her family/friends, and to finish the tasks that he/she is really supposed to carry out. In an
ongoing situation it is rather difficult to break this vicious circle. Only when such a person takes
extended sick leave or resigns can he/she really rid him/herself from this type of role overload
(Organ & Bateman, 1986:388).
Role underload
Sometimes role underload can also act as a source of stress. Role underload means that one has
too little to do. The vexing thing about role underload is illustrated by the following quotation: “The
hardest job in the world is doing nothing - you can't take a break.” (Baron and Greenberg,
1990:228). As one can expect, when one is experiencing role underload, it leads to feelings of
boredom and monotony. As in the case of role overload, there is also a distinction between
qualitative and quantative underload. Qualitative underload is noticeable in many routine,
repetitive types of jobs, where there is a lack of mental stimulation. Quantitative underload is
noticeable when people have so little to do that they sit around much of the time, with the result
that they become bored.
Responsibility for others
In any organisation we find that there is a division of responsibility. Some people are responsible
for the more physical side of the operations within an organisation, such as obtaining the
necessary supplies, directing production and maintaining equipment. Some people are
responsible for financial matters, such as budgets, taxes and accounting. Other people, like
supervisors and managers, are primarily responsible for people and their behaviour. There are
differences in the levels of stress associated with these different fields of responsibility.

66
 Study unit 3
People, such as supervisors and managers, who are responsible for other people and who must
motivate them, reward or punish them and communicate with them, are more likely to experience
higher levels of stress than people who are responsible for the other functions. They are the
people who are more likely to show symptoms of stress, such as ulcers and hypertension, and to
report feelings of tension and anxiety. There are complex factors which play a role in this regard,
of which we will mention only two. Supervisors and managers are the ones who must speak to
someone who errs or whose work is not up to standard. They are the ones who must face the
reaction of the person involved. They are also the ones who must listen to endless complaints, act
as mediators in disputes, promote co-operation and exercise leadership. This implies that they
have to deal with the many frictions that are a normal part of managing human relations in the work
situation. All these tasks take their toll in the form of stress experienced by supervisors and
managers.
Interpersonal demands
Interpersonal demands are pressures, which are created by other employees. These pressures
can develop out of poor interpersonal relationships and a lack of social support. From study
section 1.2 we learned that some people display strong social needs. If these needs are not met, it
can lead to the experiencing of stress.
Organisational structure
The organisational structure defines the level of differentiation in the organisation, the degree to
which the organisation is run by rules and regulations and at what levels decisions are made. In
an organisation which is characterised by a high degree of differentiation, different sections or
departments sometimes tend to function on their own. If there is no efficient way in which the
efforts of the different departments or sections can be integrated, people who function in jobs
which depend on this integration might experience the situation as stressful. When there is
excessive dependence on rules and regulations, and when individuals have no participation in
decisions which effect them, it might be a source of stress.
Organisational leadership
Organisational leadership represents the managerial style of the senior executives of the
organisation. Sometimes these executives follow a managerial style that leads to feelings of fear,
tension, and anxiety in subordinates. They do this by putting pressure on subordinates to perform
in the short run, by imposing excessively tight controls, by routinely firing people that cannot stand
the pace, and by criticising employees in the presence of other employees.
Lack of participation in decision-making
Lack of participation in decision-making as a source of stress is in a certain sense related to the
previous one. Most people want to feel that they have at least some control over their own fate.
Sometimes, though, people may be experiencing feelings of lack of control over their own fate.
One factor in the work situation which might lead to such feelings of hopelessness is lack of
participation in decisions that effect their work. Why is this the case? Most probably because most
people who are able to perform their work satisfactorily can be regarded as “experts” concerning
their own jobs. No wonder then, that they feel left out and unable to control their own destiny if
they do not have the opportunity to give their own views when decisions about their work are being
taken. As a result, they experience stress. Luthans (1992:409) refers to a study which was carried
out by Cornell University medical researchers in this regard. The researchers found that those
workers who experience a loss of control, especially in relatively low-level jobs, have triple the risk
of developing high blood pressure. The researchers concluded that lack of control turns stress into
physical problems. They also found that if a high-stress job included latitude to control the
situation, there was no increase in blood pressure.

67
 Study unit 3
Organisation's life stage
Organisations go through a cycle that consists of different stages. These stages can be described
as establishment, growth, maturity and (in some cases) decline. The stage in which an
organisation finds itself can create stress for the people inside the organisation. The establishment
stage is very stressful, because there is a great deal of excitement and uncertainty present. The
decline stage is also particularly stressful, because it is characterised by cutbacks and layoffs,
which bring along a new set of uncertainties.
The nature of specific jobs
Organ and Bateman (1990:226-227) refer to the fact that some jobs (taken as a whole) are more
stressful than others.
The jobs of emergency room physicians, fire-fighters, airline pilots, production managers, and
foremen especially, expose the people who hold them to high levels of stress. Why is this? The
answer to this question is found in the particular characteristics of these and other widely different
“stressful” jobs. These jobs require of the people who hold them to a great extent to make
decisions, to constantly monitor devices or materials, to repeatedly exchange information with
others, to work in unpleasant physical working conditions, and to perform unstructured rather than
structured tasks. One should take note of a remark which Baron and Greenberg (1990:227) make
in this regard: “Moreover - and this is the most important point - such relationships were found to
be quite general in nature. Thus, the greater the extent to which virtually any job possesses these
characteristics, the higher the level of stress it produces among persons holding it, regardless of
the specific tasks being performed.”
Career development
In recent years the concept of career has undergone significant transformation (Cooper, Dewe &
O’Driscoll, 2003:43). Nowadays, linear career progression is no longer happening and might not
even be a desired option for some. Furthermore, employment contracts have become more fluid
and are negotiated to meet diverse employment requirements. Nonetheless, research has shown
that lack of promotional opportunities and career progression can prove to be significantly stressful
for people. Furthermore, even though equal opportunities has been on the agenda in recent times,
women and minority groups still experience organisational barriers towards the development of
their careers and much is still needs to be done to correct it.
Whereas lack of opportunities for advancement and development have been linked to stress, the
flipside of the coin is also true: the promotion and career advancement of employees who are not
ready for it. The fact that employees might not possess the required skills due to inadequate
preparation and training can have significant effects on individual well-being and satisfaction levels
of these individuals when placed in jobs where they might feel pushed beyond their capabilities.

Home-worklife balance
In recent years, researchers have devoted considerable attention to the management of the
interface between one’s job and the various roles and responsibilities off the job (Cooper, Dewe &
O’Driscoll, 2003:50). Family structures have changed, women are increasingly participating in the
workforce and technological advances (e.g. portable computers, cell phones, etc.) have
contributed to a significant blurring of boundaries between the job and off the job; changes which
helped to increase the potential conflict between roles on the job and off the job. Where does one
draw the line? This potential conflict increases the likelihood of these diverse roles to become a
significant stressor for employees, especially for women, employed parents and dual-career
couples.
A further stressor in the home-work interface seems to be the danger of becoming redundant. In
the new economy, layoffs seems to be rife in the context of mergers and downsizing where
companies decrease levels of management in order to stay profitable. Even though a clear-cut

68
 Study unit 3
answer in terms of the effectiveness of the impact of these strategies on the bottom line are
debatable, one thing is certain: feelings of job insecurity prevails. This fear that you can loose your
job has been identified as one of the most salient sources of stress for employees of the new
millennium at all organisational levels (Cooper, Dewe & O’Driscoll, 2003:45).

3.2.3 Individual factors

Robbins (1996:614-615) and Robbins (2009:502) refers to three individual factors, namely family
problems, economic problems and personality. In paragraph 3.2.1 we already touched on family
problems. To a certain extent we have already looked at economic problems. Robbins (1996:615)
and Robbins (2009:502), however, refers to economic problems which are created by individuals
who overextend their financial resources. This can be a source of stress for employees and can
distract their attention from their work.
Robbins (2003:422) refers to recent research in three diverse organisations which found that stress
symptoms reported prior to the beginning of a job accounted for most of the variance in stress
symptoms reported nine months later. This finding leads to the conclusion that some people may
have some inherent tendency to stress the negative aspects of life. If this were true, it means that
some of the symptoms of stress at work may actually originate in the individual's personality. This
fact brings us to the next point of discussion.

3.3 INDIVIDUAL DIFFERENCES WHICH MODERATE THE

INFLUENCE OF THE CAUSES (SOURCES) OF STRESS
3.3.1 Perception
It is important to remember that a person reacts in response to his/her perception of reality rather
than to reality itself. To put it another way: it is the way in which a person interprets a potential
stressor that determines his/her reaction to it. To one person a challenging assignment means that
he/she is able to make use of his/her potential and abilities, while to another person the same
assignment might be interpreted as being a threat to his/her well being.

3.3.2 Job experience

For many people the newness of a situation poses a threat. At the same time, once these people
get used to a particular situation, the situation seems to become less threatening. The same goes
for the work situation: the more one is exposed to it, the less stressful it becomes. Thus it can be
stated that job experience tends to be negatively related to occupational stress. What is the
reason for this phenomenon? It seems as if people who experience a certain work situation as
rather stressful tend to voluntarily leave the situation for one in another organisation which is less
stressful. The people who remain in the organisation either have stress-resistant characteristics or
they are more resistant to stress-inducing characteristics of the organisation. Another reason may
be found in the possibility that certain people are able to develop mechanisms to cope with the
stressful situations. The developing of these mechanisms take time. Thus we would expect that
people who have been with an organisation for a long time will tend to experience less stress.

3.3.3 Social support

Baron and Greenberg (1990:230) refer to an old saying, which goes as follows: “Misery loves
company”. This means that people tend to seek the company and the support of others when
facing stressful situations. This company and support can be called social support. By social
support we mean the support which is given by colleagues, supervisors and family members
with whom a person shares particular relationships. It seems that contact with others, especially
significant others, helps one to cope with stressors. This seems to be particularly true in the case

69
 Study unit 3
of people with high social needs. This leads to better emotional and physical survival, even in jobs
where people are subjected to a large amount of stress. Why is this the case? If one has people
to turn to in times of difficulty, it may help one to perceive stressful events as less threatening
and as being more under one's control. People who lend social support can often suggest useful
strategies for dealing with the different sources of stress. Such people can also reduce the
negative feelings, which often accompany exposure to stressful events. This last statement is
illustrated by Figure 3.2.
Figure 3.2: Social support and coping with stress (Baron & Greenberg, 1990:231)

3.3.4 Locus of control

We previously distinguished between people having an internal locus of control and people having
an external locus of control. (The correct term is actually locus of control of reinforcement.)
People having an internal locus of control tend to believe that they are in control of their own
destiny. People having an external locus of control believe that forces outside of them (forces
over which they have no control) are controlling them. It seems that people with an internal locus
of control are more able to handle (work) stress than people having an external locus of control.
The reason for this seems to be that when people with an internal locus of control are confronted
by a stressful situation, they tend to believe that they can have a significant impact on the situation.
This leads them to take control of the situation. People having an external locus of control tend to
be passive and defensive, leaving them with feelings of helplessness when exposed to stressful
situations.

70
 Study unit 3
3.3.5 Learned helplessness
In a certain sense, this factor can be linked to feelings of a lack of control. Some people can learn
to be helpless. Perhaps this goes back to the experiencing of a situation of stress from which they
were unable to escape. In later stressful situations, they seem not to want to escape. This
perhaps explains why some people just seem to give up and to accept stressful situations at work,
even when it is possible to make a change. What is the explanation for these feelings of lack of
control? People are more apt to experience lack of control when causes of lack of control are
perceived as being:
related to something about their own personal characteristics (as opposed to outside,
environmental forces);
stable and enduring (rather than just temporary); and
global and universal (cutting across many situations, rather than in just one sphere of
life) (Luthans, 1992:409).

3.3.6 Self-efficacy
People's self-perception to be effective and to bring about change may be an important factor
in the handling of stress. People with high self-efficacy expectations have less adrenaline in the
bloodstream, while those under stress tend to have high levels of adrenaline in the bloodstream,
and thus are experiencing a high level of physiological arousal. According to Luthans (1992:410)
those with high self-efficacy tend to remain calmer when faced with a stressful situation. A
person's ability to solve complex stress-related problems is impaired when he/she is over-aroused,
because his/her motivation is elevated well beyond optimal levels. This distracts him/her from
carrying out the tasks at hand. This means that people with higher self-efficacy expectations have
biological as well as psychological reasons for remaining calmer.

3.3.7 Psychological hardiness

In BSKT 111 (BSKP151 new code IOPS121) mention was made of hardiness as a stress-coping
factor. Luthans (1992:410) refers to the results of research carried out by Kobasa and her
colleagues. They studied executives who were under considerable stress and who were both
hardy and non-hardy. The researchers found that the hardy executives had a lower rate of stress-
related illness and were characterised as having commitment (they became very involved in what
they were doing); challenge (they believed that change rather than stability was normal); and
control (they felt they could influence the events around them).

3.3.8 Hostility
Most probably you already know what we mean when we talk about the Type A personality. A
person with a Type A personality experiences a chronic sense of time urgency and an excessive
competitive drive. A Type A person is forever involved in an aggressive struggle to do more and
more in less and less time, even against things and persons who oppose him/her. Until quite
recently it was believed that people with Type A personalities were likely to experience a lot of
occupational stress (and even a lot of stress outside the work situation). It was also believed that
they were more likely to be targets for heart disease because of the stress they experience. It now
seems as if it is only people who are experiencing feelings of hostility, anger, and
suspiciousness (that go with Type A personality) who are really at risk. Perhaps this is rather
good news for people who are forever rushing around and who are impatient and competitive - just
keep the anger and hostility out!

71
 Study unit 3
3.3.9 General well-being (Affect)
According to Kamman and Flett (1983) general well being can be described as the balance of
positive and negative feelings (affect) in recent experience. Negative affect, which overlaps with
neuroticism (see “The Big Five Model” emotional stability p. 40) is characterised by experiences of
low self-esteem and negative emotional states. Individuals with high scores on negative affectivity
are more prone to experience occupational stress and the consequences associated with it. On the
other hand, positive affect can be associated with high levels of self-efficacy, subjective well-being
and positive social relationships. A positive frame of mind, therefore, seems to be more beneficial
for individuals when faced with stressful situations that they have to deal with.

3.3.10 Optimism
Optimism refers to the a global expectation that the future will bring desirable outcomes,
irrespective of one’s ability to control these outcomes. In other words, it is the general belief that
despite your own actions or the things that you can control, the future will bring good things. It can
be derived from various sources, such as luck and can be distinguished from those things that you
have control over, such as the control over your work outputs. Dispositional optimism has a
positive effect on personal adjustment, life satisfaction and overall well-being (Scheier & Carver,
1992). People who demonstrate this characteristic tend to be more positive about stressors and
are generally more successful in dealing with occupational stress.

3.4 THE EFFECTS OF OCCUPATIONAL STRESS

3.4.1 Psychological effects
Luthans (1992:412) points out that in the past considerable attention had been given to the
physical effects of stress, with less emphasis on the effect of stress on mental health. This stands
in contrast to the fact that the psychological effects of stress can have very important implications
for job performance.
The experiencing of high levels of stress may lead to feelings of anger, anxiety, depression,
nervousness, irritability, tension and boredom. This may lead to lower job performance, lower
self-esteem, resentment of supervision, inability to concentrate and make decisions and job
dissatisfaction. According to Luthans (1992:412) these psychological effects of occupational stress
can be quite costly in a financial sense to organisations. In the United States of America it is a
source of numerous job-related insurance claims.
Luthans (1992:412) is of the opinion that fact that occupational stress can have a subtle, yet a very
real effect on the styles and effectiveness of managers in key positions is more important. They
may become moody, with the result that their subordinates soon learn not to disturb them even
with important information which they (the managers) need to make effective decisions.
Sometimes these managers might even become aware of the fact that they are acting in this way.
They might feel that they are not living up to expectations, and may suffer from a loss of self-
esteem. In such a mental state they are unable to make meaningful decisions.
Luthans (1992:412) also points out that if such a manager suffers a heart attack as a result of the
stress he/she experiences, everyone will be feeling sorry for him/her, and everyone will be saying
that the manager has been exposed to too much stress. On the other hand, if he/she shows an
inability to make a decision, moodiness and low self-esteem (without suffering from a heart attack),
everyone will say that these symptoms are the result of a so-called rotten personality, and that
he/she is no good and that he/she cannot get along with anybody. Thus, both a heart attack and a
psychological problem (displaying a “rotten personality”) may have the same cause (too much
stress), and although other people may react to them differently, the negative effect on
performance is the same in the case of a psychological problem, or perhaps even worse.

72
 Study unit 3
3.4.2 Behavioural effects
Behaviours which are directly related to job stress include the following: under eating or
overeating, sleeplessness, increased smoking and drinking, and drug abuse. There also
seems to be a relationship between stress and absenteeism and between stress and labour
turnover. One can imagine that these symptoms are very costly to organisations. Absenteeism
and labour turnover have direct cost implications for organisations. A person who is suffering from
sleeplessness is unable to perform up to standard. Drinking and drug abuse lead to people being
unable to concentrate on the task at hand, which might lead to industrial accidents. Drinking and
drug abuse may also contribute to absenteeism.

3.4.3 Work performance effects

Sometimes mention is made of the so-called inverted-U relationship between stress and
performance. This relationship is depicted in Figure 3.3.
Figure 3.3: Inverted-U relationship between stress and job performance (Robbins,
2009:505)

According to Figure 3.3, low levels of performance accompany low levels of stress. As the level of
stress increases, the level of performance also increases, until it reaches an optimum point. If the
level of stress increases beyond this point, the level of performance goes down again.
Although the above-mentioned relationship might hold true under certain circumstances, it seems
as if stress has mainly negative effects on task performance. This even goes for rather mild
levels of stress. Why is this the case? The following are some of the possible reasons. It seems
as if even mild levels of stress can distract a person's attention from the task at hand. Such a
person might be focusing on the unpleasant feelings and emotions which accompany stress. It
seems as if prolonged or repeated exposure to even mild levels of stress may have harmful effects
on the health of a person. This leads to lower levels of performance. Lastly, research seems to
indicate that as arousal increases, work performance may increase, but at some point it begins to
fall. The location of this point to a large extent depends on the complexity of the task being
performed. The greater the complexity of the task, the quicker the point is reached where
performance begins to drop (Robbins, 2003:423-424; Robbins, 2009:505) .
Robbins (2003:423-424) and Robbins (2009:505) points out that there are exceptions to the
general rule that stress seems to lower job performance. There are some people who are able to
turn out exceptional performance at times of experiencing high stress, perhaps because they have
become experts in the task(s) being performed. Perhaps these “experts” view high levels of stress

73
 Study unit 3
as challenges rather than threats. We have already also pointed out that there are indeed
individuals who thrive on stress, while there are others who actively try to avoid it, because stress
is upsetting to them and it lowers their performance.
This phenomenon is confirmed by an experiment which was carried out by Martin and his
colleagues (Baron and Greenberg, 1990:238-239). Before the start of the experiment, they asked
university students to complete a questionnaire. On the basis of their answers on this
questionnaire, the researchers were able to distinguish between two groups of students, namely
those who actively seek arousal and high levels of sensation and stimulation (whom the
researchers called the paratelic dominant group), and those who avoid arousal and high levels of
sensation and stimulation (whom the researchers called the telic dominant group). According to
Baron and Greenberg (1990: 238-239) the researchers then “...had these two groups of persons
play a videogame under either non-stressful or moderately stressful conditions. In the non-
stressful condition, the subjects' scores were not displayed and they were told to relax and enjoy
the game. In the moderately stressful condition, in contrast, subjects were shown a very high score
and were instructed to attempt to beat it. In addition, their own scores were visible throughout the
game, and were recorded by the experimenter. Martin and his associates predicted that stress
would enhance performance by the sensation-seeking, arousal -enjoying (paratelic) subjects, but
would interfere with performance among the sensation- and arousal-avoidant (telic) subjects.” The
results of this experiment are shown in Figure 3.4.

74
 Study unit 3
Figure 3.4: Stress and task performance: the role of individual differences (Baron &
Greenberg, 1990:238)

From Figure 3.4 it is clear that paratelic subjects scored higher under stressful conditions, while
telic subjects scored lower under stressful conditions.
Baron and Greenberg (1990:239) thus conclude that, in many situations, stress can indeed
interfere with performance. However, its precise effects depend on several different factors (e.g.,
complexity of the task being performed, personal characteristics of the individuals involved and
their previous experience with this task). This implies that generalisations about the impact of
stress on task performance should be made with considerable caution.”

3.5 MANAGING OCCUPATIONAL STRESS

3.5.1 The individual's role in handling occupational stress
What can an individual do to alleviate the effects of occupational stress? There is no easy answer
to this question. Nevertheless, the following methods are suggested:
It seems a good idea to take a good look at what one eats (although if you read the popular press,
there seems to be a lot of controversy about this aspect). It is suggested that one tries to reduce
one's intake of salt and unsaturated fats, and that one should try to take in more fibre and vitamin-
rich fruits and vegetables.
Together with the above-mentioned diet-control, one should try to exercise regularly. Luthans
(1992: 415) points out that although exercising makes a great deal of sense and that, although
many people (even medical practitioners) swear by it, there does not seem to be conclusive
evidence that exercise will directly reduce the chances of heart disease or a stroke. On the other
hand, there seems little doubt that exercise can help people to cope better with stress, even if it
only leads to relaxation, enhanced self-esteem, or simply getting one's mind off work for a while.
Relaxation is another method which one can follow to handle stress. Some people use meditation
techniques to help them relax. But one must remember that relaxation can take on other (and

75
 Study unit 3
perhaps much simpler) forms. One of these might be curling up with a good book in a relaxing
atmosphere, or listening to soothing music. Another possibility is watching a light program on
television (but not one that contains violence). We have already pointed out that physical exercise
also helps one to relax.
Sometimes mention is made of the possibility of using behavioural self-control to handle
occupational stress. This can take on different forms, some of which are rather simple. One can
for instance give oneself “breathers” by scheduling time to go to the restroom just to splash water
on one's face. Another way is to deliberately try to act in an opposite way as to what one usually
does when becoming stressed. For instance, if one usually starts talking very rapidly when under
stress, one should deliberately try to talk slower. When talking slower, one also gives oneself
some breathing space to think more clearly. Once one is thinking clearly, the emotional part of
one's being tends to move to the background. This will also lead to one acting more rationally.
Another technique which helps one to think more rationally is known as cognitive
therapy/control. Through cognitive therapy/control a person is taught to see stressors in a
different light. He/she is perhaps taught to view stressors as challenges, rather than negative
factors. Strictly speaking, cognitive therapy/control is the domain of the clinical psychologist.
However, you already know that the way in which we see/perceive things determine to a large
degree our reaction to those things. The same goes for potential stressors. If we see situations as
threatening, they will most probably cause us to become stressed. If we add to that the fact that
under such circumstances we tend start talking negatively to ourselves, in the sense that we are
unable to cope with the stress and that everything is hopeless, one can imagine that a negative
spiral starts to develop. Broadly speaking, the aim of cognitive control is to help people see that
much of this negative self-talk is irrational. It helps people to see things in a new light, and helps
them take control of their lives.

3.5.2 The organisation's role in handling occupational stress

When we were discussing the possible causes of occupational stress, we mentioned causes such
as role ambiguity, role overload, role underload, the meeting of deadlines, too great a variety of
tasks accompanied by rapid shifts in attention, organisational leadership style, lack of participation
in decision-making and the like. In general, organisations should be on the lookout for these
sources of occupational stress, and try to eliminate them as far as it is practically possible. The
following general guidelines are provided regarding the role of the organisation in reducing
occupational stress.
Changing the organisational structure and functioning and creating a supportive
organisational climate
Changing the organisational structure and functioning and creating a supportive organisational
climate can be implemented by decentralising functions to a larger degree, and by moving the
responsibility for decision-making to the levels where people are able to make decisions
regarding their own work. This will help employees to feel less helpless. Also, if employees see
the appraising of performance and the subsequent rewards they receive as being fair, they will
tend to experience less stress. In this whole process the role of communication is of the utmost
importance. This implies clear and timely communication from management downwards, but also
the opportunity for people at the lower levels to air their views in such a way that management
takes note of it and does something about it. In study unit 8 we will be discussing the dynamics of
organisational communication.
Redesigning specific jobs
As the redesigning specific jobs are a rather technical aspect, we will not go into too much detail
here. Whenever it is possible, repetitive tasks should be lessened through the technique of job
enlargement. This means that a bigger scope of tasks is built into the job. One should, however,
take note of the fact some people prefer not have too many different tasks to carry out. Another
way of changing the content of specific jobs is through the use of job enrichment. This implies,

76
 Study unit 3
inter alia, that the content of the job is changed to provide employees with the opportunity to accept
more responsibility for planning and directing their work. Again, this is a rather technical matter,
because people differ with regard to their need for growth and development. If this is not taken into
consideration, one might find that some people view enriched jobs as threatening and as a source
of stress.
Reducing role conflict and clarifying organisational roles
We have already referred to the potential of role conflict and role ambiguity in causing stress. It is
management's responsibility to reduce conflict by clarifying organisational roles. Each employee
should know what is expected of him/her, and should also have the necessary means for carrying
out his/her responsibilities.
Instituting employee wellness programmes
By “wellness” is meant physical and mental wellness. On the physical side, services can be
provided for people to take part in fitness (exercise) programmes, to lose weight, to control their
diets, to quit smoking and to control their intake of alcohol and drugs. On the mental side,
counselling services and access to the services of clinical psychologists and psychiatrists can be
provided. It is important to note that industrial psychologists can play an important role in this
regard. They are, of course, not trained to do the work of the counselling psychologist, the clinical
psychologist or the psychiatrist, but because of their psychological background and training and
their knowledge of human behaviour in organisational settings, they are able to quickly spot
problems in human behaviour in these settings. They can then act as referring agents for these
other specialists.
Figure 3.6 refers to organisational strategies for helping employees cope with stress. You will
notice that mention is made of “collateral programs”. One can perhaps equate that with “wellness
programmes”.
Figure 3.6: Organisational strategies for helping employees cope with stress
(Moorhead & Griffin,1989:13)

77
 Study unit 4

4 STUDY UNIT 4

4.1 IMPORTANCE OF GROUPS

Behavioural scientists are becoming increasingly aware of groups and their influence and effect
on work performance and productivity. Individuals and groups may gain if groups are used as
building blocks in the design and management of organisations. This awareness of groups
manifests in quality circles, problem solving, team building, training and development, self-
managed work groups, strategic planning and organisational development.
The use of groups for the purposes described above, may have advantages, but it may also have a
dark side. The use of groups may result in a waste of time and energy, norms of low rather than
high productivity, poor decision-making, destructive conflict between groups in an organisation, as
well as frustration and stress.
Optimal utilisation of groups requires efficiency regarding group processes. One of the most
important factors which effects group processes, is the facilitator. Many people who assume the
facilitative role are unprepared for it (Keltner, 1989). Therefore, attention should be given to the
selection and training of facilitators.
Successful groups produce a feeling of progress and satisfaction for group members. The degree
of individual satisfaction seems directly correlated with the amount and intensity of willing
participation. An uninvolved member, one who holds back and does not willingly participate, will
probably not experience feelings of progress and satisfaction.

4.2 DEFINITION OF TERMS

In order to understand the dynamics of groups and their influence on individual and organisational
functioning, we must first understand what a group is.
Social scientists have defined a group as a collection of two or more people who
are involved in face-to-face interaction;
are interdependent;
perceive themselves and others as part of the group;
have a stable pattern of relationships between them, and
strive towards a common goal.
The various parts of the definition are summarised in Figure 4.1.

78
 Study unit 4
Figure 4.1: Definition of a group

A group is composed of two or more people in social interaction. In other words, the members
of the group should have some influence on each other. The interaction between the people may
be verbal (such as giving ideas to solve a problem) or non-verbal (such as exchanging smiles in
the hallway).
In addition to having social interaction, a group must possess a stable structure. Although a
group can and does change, there must be some stable relationship between members which
keeps a group together and function as a unit. A gathering of people which constantly changes
(such as the gathering of people inside an office waiting room) cannot be thought of as a group.
The members of groups share common goals. Groups are often formed because of some
common goals or interests that individuals could not realise on their own. For example, a soccer
team is a group that may be sustained by the mutual interests of its members in winning a
championship.
Individual members must perceive themselves as a group. Groups are composed of members
who recognise each other as members of their group and can distinguish these members from
non-members. Shoppers in a checkout line are probably not recognised as members of a group.
Although they stand physically close to each other and may interact, they have little in common.
Figure 4.2: Comparison of work groups and work teams

Many organisations have recently restructured work around teams. They are looking for positive
synergy which will allow organisations to increase their performance.

79
 Study unit 4
In the study of groups, one can focus on content, process and/or structure. Content refers to
what is said (verbal and non-verbal), and is determined by the task of the group or the topic under
discussion. Processes refer to the nature of relationships between interacting individuals, and
the real meaning of what is happening inside individuals, the relationship or the group. Group
processes include leadership, communication, decision-making, management of conflict and the
way of interaction between group members. Structure is the stable pattern of interaction
among members.

4.3 TYPES OF GROUPS

Sundstrom et al. (1990) classify organisational groups as follows:
Advice and involvement groups include decision-making committees, quality circles and
employee involvement groups which are being used as vehicles for employee participation.
Of these groups some make and carry out proposals, but most have restricted scopes of
activity and little working time.
Production and development groups use technology to generate products or services, as
in assembly lines, maintenance, construction, mining, commercial airlines and sales. These
usually consist of first-line employees working together full-time, sometimes over protracted
periods, with freedom to decide their division of labour.
Project and development groups of white-collar professionals such as researchers,
engineers, designers and programmers often collaborate on assigned or original projects.
Their cycles of work are longer than in production and service, and outputs may be complex
and unique. They may have a mandate of innovation more than implementation, broad
autonomy, and an extended team life span. Their performance may be difficult to assess
because the value of their one-of-a-kind outputs, such as studies, may only be apparent long
after the work is finished.
Action and negotiation groups including sport teams, surgery teams, musical groups, and
other, are highly skilled specialist teams co-operating in brief performance events which
require improvisation in unpredictable circumstances. They often have elaborated,
specialised roles for members.

4.4 Models of group behaviour

4.4.1 Systems model of Steiner
The model of Steiner (1972) is comprehensive and includes most of the elements associated with
group behaviour. The model focuses primarily on task orientated groups. The model distinguishes
between a group's potential to manage a task, and the group interaction process which
determines the effect of various variables on the group (Ridgeway, 1983:287).
According to Steiner (1972), any work group functions with a potential (including knowledge, skills
and effort) for productivity. There is, however, a difference between the potential of the group and
outcomes, because of the way in which the group works, reacts to, and influences each other
(group processes). The real productivity of the group will be equal to the potential
productivity minus losses because of faulty group processes.
The potential productivity of a group is influenced by three factors, namely individual factors
(knowledge, skills and personal characteristics of group members), group factors (structure and
processes of the group), and environmental factors (the task, rewards, the social work situation
and stress) (see Figure 4.3). Knowledge of the individual, group or environment in isolation is
inadequate to predict the performance of the group.

80
 Study unit 4
Figure 4.3: The systems model of Steiner

Steiner (1972) refers to a group as a social system. Process is not merely a prerequisite for
productivity; it is also the adhesive by which the members of a group are bonded to one another.
Without process the whole would be nothing but the sum of its parts, and the group could be
regarded as belonging to the realm of metaphor or illusion. However, the group is an active
enterprise in which members reciprocally shape each other's actions. Collective process
transforms an assortment of individuals into a social system.

4.4.2 The psychoanalytical model

The psychoanalytical viewpoint is that knowledge and understanding of the personality and
motivation of group members is necessary to understand groups. Unique behaviour phenomena in
a group are the result of the behaviour of individual group members (Levinson, 1987).

4.4.3 The normative model of Hackman

The normative model of Hackman (1987:315-339) focuses exclusively on work groups in
organisations. According to this model, work group effectiveness is a function of the following
variables: (referred to as the process criteria of effectiveness):
The level of combined effort of group members when they are performing a task.
The knowledge and skills of group members regarding the task.
The relevance of performance strategies used by the group to perform the task.

The following three variables may effect the process criteria of effectiveness:
The design of the group (structure of the task, compilation of the group and group norms
regarding performance processes).
The organisation context wherein the group is functioning (rewards, training and information
systems).
The synergy which develop because of group interaction.

4.4.4 The model of Campoin and Higgs

According to the model of Campion and Higgs (1995), five characteristics of work groups correlate
with effective performance. These characteristics include work design, interdependence,
composition, contexts and processes of the work group.
Work design. The work of the group should be designed in such a way that each member
gets the opportunity to regulate his/her own work. He/she should be able to make his/her
own decisions about assignments, procedures and schedules. This empowers him/her to
take responsibility for his/her actions. The group member should also get the opportunity to

81
 Study unit 4
do a variety of tasks, which allows him/her to use a wider range of skills. In this way,
interesting and dull tasks are spread among team members. Group members should feel that
they are doing important work for the organisation, and that they are responsible for a
distinct piece of work.
Interdependence. Interdependence is the most important reason for groups to be formed.
Interdependence between tasks of a position or between two different jobs correlates with
high motivational levels of group members. The importance of team work can be reinforced
by linking the goals of the individual member to the team goals. Such interdependence
ensures that each member is pulling in the same direction. Interdependent feedback and
reward are also important for group effectiveness. By giving individual members feedback
and rewards based on the entire team's performance is one way to motivate team-orientated
behaviour.
Composition. The composition of the work group is important as it can have an influence
on the results of the group. Work groups with a variety of members whose skills and
experience differ and complement each other, can take on a wider range of tasks. The
diversity of the group can also lead to better results as different members of the group can do
each other's work. The group must be large enough to handle the task at hand. If it's too big,
co-ordination of activities will be sacrificed and members will feel that they are not involved.
Members of the work group must prefer working in a group.
Contexts. The work group needs to be trained to do its work effectively. Training
programmes should cover topics such as the philosophy of teams, how teams make
decisions and interpersonal skills. Management support is important, as using work groups in
the organisation must complement the culture of the organisation. Inter-group communication
is also important in the organisation because groups need to know of other groups.
Processes. Processes refer to what is taking place within the group. These processes are
important for group success. Work groups must have a “can do” attitude and the confidence
that they can do the work effectively. A positive attitude fosters commitment and willingness
among team members to work hard. Positive interaction between members must be
supported. Work must also be distributed equally among members so that each member's
potential can be utilised effectively. Communication and co-operation between members of
the work group is important for effectiveness.

According to this model, management has an influence over the input factors (work design,
interdependence, composition, contexts), but has less influence over the process factors of the
group.

4.5 EXPLAINING WORK GROUP BEHAVIOUR

It is not a simple task to determine what makes groups successful. Studies have identified
variables against which group behaviour can be understood (Figure 4.4).

82
 Study unit 4
Figure 4.4: Variables which explain work group behaviour

Work groups are not separate entities, and have a complex relationship with the organisational
system (Friedlander, 1987:302). The work group must be seen as a subsystem of the
organisational system, which has a major influence on happenings in the group.
Next we will focus on each of the factors that explain work group behaviour.
Various group member resources (e.g. age, gender, physical characteristics and personality
characteristics) may effect work group behaviour. These resources are represented in Figure 4.5.
Figure 4.5: Group member resources

Research found that an increase in age is accompanied by an increase in the frequency of social
contact, higher selectivity in interpersonal contact, a tendency to want to serve as leader and a
decrease in conforming behaviour (SzilagyI & Wallace, 1983:174).
Regarding the influence of gender on group behaviour, it can be concluded that females
(compared with males) are more inclined to conform to group norms, and are more communicative
in bargaining situations (Reynolds, 1984:408). These characteristics are, however, a function of
cultural norms regarding the role of females in the society (that may change). Sexual attraction
between males and females may change the group dynamics, complicate leadership and cause
resistance towards leadership (Bormann & Bormann, 1988:102).

83
 Study unit 4
The role of physical characteristics was also researched. It was found that leaders are taller
than non-leaders (Shaw, 1981:187). In contradiction, it seems that some leaders were shorter
than the average person (e.g. Napoleon, Hitler). Research also indicates that males (in an
experimental situation) are more prepared to work harder for an attractive female researcher, and
that the physical attractiveness of a person who is criminally prosecuted, may influence the
judgement of the jury (Hare, 1976:205).
Friends in the group (compared with non-friends) show more homogeneous behavioural patterns,
are more inclined to communicate and conform to group norms, and are less resistant to change.
Friendships are characterised by high morale and productivity.
The abilities and skills of an individual may effect his/her functioning in a group. More intelligent
individuals (compared with the less intelligent) tend to be more active in groups, conform less, are
more self-confident and resist efforts of others to influence them (Jewell & Reitz, 1981:142-143).
Intelligent group members are more effective in leadership positions, but leadership effectiveness
decreases if the leader is substantially more intelligent than group members.
Personality traits such as sociality and independence are related to productivity, morale and
cohesion of the group. Characteristics such as dominance and unconventionality are negatively
related to productivity, morale and cohesion (Robbins, 2003). Schwartz et al. (1980:951-956)
found that individuals with an average self-esteem perform better regarding group decision making
than those with a high or low self-esteem.
Outgoing and relaxed members make more socio-emotional comments than task comments -
reserved members do not have this tendency (Cattell & Stice, 1970:124). They also found that
emotional mature individuals are more frequently selected as friends, that humble and submissive
individuals feel less free to take part in group activities, and that the conscientious person is more
inclined to make task-oriented contributions.
Group functioning may be inhibited by the presence of unpredictable and anxious group
members. Group effectiveness is improved when members are socially sensitive, assertive and not
too anxious. Self-oriented behaviour (which inhibits group effectiveness) occurs if group members
are immature and neurotic (Yukl, 1981:237). The well-adapted individual contributes to effective
group functioning.

4.5.1 External conditions imposed on the group

External conditions imposed on the group which may effect group member behaviour, include
organisational culture, task design and technology
Organisation culture
Groups are influenced by the culture of the organisation. Organisation culture is defined as the
internal consistent pattern of affirmations, confirmations and limitations which lead people to act,
judge and justify themselves according to sanctioned ways (Weick, 1985:382). Organisation
culture is not the overt behaviour (policy, values) which can be seen when you visit an organisation
(Schein, 1983:14). Organisation culture includes traditions and long lasting practices which
creates habits of relationship formation and problem solving. It is the rules and guidelines which
prescribe to participants how they should participate, what they should do and what they are not
allowed to do.
Organisation culture includes the following aspects (see Figure 4.6):
Assumptions (of which people are unaware) which specify what is important and how
problems should be solved. These assumptions prescribe how people should perceive
things and how they should feel and think.
Values (not readily available for awareness) which prescribe what is important in the
organisation and what should be attended to.

84
 Study unit 4
Behavioural norms (unwritten rules which are available for awareness) which
describe how employees should behave in specific situations.
Artefacts (the highest level of cultural awareness) which refer to human creations
which are visual manifestations of other cultural elements. Artefacts include
observable behaviour of employees, structures, systems, procedures, rules and
physical aspects of organisations.
Figure 4.6: Levels of organisational culture

Task design and technology

The effect of the nature of the task can be determined by considering the complexity of technical
demands (knowledge and skills) and social demands (interaction between group members). To
perform well, the group must divide the skills, inputs and strategies available in such a way that it
would fit the technical and social demands of the task. The quality of group performance decreases
when the task becomes too complex or too simple.
Task design and social organisation depends on the technology of the organisation. The
mechanisation of work in a coal mine may for instance cause that individuals have to work in
teams rather than on their own. Some technologies may implicate that one group member has to
master all the tasks, while others are so complex that a member could only master one (e.g. a
symphonic orchestra).
Optimal fit between the task, technology, and social organisation requires that technical processes
be divided in sub units of reasonable size. Ideally spoken, each group has to be responsible for
the total manufactured product, to help them to see the end results of their work. The task should
be significant, challenging, and it should require a variety of skills. The group should be
responsible for the results, be interdependent and must be able to learn and get feedback. Work
teams which are confronted with unpredictable inputs, or uncertain results, perform the best if the
environment makes provision for decentralised communication and flexible internal co-
ordination. Frequent and reliable performance feedback must be built into the task.

85
 Study unit 4
Organisation strategy
An organisation's overall strategy, put into place by top management, outlines the organisation's
goals and the means for attaining these goals. It might direct the organisation towards reducing
costs, improving quality, expanding market share, or shrinking the size of the total operation.
Performance feedback
The effectiveness of a group (work team) depends on accurate and timely performance feedback.
This requires reliable measurement systems, especially when the group produces quantifiable
outputs and has a short work cycle (e.g. mining teams and the assembly line). It is, however,
difficult to give feedback when the work cycle is long and when outputs are produced infrequently.
Reward and recognition
The nature of the reward may effect the productivity and functioning of the group. Rewards which
encourage co-operation between group members have a positive effect on the motivation and
interpersonal relations of group members, especially if they are interdependent. A well-structured
reward system may reinforce the motivating nature of a well-designed task.
The following characteristics of a reward system may encourage more effort of group
members:
Difficult, but realistic performance objectives must be set, and the group should receive
feedback about their efforts to reach these objectives. Objectives must support (rather than
replace) task-based motivation. The group will probably not persist if challenging
performance objectives are set for a frustrating task.
Positive outcomes for excellent performance may lead to more effort if the task is well
designed. The effectiveness of the reward will be high when the group values the reward.
Rewards and objectives which focus on group behaviour (rather than individual
behaviour), may increase the effort of group members. Conflict arises when specific
individuals in the group are targeted for rewards. This problem is often experienced in
organisations which rewarded individual performance in the past.
Physical environment
The seating arrangements, lighting, ventilation, and physical environment where work takes place
may effect the processes and results of the group. Group interaction is promoted when group
members are placed near to each other. The seat taken by the group member indicates at what
distance he/she feels comfortable with others. Interaction is facilitated by face-to-face seating
arrangements.
Although positive causal relationships have been found between productivity and group functioning
on the one hand, and light intensity, size of rooms, the use of music, and noise on the other hand,
these effects are mediated by the attitudes (and expectations) of group members. Orienting group
members positively towards environmental variables can control their effect.
Authority structures
Organisations have authority structures which define who reports to whom, who makes decisions,
and what decisions individuals or groups are empowered to make. This structure determines
where a given work group is placed in the organisation's hierarchy, the formal leader of the group,
and formal relationships between groups. While a work group might be led by someone who
emerges informally from within the group, the formally designated leader – appointed by
management – has authority which others in the group do not have.
The informal relationships in an organisation may undermine the formal structure. For example,
the personal relationship between the director of an organisation and the manager of one
department (of a specific division), may undermine the formal authority of the head of the division.

86
 Study unit 4
Intergroup relationships
The degree of interdependence between various groups in the organisation varies. Organisations
represent a complex structure of groups imbedded in other groups. Members try to satisfy their
personal needs, as well as those of other groups to which they are affiliated to in the group
(Putnam, 1988:76). Each group is, to an extent, dependent on another groups in an organisation,
because everyone contributes to the final output. Performance of one group may also be
dependent on outputs of other sections or groups. Poor performance of one group may block the
performance of others, which may cause frustration.
The principle of competition between groups is often used to increase the productivity of groups
and individuals. Excessive competition between groups (departments and sections) may lead to a
subtle application of sanctions and sabotage of other groups in the organisation. Tension,
frustration and conflict arising from this, spreads to every individual in the group and delays the
group interaction process.

4.5.2 Group structure

Work groups are not unorganised mobs. They have a structure which shapes the behaviour of
members and makes it possible to explain and predict individual behaviour in the group.
Composition of the group

Heterogeneous versus homogeneous group composition

Most group activities require a variety of skills and knowledge. Given this requirement, you may
conclude that heterogeneous groups – those composed of dissimilar individuals – would be more
likely to have diverse abilities and information and should be more effective. When a group is
heterogeneous in terms of gender, personalities, opinions, abilities, skills, and perspectives, there
is an increased probability that the group will possess the characteristics needed to complete its
tasks effectively. The diversity in the group, however, increases the possibility of conflict in the
group. Homogeneous groups decrease the possibility of conflict in the group, which may promote
unhealthy conformity and unproductive or ineffective group functioning.
Compatibility of interpersonal needs
According to Schutz (1978) human beings have three interpersonal needs, namely inclusion,
control and affection. Interaction between people could be explained by wanted and expressed
behaviour in the areas of inclusion, control and affection. Heterogeneity of group members
regarding inclusion, control, and affection, may cause confrontation between group members.
However, more learning and change occurs in these groups.
Two individuals are compatible if each individual shows the behaviour that the other wants.
Interpersonal needs are satisfied when two people are compatible regarding these needs.
Incompatibility is a result of disparity between group members who want and show affection and
those who want to maintain an emotional distance. Compatibility regarding affection leads to
improved co-operation and productivity between group members in interpersonal learning contexts
(although the same was not found in work contexts). On the other hand, incompatibilities cause
dissonance and confrontation, which contribute to growth, self-actualisation and interpersonal
learning in groups. Incompatibility regarding control may cause disruptions in group processes. A
low to moderate need for inclusion promotes the group process, while a high need for inclusion
may inhibit the effectiveness of the group.
Group size
The productivity of the group can increase if the group size is increased. If, however, the group
size is too large, productivity may be reduced. Larger groups are more effective if it is necessary
to gather facts. Smaller groups (of approximately seven members each) are, however, more able
to use inputs productively (Robbins, 2003:185; also see Robbins, 2009:227). The optimal group

87
 Study unit 4
size varies between four and ten members. As group size increases, communication becomes
more difficult, discussions are dominated by some group members, some members feel
threatened, subgroups are formed, and it becomes difficult to reach consensus.
An important finding regarding group size, is social loafing.
Social loafing is the tendency for individuals to expend less effort when working collectively
than when working individually. It challenges the logic that the productivity of the group as a
whole should at least equal the sum of the productivity of each individual in that group.

Social loafing develops because of the belief of some group members that others do not pull their
weight. Social loafing is also caused by the belief of group members that it is impossible to
measure their contributions. The implication is that where managers utilise collective work
situations to enhance morale and team work, they must also provide means by which individual
efforts can be identified.
Groups with an uneven number of members are preferable to those with an even number. Groups
with five or seven members utilise the advantages of both smaller and bigger groups (Bormann &
Bormann, 1988:24).
Roles of group members
A role refers to a set of expected behaviour patterns attributed to someone occupying a given
position in a social unit (Kowitz & Knutson, 1980:78).
In any group there would initially be a period of self-oriented behaviour caused by unresolved
emotional issues interfering with the task (Napier & Gershenfeld, 1987:320). If these issues stay
unresolved, the group's behaviour will be directed at self-oriented behaviour. The following issues
cause self-oriented behaviour:
Each group member must choose a role or identity which would be acceptable to
himself/herself and other members.
Each group member may have a need to control and influence other members. The
intensity and expression of the need differs from person to person. Group members test one
another and experiment with various forms of influence.
The group member is often concerned that the group goal will not accommodate his/her
personal needs and goals. He/she will be inclined to hold back until he/she is certain that
his/her goals will be accommodated. It is expected of the group leader to set an agenda,
formulate objectives and to suggest a task.
The group member asks himself/herself if he/she will be accepted in the group. He/she also
wonders how intimately he/she should be to maintain respect and acceptance.
Group members may show the following behaviour to cope with change (Dimock, 1987:73):
Aggressive coping, which manifests in behaviour such as arguments, interrupting other
group members, ignoring others and hostile humour. Although this behaviour may be
legitimate (e.g. when group members debate a certain point), it should be determined if the
feelings that are expressed imply a concern for the task or testing of other members.
Seeking for support, which manifests in group members trying to find members who agree
with them, to form a subgroup. These members try to avoid conflict, support others, help one
another, and try to suppress feelings of aggression. They depend on authority to give
guidance and to solve the group's problems.
Withdrawal or denial, which manifests in suppression of tension and feelings, as well as
passiveness and indifference. These members argue that feelings have no place in the
discussion, and that they should be suppressed.

88
 Study unit 4
Until a person has found a role in a group and norms regarding objectives, influence, and intimacy
have developed, he/she may experience tension and react in various emotional ways. He/she will
be preoccupied with his/her feelings, and will tend not to listen to other members and solve
problems.
Task-orientated roles aim specifically at accomplishing a group goal. When groups gather to
solve problems, make decisions, plan activities or determine policy, they are frequently hampered
by group members' random behaviour. Sometimes one person monopolises the conversation while
others remain silent. Leaders in the group make use of the following behaviours to help the group
reach its goals:
Initiating, to get the group to begin and giving direction to the discussion.
Co-ordinating, to help group members see the results of their efforts and reduce their
uncertainty about the group, its problem, and its solutions.
Summarising, to help move the group towards its goals.
Elaborating, to explore the problem more fully and to help the group reach its goal.
Process-oriented roles help maintain a satisfactory interpersonal climate within a group. The
process dimension is called the group building and maintenance. Process-leadership behaviours
maintain interpersonal relations in a group and facilitate a climate satisfying to members and
conducive to accomplishing the group's task. They use the following process-leadership
behaviours in guiding the group to accomplish its tasks:
Tension release, to reduce the tension in the group.
Gatekeeping, to keep the communication channels in the group open.
Encouraging, to increase the esteem of group members and raise their hopes, confidence
and aspirations
Mediating, to resolve conflict between group members and release the tension associated
with conflict.
Regarding work teams, Margerison and McCann (1990) distinguished nine team roles which
people prefer to play (also see Robbins, 2009:251).
Creator-Innovators are usually imaginative and good at initiating ideas or concepts. They
are very independent and prefer to work at their own pace in their own way and often in their
own time.
Explorer-Promoters like to take new ideas and champion their cause. They are good at
picking up ideas from Creator-Innovators and finding the resources to promote these ideas.
Their primary weakness is that they may not always have the patience and control skills to
ensure that the ideas are followed through in detail.
Assessor-Developers have strong analytical skills. They are at their best when given
several different options to analyse and evaluate before a decision is made.
Thruster-Organisers like to set up operating procedures to turn ideas into reality and get
things done. They set goals, establish plans, organise people, and establish systems to
ensure that deadlines are met.
Concluder-Producers are also concerned with results. Only their role focuses on insisting
that deadlines are kept and ensuring that all commitments are followed through. They take
pride in producing an output to a standard.
Controller-Inspectors are people with a high concern for establishing and enforcing rules
and regulations. They are good at examining details and making sure that inaccuracies are
avoided. They want to check all the facts and figures and want to make sure that the “i's are
dotted” and the “t's are squared”.

89
 Study unit 4
Upholders-Maintainers hold strong convictions about the way in which things should be
done. They defend and fight the team's battles with outsiders while strongly supporting
internal team members.
Reporter-Advisors are good listeners and don't tend to press their point of view on others.
They tend to favour getting more information before making decisions. They perform an
important role in encouraging the team to seek additional information before making
decisions and discouraging the team from making hasty decisions.
Linkers can play the roles played by any of the previous eight. Linkers try to understand all
views. They are co-ordinators and integrators. They recognise the contributions which other
members can make and try to integrate people and activities despite the differences which
may exist.
The team roles are illustrated in Figure 4.7.
Figure 4.7: Team roles

Group norms
It is important to study group norms, because it effects the group members' behaviour, their efforts,
and the way they apply their knowledge and skills to perform a task (Sundstrom et al., 1990:127).
Group norms are one of the most important factors contributing to process loss in groups.
The term “norm” comes from the word “normal”. Behaviour is normal if it seems to fall within the
guidelines which a particular group accepts as appropriate for itself. Norms evolve only if they
receive collective support.
A norm can be defined as a collection of expectations held by the members of a group that specify
the type of behaviour which is regarded as right or wrong, good or bad, relevant or irrelevant,
permissible or impermissible in the group (Feldman, 1987:297). Group norms emerge from the
values of a group, and are standards of behaviour which are imposed upon members. The group
norms are the group rules - the do's and don'ts that result from the interactions of group members
over time. A norm, then, is a standard model, or pattern of behaviour.
Norms are set regarding task and process issues, but are not always stated explicitly. There is
usually an unspoken expectation that group members know the responsibilities and limitations of
individual behaviour in the group. Although these implicit norms regulate group behaviour, few
individuals are aware of them until they are broken.

90
 Study unit 4
Norms develop through communication with others. Norms develop by subtle, subliminal, beyond-
awareness processes of inference from raised eyebrows, or hearing supportive “uh-hums” or
watching how others gain approval. They may evolve through an interpersonal process of
negotiation as we attempt to follow the rule of fitting in. Within each group there is a history of what
is accepted behaviour, which has developed over time in that situation, and which members learn
and understand.
The process by which a group brings pressure on its members to conform to its norms, or by
which a member manipulates the behaviour of others, is the process of social influence. If the
norm of the group is compatible with an individual's norms and goals, he/she will conform to the
norms. However, if an individual finds that his/her behaviour deviates from the group norms,
he/she has four choices: to conform, to change norms, to remain a deviant or to leave the group.
According to Feldman (1984) norm enforcement which groups are likely to bring under normative
control are only those behaviours that (1) ensure group survival; (2) increase the predictability of
group members' behaviour; (3) prevent embarrassing interpersonal situations; or (4) express the
group's central values.
Once norms (which are the group's procedures or expectations for its members) are developed
and agreed upon, they are difficult to change. Changing group norms does not only increase the
forces in the direction of the desired change, but also involve holding the resistant forces constant
or reducing them.
Problems may arise when the values, objectives and beliefs are in conflict with group norms.
Groups enforce norms when specific behaviour is needed, e.g. to facilitate the survival of the
group, to make behaviour more predictable, and to avoid interpersonal problems which may create
embarrassment.
Some practitioners (e.g. Spich & Keleman, 1985) recommend that group norms (in work groups)
must be identified and clarified at the start of group work by using a visible, open and
explicit norm development process. They provide a list of 68 norms to group members to help
them generate a few norms. The rationale of this process is that behaviour will be accepted more
quickly as group norms if individuals discuss it at the beginning of group work.
Hanson (1981:87) says that some norms involving values, beliefs and behaviours are so ingrained
and accepted that they are almost never surfaced or examined. Problems may arise when implicit
norms are stronger than the objective of the group or when values, objectives and beliefs of group
members are contradictory with group norms. It is therefore essential to state norms explicitly,
because they are ineffective when they are left on informal level (Spich & Keleman, 1985:41).
Spich and Keleman (1985:41) say: “An ounce of prevention (early explicit norm development) is
worth a pound of cure (post-conflict regulation, development of restrictive rules, continual mood
assuagement, etc.).
Conforming to group norms will increase when the group size decreases, if the homogeneity and
stability of the group increases, when group members feel committed to the group task and when
the group controls information regarding the group members (Gordon, 1987:280).

4.5.3 group processes

Group development stages
The development stage of a group refers to the development of specific aspects during the life
cycle of the group, for example changing relations with the leader, the level of cohesion, the
development and acceptance of new group members, and patterns of significant change during the
life cycle of the group.

91
 Study unit 4
Group development theory of Schutz
The group development theory of Schutz (1966) is based on the interpersonal needs of group
members. According to Schutz development stages through which a group proceeds, involves
inclusion, control and affection (see Figure 4.8).
Figure 4.8: The group development theory of Schutz

Schutz states that these three needs are present in most groups and that the needs vary in the
different stages of group development.
At the beginning of a group the need for inclusion is an important issue for group members.
Members are concerned with being included in the group and there is a high need to
establish and maintain a satisfactory relationship with other members. Members are
cautious, withdrawn and feel detached at the beginning of a group and express their
discomfort in the group.
The control stage is characterised by a struggle for the leadership position, power gain and
the evolution of decision-making procedures. During this stage, group members give their
view, which is not heard or ignored by other members. Some members get angry about
suggestions of other members, argue about the rules of the group and question the authority
of the leader.
The affection stage deals with members' needs to establish and maintain satisfactory
relationships with others with respect to love and affection. Affection normally develops
between two members while inclusion and control develop between two members or one
member and the group. The group is concerned with affection where subgroups develop and
feelings are shared.
The sequential theory
Of the most important sequential stage theories is that of Tuckman (1965) (also see Robbins,
2009:220). Tuckman's theory was developed after reviewing fifty five articles dealing with stages

92
 Study unit 4
of small group development in an attempt to isolate those concepts common to the various studies
and produce a model of changes in group life over time. The model of Lacoursiere (1980) is one
of the most comprehensive models on group development stages and incorporates both the
recurring phase theories and sequential stage theories. It represents most of the stages found in
the literature of group development and consists of the following five stages (see Figure 4.9):
Figure 4.9: Stages of group development

Orientation stage (“Forming”). At the start of a group's life cycle the participants are mildly
to moderate eager. They generally have positive expectations that something good will come
from participation in their group. At the same time there is a certain amount of anxiety and
concerns as individuals try to discover why they are there, what they will get out of it, and
what the stated purpose of the group means. Group members are quite dependent on the
situation and on whoever is in authority. The amount of work done at this stage is moderated,
since considerable energy and time are used in defining the task, how to approach it, what
skills it requires. The group initially concern themselves with orientation accomplished
primarily through testing. Such testing serves to identify the boundaries of both interpersonal
and task behaviours. Coincident with testing in the interpersonal realm is the establishment
of dependency relationships with the leaders, other group members or pre-existing
standards.
Dissatisfaction stage (“Storming”). After some time, the participants learn that what they
hope for or want from the experience and what they feel is actually happening, do not
coincide. The earlier dependence on the authority is found unsatisfying. This leads to
unpleasant feelings of frustration, sometimes anger against the task, and usually also
against the authority figure. These negative feelings usually become stronger and more
prominent than the earlier feelings of eagerness and hope of gaining from the experience.
The second point in the sequence is characterised by conflict and polarisation around
interpersonal issues, with concomitant emotional responding in the task sphere. These
behaviours serve as resistance to group influences and task requirements.
Resolution stage (“Norming”). What happens at this stage is some compromise between
expectations and the realities (task, leader, abilities and other members) and also some
increase in skills to complete the task, either as originally construed or as redefined.
Sufficient mastery of the situation and new skills, allow positive feelings of increased self-
esteem, pleasure in accomplishment and exceed the earlier negative feelings of frustration
and anger. Important interpersonal aspects of resolution may entail decreasing animosity
between members and between members and the leaders by agreement about what is
appropriate interpersonal behaviour. Resistance is overcome in the third stage in which
group feelings and cohesiveness develop, new standards evolve and new roles are adopted.
In the task realm, intimate, personal opinions are expressed.
Production stage (“Performing”). The production stage is characterised by the positive
feelings of eagerness to be part of the experience, hope for a good outcome exceeding the
negative feelings of discouragement, frustration and, anger of the earlier dissatisfaction
stage. A group which was initially quite dependent on the leader and situation will now have

93
 Study unit 4
more autonomy. The production stage is brought about by a compromise between the initial
expectations and what the situation actually delivered, along with a progressive increase in
the skills needed to accomplish the task, which allows it to be done more easily and more
successfully. Success in the task helps to increase positive feelings about being in the group.
This all leads to more efficient use of time, with less time spent in struggling against the
leader, the other group members, or the task itself. The group attains the fourth stage in
which interpersonal structure becomes the tool of task activities. Roles become flexible and
functional, and group energy is channelled into task. Structure issues have been resolved,
and structure can now become supportive of task performance.
Termination stage (Adjourning). As the end of the experience approaches, the
participants begin to concern themselves with what they have accomplished and with the
impending dissolution of the group. Sometimes the feelings of loss or anticipated loss are
largely denied or covered up in some way, such as joking (sometimes about death) or
missing the final meeting. The work on the task during the termination stage generally
decreases, but sometimes it may increase to cover up the sense of loss or sadness, or it
may have to be increased to complete the time. The signal of the group experience will often
be clear enough from an approaching time boundary and/or indication that the task is nearly
completed or soon will be. Occasionally, in groups in which the experience has not been
satisfactory, termination may result from disintegration of the group, as members arrive later
or don't arrive at all.
Considering the variety of relationships between work teams and organisational contexts, it seems
unlikely that a single sequence can describe the development of all kinds of teams. Each team
has to deal with certain developmental issues, but the order of precedence depends on the
circumstances. The sequential stage model is supported by research results with training and
laboratory groups, which cannot necessarily be generalised to work teams (Sundstrom et al.,
1990:127).
The punctuated equilibrium model
Studies of more than a dozen field and laboratory task force groups confirmed that groups don't
develop in a universal sequence of stages (Gersick, 1988:9-41). The timing of when groups form
and change the way they work is highly consistent. It has been found that: (1) The first meeting
sets the group's direction. (2) The first phase of group activity is one of passivity. (3) A transition
takes place at the end of the first phase, which occurs exactly when the group has used up half of
its allotted time. (4) The transition initiates major changes. (5) A second phase of passivity follows
the transition. (6) The group's last meeting is characterised by markedly accelerated activity (see
Figure 4.10).
Figure 4.10: The punctuated equilibrium model

94
 Study unit 4

The punctuated equilibrium model characterises groups as exhibiting long periods of inertia
interspersed with brief revolutionary changes triggered primarily by their members' awareness of
time and deadlines. The group begins by combining the forming and norming stages, then goes
through a period of low performing, followed by storming, then a period of high performing, and
finally, adjourning.
Group cohesion
Group cohesion is defined as the sum of the attraction of the group for members, and the ability of
the group to stay together (Bormann & Bormann, 1988:155). It is a result of individuals'
satisfaction with the group.
Cohesion involves the total forces acting on members to remain in the group compared to those
directing people away from the group. Group cohesion can be defined then, in terms of both the
positive rewards which you derive from being in the group and the expectancy that your outcomes
would be lower if you did not belong to the group.
The strength of group cohesion depends on how instrumental members perceive the group to
be in advancing their individual goals as compared to how instrumental they perceive giving up
their membership would be and what options they have in fact for doing so.
High cohesive groups are more productive, have higher morale, and communicate better than
low cohesive groups. Cohesive groups do more work because members take the initiative and
help one another. They distribute the workload among themselves and volunteer to help one
another. They pay attention to the group's problems, and spend time and effort in favour of the
group. The more cohesive the group, the more effective the communication within the group.
Cohesiveness encourages feedback, disagreements and questions. Members of high cohesive
groups indicate when they do not understand, and disagree among themselves (Bormann &
Bormann, 1988:57). Cohesive groups have more influence over their members than non-cohesive
groups (Jewell & Reitz, 1981:25). The cohesive group is also defensive in its self-evaluation.
Group members, the task and performance are judged favourably and overrating is not excluded.
Other groups are underrated.
Members of groups with low cohesiveness are quiet, bored, apathetic, tensed and uncomfortable.
They seldom disagree, and there are little give-and-take discussions. Important decisions are
made quickly. Members of low cohesive groups lack initiative and tend to stand around and wait
for assignments. They do only what they are told to do and no more (Bormann & Bormann,
1988:56).
Group cohesion can be encouraged by the following factors:
Group cohesion is increased when group members collaborate to reach a common
objective and when there is a real or imagined threat in the group's environment (e.g.
competition with similar groups). Cohesion is also encouraged by setting high (but realistic)
objectives and giving feedback to group members (Dimock, 1987:27).
The more satisfied group members are, the higher the group cohesion will be. When people
voluntarily join groups, they do so because they perceive the group as a means of satisfying
certain needs. The attractiveness of a group can increase if members are aware that they
can fulfil their needs by belonging to the group. The more status a member has within the
group, the more he/she will be attracted to the group.
Cohesion is higher in a small group than in a large group. In a small group, it is easier for
members to get to know each other, to discover similar interests, and to be dedicated to the
same cause. As the group size increases, cohesion decreases.
The nature and quality of the intra-group communication also influences the development
of group cohesion. More interaction between group members, promotes the group cohesion.

95
 Study unit 4
Activities with a higher interaction potential will enhance group cohesion more than activities
with a low interaction potential.
Similarities between group members can lead to higher group cohesion. The more similar
the members are in terms of background and attitude, the more likely it is that group
cohesion will be enhanced.
Group cohesion is also influenced by leadership style. A participative style will enhance
cohesiveness.
According to Napier and Gershenfeld (1987) groups become less cohesive when their membership
becomes less attractive. Members leave because their initial attraction to the group no longer
exists, their own needs or satisfaction are reduced or the group became less suitable as a means
for satisfying existing needs.
Communication
According to Beed and Marsterson (1990) communication which occurs in a group is important to
the organisation as it is :
the lifeblood of the organisation;
the glue that binds the organisation
the oil that smoothes the organisation's functions;
the thread that ties the system together;
the force that pervades the organisation;
the binding agent that cements all relationships.
Regardless of a group's size its members must be able to talk and respond to one another. They
must be sensitive to the needs and feelings of other group members. Without an understanding of
the group communication process, members may become frustrated, and group sessions may
degenerate into unpleasant, unproductive experiences.
Group communication can be defined as face-to-face communication among a small group of
people who share a common purpose or goal, who feel a sense of belonging to the group, and who
exert influence upon one another.

96
 Study unit 4
According to Jewell and Reitz (1981) the communication process consists of five elements:
The source (who), individual or individuals who are the source of the communication event.
The message (what), the observable manner in which there is being communicated.
The medium or channel through which the message moves. Most basically each person
receives messages through his or her senses. Thus you are most likely to hear or read a
message.
The receiver (to whom), the person or persons the sender wishes to convey the message to.
The receiver interprets the message and gives meaning to it. He/she can decide to give
feedback or ignore it.
Schein (1969) states that the communication process is one of the most important processes
which take place in the group and is observable. He makes the following distinction of
communication processes that takes place within the group:
who communicates, how often, for how long;
who communicates to whom;
who talks after whom, who interrupts whom
communication style;
non-verbal communication;
levels of communication, and
filters.
Group decision-making
Individual and group decisions have their strengths. Neither is ideal for all situations. Groups have
the following advantages:
More complete information and knowledge. By aggregating the resources of several
individuals, there is more input into the decision process.
Increased diversity of views. Groups can bring heterogeneity to the decision process.
More approaches and alternatives could be considered.
Increased acceptance of a solution. Decisions often fail because people don't accept
them. If people are able to participate in a decision which effects them, they will be more
likely to accept it and encourage others to accept and support it.
Increased legitimacy. Group decision-making is consistent with democratic ideals and may be
perceived as being more legitimate than decisions made by a single person.
Groups have the following disadvantages:
Time consuming. Groups take more time to reach a decision than would be the case when
an individual makes a decision. This may limit quick and decisive action.
Pressures to conform. The desire by group members to be accepted and considered an
asset to the group can result in conformity.
Domination by a few members. One or a few members can dominate group discussions.
If these members have low ability, the group's overall effectiveness would suffer.
Ambiguous responsibility. It is often difficult to determine who is accountable when group
decision-making is used.
Groupthink. Groupthink describes situations in which group pressures for conformity deter
the group from critically appraising unusual, minority or unpopular views.

97
 Study unit 4
Polarisation. In discussing a given set of alternatives and arriving at a solution, group
members tend to exaggerate the initial positions they hold. In some situations, caution
dominates, and there is a conservative shift. Often, however, groups tend towards a risky
shift.
Groupthink has the following symptoms:
Group members rationalise any resistance to the assumptions they have made.
Members apply direct pressures on those who momentarily express doubts about any of the
group's shared views.
Those members who have doubts seek to avoid deviating from what appears to be group
consensus.
There appears to be an illusion of unanimity.
The purpose of group decision-making is to decide upon well-considered, well-understood,
realistic action towards goals every member wishes to achieve. A group decision implies that some
agreement prevails among members as to which of several courses of action is most desired for
achieving the group' goals.
There are five major characteristics of an effective group decision:
the resources of group members are fully utilised;
time is well used;
the decision is correct, or of high quality;
the problem-solving ability of the group is enhanced, or at least not inhibited.
A decision is effective to the extent that these five criteria are met; if all five are not met, the
decision has not been made effective.
According to Johnson and Johnson (1994) consensus decision-making is the most effective
method of group decision-making, but it also takes the most time. Napier and Gershenfeld (1987)
state that reaching a decision through consensus represents the ideal in terms of group
participation, but it is by no means the most efficient or least tension producing approach to
decision-making. It simply indicates that each member is willing to go along with the decision.
Brainstorming, nominal group and Delphi techniques have been proposed as ways to reduce many
of the problems inherent in the traditional interacting group.
Brainstorming utilises an idea generation process which encourages any and all
alternatives. Six to twelve persons sit around the table. The group leader states the problem
in a clear manner, so that everyone understands it. Members then give as many ideas as
they can in a given time. No criticism is allowed and all ideas are recorded for later
discussion and analysis.
The Nominal Group Technique restricts discussion or interpersonal communication during
the decision-making process. A problem is presented, and then the following steps take
place: (1) Members meet as a group but, before any discussion takes place, each member
independently writes down his/her idea on the problem. (2) This period is followed by each
member presenting one idea to the group. All ideas are recorded on a flip chart. (3) The
group discusses the ideas for clarity and evaluates them. (4) Each member silently and
independently rank-orders the ideas. The final decision is determined by the idea with the
highest aggregate ranking.
The Delphi Technique is similar to the nominal group technique except that it does not
require the physical presence of group members. The following steps are followed: (1) The
problem is identified and members are asked to provide potential solutions through a series
of careful designed questionnaires. (2) Each member anonymously and independently

98
 Study unit 4
completes the first questionnaire. (3) Results of the first questionnaire are compiled,
transcribed, and reproduced. (4) Each member receives a copy of the results. (5) After
viewing the results, members are again asked for their solutions. (6) Steps 4 and 5 are
repeated.

4.5.4 Facilitating group processes

The facilitator helps the group to identify and manage process problems in such a way that they
will be able to solve their problems. He/she helps group members to become aware of and
understand group processes (e.g. cognitive and affective experiences).
The following process problems may occur in groups (Westley & Waters, 1988:139-140);
Individuals in a group talk past each other as if everyone has a different idea of why they
are there. People may talk at the same time, interruptions and non-significant digressions
may be frequent, and little listening behaviour is evident. The problem is often lack of clarity
or agreement about the agenda or premature discussion of solutions, before agreement is
reached about the nature of the problem.
Unproductive conflict emerges as individuals or subgroups simply repeat their opposing
arguments and positions without listening to the other side and the meeting gets deadlocked.
The problem may involve hidden agendas, resistance to change and lack of agreement
about decision criteria employed.
One or two people use most of the airtime; others withdraw as their comments are ignored
or interrupted. A vicious circle can set in as naturally quiet people become frustrated and
withdraw and the over-participators feel compelled to talk even more because they are not
getting any reaction from the others.
The group members are unable to reach a conclusion or decision. The same ideas and
issues keep resurfacing, being discussed, being dropped, and resurfacing again. This
occurs when ideas are not systematically recorded or the group is unable to organise the
discussion and ideas in a problem-solving sequence leading from definition to solution.
Lengthy silences and a general lack of participation occur in the group. If this occurs
early in the meeting, it may indicate the existence of a potentially explosive issue of such a
nature that people are afraid to say anything. At the end of a meeting, it may indicate a
general lack of energy caused by fatigue or frustration from lack of achievement.
The facilitator must guard against the following temptations:
To interrupt the group too frequently, which may cause him/her being regarded as an
expert and resulting dependency of individuals on him/her for advice.
To explain and interpret the motives and behaviour of group members. These
interpretations may be inaccurate and make individuals defensive or vulnerable.
To focus on interpersonal process and emotional issues when individuals are not ready for
it, or there is no evidence that it inhibits problem solving.
To focus on processes which cannot be observed by other group members. He/she must
be careful to focus on behaviour that is not observable.

99
 Study unit 5

5 STUDY UNIT 5

5.1 WHAT IS LEADERSHIP?

According to Hogan, Curphy and Hogan (1994:493-504) leadership involves persuading other
people to set aside, for a period of time, their individual concerns and to pursue a common goal
that is important for the responsibilities and welfare of the group. This definition is morally neutral.
A Somali warlord who is trying to bring together a group of clansmen to control food supplies
needs the same skills as a South African minister who is trying to bring together a group of people
to help the homeless. Both these people are trying to persuade people to set aside their individual
concerns and to pursue a common goal.
While almost everyone seems to agree that leadership involves an influence process, differences
in definitions of leadership centres around whether leadership must be non-coercive (as opposed
to using authority, rewards and punishments to exert influence over followers). Leadership is
persuasion, not domination. Persons who can require others to do their bidding because of their
power, are not leaders. Leadership only occurs when individuals willingly adopt the goals of the
group as their own. Thus, leadership concerns building cohesive and goal-oriented teams.
The difference between management and leadership is illustrated in Figure 5.1.
Figure 5.1: The difference between management and leadership

100
 Study unit 5

5.2 DOES LEADERSHIP MATTER?

There are various reasons why leadership matters. Hogan et al. (1994) give the following reasons
why leadership really matters:
Some coaches can move from team to team transforming losers into winners. The best
evidence concerns flight crews, military units, U.S. presidents and Methodist ministers.
At a historic level one might reflect on the horrific consequences of the leadership of
Adolph Hitler in Germany from 1933 to1945 and Joseph Stalin in Russia from 1927 to 1953.
Millions of people suffered and died as a consequence of the megalomaniac visions of these
two flawed geniuses.
A third way to decide whether leadership matters is to ask the consumers of leadership.
Several patterns of leadership behaviour are associated with subordinates' performance and
satisfaction. Reactions to inept leadership include turnover, insubordination, industrial
sabotage and malingering. Studies from the mid-1950's show that 60%-75% of the
employees in any organisation report that the worst or most stressful aspects of their job is
their immediate supervisor. Good leaders may put pressure on their people, but abusive and
incompetent leaders cost management millions of rand of lost productivity. The most
common complaints from direct reports concern (1) managers unwillingness to exercise
authority (2) managers tyrannising their subordinates.

5.3 LEADERSHIP THEORIES

5.3.1 Trait theories
When Margaret Thatcher was Prime Minister of Great Britain, she was regularly singled out for her
leadership. People described her as confident, iron-willed, determined and decisive. These terms
are traits and people who described her in terms of these traits, became trait theorist supporters
(Robbins, 1996; also see Robbins, 2009:290).
The tendency to describe people in terms of traits has a long history. Throughout history many
people believed that leaders are born, not made, and that great leaders are discovered, not
developed. In the early twentieth century there were many strong advocates of the trait theories of
leadership. Wiggam (1931), for example, concluded that the survival of the fittest and marriage
among them produce an aristocratic class that differs biologically from the lower classes. Wiggam
took the position that an adequate supply of superior leaders depends on a proportionally high birth
rate among the abler classes.
The implication of these theories is that it is possible to select the right person to assume formal
positions in groups and organisations. A review of 20 different studies identified nearly 80
leadership traits, but only five of these traits were common to four or more investigations.
Stimulation by selection programmes begun during the First World War, social scientists
attempted to identify the distinguishing traits of leaders. Leaders were found to score higher on
tests of a wide variety of characteristics, including intelligence, personality, task motivation and
performance, and social competence. These tests have, however, not proved to be reliably
useful in the selection of leaders. The safest conclusions which can be drawn from trait studies
of leadership is that individuals who have the energy, drive, self-confidence and determination to
succeed will become leaders, because they work hard to get leadership positions.
The best predictor of leadership success is prior success in leadership roles. But a previously
successful leader may fail when placed in a situation which imposes demands incompatible with
his/her personality. Research has shown that leaders differ from non-leaders regarding ambition
and energy, honesty and integrity, self-confidence and job relevant knowledge. None of these
traits will, however, guarantee success as a leader.

101
 Study unit 5
The following reasons are given why the trait approach is not more successful in explaining
leadership:
It overlooks the needs of followers.
It fails to clarify the relative importance of various traits.
It does not separate cause from effect (e.g. are leaders self-confident or does success as
leader build self-confidence?)
It ignores situational factors.

5.3.2 Behavioural theories

The behavioural theories focus on specific behaviour which leaders exhibit. The difference
between trait and behavioural theories lies in the underlying assumptions. If trait theories were
valid, then leadership is basically inborn. On the other hand, if there were specific behaviours
which identified leaders, then we could teach leadership.
The implication of behavioural theories is that the behaviour of individuals should be studied in
order to identify leaders, and that it is possible to train leaders.
Robbins (2003:244) and Robbins (2009:294) distinguishes between the following behavioural
theories:
Ohio State Studies
University of Michigan Studies
The Managerial Grid
Ohio State Studies
The most comprehensive of the behavioural theories resulted from the research which began at
the Ohio State University in the late 1940's. The researchers found that two dimensions, initiating
structure and consideration accounted for most of the leadership behaviour described by
subordinates.
Initiating structure refers to the extent to which a leader is likely to define and structure
his/her role and those of subordinates in the search for goal attainment.
Consideration refers to the extent to which a person is likely to have job relationships which
are characterised by mutual trust, respect for subordinates and regard for their feelings.

The classification of leader behaviour according to the Ohio researchers is represented in Figure
5.2.

102
 Study unit 5
Figure 5.2: Leader behaviour according to the Ohio researchers

Research found that leaders high in initiating structure and consideration achieve high
subordinate performance and satisfaction more frequently than those who rated low on
consideration, initiating structure or both. High scores on both these dimensions do, however, not
always result in positive consequences.
Michigan studies
Studies which were done at the University of Michigan's Survey Research Centre also tried to
locate the behavioural characteristics of leaders. The researchers at this university focused on two
dimensions of leadership behaviour, namely employee orientation and production orientation.
Employee-oriented leaders emphasise interpersonal relations, take interest in the needs of
their subordinates, and accept individual differences among members.
Production-oriented leaders emphasise the task aspects of the job. Their main concern is
the accomplishment of the group's tasks, and group members are seen as a means to an
end.
The classification of leader behaviour according to the Michigan researchers is represented in
Figure 5.3.
Figure 5.3: Leader behaviour according to the Michigan researchers

The results of the Michigan researchers strongly favoured employee-oriented leaders.

Employee-oriented behaviour causes high productivity and high job satisfaction, while production-
oriented behaviour causes low productivity and low job satisfaction.
The Managerial Grid
According to Blake and Mouton (1963) leadership styles are influenced by two variables, namely
concern for production and concern for people. These two variables can be represented on a
scale of different intensities from one to nine. Although a wide variety of leadership styles is
possible, Blake and Mouton concentrate mainly on five leadership styles, i.e. 9,1; 1,9; 1,1; 5,5 and
9,9 (see Figure 5.4). (Also see Robbins (2009, 296) in this regard).

103
 Study unit 5
Figure 5.4: The managerial grid

The 9,1 style emphasises concern for production to a large degree (9), while there is little
concern for the human factor (1). The basic assumption is that there is an unavoidable
contradiction between the needs of the organisation and those of its members. The leader
regards people as mere instruments who must be bent to perform work. Strict control is
exercised, while little opportunity is given for responsibility and own initiative.
The 1,9 style emphasises concern for people (9), while production must adapt to man and
his/her social needs (1). Leaders give considerable attention to the attitudes and feelings of
persons. People are not driven, but merely encouraged.
The 1,1 style emphasises low concern for people (1) and for production (1). The leader
leaves followers to work as they prefer. The leader has a messenger function and he/she
does not accept responsibility for followers.
The 5,5 style is a compromise style where both production and people factors receive equal
attention. The assumption of this style is that people will be willing to work and obey orders if
the reasons are explained to them.
The 9,9 style emphasises high concern for production (9) and high concern for people. The
objective of the 9,9 style is to promote the conditions, which integrate creativity, and high
morale through concerned action.

Managers were found to perform best under a 9,9 style, as contrasted with the other styles.
According to Robbins (2003:245) there is little substantial evidence to support the conclusion that a
9,9 style is most effective in all situations.

104
 Study unit 5
5.3.3 Contingency theories
The contingency model of Fiedler
Fred Fiedler developed the first comprehensive contingency model of leadership. According to the
contingency model of Fiedler a leader's contribution to successful performance of his/her group is
determined both by the leader's traits and the features of the situation. The model of Fiedler
proposes that effective group performance depends on the match between the leader's style of
interacting with his/her subordinates and the degree to which the situation gives control to the
leader. Fiedler developed a personality measure, the Least Preferred Co-worker Scale (LPC),
which measures whether a person is task or relationship oriented.
Fiedler's model goes significantly beyond trait and behavioural approaches by attempting to isolate
situations, relating his personality measure to his situational classification, and then predicting
leadership effectiveness as a function of the two (Robbins, 2003). Also see Robbins (2009:297) in
this regard.
The leadership model is somewhat abstract, but we will try to make it more concrete in the next
few paragraphs.
Identifying leadership style
According to Fiedler, an individual's basic leadership style is a key factor in leadership success.
Therefore, he begins by trying to find out what the basic style is. Fiedler created the LPC scale for
this purpose. The LPC scale contains 16 contrasting adjectives (such as efficient-inefficient,
supportive-hostile). In this scale the respondent is asked to think of all the co-workers he or she
ever had and to describe the one person he or she least enjoyed working with by rating him or her
on a scale of 1 to 8 on each of the adjectives. Fiedler believes that he can determine an
individual's basic leadership style by analysing his or her responses on the scale.
If the least preferred co-worker is described in relatively positive terms (a high LPC score), then
the person is primarily interested in good personal relations with this co-worker. High LPC leaders
seem mainly concerned with establishing good relationships with subordinates. Fiedler would
label you as relationship oriented if you described the person you are least able to work with in
positive terms. In contrast, leaders who perceive the least preferred co-worker in negative terms (a
low LPC score) seem primarily concerned with attaining successful task performance and would
be labelled task oriented. About 16 percent of respondents score in the middle range. Such
persons cannot be classified as either relationship or task-oriented and thus fall outside the
theory's predictions.
Fiedler believes that an individual's leadership style is fixed. This means that if a situation requires
a task-oriented leader and the person in that leadership position is relationship-oriented, either the
situation has to be modified, or the leader removed and replaced if optimum effectiveness is to be
achieved. Fiedler believes that you can't change your style to fit changing situations.
Defining the situation
After an individual's basic leadership style has been assessed through the LPC, it is necessary to
match the leader with the situation. The effectiveness of low or high LPC leaders depends on
situational factors, such as the degree to which the situation is favourable for leaders (provides
them with control over subordinates). Fiedler identifies three situational criteria which can be
manipulated to create the proper match with the behavioural orientation of the leader. These
criteria include leader-member relations, task structure and position power:
The nature of the leader's relations with group members refers to the degree to which
he/she enjoys their loyalty.
The degree of structure in the task being performed refers to the extent to which task
goals and subordinates' roles are clearly defined.

105
 Study unit 5
The leader's position power refers to his/her ability to enforce compliance by subordinates.
The next step in the Fiedler model is to evaluate the situation in terms of these three contingency
variables. The better the leader-member relations, the more highly structured the job, and the
stronger the position power, the more control or influence the leader has.
Matching leaders and situations
With knowledge of an individual's LPC and an assessment of the three contingency variables, the
Fiedler model proposes matching them up to achieve maximum leadership effectiveness.
The leader's situational control can range from very high (positive relations with group members,
a highly structured task, high position power) to very low (negative relations, an unstructured task,
low position power). Low LPC leaders (who are task oriented) are superior to high LPC leaders
(who are people oriented) when situational control is either very low or high. High LPC leaders
have an edge when situational control falls within the moderate range.
Under conditions of low situational control, groups need guidance and direction to accomplish
their tasks (see Figure 5.5). Since low LPC leaders are more likely to provide such structure than
high LPC leaders, they will be superior in such cases. Low LPC leaders also have an edge under
conditions which offer the leaders a high degree of situational control. Here, low LPC leaders
realise that conditions are good and that successful task performance is almost assured. As a
result, they turn their attention to improving relations with subordinates, and often adopt a “hands-
off” style. High LPC leaders, feeling that they already enjoyed good relations with their
subordinates, may shift their attention to task performance. Their attempts to provide guidance in
this respect, may be regarded as interference by subordinates, with the result that performance is
impaired.
Figure 5.5: The contingency model of Fiedler (Robbins, 2003:247; 2009:298)

- - - - - - - Task orientated
Good Relationships orientated

Performance

Poor
Favourable Moderate Unfavourable
Category 1 2 3 4 5 6 7 8
Leader-member relations Good Good Good Good Poor Poor Poor Poor
Task structure High High Low Low High HIgh Low Low
Position power Strong Weak Strong Weak Strong Weak Strong Weak

If the situation offers the leader moderate control, conditions are mixed and attention to good
interpersonal relations is often needed. High LPC leaders, with their interest in people, have an
advantage in such situations. Low LPC leaders may in such situations continue to focus on task
performance and become even more autocratic and directive. The negative reactions of
subordinates to such behaviour may have detrimental effects upon performance.
Fiedler's theory implies that you have to match leaders and situations. Individuals' LPC scores
would determine the type of situation for which they are best suited. According to the theory there
are two ways to improve leader effectiveness:

106
 Study unit 5
You can change the leader to fit the situation. For example, if a group situation rates as
highly unfavourable, but is currently led by a relationship-oriented leader, the 77group's
performance can be improved by replacing the leader with one who is task-oriented.
You can change the situation to fit the leader. This could be done by restructuring tasks or
increasing or decreasing the power of the leader to control factors such as salary increases,
promotions or disciplinary actions.
Evaluation
Research findings (Schriesheim, Tepper & Tetrault, 1994) support parts of Fiedler's model.
Additional variables may, however, be needed to fill in some of the remaining gaps of the model.
The logic behind the LPC is not clearly understood, and studies have shown that respondents' LPC
scores are not stable. It is also difficult to assess the contingency variables in practice.
Hersey and Blanchard's Situational Theory
The situational leadership theory is a contingency theory which focuses on the followers.
Successful leadership is achieved by selecting the correct leadership style, which is contingent on
followers' readiness or maturity. Before we proceed, we have to clarify two issues: Why focus on
followers? What is meant by maturity?
The focus on followers in leadership effectiveness reflects that it is they who accept or reject the
leader. Regardless of what the leader does, effectiveness depends on the actions of his/her
followers. This is an important dimension which has been overlooked in most leadership theories.
The term maturity refers to the extent to which people have the ability and willingness to
accomplish a certain task.
Hersey and Blanchard's theory uses the same two leadership dimensions which were identified by
the Ohio researchers: task and relationship behaviour.

Based on combinations of task and relationship behaviour, four leadership styles, namely telling,
selling, participating and delegating are distinguished:
Telling (high task-low relationship). The leader defines roles and tells people what, how,
when and where to do various tasks.
Selling (high task-high relationship). The leader provides both directive behaviour and
supportive behaviour.
Participating (low task-high relationship). The leader and follower share in decision-
making with the main role of the leader being facilitating and communicating.
Delegating (low task-low relationship). The leader provides little direction or support.
Hersey and Blanchard (1982) identifies the following four stages of follower maturity:
R1: Individuals are both unable and unwilling to take responsibility to do something. They
are neither competent not confident.
R2: Individuals are unable but willing to do tasks. They are motivated but lacking skills.
R3: Individuals are able but unwilling to do what the leader wants.
R4: Individuals are able and willing to do what is expected from them.
The situational leadership theory of Hersey and Blanchard is illustrated in Figure 5.6.

107
 Study unit 5
Figure 5.6: The situational leadership theory of Hersey and Blanchard

Low

As followers reach high levels of maturity (see Figure 5.6), the leader responds by decreasing
control over activities, and by decreasing relationship behaviour. At stage M1, followers need clear
and specific directions. At stage M2, both high-task and high-relationship behaviour is needed.
The high-task behaviour compensates for the followers' lack of ability, while the high-relationship
behaviour tries to get the followers to buy into the leader's desires. M3 creates motivational
problems which are best solved by a supportive, non-directive leadership style. At stage M4, the
leader does not have to do much because followers are both willing and able to take responsibility.

5.3.4 Integration of leadership theories

There are commonalties between the various leadership theories which may be of practical value
for managers in organisations.
The concepts of “task” and “people” permeate most of the leadership theories. The task
dimension is called just that by Fiedler, but it goes by the name “initiating structure” by the Ohio
State Group, “production orientation” by the Michigan researchers and “concern for production” by
Blake and Mouton. The people dimension receives similar treatment going under names such as
“consideration,” “employee oriented,” or “relationship-oriented” leadership. Leadership behaviour
tends to be reduced to two dimensions – task and people – but researchers continue to differ as to
whether the orientation are two ends of a single continuum (you could be high on one or the other,
but not on both) or two independent dimensions (you could be high or low on both).

108
 Study unit 5
Some traits have proved, over time, to be predictors of leadership effectiveness. But knowing a
manager possesses intelligence, ambition, self-confidence and other traits would by no means
assure us that his or her subordinates would be productive and satisfied employees. The ability of
traits to predict leadership success is not that strong.
Task-people approaches such as Ohio State, Michigan, and Managerial Grid theories state that
leaders who rate high in people orientation should end up with satisfied employees. The research
is, however, too mixed to make predictions regarding employee productivity.
The Fiedler model initiated a more rigorous search to identify contingency variables in
leadership. Hersey and Blanchard's model is important for its explicit recognition that the
subordinate's ability and motivation are critical to the leader's success. It has, however, mixed
empirical support.

5.3.5 Recent approaches to leadership

Robbins (1996:435) distinguishes between three recent approaches to leadership, namely an
attribution theory of leadership, charismatic leadership and transactional versus transformational
leadership.
Attribution Theory of Leadership
Attribution theory deals with people trying to make sense from cause-effect relationships. When
something happen, they want to attribute it to something. According to attribution theory,
leadership is merely an attribution which people make about other individuals. Using the attribution
framework, researchers have found that people characterise leaders as having traits such as
intelligence, outgoing personality, strong verbal skills, aggressiveness, and understanding. The
high-consideration, high-structure leader was found to be consistent with attributions of what
makes a good leader (Robbins, 1996).
Charismatic Leadership
According to charismatic leadership theory, followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviour. Some examples of individuals cited to be
charismatic leaders include Nelson Mandela, Martin Luther King and General Norman
Schwarzkopf.
Conger and Kanungo (1988) identify the following behavioural characteristics of a charismatic
leader:
Self-confidence. They have complete confidence in their judgement and abilities.
A vision. They have an idealised goal which proposes a future better than the status quo.
Ability to articulate the vision. They are able to clarify and state the vision in terms which
are understandable to others.
Strong convictions about the vision. They are perceived as being strongly committed,
and willing to take on high personal risk, and engage in self-sacrifice to achieve their vision.
Behaviour which is out of the ordinary. They engage in behaviour which is being
perceived as novel, unconventional and counter to the norms.
Perceived as being a change agent. Charismatic leaders are perceived as agents of
radical change rather than as caretakers of the status quo.
Environmental sensitivity. They are able to make realistic assessments of the
environmental constraints and resources needed to bring about change.
Charismatic leadership influences followers in the following way: The process begins by the
leader articulating an appealing vision. The leader then communicates high performance
expectations and expresses confidence that the followers can attain them. Next, the leader

109
 Study unit 5
conveys a new set of values, and by his/her behaviour sets an example for followers to imitate.
Finally, the leader makes self-sacrifices and engages in unconventional behaviour to demonstrate
courage and convictions about the vision.
Research (House, Woyke & Fodor, 1990) indicates that charismatic leadership correlates with
high performance and satisfaction among followers. Experts believe that people can be trained
to exhibit charismatic behaviour (Robbins, 2003:252).
Charismatic leadership may not always be needed to achieve high levels of employee
performance. It may be most appropriate when the follower's task has an ideological component.
That is probably the reason why charismatic leaders are likely to surface in politics, wartime,
religion and when a business firm is transforming.
Transactional versus transformational leadership
Transactional leaders guide or motivate their followers in the direction of the established goal by
clarifying role and task requirements. The Ohio State Studies and Fiedler's model have concerned
transactional leaders. Transformational leaders inspire followers to transcend their own self-
interests for the good of the organisation, and are capable of having a profound and extraordinary
effect on their followers. They pay attention to the concerns and development needs of individual
followers, they change followers' awareness of issues by helping them look at old problems in new
ways, and they are able to excite, arouse and inspire followers to put out extra effort to achieve
group goals.
The characteristics of transactional and transformational leaders are indicated in Table 5.1.
Table 5.1: Characteristics of Transactional and Transformational Leaders
Transactional Leader
Contingent reward Contracts exchange of rewards for effort,
promises rewards for good performance,
recognise accomplishments.
Management by exception (active) Watches and searches for deviations from
rules and standards, takes corrective action.
Management by exception (passive) Intervenes only if standards are not met.
Laissez-faire Abdicates responsibilities, avoids making
decisions.
Transformational Leader
Charisma Provides vision and sense of missions, gain
respect and trust.
Inspiration Communicates high expectations, uses
symbols to focus efforts, expresses important
purposes in simple ways.
Intellectual stimulation Promotes intelligence, rationality and careful
problem solving
Individualised consideration Give personal attention, treats each employee
individually, coaches, advises.

Research indicates that transformational leadership is more strongly correlated than transactional
leadership with lower turnover rates, higher productivity rates and higher employee satisfaction.

110
 Study unit 8

6 STUDY UNIT 6

6.1 POWER
6.1.1 Definition of terms
It is commonplace for one person to try to convince another to do something which he/she would
rather not do. For example, a manager seeks to get his secretarial staff to work overtime to
complete an important project despite their interest in going home. This is what behavioural
scientists refer to as power.
Baron and Greenberg (1990:411) define power as the capacity to change the behaviour or
attitudes of another in a desired manner. Robbins (2003:269; 2009:351) defines power as the
capacity which A has to influence the behaviour of B, so that B does something which he/she
would not otherwise do. This definition implies the following:
a potential that need not be actualised to be effective;
a dependency relationship, and
the assumption that B has some discretion over his/her behaviour.
One can have power but not impose it. It is therefore a capacity or potential. Power is a function of
dependency. The greater B's dependence on A, the greater is A's power in the relationship.
Dependence is based on alternatives that B perceives and the importance which B places on the
alternatives which A controls.

A person has power over you when he/she controls something you desire.

Authority legitimises and is a source of power. Authority is the right to manipulate or change
others. Power need not be legitimate. Influence involves the ability to alter others in general ways,
such as changing their satisfaction and performance. Influence is conceptually close to power, but
is a broader term.

6.1.2 Bases of individual power

French and Raven (1959) identified five bases of power derived from the characteristics which
individuals possess and the nature of the relationship between individuals with and without power.
Reward power
Individuals with the capacity to control the rewards workers will receive are said to have reward
power over them. Subordinates will often comply with their manager's wishes in hopes of
receiving the valuable rewards they control.

111
 Study unit 8
Coercive power
A manager has coercive power when he/she controls the punishment of others. Employees often
do what their manager desires because they fear that their manager will punish them if they do not.
Legitimate power
Legitimate power refers to the recognised right of individuals to exercise authority over others
because of their position in an organisational hierarchy. For example, students recognise the
accepted authority of lecturers to determine their grades, but reject as illegitimate the power of their
classmates to make the same decisions.
Legitimate power is derived from an individual's formal rank or position. Employees are likely to
accept attempts to influence their behaviour based on the fact that the manager has a higher
position. Managers, however, only have authority over those aspects of others' behaviour which
fall under their accepted areas of organisational behaviour. For example, whereas a secretary
may recognise the legitimate authority of her boss in typing work-related letters, she may reject as
illegitimate his request that she type his wife's private correspondence.
Referent power
Individuals who are liked and respected by others can get them to alter their actions in accordance
with their directives – a type of influence known as referent power. Sport heroes and popular
movie stars often have referent power over their admiring fans.
Expert power
To the extent that an employee recognises his manager's advanced knowledge and skills and
follows his/her orders because he/she realises that the manager knows best, that manager is said
to have expert power. The running of organisations often relies on experts who must be consulted
frequently, and whose advice must be followed if an organisation is to survive. The power of
experts is usually narrowly defined and limited to the scope of their expertise.

6.1.3 Contingency approaches to power

Contingency approaches to power are beginning to emerge. In study section 1 we said that
contingency theory emphasises the fit between organisational processes and the characteristics of
the situation. Therefore, there is no best way to exercise power; it depends on the situation in
which you find yourself.
Luthans (1992:432) distinguishes the following contingency statements regarding power:
The greater the professional orientation of group members, the greater relative strength
referent power has in influencing them.
The less effort and interest high-ranking participants are willing to allocate to a task, the more
likely lower-ranking participants are to obtain power relevant to this task.
The characteristics of targets which you try to influence have an important moderating impact on
the types of power which can be successfully used. The following characteristics have been
identified as being especially important to the influenceability of targets (Luthans, 1992:433):
Dependency. The greater the target's dependency on their relationship to agents (that is the
person who uses power) (for example when a target cannot escape a relationship), the more
targets are influenced.
Uncertainty. The more uncertain people are about the appropriateness or correctness of
behaviour, the more likely they are to be influenced to change that behaviour.
Personality. People who cannot tolerate ambiguity or who are highly anxious are more
susceptible to influence. People with high needs for affiliation are also more susceptible to
influence.

112
 Study unit 8
Intelligence. There is no simple relationship between intelligence and influenceability.
Intelligent people may be more willing to listen, but because they tend to be held in high
esteem, they are also more resistant to influence.
Age. Susceptibility to influence is higher in children than in adults.

Kelman (1958:51-60) proposes the following contingency model for power (see Figure 6.1).
Figure 6.1: A contingency model for power

The extent to which organisational participants have a sense of personal power and control over
their work has become recognised as critical to their performance and well- being. This is known
as empowerment. Luthans (1992:437) suggests the following ways for empowering employees:
Express confidence in employees' abilities and hold high expectations concerning their
abilities.
Allow employees to participate in the decision-making process.
Allow employees freedom and autonomy in how they perform their jobs.
Set inspirational and/or managerial goals for employees.
Use legitimate power in a sensible and positive way and limit the use of coercive power.

6.2 ORGANISATIONAL POLITICS

6.2.1 The nature of organisational politics
Power was defined as the potential to successfully influence others. When this potential is realised
and put into action to accomplish goals, we are talking about politics.
Organisational politics refers to actions not officially sanctioned (approved) by an organisation
taken to influence others in order to meet one's personal goals (Baron & Greenberg, 1990:420).
Robins, (2003:275) and Robbins, (2009:358) includes those activities and/or behaviours that does
not form part of one’s formal role in the organisation, but attempts to influence the distribution of

113
 Study unit 8
advantages and disadvantages within the organisation. Organisational politics, therefore, involves
influencing the outcomes of decisions in organisations, often placing one’s self-interests above the
interests of the organisation. It is this element of using power to foster one's own interests which
distinguishes organisational politics from uses of power which are approved and accepted by
organisations.
According to Robbins, (2003:276) and Robbins (2009:358)some political behaviour are legitimate,
while others are illegitimate. Legitimate political behaviour is the normal everyday organisational
politics which most of us engage in, such as complaining to your supervisor, bypassing the chain of
command, forming coalitions, obstructing organisational policies by means of inaction or excessive
adherence to the rules and developing contacts outside the organsation through professional
activities. Illegitimate political behaviour violates the implied rules of the game and could run you
the risk of losing organisational membership or extreme sanctions if these behaviours do not have
enough power to have the desired impact. Examples of illegitimate political behaviour include
sabotage, framing, symbolic protests (e.g. the wearing of protest armbands such as the ones worn
by the Zimbabwean cricketers in the Cricket World Cup of 2003) and group of employees calling in
sick.
Although there can be little doubt that organisational politics is widespread, it not equally likely to
occur throughout all parts of the organisation. The most likely areas of political activity involve
those where policies are non-existent or lacking, such as interdepartmental co-ordination,
promotions and transfers, and delegation of authority. Organisational politics seems to occur more
frequently in units which follow poorly defined policies (Board of Directors and Marketing). It is,
however lower in those departments (production and accounting) where clearly defined policies
exist.
Research indicates that political activity is likely to occur in the face of ambiguity. When there are
clear-cut rules about what to do, it is unlikely that people will abuse their power by taking political
action.

6.2.2 Political tactics

The following political tactics are used most often in organisations (Baron & Greenberg, 1990):
Blaming and attacking others. Blaming and attacking others is one of the popular political
tactics in organisations. This manifests in looking for a scapegoat (someone who could take
the blame for some failure). This allows the politically astute individual to minimise
association with the negative situation.
Controlling access to information. Controlling who knows and does not know certain
things is one of the most important ways of exercising power in organisations. This includes
withholding information which makes you look bad (negative sales information), avoiding
contact with those who may ask for information which you would prefer not to disclose,
being selective in the information you disclose, or overwhelming others with information
which is not completely relevant.
Cultivating a favourable impression. Another way to enhance organisational control is to
ensure that the impression you make will be favourable. This includes dressing for success,
associating oneself with the successful accomplishments of others or drawing attention to
one's own successes and positive characteristics.
Developing a base of support. To be successful in influencing others, individuals
sometimes gain the support of others in the organisation. This includes lobbying for ideas
before they are officially presented and ensuring that others are committed to them in
advance. Hereby the embarrassment of being publicly rejected, is avoided.

114
 Study unit 8
Aligning oneself with other persons who are powerful. One way of dealing with power,
is by connecting oneself with other persons who are powerful. A lower-power person may
become more powerful if he/she has a powerful mentor, or forms coalitions with others.

A list of possible political games is (Mintzberg, 1983) reported in Table 6.1.

Table 6.1: A list of political games
GAME MAJOR PLAYERS PURPOSE
Authority Games
Insurgency games Lower-level managers To resist formal authority
Counterinsurgency Upper-level managers To counter resistance towards formal
games authority
Power Base Games
Sponsorship game Any subordinate employee To enhance power base with superiors
Alliance game Line managers To enhance power base with peers
Empire building Line managers To enhance base of power with
subordinates
Rivalry Games
Line vs. staff game Line managers and staff To defeat each other in the quest for
personnel power
Rival camps game Any groups at the same To defeat each other in the quest for
level power
Change Games
Whistle-blowing game Lower-level operators To correct organisational “wrong-doings”
Young Turks game Upper-level managers To seize control of the organisation

Political behaviour in organisations is varied and complex. They provide some important
challenges to managers, who are likely to be involved in some or other form of political
activity. The following techniques may be helpful for dealing with organisational politics:
Clarify job expectations. Assignments should be well defined and the way work will be
evaluated, should be clarified.
Open the communication process. Decisions which are likely to be monitored by all are
unlikely to allow any one individual to gain excessive control over desired resources.
Be a good role model. Managers must set an example of honest and reasonable treatment.
Do not ignore game players.

6.2.3 Ethical and unethical political behaviour

Unethical political behaviour often occurs in organisations. Unethical behaviour includes dumping
polluted chemical wastes into rivers and overcharging medical schemes. Although there are no
clear-cut ways of identifying whether or not a certain organisational action is ethical, the following
guidelines may be considered (Baron & Greenberg, 1990):

115
 Study unit 8
Political tactics which promote self-interest and disregard organisational goals may be
considered unethical. It would be less unethical to use political tactics to remove powerful
persons who make poor decisions, from their jobs.
Actions which violate basic human rights are considered to be unethical. Dirty political
tricks which rely on espionage techniques are unethical, because they interfere with an
individual's right to privacy.
Political behaviour which unfairly benefits one party over another may be considered
unethical.
Unethical behaviour occurs in organisations for the following reasons:
Organisations often reward behaviour which violates ethical standards. You need only
think back on some of the atrocities which were committed during the apartheid era in South
Africa, because individuals were rewarded for them.
Managerial values, which undermine integrity, exist. A bottom line mentality contributes
to unethical behaviour in organisations. A bottom line mentality supports financial success
as the only value to be considered. It promotes short-term solutions which are immediately
financially sound, despite the fact that they cause problems for others in the organisation. It
promotes an unrealistic belief that everything boils down to a monetary game. Rules of
morality are seen as obstacles to financial success.

6.3 CONFLICT
6.3.1 Definition of conflict
Conflict is defined as a process which begins when one party perceives that
another party has negatively effected, or is about to negatively effect, something the
first party cares about.

Conflict is common in most modern organisations. Its effects are too costly to ignore. Managers
report that they spend almost 20% of their time dealing with conflict and its consequences.
Destructive conflict may cause resentment and broken relationships. Conflict is therefore a very
important topic in organisational behaviour.
Opposing (incompatible) interests lie at the bottom of organisational conflict. Yet conflict involves
more than this. Disputes sometimes erupt in situations where the interests of the two sides are not
clearly opposed, while in other cases conflict fails to develop, despite the existence of deep
divisions between opposing parties. The parties to it must perceive conflict; whether or not conflict
exists is a perception issue. There must also be some form of interaction for conflict to exist.

6.3.2 Transitions in conflict thought

Robbins (2003:290-291) and Robbins (2009:376) distinguishes between three schools of thought
about conflict. The first school of thought (the traditional view) has argued that conflict should be
avoided, and that it indicates malfunctioning in a group or system. The second school of thought
(the human relations view) argues that conflict is natural and an inevitable outcome in any group,
and that it has the potential to be a positive force in determining group potential. The third school
of thought (the interactionist view) proposes that conflict is not only a positive force in
determining group performance, but that some conflict is necessary for the group to perform
effectively.

116
 Study unit 8
6.3.3 Functional vs. Dysfunctional conflict
Functional conflict is a constructive form of conflict, which supports the goals of the group and
improves its performance. Dysfunctional conflict is a destructive form of conflict, which hinders
group performance.

6.3.4 The Conflict Process

The criterion which differentiates functional conflict from dysfunctional conflict is group or
organisational performance. Conflict would be functional if it furthers the objectives of the group.
According to Robbins (2003:291) and Robbins (2009:377) the conflict process has five stages,
namely potential opposition, cognition and personalisation, intentions, behaviour and outcomes.
The model of Robbins is illustrated in Figure 6.2.
Figure 6.2: The conflict process

Stage 1: Potential Opposition or Incompatibility

The first step in the conflict process is the presence of conditions which create opportunities for
conflict to arise. They need not lead directly to conflict, but one of these conditions is necessary if
conflict is to arise. These conditions, which also may be looked at as sources or causes of
conflict, include communication, structure and personal variables.
Communication. Semantic differences and misunderstandings may create opportunities for
conflict. It is, however, a myth that poor communication is the reason for conflicts. Although
problems in the communication process act to retard collaboration and stimulate
misunderstanding, poor communication is not the source of all conflicts. Semantic
difficulties arise because of differences in training, selective perception and insufficient
information about others. Surprisingly it seems that the potential for conflict increases when
too little or too much communication takes place.
Structure. Structure includes variables such as size, degree of specialisation of group
members, member-goal compatibility, leadership style, reward systems, and the degree of
dependence between groups. Sources of conflict regarding these variables include the
following:
The larger the group and the more specialised its activities, the greater the likelihood of
conflict.
The potential for conflict tends to be greater when group members are younger.
The greater the ambiguity in precisely defining where the responsibility for action lies,
the greater the potential for conflict to emerge.
Where individuals and groups have different goals, the potential for conflict is greater.
A close style of leadership or a too participative style increases the potential for conflict.
Interdependence of groups increases the potential for conflict.

117
 Study unit 8
Personal variables. Differences between individual value systems and personality
characteristics may be sources of conflict. Individuals who are highly authoritarian and
dogmatic, and who demonstrate low self-esteem lead to potential conflict.
Stage 2: Cognition and Personalisation
If the conditions in Stage 1 negatively effect something that one party cares about, then the
potential for opposition becomes actualised in the second stage. The conditions can only lead to
conflict when one or more of the parties are effected by, and are aware of the conflict. A conflict,
which is perceived, is not necessarily personalised. A may be aware that B and A are in serious
conflict, but it may not make A tense. It is at the felt level, when individuals become emotionally
involved, that parties experience anxiety, tension, frustration and hostility.
Conflict issues tend to be defined in this stage. At this stage, the parties decide what the conflict
is all about. The definition of conflict is very important, because it delineates the sets of possible
settlements. Emotions play a major role in shaping perceptions. Negative emotions tend to
produce oversimplification of issues, reductions in trust and negative interpretations of the other
party's behaviour.
Stage 3: Intentions
Intentions intervene between people's perceptions and emotions and their overt behaviour. These
intentions are decisions to act in a given way. This stage is important because you have to infer
the other's intent in order to know how to respond to his/her behaviour. Conflicts are often
escalated because one party attributes the wrong intentions to the other.
Thomas and Kilman distinguish between two basic dimensions that effect a person's intentions:
assertiveness, the extent to which the individual attempts to satisfy his/her own concerns,
and
co-operation, the extent to which the individual attempts to satisfy the other person's
concerns.
These two basic dimensions of behaviour can be used to define five specific methods of dealing
with conflicts. These five “conflict-handling” modes are shown in Figure 6.3.

118
 Study unit 8
Figure 6.3: Conflict-handling modes

Assertive Competing Collaborating

Compromising

Unassertive Avoiding Accommodating

Unco-operative Co-operative

Competing is assertive and unco-operative - an individual pursues his own concerns at the
other person's expense. This is a power-oriented mode, in which one uses whatever power
seems appropriate to win one's own position - one's ability to argue, one's rank or economic
sanctions. Competing might mean “standing up for your own rights,” defending a position
which you believe is correct, or simply trying to win.
Accommodating is unassertive and co-operative - the opposite of competing. When
accommodating, an individual neglects his own concerns so as to satisfy the concerns of
other persons; there is an element of self-sacrifice in this mode. Accommodating might take
the form of selfless generosity or charity, obeying another person's order when one would
prefer not to, or yielding to another's point of view.
Avoiding is unassertive and unco-operative - the individual does not immediately pursue his
own concerns or those of the other person. He/she does not address the conflict. Avoiding
might take the form of diplomatically sidestepping an issue, postponing an issue until a better
time, or simply withdrawing from a threatening situation.
Collaborating is both assertive and co-operative - the opposite of avoiding. Collaborating
involves an attempt to work with the other person to find some solution that fully satisfies the
concerns of both persons. It means digging into an issue to identify the underlying concerns
of the two individuals and to find an alternative, which meets both sets of concerns.
Collaborating between two persons might take the form of exploring a disagreement to learn
from each other's insights, concluding to resolve some condition which would otherwise have
them competing for resources, or confronting and trying to find a creative solution to an
interpersonal problem.
Compromising is intermediate in both assertiveness and co-operation. The objective is to
find some expedient, mutually acceptable solution, which partially satisfies both parties. It
falls on a middle ground between competing and accommodating. Compromising gives up
more than competing but less than accommodating. Likewise it addresses an issue more
directly than avoiding, but does not explore it in as much depth as collaborating.
Compromising might mean splitting the difference, exchanging concessions, or seeking a
quick middle ground position.
In conflict-handling behaviour, there are no universal right answers. All five modes are useful in
some situations: each represents a set of useful social skills. Our conventional wisdom
recognises, for example, that often “two heads are better than one” (Collaborating). But it also
says, “Kill your enemies with kindness” (Accommodating), “Split the difference” (Compromising),

119
 Study unit 8
“Leave well enough alone” (Avoiding), “Might makes right” (Competing). The effectiveness of a
given conflict-handling mode depends upon the requirements of a specific conflict situation and the
skill with which the mode is used.
Each of us can use all five conflict-handling modes: none of us can be characterised as having a
single, rigid style of dealing with conflict. However, any given individual uses some modes better
than others and therefore, tends to rely upon those modes more heavily than others, whether
because of temperament or practice.
The conflict behaviour, which an individual uses, is therefore a result of both his/her personal
predisposition and the requirements of the situations in which he/she finds himself/herself.
A. Competing

Uses
1. When quick, decisive action is vital - e.g. emergencies.
2. On important issues where unpopular courses of action need implementing - e.g. cost
cutting, enforcing unpopular rules, discipline.
3. On issues vital to company welfare when you know you are right.
4. To protect yourself against people who take advantage of non-competitive behaviour.
B. Collaborating

Uses
1. To find an integrative solution when both sets of concerns are too important to be
compromised.
2. When your objective is to learn - e.g., testing your own assumptions, understanding the
views of others.
3. To merge insights from people with different perspectives on a problem.
4. To gain commitment by incorporating other's concerns into a consensual decision.
5. To work through hard feelings which have been interfering with an interpersonal relationship.
C. Compromising

Uses
1. When goals are moderately important, but not worth the effort or potential disruption of more
assertive modes.
2. When two opponents with equal power are strongly committed to mutually exclusive goals -
are in labour-management bargaining.
3. To achieve temporary settlements to complex issues.
4. To arrive at expedient solutions under time pressure.
5. As backup mode when collaboration or competition fails to be successful.

120
 Study unit 8
D. Avoiding

Uses
1. When an issue is trivial, of only passing importance, or when other more important issues are
pressing.
2. When you perceive no chance of satisfying your concerns - e.g., when you have low power
or you are frustrated by something that would be very difficult to change (national policies,
someone's personality structure, etc.)
3. When the potential damage of confronting a conflict outweighs the benefits of its resolution.
4. To let people cool down - to reduce tensions to a productive level and to regain perspective
and composure.
5. When gathering more information outweighs the advantages of an immediate decision.
6. When others can resolve the conflict more effectively.
7. When the issue seems tangential or symptomatic of more basic issue.
E. Accommodating

Uses
1. When you realise that you are wrong - to allow a better position to be heard, to learn from
others, and to show that you are reasonable.
2. When the issue is much more important to the other person than to yourself - to satisfy the
needs of others, and as a goodwill gesture to help maintain a co-operative relationship.
3. To build up social credits for later issues which are important to you.
4. When continued competition would only damage your cause - when you are outmatched and
losing.
5. When preserving harmony and avoiding disruption are especially important.
6. To aid in the managerial development of subordinates by allowing them to experiment and
learn from their mistakes.
Stage 4: Behaviour
Conflict becomes visible during this stage. This stage includes the statements, actions, and
reactions made by the conflicting parties. These conflict behaviours are usually overt attempts to
implement each party's intentions. As a result of unskilled enactment, overt behaviours often
deviate from the original intentions.
The following techniques can be used to manage the conflict during this stage:

Problem solving meetings between conflicting parties.

Goal setting where the co-operation of everyone is needed.
Expanding the resources which create the conflict.
Withdrawing or avoiding the conflict.
Playing down the differences whilst emphasising common interests.
Compromising.
Using formal authority to solve the conflict.
Training people to alter their attitudes and behaviour.

121
 Study unit 8
Altering the structural variables.
Stage 5: Outcomes
Outcomes of conflict may be functional, in that the conflict results in an improvement in
performance. It may, however, also be dysfunctional, in that it hinders performance.
Functional conflict improves the quality of decisions, stimulates creativity and innovation,
encourages interest among group members and provides the medium through which problems can
be aired and tension released. Conflict may counter group think, because it does not allow the
group passively to rubber stamp decisions, which may be based on weak assumptions and
inadequate consideration of alternatives. Better and more innovative decisions will result from
situations where there is some conflict.
Conflict may also have dysfunctional and destructive outcomes. Uncontrolled opposition breeds
discontent, which acts to dissolve common ties, and eventually leads to the destruction of the
group. Conflict may retard communication, reduce group cohesiveness and cause subordination
of group goals to the primacy of infighting between members.

122
 Study unit 8

7 STUDY UNIT 7

7.1 THE NATURE OF DECISION-MAKING

Decision-making involves some basic elements. These elements are the following: There is a
goal which the decision maker wants to reach. There are at least two different alternative courses
of action which the decision maker can follow. Each of these different courses leads to a certain
outcome or result. Usually, the individual has information available regarding the different courses
of action which he/she can follow. The decision maker also has information available regarding the
chances that a certain outcome or result will occur. Each of these outcomes or results has a
certain value relative to the goal. On the basis of his/her evaluation of the information available to
him/her, the individual chooses one of the alternative courses of action. The elements of decision-
making is depicted in Figure 7.1.
Figure 7.1: Elements of decision-making (Moorhead & Griffin, 1989:528)

It is clear that decision-making involves a series of steps or phases. Luthans (1992:494) notes
the following steps as conceptualised by Herbert A. Simon, the well-known Nobel Prize-winning
organisation and decision theorist:

123
 Study unit 8
intelligence activity, which consists of searching the environment for conditions calling for
decision-making;
design activity, which involves inventing, developing, and analysing possible courses of
action;
choice activity, which involves selecting a particular course of action from among those
available.

Baron and Greenberg (1990:484) illustrate the steps in the decision-making process by using the
example of an organisation which has insufficient funds to pay its employees (see Figure 3.1.2).
Figure 7.2: Steps in the decision-making process (a hypothetical example of an organisation which
have insufficient funds to meet payroll obligations) (Baron & Greenberg, 1990:484)
Figure 7.2: Steps in the decision-making process (Baron & Greenberg, 1990:484)

Another way of looking at the above-mentioned steps, is to take note of the stages of actual
decision-making in organisations as identified by Mintzberg and his colleagues (Luthans,
1992:494):
The identification stage, during which a problem is recognised or an opportunity arises, and
a diagnosis is made. It is interesting to note that Mintzberg and his colleagues found that
severe, immediate problems did not lead to a very extensive, systematic diagnosis of the
situation, while mild problems did.
The development stage, during which people will start searching for existing standard
procedures which are already available, or during which a new, tailor-made solution will be
designed. Mintzberg and his colleagues found that the design process was a groping, trial-
and-error one in which the decision-makers had only a vague idea of the ideal solution.

124
 Study unit 8
The selection stage, during which a solution is chosen. The solution is chosen in three
ways: by using judgement, based on the experience or intuition of the decision maker(s),
rather than on logical analysis; by analysing the alternative courses of action on a logical ,
systematic basis; and by bargaining when the solution involves a group of decision makers
and all the political manoeuvring that this process entails. Once a certain decision is
accepted, an authorisation is made in order for the decision to be carried out.
The phases of decision-making identified by Mintzberg and his colleagues are depicted in Figure
7.3.
Figure 7.3: The empirically based stages/phases of decision-making according to
Mintzberg and his colleagues (Luthans, 1992:494)

Another way of looking at decision-making is depicted by Figure 7.4

Figure 7.4: Decision making, choice making and problem solving (Organ &
Bateman, 1986:138)

You will notice that the steps in decision-making depicted in Figure 7.4 are basically the same as
those in Figure 7.3. The third step in decision-making is regarded as choice making. Those (first)
three steps, together with the implementation of the chosen solution and maintaining and
monitoring the solution is regarded by some as problem solving (as depicted in Figure 7.4).

7.2 CHARACTERISTICS OF DECISIONS

The difference between the characteristics of programmed and unprogrammed decisions is
depicted in Table 7.1.

125
 Study unit 8
Table 7.1: Characteristics of programmed and non/unprogrammed decisions
(Moorhead & Griffin, 1989:530)

Characteristics Programmed Decisions Nonprogrammed Decisions

Type of decisions Well structured Poorly structured
Frequency Repetitive and routine New and unusual
Goals Clear, specific Vague
Information Readily available Not available, unclear channels
Consequences Minor Major
Organisational level Lower levels Upper levels
Time for solution Short Relatively long
Basis for solution Decision rules, set procedures Judgement and creativity

Decisions are also characterised by their degree of risk, uncertainty, complexity and conflict.
Risk exists when the probabilities for the occurrence of the various possible outcomes of the
different solutions to a problem can be estimated, but there is not a 100% guarantee that success
will occur. It is still possible to make predictions for the different alternatives, which can be
followed, but one is not absolutely sure of each one's outcome. Uncertainty thus exists when the
likelihood of success or failure associated with the different alternatives is not clear. There are
thus different information conditions under which decisions have to be made (see Box 7.1 and
Figure 7.6 for examples). Decisions need to be made about the outcomes which are desired, but
the information one has about these outcomes varies from situation to situation. The range of
available information is shown in Figure 7.5, which represents a continuum that runs from complete
certainty to complete uncertainty.
Figure 7.5: Information conditions and decision-making (Moorhead & Griffin,
1989:531)

Moorhead and Griffin (1989:530-531, 533) give the following examples of different information
conditions which present different challenges to the decision maker (see Box 7.1):

126
 Study unit 8
Box 7.1: The challenge of different information conditions to decision-making
(Moorhead & Griffin, 1989:530-531, 533)

Decisions are made to bring desired outcomes, but the information about
those outcomes varies. The range of available information ca be
represented as a continuum, shown in Figure 3.1.5, whose endpoints
certainty and complete uncertainty. At points between the two extremes,
the decision-maker has some information about the possible outcomes
and may be able to estimate the probability of their occurrence.

Different information conditions present different challenges to the

decision-maker. For example, say that the marketing manager or a toy
manager of a toy company is trying to determine whether to launch an
expensive promotional effort for a new video game. For simplicity,
assume there are only two alternatives – to promote the game or not to
promote it. Under conditions of, the manager knows the outcomes of
each alternative. If the new game is promoted heavily, the company will
realize R1 million profit. Without a large promotional program, the
company will realize only R200,000 profit. Here the decision is simple:
promote the game.

In a situation, the decision-maker cannot know with certainty what the

outcome of a given action will be but has enough information to estimate
the probabilities of occurrence of various outcomes. Thus, working from
information gathered by the market research department, the marketing
manager in our example can estimate the likelihood of each outcome in a
risk situation. In this case, the alternatives are defined by the size of the
market. The probability for a large video game market is 0.6, and the
probability for a small market is 0.4. The manager can calculate the
expected value of the promotional effort based on these probabilities and
the expected profits associated with each. To find the expected value of
an alternative, the manager multiplies each outcome's value by the
probability of its occurrence: the sum of these calculations for all possible
outcomes represents that alternative's the sum of these calculations for
all possible outcomes represents that alternative's expected value. In this
case, the expected value of alternative 1 – to promote the new game – is
as follows:

0.6 x R1,000,000 = R600,000

= 0.4 x R 200,000 = R 80,000
Expected value of alternative 1 = R680,000

The expected value of alternative 2 is R140 000. The marketing manager

should choose the first alternative, because its expected value is higher.
A caution is in order, however: although the numbers look convincing,
they are based on incomplete information and only estimates of
probability.

The decision-maker that does not have enough information to estimate

the probability of outcomes (or perhaps even to identify the outcomes at
all) faces complete uncertainty. In the toy company example, this might
be the case if the sales of video games had recently collapsed and it was
not clear whether the precipitous drop was temporary or permanent or
when information to clarify the situation would be available. Under such
circumstances, the decision-maker may wait for more information to
reduce uncertainty or reply on judgement, experience and intuition to
make the decision.

127
 Study unit 8
Figure 7.6 is an illustration of the above-mentioned examples regarding decision-making under
different information conditions.
Figure 7.6: Alternative outcomes under different information conditions (Moorhead
& Griffin, 1989:532)

Decision-makers, when not having enough information available, have a tendency to fill the gaps
with probability estimates which are derived from available information, intuition and experience.
Decisions can also be characterised by their complexity. As one would expect, decisions which
are taken at executive and higher managerial level are usually rather complex. When taking
decisions at this level, many divergent factors, and the interrelationships between these factors
need to be taken into account. Also, there are usually multiple goals to be met. Some of these
goals might be of a personal nature, some of an organisational nature, and some of a financial
nature. The different solutions or courses of action have their different advantages and
disadvantages. This means multiple criteria must be employed when making decisions under
these conditions.
Partly because of the above-mentioned complexity, decisions of this nature also tend to generate
conflict. Conflict can arise between individuals who are concerned with the decision-making
process. This happens because the different individuals might represent different levels or
departments in an organisation. They might have their own goals, which they want to reach. This
might lead to disagreements between decision-makers. This is not necessarily a bad thing -
although more time might be needed to reach a decision, it can lead to more energetic, thorough
and creative problem-solving. The type of conflict which we have just described is known as
interpersonal conflict.
Another type of conflict which is mentioned in connection with decision-making is that of
intrapersonal conflict. This means that when an individual needs to make a decision, conflict

128
 Study unit 8
within him/herself can also develop. The reason for this is that the choices which one makes
have specific consequences, some of which are positive and some of which are negative. It might
imply that a person is “caught” in the middle when he/she needs to make a decision regarding
different alternative courses of action.
Three major types of intrapersonal conflict are distinguished. Approach-approach conflict
occurs when one is forced to choose between two or more attractive outcomes, such as three
good job offers. Although one needs to reject two of these offers, this type of conflict is the less
worrisome, because once one approaches one of the alternatives, you move away from the others.
Avoidance-avoidance conflict arises when one needs to decide between two or more unattractive
courses of action. The following is an example of avoidance-avoidance conflict: a supervisor
needs to decide whether he should report a subordinate whom he (the supervisor) likes but who
has committed a serious safety violation, or whether to keep quiet and live with the knowledge that
he (the supervisor) has violated company policy. The problem with this type of conflict is the fact
that the moment one moves away from one unattractive option, you move nearer to the next
unattractive option. That is why we typically find that people in this situation run between the
different options, being undecided as to what to do. The third type of intrapersonal conflict is
known as approach-avoidance conflict. In its simplest form, a person is confronted with a single
option, which has both positive and negative consequences. A case in point might be a particular
job offer, which offers a high salary, but also expects of the job holder to be away from his home
for long times on end. Approach-avoidance conflict can become quite complex when an individual
is confronted with two or even more alternative courses of action, each having some positive and
some negative consequences.
Note that conflict can arise during any of the different problem-solving stages.
We also need to remember that virtually all decisions are made within certain constraints. This
means that rarely can we decide to do exactly as we please. At work our decisions often have to
be taken within some kind of a framework which brings with it some constraints. Sometimes we
need our superior's permission to take a certain decision. Our decisions influence other people;
thus we have to take their reactions into consideration when deciding on a course of action.
Sometimes there is not enough money available to implement a course of action. Organisational
decision makers also have to contend with the constraints offered by forces from outside the
boundaries of an organisation, such as demands of consumer groups, religious organisations, and
the rules laid down in trade regulations. Even outside the work situation most of us are also
constrained in our decision-making by such factors as a fixed personal budget and the wishes and
reactions of family members and friends, and others on whom our decisions will have an impact.

7.3 CHARACTERISTICS OF DECISION MAKERS WHICH

INFLUENCE DECISION-MAKING
7.3.1 Perceptions
Sometimes perceptions can play a subtle role in decision-making. The way in which a person
perceives a certain situation or problem (his/her perception), including the premises he/she holds
about the problem or situation, influences the way the person handles each of the decision-making
stages. These perceptions and premises to a large extent determine the degree to which the
person involved views the problem or situation as being complex, uncertain, leading to conflict, and
therefore also influences the strategies or courses of action the person uses.
Different factors play a role in perceptions. One of the important factors in this regard is previous
experience, especially previous experience with the same, or nearly the same situation or problem.
If a person made a “good” decision in a previous situation, he/she might tend to make the same
decision in a later situation, which is near in nature to the previous one. This will only be a “good”
decision if the circumstances are relevant. It might not be the case, especially if the person
believes the chosen course of action is the correct one, while it indeed is not. A simple example of

129
 Study unit 8
this type of decision is one where a person had at some time in the past made a good decision in
hiring a person, and the decision to hire was made on some kind of “gut feeling.” If the same
person again uses his “gut feeling” in a new selection situation, he might make a completely wrong
decision.
Other factors, which can influence perceptive ability in decision-making, is the role a person plays
in an organisation and the position he/she holds. For instance, executives and managers at higher
levels of an organisation have particular goals in mind for the organisation and have particular
kinds of information at their disposal. They also need to look at the performance of the
organisation as a whole. Lower-level managers and supervisors have other goals in mind, have
other kinds of information at their disposal, and are more concerned with the performance of their
departments or sections, and not so much with the performance of the organisation as a whole.
Organ and Bateman (1986:142) refer to a study, which was carried out regarding the influence that
the organisational role which one plays has on one's perception of a particular problem situation.
The results of the study showed that managers' diagnoses of a detailed, factual case depended on
the department from which they came. Managers who came from the marketing department
focused on sales issues, managers from industrial relations or public relations focused on human
relations issues, and those from the production department focused on manufacturing issues.
One tends to find that those who are the furthest away from the level at which a decision will be
implemented might tend to overemphasise the inherent (good) quality of a decision, to such an
extent that they tend to ignore the practical problems in implementing or carrying out the decision.
As one can expect, those responsible for carrying out the decision might have quite the opposite
view.

7.3.2 Cognitive structure

Cognitive structure means the way in which a person organises his/her perceptions. In the case of
some people, these cognitive structures are rather simple, while in the case of others it might be
highly complex. The way in which the cognitive structure of a person is organised plays a very
important role in a decision-maker's information-processing capacity, which is a crucial ability
when dealing with unstructured problems. The reason for this is the fact that people need
information in order to make decisions. Persons having complex cognitive structures are able to
think abstractly, process more information, generate more interpretations of the situation and
implications thereof, and integrate information more effectively than those having simple cognitive
structures. Those with simple cognitive structures prefer to deal with information which is in a
more concrete, summary form, use fewer and simpler decision rules, and make decisions with
greater speed, while experiencing less internal conflict. Although the latter form of decision-making
does have its advantages, it is not adaptable to the uncertainties which typically are part of
managerial decisions.

7.3.3 Personal values

People differ with regard to the things they value. Some value their personal lives, the work they
do, or moral, ethical or religious considerations, while others value aspects having a financial or
economic flavour. As one can expect, a person's values play an important role in his decision-
making, through the impact which it has on his/her perceptions.
Sometimes the attitudes of a person are also relevant in this regard. As far as decision-making is
concerned, it is important to take note of the aspect of risk-taking propensity. It seems as if people
with rigid and dogmatic personalities are overly confident and more willing to take risks, while
women are more adverse to risk taking than men in ambiguous situations. Older, more
experienced managers are less willing to accept risk than younger managers. In simple decision-
making situations, people appear to be more comfortable taking risks when they feel they have
some control over the outcomes. However, in complex decision-making situations people take
fewer risks when they perceive outcomes as being dependent on their own decisions. It is also

130
 Study unit 8
noticeable that people's fear of unknown risks sometimes exerts undue influence on their
decisions. They tend to rather opt for an alternative which shows that they prefer known losses
over unknown risks, even if the chosen alternative is clearly the “wrong” one.

7.4 HOW THE QUALITY OF DECISIONS IS DETERMINED

Most people like to think of themselves as being good decision makers. When they have important
decisions to make, they try to think through all the issues very carefully. Usually, their decisions
seem to be of a good quality. Sometimes, however, they overestimate the quality of their decisions
and the congruence of the decisions with what can be regarded as the ideal situation. Sometimes
the difference between what is and what could be is much bigger than they realise. This is
illustrated by means of Figure 7.7.
Figure 7.7: The difference between actual and potential quality of decisions
(Organ & Bateman, 1986:137)

There are two important criteria which we can use to decide whether a particular decision is good
one, namely quality and acceptance. By quality is meant that the decision will achieve some
standard, goal or objective. By acceptance is meant that the important people involved in the
decision agree that the decision is the appropriate one.
We must, however, remember that if a decision's quality is defined by how well it achieves its
objectives, it is impossible to assess the quality of decision until all the results (which follow from
the implementation of the decision) are in. Thus, to be adequately accepted, a decision must be
perceived as a good one at the time it is formulated and communicated to those who must carry it
out. We thus need to be able to judge the quality of a decision before it is implemented - before its
impact can be appraised. This implies that decisions should be judged by the procedures
used in making them. Therefore, if all the relevant aspects of a problem are analysed, available
and pertinent information is acquired and considered in an unbiased way, alternative courses of
action are creatively derived and realistically evaluated, then the decision can be judged to be a
good one.
Improved decision-making skills can help us to make better managerial and personal decisions. It
seems as if a rational approach to decision-making is in order. In the next section we shall refer to
this rational approach to decision-making.

131
 Study unit 8

7.5 MODELS OF DECISION-MAKING

7.5.1 Rational decision-making model
Introduction
The rational decision-making model implies a systematic, step-by-step process. It assumes that
the organisation in which decisions are made is economically based and managed by decision
makers who are entirely objective and have complete information at their disposal. The rational
model is illustrated by way of Figure 7.8.
Figure 7.8: The rational model of decision-making (Moorhead & Griffin, 1989:534)

Steps of the rational model

Because the steps of the rational model are clearly stated in Figure 7.8, we shall not go into the
detail of each step. However, we would like to make a few remarks regarding some of the steps in
the model.

132
 Study unit 8
The statement of the situational goal refers to the desired end state or goal which we wish to
attain.
The identification of the problem is important for the gathering of accurate information regarding
the goal we wish to reach. If we find that there is a difference between the goal and the actual
state of affairs, then obviously there is a problem that we have to attend to. If our information on
either the goal or the actual state of affairs, or both, are in error, we shall not be able to identify the
problem correctly.
We need to decide whether the problem we have identified calls for a programmed or an
un/nonprogrammed decision. If we are sure that a programmed decision is in order, we need to
decide on the correct decision rule to use. So already early in the decision-making process
accurate decisions need to be made!
If we decide that a non/unprogrammed decision is called for, we need to generate all possible
alternatives. Perhaps you can already see that this is a rather tall order to carry out. We need to
make use of different sources to obtain information regarding different alternatives that we can
follow. We can also make use of our experience and education. We may also seek information
from other people. We can also analyse the symptoms of the problem for clues as to possible
alternatives. We may even make use of our judgements and intuitions. Environmental scanning
plays an important role in this regard: In gathering information environmental scanning, which is
the process of constantly searching the business environment for new opportunities and threats to
the business, plays an important role
The evaluation of alternatives involves the assessment of all possible alternatives against the
predetermined decision criteria, of which the ultimate one is whether a particular alternative will
bring us closer to our goal. This evaluation process usually includes the following steps: a
complete description of the anticipated outcomes (results) of each alternative, an evaluation of the
costs of each alternative, and an estimation of the uncertainties and risks associated with each
alternative. For example: a caterer needs to decide whether to send soiled napkins to a launderer
to be cleaned, so that the napkins can be re-used, or whether to purchase new ones to replace the
soiled ones. The laundering of the soiled napkins involve certain costs, and there is a possibility
that some of the napkins may be damaged in the laundering process. The cost of laundering is,
however, much less than that of replacing them with new ones. In this example, the caterer needs
to evaluate the different alternatives
The rational choice of the best alternative is another crucial step in the decision-making
process. The alternative with the highest payoff, based on the benefits, costs, risks, and
uncertainties of all alternatives, needs to be chosen. Sometimes, this is rather difficult to achieve.
It might be that different alternatives seem to lead to equal payoffs. In such a case, we would
obviously need more information, or we would need to choose another criterion to make a choice.
Sometimes, we might find that no single alternative will help us to accomplish the goal. In such a
case, it might be necessary to use a combination of two or more alternative courses of action. We
might even find that no alternative or combination of alternatives will help us to reach our goal. In
such a case we will need to obtain more information, look at more alternatives, or change our goal.
Another facet of the choice stage is the development of contingency plans, which are alternative
plans of action that can be taken when something unexpected happens during the implementation
of an alternative. Contingency planning is thus part of the transition between choosing the
preferred alternative and implementing it.
In order for the implementation of the chosen alternative to be successful, it requires the proper
use of resources and good management skills. Implementation uses the commitment and
motivation of those who participated in the decision-making process, and may even heighten their
commitment and motivation.
The step of control implies measurement and adjustment. We need to measure whether the
chosen alternative has led or is leading us to our goal. If this is not the case, we might have to
restart the decision-making process by perhaps setting a new goal or by modifying the decision-

133
 Study unit 8
making process. These changes/modifications are indicated by the arrows in Figure 7.9, which
implies that (additional) information needs to be obtained.
Strengths and weaknesses of the rational model
The rational model has several strengths. If a decision maker should follow it, it leads him/her to
make a decision in a logical, sequential manner. It also helps him/her to make an in-depth analysis
of the different alternatives, which enables him/her to choose an alternative on the basis of
information rather than on emotion or social pressure. The main weaknesses of the rational model
are the following: the amount of information available to decision makers is usually limited, most
decision makers have limited ability to process the information about the alternatives, not all
alternatives lend themselves to quantification, and it is unlikely that decision makers will know all
possible outcomes for each alternative.

7.5.2 Alternative decision-making models

The behavioural model
The behavioural model describes how many individuals act when they have to make a decision.
According to this model individuals act within the confines of bounded rationality when making a
decision. This implies that they “construct” (a) simplified model(s) which extract the essential
features from problem-situations which they face to make the situation less complex. The decision
makers then act “rationally” within the confines of this/these simpler model(s).
The behavioural model includes the features of satisficing, subotimizing and using procedures
and rules of thumb.
Satisficing implies that the different alternatives are examined by the decision maker only until a
solution is found that meets minimal requirements. Once this happens, the decision maker ceases
to look for a better one. One can accept that the chosen alternative is not likely to be the optimal
solution. Sometimes reference is made to the satisficing model, the essence of which is that,
when faced with complex problems, decision makers respond by reducing the problems to a level
at which they can be readily understood. This is because the information processing capability of
human beings makes it impossible to assimilate and understand all the information necessary to
make an optimal decision, especially in the case of complex problems.
According to the satisficing model, the decision-making process takes on the following form: once
a problem is identified, the search for criteria which a solution needs to meet and the different
alternatives or solutions, begins. Unlike in the case of the rational model, the list of criteria is not
comprehensive, but is rather based on what the decision-maker deems to be the most important.
Usually these criteria will be the ones the decision-maker is most familiar with.
Also, the list of possible alternatives or solutions will not be comprehensive, but will most probably
only contain those, which have been tried and tested. Once the decision-maker has this limited list
of alternatives, he/she will start to review it. However, not all the alternatives on the list will be
carefully evaluated. Most probably the decision-maker will try to keep to those alternatives which
differ only slightly from the ones he/she is currently using. The decision-maker keeps reviewing
the alternatives only until he/she finds one, which is good or satisfying enough. This implies that
he/she does not go through the whole list of (already limited) alternatives. This means that the
criterion/criteria (the solution/alternative in this case) which needs to be met is “good enough” and
not “the best/the optimal.”
This ends the search process, and the decision-maker can then proceed to implement the chosen
alternative. The satisficing model is depicted in Figure 7.9.

134
 Study unit 8
Figure 7.9: The satisficing model (Robbins, 1996:151)

Suboptimizing is knowingly accepting less than the best possible outcome. Sometimes it is
necessary to do this due to the constraints within which an organisation needs to operate.
When one uses procedures and rules of thumb, one tries to reduce initial uncertainty in
decision-making. A rule of thumb can perhaps be explained by referring to the following example:
We may have noticed that in the past our volume of sales increased by five per cent per year. In
accordance with this percentage growth we also increased our production by five per cent per
year. If this increase had led to good results, we may decide to use an increase of five per cent as
a rule of thumb. If specific procedures and rules of thumb, which were used in the past, had led to
good results, we tend to employ them again when we face similar decision-making situations. As
we shall later see, using rules of thumb sometimes leads us to not taking changing circumstances
into consideration.
The implicit favourite model
The implicit favourite model describes how one sometimes acts when one needs to make a
complex and nonroutine decision. Like the satisficing model, it assumes that an individual solves
complex problems by simplifying the process. Unlike the satisficing model, it assumes that the
individual does not go into the process of evaluating the different alternatives. This means that the
decision-maker is neither rational or objective. What he/she does instead is to, early in the
decision-making process, implicitly select a preferred alternative. Thus, the rest of the decision-
making process is actually one of confirming the fact that the implicit favourite is indeed the correct
choice. The implicit favourite model is illustrated by way of an example in Figure 7.10.

135
 Study unit 8
Figure 7.10: The implicit favourite model (Robbins, 1996:153)

Another way of depicting the implicit favourite model is by way of Figure 7.11.

136
 Study unit 8
Figure 7.11: Another way of depicting the Implicit favourite model (Robbins,
1991:145)

Note that once a problem is identified and an implicit favourite alternative is identified, the search
or decision-making process does not stop there.

Often, the decision-maker is unaware of the fact that the implicit favourite alternative has already
been chosen. This means that the rest of the decision process is actually an exercise in
prejudice. To give the appearance of objectivity to the process, a few more alternatives will be
generated. Next, the decision-maker will start confirming his/her choice of the implicit favourite
(the choice candidate). In order to do this, he/she needs an alternative, which is called the
confirmation candidate.
The confirmation candidate is used to compare the choice candidate with. Now, the decision-
maker decides on the criteria which the chosen alternative needs to meet. During this process a
lot of perceptual and interpretational distortion is taking place, in order to ensure that the implicit
favourite meets these criteria, and that it is the “right” choice. This is of course exactly what
happens. When the choice candidate (the implicit favourite) is compared with the confirmation
candidate, the choice candidate comes out on top. An example could be the selection interviewer
who interviews the other candidates just for the sake of interviewing them; he/she had already
made up his/her mind about who to appoint at the first interview.

137
 Study unit 8
A practical model
The rational model places unrealistic demands on the decision maker, while the behavioural model
and the implicit favourite model have a limited, short-run orientation. We therefore need a practical
model of decision-making, in which the worthwhile features of each of the rational, the behavioural,
and the implicit favourite model can be combined. The practical model of decision-making is
shown in Figure 7.12.
Figure 7.12: A practical model of decision-making (Moorhead & Griffin, 1989:542)

As you will have noticed, the steps in the process of decision-making according to the practical
model, are the same as in the rational model. What have been added are the so-called
behavioural guidelines, by which the conditions recognised by the behavioural model are
incorporated into the decision-making process. This also gives a more realistic flavour to the

138
 Study unit 8
decision-making process, while still keeping it as rational as possible. A person using the practical
model will therefore tend to make an optimal decision.
The intuitive model
According to Robbins (2003:117), experts no longer automatically assume that using intuition to
make decisions is irrational and ineffective. He says this because there is growing recognition that
rational analysis has been overemphasised and that, in certain instances, relying on intuition can
improve decision-making. Robbins (2003:117) defines intuitive decision-making as an unconscious
process created out of distilled experience. He points out that it does not necessarily operate
independently of rational analysis. He is of the opinion that intuition and rational analysis
complement each other. In a certain sense intuitive decision-making depends to a large degree on
the experience that the decision-maker has had and his/her ability to act on what appears to be
limited information.
In which situations are people likely to make use of intuitive decision-making? According to
Robbins (2003:118) eight conditions have been identified under which intuitive decision-making
tends to take place:
when a high level of uncertainty exists;
when there is little precedent to draw on;
when variables are less scientifically predicable;
when “facts” are limited;
when “facts” don't clearly point the way to go;
when analytical data is of little use;
when there are several plausible alternative solutions to choose from, with good arguments
for each, and
when time is limited and there is pressure to come up with the right decision.
It seems as if there are two broad “models” which people follow when using intuitive decision-
making. Intuition is applied to either the front or the back end of the decision-making process.
When applying it to the front end of the decision-making process, intuition is given a free rein in
order to generate as many as possible alternative original solutions. When applying it to the back-
end of the decision-making process, the decision maker uses rational analysis to identify and
allocate weight to decision criteria and to develop and evaluate alternatives. At this stage the
decision maker “stops” the rational process and gives him/herself time to “sleep on a decision”
before choosing the final alternative. Robbins (2003:118) notes that there are few people who will
acknowledge the fact that they make use of intuitive decision-making, because most people like to
be considered rational thinkers! Also see the section on intuition in Robbins, (2009:124).
The conflict model
Moorhead and Griffin (1989: 541) are of the contention that although the models which we have
been discussing thus far provide significant insight into decision-making, they fail to provide us with
insight into the processes which take place when people are nervous, worried and agitated when
they have to make a decision which has major implications for them, their organisation or their
family. This means they are suffering from decision stress. Irving L. Janis and Leon Mann
developed a model, which gives a realistic view of individual decision-making under such
circumstances. This model is called the conflict model of decision-making, mostly because the
person using this model experiences conflict regarding the choices he/she has to make between
different alternative courses of action.
The conflict model makes five assumptions (Moorhead & Griffin, 1989: 541, 543):
The model deals only with major decisions which commit the individual or organisation to a
certain course of action which follows the decision.

139
 Study unit 8
The model recognises that procrastination and rationalisation are the means which people
use to avoid making decisions and thus cope with the stress of making a choice.
The model acknowledges that some decisions are probably going to be wrong. The fear of
making such a wrong decision can lead to a person not making a decision at all.
The model provides for what is called self-reactions. These self-reactions are comparisons
of alternatives with moral standards which people have internalised. A certain course of
action (an alternative) may lead to possible economic or social rewards, but if it is in conflict
with a decision-maker's moral standards, it will probably not be chosen.
The model recognises that there are times when a decision-maker finds it very difficult to
choose between alternative courses of action. The decision-maker is thus experiencing
intrapersonal conflict (which we have referred to before). Because of this, a decision-maker
might find it very difficult to commit him/herself to a single choice. On the other hand, major
decisions seldom allow for compromise; they are usually either/or decisions, which require
total commitment to the chosen alternative.
The Janis-Mann conflict model of decision-making is shown in Figure 7.13.
Figure 7.13: The Janis-Mann conflict model of decision-making (Moorhead & Griffin,
1989:544)

140
 Study unit 8
Moorhead and Griffin (1989: 543, 545) provide us with the following example to illustrate the steps
followed in the conflict model (see Box 7.2):
Box 7.2: An example of the steps followed in the conflict model (Moorhead &
Griffin, 1989:543, 545)

The Janis-Mann conflict model of decision making is shown in Figure 7.13.

A Concrete example will help to explain each step. Our hypothetical individual
in Richard, a thirty-year-old engineer, with a working wife and two young
children. Richard has been employed at a large manufacturing company for
eight years. He keeps abreast of his career situation through visits with peers
at work and in other companies, feedback from his manager and others
regarding his work and future with the company, the alumni magazine from his
university and other sources.
At work one morning, Richard learns that he has been passed over of a
promotion for the second time in a year. He investigates the information,
which can be considered negative feedback, and confirms it. As a result, he
seeks out other information regarding his career at the company, the prospect
of changing companies and the possibility of going back to graduate school to
get an MBA. At the same time, he asks himself,: Are the risks serious if I do
not make a change?" If the answer is no, Richard will continue his present
activities. In the model's terms, this option is called unconflicted adherence. If
the answer is yes or maybe, Richard will move to the next question in the
model.
The Second step asks, "Are the risks serious if I do change?" I Richard
goes on to this step, he will gather information about potential losses from
making a change. He may, for example, find out whether he would lose health
insurance and pension benefits if he changed jobs or net back to graduate
school. If he believes that changing presents no serious risks, Richard will
make the change, called an unconflicted change. Other wise, he will move
on to the next step.
Support Richard has determined that the risks are serious whether he
makes a change or not. Now he is in a bind. He believes he must make a
change because he will not be promoted further in his present company. Yet
serious risks are associated with making a change- perhaps loss of benefits,
uncertain promotion opportunities in another company, lost income from going
to graduate school for two years. In the third step Richard wonders. "Is it
realistic to hope to find a better solution?" He continues to look for information
that can help him make the decision. If the answer to this third question is
negative, Richard may give up the hope of finding anything better and opt for
what Janis and Mann call defensive avoidance that is, he will make no
change and avoid any further contact with the issue. But a positive response
will move Richard to the next step.
Here, the decision maker, who now recognizes the serious risks involved
an yet expects to find a solution, asks, "Is there sufficient time to search and
deliberate?" Richard now asks himself how quickly he needs to make a
change. If he believes he does not have time to deliberate much longer,
perhaps because of his age, he will enter what Janis and Mann call
hypervigilance. In this state he may experience severe psychological stress
and engage in frantic, superficial pursuit of some satisfying strategy. (This
might also be called panic!) If, one the other hand, Richard feels that he has
two to three years to consider various alternatives, he will undertake vigilant
information processing, in which he will thoroughly investigate all possible
alternatives, weigh their costs and benefits before making a choice, and
develop contingency plans.
In the actual situation from which this example was drawn, Richard did in
fact engage in vigilant information processing. He subsequently entered the
MBA program at the local university and completed his degree by attending
classes in the evening while retaining his job. Soon after graduation, he
accepted a better job at another manufacturing company.

141
 Study unit 8
It is clear from the model and the example that there are four questions which need to be
answered by the decision maker. When any of the answers to these questions are “no”, this
leads to responses of unconflicted adherence, unconflicted change , defensive avoidance and
hypervigilance. These are coping strategies, which result in incomplete search, appraisal and
contingency planning and lead to defective decision-making.
The decision-maker that answers positively to each of the four
questions are led to vigilant information processing, a process similar
to that outlined in the rational decision-making model. The decision-
maker objectively analyses the problem and all the alternatives,
thoroughly searches for information, carefully evaluates the
consequences of all alternatives, and diligently plans for
implementation and contingencies. Vigilance thus leads to effective
decision-making.

7.6 THE ROLE OF INFORMATION IN DECISION-MAKING

7.6.1 The requirements of information
Information is relevant when it serves a particular task and supplements the decision maker's prior
knowledge. More often than not, decision-makers in organisations are overloaded with
information, which is irrelevant to their decision-making. This happens because they want to have
as much information as possible, because people that supply the information are judged by the
amount of information they can produce, and because information breeds confidence in decision-
making. This can lead to a dangerous situation of being overconfident because of the vast
amounts of information, which is available for decision-making.
One needs to be able to rely on the information, which is utilised in decision-making. In
organisations there are different sources of unreliability as far as information needed for decision-
making is concerned. People who provide information like to perceive the information in a way that
makes them feel comfortable. Usually, people do not like uncertainty and ambiguity. In order to
overcome uncertainty and ambiguity, they often distort, restructure, or fill the gaps in the available
information. When this type of information reaches the decision-makers, it has lost much of its
preciseness. Sometimes information also gets lost if it moves through different levels of an
organisation.
It is thus of importance to decision-makers to determine the reliability of the information they use,
and to assess the credibility of the sources of information.

7.6.2 Nature and sources of acquired information

It seems as if managers tend more frequently to acquire information from other people, as opposed
to acquiring it from written documents and other sources in which people are not directly involved.
It also seems as if the ease of acquiring the information is of more importance than the quality of
information, which is acquired. It thus means that they place emphasis on the accessibility of
information. Furthermore, they tend to be biased toward positive information, as opposed to
negative information. We have already pointed out that in organisations information tends to
become distorted. It seems as if this is especially the case when the information is of a negative
nature. There is a tendency for subordinates to tell their superiors that which the superiors would
like to hear.
Organ and Bateman (1986:150) also point out that decision makers are biased toward acquiring
and using information which is vividly presented and which is of a concrete nature. The reason for
this is that such information is available or accessible in the memory of the decision-maker. It is
much like a person who experiences something personally. Such a person is less likely to forget a
first-hand experience, as opposed to just hearing or reading about something. Even though

142
 Study unit 8
information which is presented in a vivid and dramatic way might not be as accurate and valid as
information that is not presented in such a way, decision makers seem to accept the first type of
information more readily.

7.6.3 Errors in information processing

Heuristics
One source of error in information processing is heuristics, which are judgmental rules of thumb
that are often used as shortcuts. When we discussed the behavioural model of decision-making,
we referred to the use of rules of thumb. Heuristics reduce the information demands on the
decision-maker, because through its use we summarise past experiences which provide us with
easy methods to evaluate a present situation. It helps us to evade complex information collection
and calculation and thus saves us considerable mental activity and cognitive processing.
Importantly, however, even though these cognitive heuristics simplify and help the decision maker,
under certain conditions, their use can lead to errors and systematically biased outcomes.
One of these heuristics is the availability of the information in the memory of the decision-
maker. It “...refers to decision makers' tendencies to assess the frequency, probability, or
likelihood of an event occurring by how readily they can remember it” (Luthans, 1992:501). An
example in this regard is when trying to assess the probability that a certain graduate from a
certain university will be successful in an organisation, based upon our recollection of the
successes of graduates from that same university having been employed during the past few
years. As long as the available information is accurate and valid, this heuristic should not lead to
problems. It will, however, lead to errors if the available information is inaccurate or invalid.
Another heuristic, which might lead to decision-making problems, is the one of
representativeness (Baron & Greenberg, 1990:493). This heuristic “...uses decision rules of
thumb based on the likelihood of an event's occurrence as judged by the similarity of that
occurrence to stereotypes of similar occurrences. Managers would be using a representatives
heuristic when they predict the success of a new product based on the similarity of that product to
past successful and unsuccessful products.” (Luthans, 1992:502.) One can think of many factors,
which may influence the success of a particular product, even though it may be similar to other
products. Another example supplied by Organ and Bateman (1986:153) is the so-called
“gambler's fallacy”: “After a long run of black on a roulette wheel, many people will believe that red
is overdue. The actual probabilities of red and black are still equal on any given spin, but the
occurrence of red after many blacks will make the overall string more representative of a random
generating process than would yet another black. Even those well versed in probability theory,
intellectually aware of the unchanging odds, fall prey to the allure of the gambler's fallacy.”
Ignoring the so-called base rates
Another error which occurs in information processing, is the ignoring of so-called base rates.
The base rates are statistical past success or failure rates of a certain decision, and should be
objectively considered when making a decision (Organ & Bateman, 1986:153).
Misguided parsimony
Misguided parsimony is yet another error which can occur in information processing. Misguided
parsimony is the tendency to seek a single explanation for an event. Once such an adequate
explanation is found, the decision maker looks no further for other causes which might also be of
relevance. In this way, important information is not processed, and a wrong decision can easily be
made (Organ & Bateman, 1986:153).
Combining different pieces of information
Another interesting error in decision-making which can occur, is when decision makers need to
make predictions that are based on the combining of different pieces of information. It seems

143
 Study unit 8
that people do not make such a good job of combining information, if it is compared to the use of
simple statistical formulae. This occurs when people have the same information or more
information than that which goes into the formulae. It must, however, be pointed out that this only
applies in the case of formulae of a specific nature, the details of which we need not go into at this
stage (Organ & Bateman 1986153-154).
Anchoring and adjusting
A last potential error in information processing is called anchoring (Organ & Bateman, 1986:154).
By anchoring is meant that once a person has made a preliminary choice, or there is, in fact, a
standing alternative which has been used in the past, the decision maker is unlikely to change
his/her decision of the alternative. We often make use of anchoring when we need to make short-
term decisions, and we base our decisions on what has happened quite recently. Luthans
(1992:502) refers to an adjustment heuristic in conjunction with the anchoring heuristic: “In this
heuristic, the decision maker makes a judgement by starting from an initial value or anchor and
then adjusts to make the final decision.” Luthans (1992:502) refers to the example of managers
who make salary decisions by making adjustments to salaries paid during a past year.
Luthans (1992:501) also quotes the following example of anchoring and adjusting from research
done by Bazerman: Bazerman asked people to respond to the following question: “A newly hired
engineer for a computer firm in the Boston metropolitan area has four years of experience and
good all-round qualifications. When asked to estimate the starting salary for this employee, my
secretary (knowing very little about the profession or the industry) guessed an annual salary of
$23,000. What is your estimate? $_____ per year” (Please note that Bazerman already carried
out this research somewhere during the earlier part of the 1980s.) Most people who responded did
not think that they were effected by the secretary's estimate, while in fact they were. When he
raised the secretary's estimate to $80,000, individuals gave much higher estimates, on average,
than when the secretary's estimate was at $23,000. This, in fact, means that people who
responded to the question used the secretary's estimate as an anchor (even though it was
irrelevant information) (it was pointed out that the secretary knew very little about the profession or
the industry) and adjusted their estimates from there.
It must be pointed out that all the errors regarding information processing in decision-making
which we have discussed are only potentially problematic. Usually they serve us well when we
need to take short cuts in our decision-making, and when time is of the essence. They, however,
can become problematic when they begin to play an important role in complex decision-making
situations which typically occur in organisations.

7.7 PROCESSES WHICH TAKE PLACE ONCE A DECISION

HAS BEEN MADE
According to Organ and Bateman (1986156), individuals sometimes experience some form of
regret over the decision, which has been made. This particularly occurs when new information,
including negative feedback from others, becomes available. It is important to note that a certain
degree of regret is probably in order while the decision is being implemented, because it ensures
the necessary vigilance. On the other hand, extreme feelings of regret may either lead to
defensive avoidance, which in turn leads to the blind reaffirmation of the original decision, or to
hypervigilance, which may ultimately lead to the undoing of the original decision.
According to Organ and Bateman (1986:156) more often than not the decision maker defends the
decision which has been taken and the alternative course of action which has been chosen. They
refer to the term bolstering in this regard, which is an umbrella term for the various psychological
tactics which the decision-maker engages in to create and maintain his/her positive outlook on the
course of action, which has been decided upon. The following are common bolstering tactics
which can be used: exaggerating the favourable aspects of the course of action which has been
decided on, downplaying the risks and the negative features of the chosen alternative, and turning
the adverse aspects of the chosen alternative into attractive ones. An example of the last tactic is

144
 Study unit 8
when a very demanding job, which has been chosen in the place of a much easier one, is seen as
a “great challenge” by the decision maker.
Once a decision is made, it needs to be effectively implemented. One of the key factors in this
regard is that the decision needs to be well understood by those who have to implement it.
Once the implementation of decision has begun, the decision-maker becomes committed to
seeing it through. Sometimes, however, people become so (over) committed to a decision that
they continue to try to implement a decision in spite of clear and convincing evidence that
substantial problems exist with regard to the chosen alternative. This phenomenon is sometimes
called escalation of commitment (Baron & Greenberg, 1990:494; Moorhead & Griffin, 1989:545;
Robbins, 2003:119) or entrapment (Organ & Bateman, 1986:156). Moorhead and Griffin
(1989:545-546) supply us with the following example of escalation of commitment: The
government of British Columbia (Canada) decided to hold EXPO '86 in Vancouver. The organisers
initially expected the event to break even. While the project was being organised, it became clear
that the expenses were far greater than had been expected. The organisers, however, considered
it to be too late to call off the event, in spite of the fact that it was obvious that huge losses were
going to occur. In the end, the province conducted a $300 million lottery to try and cover the costs.
Why does escalation of commitment occur? The following are possible reasons: Some decisions
have to do with projects that will only show a pay-off at the very end. This fact keeps the decision-
maker committed to his/her decision. Sometimes, decision-makers become so ego-involved in
their decisions that to cancel or modify their decisions means that their reason for existence is
threatened. At other times there might be group and organisational factors that play a role in the
escalation of commitment. The social structure, group norms, and group cohesiveness might all
support a decision and the chosen alternative so strongly that it is impossible to cancel it. An
organisation might not be geared to respond quickly to changing conditions (Moorhead & Griffin,
1989:546).
Once a decision has been implemented, it needs to be evaluated. Different criteria may be used
to evaluate decisions. These criteria might be of a subjective or an objective nature. Subjective
criteria might be the following: “What were the effects of the decision on the people involved? How
timely was the decision, and how did it fit in with the objectives and within the constraints of the
firm (or individual)? With what degree of enthusiasm and skill was the decision implemented?”
(Organ & Bateman, 1986:157.) Objective criteria, which involve the use of cost accounting
techniques, should ideally also be used to evaluate decisions.
Even though it is very important to evaluate decisions, this is sometimes not done in the
correct manner. There may be many reasons for this. It might involve high costs. Decision
makers who have a lot of confidence in their own decision-making skills might feel that it is
unnecessary to evaluate their decisions. It might be that they do not want to receive negative
feedback regarding their decisions. Even if one does receive feedback on one's decisions, one
might not make full use of its possibilities. This happens because of the following possible
reasons: One tends to use tougher standards in criticising evidence which opposes one's decisions
than in criticising evidence which supports one's decisions. When one receives feedback that is of
a mixed nature (positive or negative) it tends to reinforce one's views. Also, even when one learns
that the evidence on which one has based one's views is false, one tends to cling to one's view
(Organ & Bateman, 1986:158).
Organ and Bateman (1986:158) also refer to what is known as hindsight bias. When one gets
feedback on a decision, one has “perfect” hindsight, and this hindsight makes it seem inevitable
that a certain result of that decision would have occurred. This belief in its inevitability is often a
sincere one. At the same time one realises why things turned out as they did: In looking back, one
can see that there were plenty of clues indicating just that result. What is indeed happening in this
case is that one is reconstructing the past in terms of what one now knows has occurred. The
problem with this so-called hindsight bias is that the decision maker learns nothing from the
feedback he/she receives, because he/she is unable to adequately assess the errors which were
made in the past.

145
 Study unit 8
Because of the fact that the feedback one receives regarding the decisions which one has made is
often ineffective, it is suggested that one should not only record the decisions one makes, but
also the bases for the decisions. These bases are aspects such as the information one utilises,
the assumptions one uses, and the decision-making procedures one employs. In this way one can
give oneself feedback on the decision-making process which one uses. It will help one to identify
the errors which occur in one's decision-making processes (Organ & Bateman, 1986:158).

7.8 HOW DECISION-MAKING CAN BE IMPROVED

Thus far we have stressed the importance of a logical approach to decision-making. We have also
pointed out that it is important to have valid and accurate information available, and to process this
information correctly in order to make accurate decisions.
When thinking about individual decision-making, there are a few suggestions, which can be
followed in order to improve decision-making. Organ and Bateman (1986:159) refer to the use of a
kind of “balance sheet” when making important decisions, such as when one considers moving to a
new job. In Box 7.3 such a balance sheet is illustrated.
Box 7.3: An example of the balance sheet approach to decision-making (Organ &
Bateman, 1986:159)

The Balance Sheet

Wheeler and Janis (1980) suggest using a An example of a balance sheet, illustrating one
balance sheet when making career and other recommend format, is shown below. This grid lays out
important decisions. These procedure entails the pros and cons for staying with a hypothetical
categorizing and listing the important conse- present job. A balance sheet grid would be filled out for
quences of a choice, thereby ensuring that all each of the other alternatives as well – for example,
features are consciously explored and whether to seek a lateral transfer within the company.
considered.
Say you are a manger considering a job move.

Expected Positive Negative

Consequences Anticipations Anticipations

Tangible gains and losses 1. Satisfactory pay. 1. Long hours.

for self and competencies.
2. Opportunities to use skills short 2. Constant time pressures.
deadlines.
3. Status okay (but it won't long if 3. Unpleasant paper work.
I am not promoted in the next
year).
4. Poor prospects for
advancement.
Tangible gains and losses 1. Adequate income for family 1. Not enough free time to spend
for others with my family
2. Wife and children get special 2. Wife often has to put up with my
privileges because of my position irritability.
in the firm.
Self-approval or 1. Proud of my achievements. 1. Sometimes feel I'm a fool to
self-disapproval continue putting up with stupid
demands made by top manager.
2. Proud of the competent team
I have shaped up.

146
 Study unit 8
3. Sense of meaningful
accomplishment.

Social approval or 1. Approval of people on my team. 1. Wife sceptical, she asks

disapproval whether I might be better off in
2. Approval of my boss.
a different firm.

You would have noticed that the balance sheet to a certain extent “forces” one to list all the
important consequences of a choice, and also to categorise them. The use of a balance sheet
forms part of what might be called the structuring of decisions.
You will recall that under certain circumstances the use of statistical formulae lead to better
decision-making. It is thus suggested that whenever it is possible, one should employ these
formulae, because you will recall that such statistical methods outperform human judges.
We have previously referred to the use of rules of thumb. We already know that the
indiscriminate use of rules of thumb during decision-making may lead one into trouble. It is
suggested that one uses certain “rules of thumb” regarding decision-making as such. These
“rules of thumb” (which we have previously discussed) are the following: “judge the reliability of
information, maintain vigilance in information processing, consider base rate data, beware of
misguided parsimony, don't succumb to the gambler's fallacy, be open to new evidence, record
and evaluate decision processes, learn from - rather than be blinded by - hindsight ...” (Organ &
Bateman, 1986:160).
One should also solicit information from other people, such as experts, inside the organisation.
One can even share one's ideas with other people. Their reactions can be used as feedback.
One last suggestion that Organ and Bateman (1986:160) make with regard to the improvement of
decision-making is for one to think deeply when making complex decisions. They point out that
thinking also involves some “costs”, because it involves hard work and because it might cause
discomfort for the decision maker, in that it highlights uncertainties and trade-offs which one has to
keep in mind. While there are costs involved in thinking, it does have many benefits, because it
helps one to clarify one's goals, preferences, and alternative courses of action. In this way it
eventually leads to better problem solving - which is the object of decision-making.

147
 Study unit 8

8 STUDY UNIT 8

8.1 DEFINITION OF COMMUNICATION

Luthans (1992:470) points out that although the term communication is used freely by just about
everyone (including members of the general public, those who study organisational behaviour and
managers), very few people are able to define the term very precisely. Maybe a part of the reason
for this is that experts do not agree on one definition themselves. Let us have a look at some of
the ways in which communication is defined.
Baron and Greenberg (1990:334) define communication as the process by which a person, group
or organisation (the sender) transmits some type of information (the message) to another person,
group or organisation (the receiver).
Moorhead and Griffin (1989:569) see communication as a social process by which two or
more parties exchange information and share meaning, so that a common understanding is
established between these parties. The process is social because it involves two or more
people. Robbins (2003:223) also stresses the aspect of the transference of meaning, especially
between members of (work) groups. He quite rightly points out that no group can exist without
communication between its members. It is only through transmitting meaning from one person to
another that information and ideas can be conveyed. It is, however, important to point out that this
meaning also needs to be understood as it was intended to be understood.
Luthans (1992:470) points out that most definitions of communication which are used in
organisational behaviour literature stress the use of symbols to transfer the meaning of
information. Communication in this regard is the understanding not so much of the visible, but
of the invisible and hidden. He also mentions the fact that communication is a personal
process which involves the exchange of behaviours, and which is a process that occurs within
people, although these people might make use of sophisticated technology in the communication
process. Luthans (1992: 471) also points to the fact that communication has behavioural
implications, namely that the only means by which one person can influence another is by the way
in which he or she behaves. This means that the communication between people is the only
method by which influence or effects can be achieved. In other words, the behaviour which occurs
in an organisation is of great importance to the communication process.

We can thus define communication as a social process which occurs within people by which
two or more parties exchange information and behaviours and share meaning, so that a
common understanding is established between these parties.

148
 Study unit 8

8.2 THE IMPORTANCE OF COMMUNICATION IN

ORGANISATIONS
From what we have been discussing thus far, we can already see that communication plays an
important role in organisations. Thus it is not strange that communication is one of the most
frequently discussed topics in organisational behaviour. This does not imply that the role of
communication in organisational behaviour is clearly understood. We have already pointed out
that there are very few people who agree on the definition of communication. It seems that this
could also be said for the role of communication in organisations.
Communication seems to play an important role in the attainment of organisational goals. No
wonder then that communication takes up a lot of managers' time. Some people estimate that
communication takes up more than three quarters of a manager's time. Luthans (1992: 466) refers
to a study in which it was found that managers devote about one third of their activities to routine
communication - exchanging routine information and processing paperwork. What is important,
however, is the fact that the communication activity made the biggest relative contribution to the
particular managers' effectiveness. Figure 8.1 summarises the findings of this particular study.
Figure 8.1: The contribution of communication activities to “real” managers'
effectiveness (Luthans, 1992:467)

From Figure 8.1 we can gather that communication plays an important role in managerial and
organisational effectiveness. At the same time it is one of the biggest problems which face
modern managers. Some people like to attribute just about all organisational behaviour problems
to a breakdown in communication. We do hope that you can by this time see that this can
obviously not be true: there are many other factors which can play a role in organisational
behaviour problems. For some people communication has become an easy scapegoat on which
just about every problem can be blamed - even problems of a personal, national and international
nature. Again, communication can obviously play an important role in this regard, but it is definitely
not a so-called “cure-all” for all problems which humankind experience.
Communication does serve certain major functions within an organisation, namely that of control,
motivation, emotional expression, and providing information (Robbins, 2003:223) (Robbins,
2009:268).
The function of control is fulfilled in both a formal and an informal way. Organisations have formal
guidelines which employees need to follow, for instance in the case of a grievance procedure.
When we discussed the results of the Hawthorne studies in study unit 1, we saw that especially in

149
 Study unit 8
the case of the Bank Wiring Room, norms for behaviour can also be communicated in an informal
way.
Communication helps to motivate employees by clarifying what they need to do, how it should be
done, and the like. When they receive feedback on their efforts, it serves as a motivating
mechanism.
In a work group, a lot of communication takes place. Some of this communication is aimed at
emotional expression by venting feelings of frustration or satisfaction. In this way communication
helps individuals to fulfil certain social needs.
Communication facilitates decision-making, because it provides the necessary information which
is needed by the decision maker(s). By providing information, communication serves the purpose
of achieving co-ordinated action between different parts of an organisation.

8.3 THE NATURE OF THE COMMUNICATION PROCESS

There are different ways of describing the communication process. Mostly this is done by way of
different models of communication. Gray and Starke (1980:264) refer to a simple
communication model. According to them, a minimum of three elements need to be present for
the communication process to occur, namely the source (or sender), the message and the
receiver. A simple communication model which depicts these three elements appears in Figure
8.2.

Figure 8.2: A simple communication model (Gray &

Starke, 1980:264)

Note that the source of the communication may be a person or an object. As an object, it may take
on many forms, such as a book, a piece of paper, a radio or a television set. The message can
take on many forms as well, such as an instruction, a question or even a facial expression. The
characteristics of the receiver influences the way in which the message is received and interpreted
(Gray & Starke, 1980:264).
The above-mentioned model is indeed a rather simple model of the communication process. What
we need is a model which portrays something of the complexity of the communication process.
There are different “complex” models available. Let us take a look at some of them.
Robbins (1996) provides us with what he calls a/the
communication process model. This model is depicted in Figure
8.3

Figure 8.3: The communication process model

(Robbins, 2003:224) (Robbins, 2009:269)

150
 Study unit 8

Gray and Starke (1980:265) present us with much the same kind of model, which they call a/the
general communication model. This model is depicted in Figure 8.4.

Figure 8.4: The general communication model (Gray &

Starke, 1980:265)

You will have noticed that the only real difference between these two
above-mentioned models is the aspect of “noise” which has been
added to the second one. Much the same type of model as the
second one is presented by Baron and Greenberg (1990:335) (See
Figure 8.5.)

Figure 8.5: Communication: a basic model (Baron &

Greenberg, 1990:335)

The last model which we would like to present is the one by Moorhead and Griffin (1989:573) (See
Figure 8.6.)

151
 Study unit 8

Figure 8.6: The basic communication process (Moorhead &

Griffin, 1989:573)

According to Figure 8.6 there are specific processes, which play a role in the feedback that the
sender receives from the receiver. This feedback takes place in order to verify the message.
By encoding it is meant that the message is translated from an idea or a thought into symbols
which can be transmitted). When busy with encoding, the sender should keep the receiver and
his/her characteristics in mind, because the receiver must be able, on receiving the message, to
understand it in the way that the sender intended it to be understood. This means that the sender
and the receiver need to understand the symbols in the same way. That is why great care should
taken when we encode messages. In writing this study guide for example, the message that
needs to be send to you is encoded. Words are primarily used. It is important that both parties
attach the same meaning to the words used. Often, this is not the case. We also know that our
attitudes play an important role in the way in which we perceive information. Our knowledge of a
particular subject plays an important role in our communicative abilities. No doubt you will have
found that sometimes we find it difficult to transmit the message in a clear and understandable
way. None of us have perfect abilities concerning this matter, but fortunately there are ways in
which we can try to improve our communication skills.
The message is the physical product which we wish to communicate to the receiver: The
message can take on different forms: speech, writing, (a) picture(s), the movements of our arms,
and the expressions on our faces. According to Robbins (2003:224) our message is effected by
the code or group of symbols we use to transfer the meaning, the content of the message itself,
and the decisions which we make in selecting and arranging both codes and content.
Transmission is the process through which the encoded message travels via a medium or
channel or path to the receiver. These channels can be seen as pathways along which the
encoded information travels. The source of the message and the way in which it is encoded plays
an important role in the “type” of channel or medium, which is selected. When the encoded
message is delivered in a face-to-face conversation, the channel, which is used in the transmission
process, is sound waves. When we deliver the same message via a telephone, the telephones
and telephone lines and other electrical equipment connected to it are added to the medium of
sound waves. As it is already clear from the above-mentioned example, the channels (also called
media) through which messages move, can be of a great variety. It might be an interpersonal
channel, as in the case of talking and touching, to something like a fax machine, right through to
something like a newspaper, a radio broadcast or a television broadcast. If one really wants to go
into the technical detail, one should perhaps mention that in the case of the newspaper the way in

152
 Study unit 8
which the message is encoded plays a particular role in the way it is perceived by the receiver. In
the case of radio broadcast and television broadcast technical and electrical equipment are
involved again, such as transmitters and receivers. Moorhead and Griffin (1989:574) quite rightly
point out that different media have different capacities for carrying information. Face-to-face
conversation generally has more carrying capacity than a letter, since more than just words can be
sent face-to-face. The medium, which we use, can help determine the effect that the message has
on the receiver. For example, calling a prospective client on the telephone to make a business
proposal is a more personal approach than sending a letter, and is likely to elicit a different
response.
Decoding is the process by which the receiver of the message attaches meaning to it. In technical
terms this means that the receiver must translate the symbols encoded in it into a form which
he/she (the receiver) can understand, and then also in the way the sender intended it to be
understood. If the receiver attaches different meanings to the message, the communication
process can break down. Again, we need to remember that, just as the sender has limited
capacities to encode the message, so the receiver has limited capacities to decode the message.
From the previous paragraph we can gather that (as we already pointed out) it is important for the
sender to keep the qualities of the receiver/responder in mind when encoding a message and
choosing the channel by which it should be transmitted. The sender should keep in mind that the
receiver might be an individual, a group or an individual acting on behalf of a group. During the
decoding process the receiver plays an important role in trying to understand the message as it
was intended to be understood.
In order to ensure that the message has been correctly understood by the receiver, it is important
that the receiver gives feedback to the sender in this regard. This feedback might, of course,
trigger another message to be sent from the sender to the receiver. Please note that in Figure 8.6
it is indicated that during this feedback the processes of encoding and decoding occur again and
that the feedback must also move along a specific channel. This gives some indication of the
complexity of the communication process.
What makes the communication process more complex is the aspect of noise which is mentioned
in most of the Figures above. Noise is defined in different ways. In general we can think of it as
anything that interferes with the communication process, or which distorts the message. As
indicated in the different Figures above, this aspect of noise or distortion can be present at any
stage of the communication process. If the encoding is done carelessly, the message will have
been distorted. The message itself can also cause distortion, because of the poor choice of
symbols and confusion in the content of the message. If a poor channel or medium is selected or
the noise level is high, the message can become distorted. The receiver can also be a potential
source of distortion. His or her prejudices, knowledge, perceptual skills, attention span, and care in
decoding are all factors, which can result in distortion of the message.
When we think of the communication processes in organisations, we take note of the fact that
they usually tend to be much more complex than what we have been describing thus far. In
organisations, the processes of encoding, transmitting, decoding and sending feedback tends to
take place simultaneously at different places and among many individuals and groups. There are
also other factors, which influence the communication process in organisations. Some of these
other factors are the following: differences in communicators' authority levels, the purpose of the
communication, management philosophy, limitations imposed by marketing considerations and
legal constraints. These factors complicate the communication processes in organisations (Baron
& Greenberg, 1990:336).

153
 Study unit 8

8.4 METHODS OF ORGANISATIONAL COMMUNICATION

8.4.1 Written communication
With the coming of electronic media, such as electronic mail, electronic mail network facilities and
the Internet, this method of communication (written communication) in organisations and with those
outside organisations is perhaps on the decline. Even though this might be the case, we still find
that different types of written material are used in the communication process. Formal letters are
usually used to communicate with someone outside the organisation. Inside organisations, we find
the so-called office memorandum, or memo, still quite prevalent. Such a memo is usually
addressed to a specific person or a group of persons, and deals with a specific subject. These
memos tend to be less personal, but also less formal than letters (Moorhead & Griffin, 1989:584).
Other types of written communication found in organisations are reports, manuals, and forms.
Reports are usually used to summarise the progress or results of projects, and are thus of value in
decision-making. We find different kinds of manuals in organisations. These include instruction
manuals, which tell employees how to operate machines, policy and procedure manuals, which
inform employees of organisational rules and regulations, and operations manuals which tell
employees how to perform tasks and to respond to work-related problems. Information is reported
on standardised documents, which are called forms. Forms are used in an attempt to make
communication more efficient and information more accessible, and thus to increase the efficiency
of decision-making. A performance appraisal form is a case in point. Based on the information
contained in such a form, a decision can be made regarding the possible advancement of an
employee.

8.4.2 Oral communication

Oral communication occurs when the spoken language is used during face-to-face talks,
telephone conversations, telephone messages and tape recordings. Oral communication is
particularly powerful because it includes not only speakers' words but also their changes in tone,
pitch, speed, and volume. When people listen to messages, people use all of the aforementioned
cues to understand oral messages. Moreover, receivers interpret oral messages in the context of
previous communications and, perhaps, the reactions of other receivers.
It seems that the oral message serves to attract the receivers' attention, and that the follow-up
written communication helps to make the message more permanent. In the future, one can
always refer to the written message. Oral messages also allow for immediate two-way
communication between the sender and receiver of the message. Usually, written messages are
of a one-way kind or, if they do require a response from the receiver, they may take too long for a
response if they are of a two-way kind. It thus comes as no surprise that two-way communication,
such as face-to-face or telephone discussions, are more frequently used in organisations than one-
way communication, such as memos.

8.4.3 Downward communication

Gray and Starke (1980:270-272) provide us with a superior-subordinate communication model,
which perhaps illustrates some of the intricacies of organisational communication. This model is
depicted in Figure 8.7.

154
 Study unit 8
Figure 8.7: The manager-subordinate communication
model for downward communication (Gray &
Starke, 1980:271)

You will have noticed that this model is basically the same as the one depicted in Figure 8.4.
However, this model has been expanded somewhat, and specific organisational ones have
replaced some of the terms.
According to Luthans (1992:479), Katz and Kahn have identified five general purposes of superior-
subordinate communication in an organisation. They are as follows:
To give specific task directives about job instructions.
To give information about organisational procedures and practices.
To provide information about the rationale of the job.
To tell subordinates about their performance.
To provide ideological information to facilitate the indoctrination of goals.
Luthans (1992:479) is of the opinion that, to a large degree, organisations in the past concentrated
only on the first two of these purposes. Even today, some continue to do so. This leads to an
authoritative atmosphere, which inhibits the effectiveness of upward and horizontal communication
in organisations. The media which are used in downward communication include organisational
handbooks, manuals, magazines, newspapers, letters, bulletin-board items, posters, standard
reports, descriptions of procedures, verbal orders and instructions from superiors, speeches,
meetings, closed-circuit television sets, public address systems, telephones and electronic mail
systems.
Sometimes the “amount” of downward communication can become quite staggering.
Luthans (1992:481) refers to the example of the manager of a metal-fabricating division of a large
firm which found himself on the “receiving end” of a mass of downward communication: The
manager received six hundred pages of computer printout each day containing details of each
production line, the location of the various materials, and other indexes of the operation. He
estimated that it would take him approximately three full days to simplify the information into usable

155
 Study unit 8
form. Instead, he found an empty storage room, stacked the printouts there, and subcontracted
with a trash removal firm to remove the printouts, untouched, once a month.
The key to optimising downward communication seems to lie in understanding the important role,
which the receiver of information plays in the communication process. One should take into
consideration that the downward flow of information could effect receivers in the following ways
(Luthans, 1992:482):
People's interpretations of communications follow the path of least resistance.
People are more open to messages, which are consonant with their existing image, their
beliefs and their values.
Messages, which are incongruent with values, tend to engender more resistance than
messages which are incongruent with rational logic.
To the extent that people positively value need fulfilment, messages which facilitate need
fulfilment are more easily accepted than messages which do not.
As people see the environment changing, they are more open to incoming messages.
The total situation effects communication; a message interpreted as congruent in one
situation may be interpreted as incongruent in another.
The senders of information at higher organisational levels (usually managers) should take note of
the above-mentioned facts to make communication more effective. It is important for subordinates
to receive the necessary information, because without it they cannot perform as they should.

8.4.4 Upward communication

This type of communication can perhaps also be called subordinate-superior or subordinate-
initiated communication. This type of communication flows from a lower level to a higher level
in organisations. This type of communication provides feedback to those at higher levels, inform
them of the progress which has been made toward attaining goals, and is used to inform those at
higher levels of the problems which are experienced at lower levels. Through this type of
communication those at higher levels can also get ideas on how things can be improved in the
organisation. Upward communication can take on different forms. These include progress reports,
suggestions placed in so-called suggestion boxes, information gained from employee attitude
surveys, information gained from grievance procedures, discussions between superiors and
subordinates, and informal “gripe” sessions where employees have the opportunity to identify and
discuss problems with their superiors or with people at higher managerial levels (Robbins,
2003:226) (Robbins, 2009:270).
Upward communication is not simply the reverse of downward communication. The main
reason for this seems to be the difference in status between the communicators. Much as we
would expect, downward communication occurs much more frequently than upward
communication. It also seems as if the duration of conversations between subordinates and their
superiors tend to be much shorter than conversations between subordinates and people at the
same level. Furthermore, upward communication seems to be much more inaccurate. This occurs
because subordinates feel the need to highlight their accomplishments, and to downplay their
mistakes, so that their superiors can view their behaviour as favourable. Sometimes, subordinates
are afraid to speak to their superiors for fear of being rebuked and for fear of lessening their own
chances for promotion. The fact that upward communication can be quite limited can cause some
serious problems in cases where co-ordination between people is of the utmost importance. A
case in point is the 1982 Air Florida accident in which voice recordings clearly showed that the co-
pilot's warnings to the pilot were too subtle to avoid the crash in which seventy-eight people died
(Baron & Greenberg, 1990:345).

156
 Study unit 8
8.4.5 Horizontal/lateral communication
This type of communication takes place among members of the same work group, among
members of work groups at the same level, or among horizontally equivalent personnel.
Usually, horizontal/lateral communication tends to be easier and more friendly than downward or
upward (together we can call that vertical) communication, because the problem of status
differences is not present.
As long as horizontal/lateral communication is beneficial to the organisation, no one is likely to
complain. Unfortunately, horizontal communication can also become problematic, even if it is
of a formal kind. People in different departments may begin to feel that they are competing for
scarce resources. Informal horizontal communication can cause dysfunctional conflicts if the
formal vertical channels are breached, when subordinates go above or around their superiors to
get things done, or when superiors find out that actions have been taken or decisions made without
their knowledge.
An overview of upward, downward and horizontal communication, as well as the type of
messages, which accompany each type of communication, is presented in Figure 8.8.
Figure 8.8: An overview of upward, downward and horizontal communication
(Baron & Greenberg, 1990:344)

8.4.6 Formal communication

When we think of formal communication, we tend to think of that type of communication, which is
regulated by the formal channels, laid down in the structure of an organisation. We might even find
that there are different types of formal communication channels, which exist between and within
different types of work groups. It thus seems as if the patterns of communication (also known as
communication networks) which exist between and within different groups can also differ. These
patterns of communication determine which organisational units (either people or groups)
communicate with which other units. No doubt one can also find these communication networks
operating in informal communication. In a later section we will come back to the aspect of
communication networks.
We have already referred to informal communication. Baron and Greenberg (1990:349) define
informal communication as information shared without any formally imposed obligations or
restrictions. Informal communication flows via informal communication networks. Informal
communication networks are, of course, also found outside organisations. In this way, people are
connected to each other in an informal way. It thus seems, as if informal communication networks
are widespread. In organisations we find that different individuals at different organisational levels
are members of these networks. In this way, informal communication flows freely within

157
 Study unit 8
organisations, because it is a natural process. Naturally, most of this communication is not
necessarily work-related, but it lends itself to the very rapid flow of information. These informal
channels are known as the organisational grapevine. Where does this word “grapevine” come
from? It seems to have originated during the Civil War in the United States when makeshift
telegraph wires were hastily strung between trees. These wires hung loosely, making them look
like grapevines. Also, the messages travelling along those wires were often garbled. In this way,
messages travelling along the grapevine are often regarded as inaccurate, incomplete, or distorted
(Baron & Greenberg, 1990:350).
We have already referred to the fact that information tends to flow very rapidly along the
grapevine. There are mainly two reasons for this. Informal communication crosses formal
organisational boundaries. Also, informal communication is mainly transmitted orally, which tends
to be more rapid than written communication. Because of the oral way of communication,
information tends to become distorted as it is passed along the grapevine. This does not mean
that the grapevine is necessarily a bad thing. Although there are people who wish that it could be
eliminated, it can sometimes be quite accurate. As long as there are people working in an
organisation, one will find the grapevine in operation. On the other hand, when inaccuracies enter
the grapevine, it can become quite damaging. This is especially true in the case of rumours.
Rumours are based on speculation, overactive imagination and wishful thinking, rather than facts
(Baron & Greenberg, 1990:351). It is very difficult to refute a rumour. Instead, it seems to be a
better strategy to concentrate on other aspects of a person or a situation, rather than directly
refuting a rumour about the specific person or situation. If you directly refute a rumour, some
people who did not hear it in the first place, are likely to get to know about it, while others' views
about it might be strengthened, perhaps only because of the rumour being denied.
We have already pointed out that the grapevine can also be quite accurate. For people who share
in the information, which is brought by the grapevine, it can often be beneficial. Through their
access to informal information, which they would not have been able to get via formal channels
and structures, people can become quite powerful in organisations. It also helps them to build
informal connections with other people.

8.5 COMMUNICATION NETWORKS

8.5.1 Types of communication networks
Previously we referred to communication networks as the patterns which determine which
organisational units (either people or groups) communicate to which other units.
Baron and Greenberg (1990:346-348) refer to the example of two different work groups operating
within the same division of an organisation, namely the Sales and Marketing division. One group
consists of a team of creative writers, artists and market researchers sitting around a table
developing a new advertising campaign. In this group, people are able to communicate freely with
other people in the group. Another group might consist of the field representatives who operate in
various parts of the country. They report information to the different regional sales managers.
These managers again report to the manager in charge of Sales and Marketing. It is obvious that
in this group people only communicate with the person immediately above or below them in the
hierarchy.
Obviously, we find different types of communication networks in organisations. Some of the
possible communication networks appear in Figure 8.9.

158
 Study unit 8
Figure 8.9: Some basic types of communication networks (Baron & Greenberg,
1990:347)

The different diagrams in Figure 8.9 depict communication networks which have five members,
although they can have any number of members, from three or more. The circles represent
individual people, and the lines connecting them represent two-way communication lines between
them. It is, of course, possible that sometimes only one-way communication takes place, but we
shall assume that here two-way communication takes place.
As can be seen from Figure 8.9, communication networks especially differ with regard to their
degree of centralisation, that is the degree to which information must flow through a specific
member of the network. Thus the Y, Wheel, and Chain are considered centralised networks.
The filled-in circle indicates the member, through whom the information must flow. In this case, the
people at the centres have access to more information than the other people. In contrast, the
Circle and the Comcon (or all-channels) are considered to be decentralised networks,
because the people in them have equal access to information.

8.5.2 Effectiveness of communication networks

Generally speaking, it seems that when the tasks, which are being performed, are rather simple,
centralised networks do better, especially concerning speed and accuracy. When the tasks
which being performed are more complex, decentralised networks do better (specifically
concerning speed and accuracy). What should the reason for these differences be?
It seems that in the case of complex tasks the “central” person in centralised networks becomes
overloaded with all the different types of information and the complexity thereof which he/she
needs to handle. It is like a person who tries to do too many different things at the same time.
When the task is rather simple, the “central” person can solve the problem once the information
has been received. In the case of decentralised networks, it might take too long to solve a simple
problem, because input is needed from all the members, which is usually unnecessary. In the
case of a complex problem, however, the different members can perhaps tackle different aspects
of the problem and all give their input to the solving thereof. The differences in performance with

159
 Study unit 8
regard to task complexity between centralised and decentralised communication networks are
shown in Figure 8.10.
Figure 8.10: The performance of centralised and decentralised communication
networks: the influence of task complexity (Baron & Greenberg, 1990:347)

What about the aspect of satisfaction? Generally speaking, people who are members of
decentralised networks seem to be more satisfied than those who are members of centralised
networks. In decentralised networks people have an equal say in decision making, and everyone
is involved in the decision-making process. In centralised networks, the “central” member controls
the flow of information, while the other members might be feeling “left out” of the decision-making
process.
We have been thus far been referring to formal communication networks, and their effect on
performance and satisfaction. Baron and Greenberg (1990:348) point out that sometimes these
formal lines of communication are bypassed (discussed earlier). They state that the various
limitations and advantages of the formal communication networks tend to disappear the longer the
units are in operation. The reason for this is that as members gain more experience in interacting
with each other, they may learn to overcome the limitations of particular networks. Members might
soon realise that there are certain members who are good at solving particular types of problems.
They then tend to direct their communication (messages) to these individuals. Consequently, It
happens that informal communication networks start to develop alongside the formal ones. We
have already pointed out the powerful role, which can be played by informal communication in
organisations.

160
 Study unit 8

8.6 MANAGING ORGANISATIONAL COMMUNICATION

No doubt you have already picked up some clues regarding the improvement of organisational
communication from what we have been discussing thus far. What we would like to do now is to
“systemise” these methods of improving organisational communication.
Although there are different ways in which to conceptualise the managing of organisational
communication, we would like to lean heavily on the structure that Moorhead and Griffin (1989)
present, mostly because much of what they say is based on the communication process previously
described. They point out that, although the communication process seems to be rather simple,
messages are not always understood. The correspondence between message as intended by the
source and the message as understood by the receiver is called fidelity. The first step they
suggest is to improve the communication process. Firstly, let’s look at the main communication
problems in organisations identified by Moorhead and Griffin (1989:587). These problems are
depicted in Figure 8.11.
Figure 8.11 Main communication problems in organisations (Moorhead & Griffin,
1989:587)

While looking at these main communication problems in organisations, one can, at the same time,
try to think of ways in which to remedy these problems.
The main problem indicated in the source is that of filtering. Filtering boils down to the intentional
withholding of information on the assumption that the receiver does not need it to understand the
message. This can make the message meaningless to the receiver. In order to reduce filtering,
one should, in a certain sense, put oneself in the position of the receiver, because the message
and its implications needs to be clear to the receiver. One should also try not to overload the
receiver with too much information.
As far as encoding and decoding is concerned, the main problems are a lack of common
experience as far as the sender (source) and the receiver are concerned, semantics and the use
of jargon and difficulties with the medium. One should remember that what the source
(sender) encodes, the receiver should be able to decode. That is why it is important that they
share a common experience as far as the use of symbols is concerned. Semantics has to do
with the meanings which people attach to the same words. Just for a moment think of the word
“charge.” How many different meanings can you attach to that particular word? Jargon refers to

161
 Study unit 8
specialised or technical language of a trade, field, profession or social group. As long it is used
exclusively inside that group, it helps to speed up the communication process, as everyone
understands its meaning. The moment, however, it is used in communication with people outside
that group, trouble can develop., if they do not understand its meaning. The source (sender)
should thus ensure that the receiver is clear on the meaning of symbols or words.
The sender should also make sure that the medium he/she uses is appropriate as far as the type
of message which is being sent is concerned and that it is a medium that the receiver is able to
“tune into.” It might even be necessary for the sender to use multiple media and for the receiver to
monitor these multiple media to ensure that he/she picks up the message “correctly.”
The receiver can also be a “source” of communication problems. These problems are the
following: selective attention, value judgements, source credibility and overload. Selective
attention means paying attention to only selected parts of the message. Even while studying this
section on organisational communication, you as the “receiver” of the message might be suffering
from just this phenomenon. Perhaps that is why we sometimes try to highlight, and even repeat,
certain facts! Value judgements play a role in communication as far as that which is received is in
accordance or in contrast to what one believes. If the information one receives is in accordance
with what one believes to be true, one is more likely to accept the information (even uncritically). If
it is in contrast to what one believes, one might even ignore it. If one judges the source (sender) to
be an expert, one tends to view the information as credible, and one tends to accept it. If that is
not the case, the receiver tends not to accept the message. Moorhead and Griffin (1989:589) quite
correctly point out that in making value judgements and determining credibility the receiver
considers both the source and the message: “An expert in nuclear physics may be viewed as a
credible source in building a nuclear power plant and yet be disregarded, perhaps rightly, on
evaluating the birth rate. This is one reason why a trial lawyer asks an expert witness about his or
her education and experience at the beginning of testimony - to establish credibility.” We have
already referred to the problem of overload. No wonder that people who are overloaded make use
of selective attention and value judgements to survive information overload. In this process very
important information might be missed.
If feedback is omitted (missing), the sender is unable to determine whether the receiver did
indeed receive the message as it was intended to be received. According to Moorhead and Griffin
(1989:589), the lack of feedback can cause at least two problems: “First, the source may need to
send another message that depends on the response to the first; if no feedback is received, the
source may not send the second message or may be forced to send the original message again.
Second, the receiver may act on the unverified message. If the message was misunderstood, the
resulting act may be inappropriate.” As it is clear that feedback is very important for effective
communication, the sender must actively seek it from the receiver, and the receiver should supply
it to the sender.
In Table 8.1 we find specific suggestions for improving the communication process.

162
 Study unit 8
Table 8.1: Specific suggestions for improving the communication process
(Moorhead & Griffin, 1989:590)

SOURCE RECEIVER

Focus Question Corrective Question Corrective

Action Action
Message What idea or Give more What idea or Listen carefully to
thought are you information. thought does the the entire
trying to get Give less sender want you message, not
across? information. to understand? just part of it
Give entire
message

Symbols Does the Say it another What symbols Clarify symbols

receiver use the way. are being used – before
same symbols, Employ for example, communication
words, jargon? repetition. foreign language, begins.
technical jargon? Ask questions.
Use receiver's
language or Ask sender to
jargon. repeat message
Before sending,
clarify symbols to
be used

Medium Is this a channel Use multiple What medium or Monitor several

that the receiver media. media is the media
monitors Change medium. sender using?
regularly?
Increase volume
Sometimes? (loudness).
Never?

Feedback What is the Pay attention to Did you correctly Verify receipt of
receiver's the feedback, interpret the message.
reaction to your especially message? Repeat message
message nonverbal cues.
Ask questions.

In Figure 8.11 reference was made to organisational factors which can cause communication
problems in organisations. These factors are noise, status differences, time pressures and
overload. Mention was also made of the communication structure.
Noise is created by something like a rumour. We have already referred to the workings of the
grapevine. Management needs to monitor the grapevine for accuracy and even use it to
spread accurate information inside the organisation. Status differences between senders and
receivers may prompt the use of selective attention. Perhaps the fostering of informal
communication can be of help in this regard. Informal communication systems minimise the role
of status differences in communication. Through informal communication the information is
available when it is needed. It is not being trapped by a highly formalised system. Some

163
 Study unit 8
organisations develop elaborate information systems to reduce the effect of time pressures and
information overload. Sometimes these systems create more problems than they solve. (Do you
remember the storage room with the stacks of unused computer printouts?) This means that
information load must be balanced with the information-processing abilities of decision
makers.

8.7 IMPROVING INTERPERSONAL COMMUNICATION

8.7.1 Improving listening skills
Listening is more important for effective communication than asking the right questions or
explaining instructions. Asking the right questions and explaining instructions are, of course,
important, but special attention should be given to listening. Listening is the most important
communication skill.
There is a difference between hearing and listening. To hear is the ability of a person to
distinguish between sounds. As opposed to this, listening is the conscious attempt to attend to
verbal and non-verbal nuances in another person's message. Listening is an active process which
involves more than just hearing what a person says. Listening is an intellectual and emotional
process which integrates physical, emotional and intellectual inputs to understand the meaning of
the message. It also revolves around the meaning behind the words.
The good listener listens to what is being said and how it is being said. He/she does not think of a
response before he/she has listened to everything the sender has to say. Effective listening takes
place when the listener understands the message in the way in which the sender means it to be
understood.
The active listener tries to listen to the total message rather than to detail. He/she is also aware
that people tend to listen selectively (because a person's perception is selective). A message has
many aspects (verbal and non-verbal) and the receiver of the message cannot respond to
everything.
Listening mistakes are especially made when a person is not aware of it and because he/she is
not trained to listen. Bad listeners do not know what effective listening habits consist of, do not
have the skill to listen effectively, or just do not care enough to go to the trouble of learning
effective listening skills. Effective listening involves more than just hearing well and having good
intentions. Active listening is more than just repeating the words of a speaker verbatim.
A good listener has the ability to determine what messages the person is consciously or
unconsciously revealing. The sender may not be quite aware of what he/she wants to say, or may
not have the skill to say it. On the other hand he/she may try to disguise the meaning of the
message because he/she has a hidden agenda (i.e. to manipulate the message to his/her own
advantage). This double message is known as “meta-message”. A general form of this type of
message is the non-verbal message, which accompanies the verbal message. A meta-message
can be complementary (e.g. a person says: “I like you” and smiles when he/she says it). A
confusing meta-message is when the verbal and non-verbal messages are contradictory (e.g. A
person says: “I am not angry” with a frown on his face). A good listener tries to “hear” what is not
being said.
To listen effectively, the listener postpones his/her judgement and values, eliminates interruptions
and disturbances, focuses on the contents of the message (according to the 5WH formula - who,
what, where, why and how), rephrases what the speaker says in his/her own words, and looks for
the important themes in what he/she says. Recurring themes must be noted. Effective listening
requires intense concentration. The effective listener tries to understand the sender's message
and determines what it means to him/her personally.

164
 Study unit 8
According to Robbins (1991:328) there are four essential requirements to active listening. The
active listener listens with intensity, empathy, acceptance and a willingness to take responsibility
for completeness.
When thinking about listening with intensity, one should keep in mind that we can handle a
speaking rate of about four times the speed of the average speaker. This means that our minds
have time to “wander” while another person is speaking. When we listen with intensity, we use
the “spare time” to integrate that which we are hearing with what has already been said.
When we listen with empathy, we try to put ourselves in the shoes of the speaker or sender, and
we try to understand what he/she wants to communicate, and not what we want to understand.
This means that we need to actively suspend our own feelings and thoughts, and try to interpret
the message as the sender intends it.
When we listen with acceptance, we try to listen objectively to what is being said. To listen
objectively means to withhold one's own judgement until the speaker has had his/her say. This is
very often difficult to achieve, especially when we hear something that we do not agree with.
When we immediately think of counter-arguments, we may lose some of the content of the
message.
When we take responsibility for completeness, it means that we do whatever is necessary to
get the full intended meaning from the speaker's communication. We try to achieve this by
listening for the feelings that the speaker expresses, as well as the content he/she expresses. It
also implies that we ask questions in order to understand correctly what is being communicated.
If we want to become effective, active listeners, we need to exhibit certain behaviour. This
behaviour is summarised in Table 8.2.

Table 8.2: Behaviour related to effective active

listening (Robbins, 2003:235)
Make eye contact
Exhibit affirmative head nods and appropriate facial expressions
Avoid distracting actions or gestures
Ask questions
Paraphrase
Avoid interrupting the speaker
Don't over talk
Make smooth transitions between the roles of speaker and listener

Let us take a closer look at this behaviour (Robbins, 2003:235).

165
 Study unit 8
It is important for the listener to make eye contact, otherwise the speaker will think that
the listener is not paying attention to what is being said, or that the listener is not
interested in what is being said
Through making affirmative head nods and displaying a suitable attentive facial
expression the listener indicates to the speaker that he/she (the listener) is actively
listening.
One should not play with a pencil, shuffle papers about, or carry out any other
distracting actions or gestures when listening to the speaker. Such actions or gestures
show that one is not fully attentive to what is being said.
Through asking questions, the listener gets clarification and ensures understanding. It
also shows the speaker that real listening is taking place.
By paraphrasing is meant that the listener restates in his/her own words that which has
been said. When we want to paraphrase, we can use expressions such as: “Do you
mean that ...?” or “What I hear you saying is...” Why is paraphrasing so important? It is a
way to ensure that one is actively listening, because one cannot paraphrase correctly if
one has not been paying attention to what has been said. Paraphrasing is a way of
providing feedback to the speaker. In this way one can check the accuracy of one's
understanding.
By not interrupting the speaker, he/she (the speaker) is able to transmit the full
message.
Not over talking means that the listener is aware of the fact that it is impossible to talk
and listen at the same time. The active listener gives the speaker the opportunity to
express his/her ideas.
In everyday situations, we are alternatively playing the roles of speaker and listener.
To be able to take on these roles effectively, we need to be active listeners as well as
effective speakers. This implies that while we are listening, we should be concentrating
on what the speaker is saying, and not on what we are going to say when we take on the
role of speaker again.

8.7.2 Improving feedback skills through the use of supportive

communication
What are the characteristics of supportive communication? Supportive communication is
problem-orientated, not person-orientated; it is genuine and honest, not artificial or dishonest; it
is descriptive, not evaluative; it arouses positive rather than negative feelings about self-worth;
it is specific and useful; it is joined to previous messages in some way, it implies that the
speaker/sender takes responsibility for his/her statements, and requires listening, not one-
way message-delivery.
Let us take a closer look at these characteristics.
Supportive communication is problem-oriented, not person-oriented
Supportive communication focuses on the problem which is being experienced and not on the
characteristics of the individual who is the “cause” of the problem. If the communication
focuses on the person, it creates the impression that the individual is inadequate. A problem with
person-oriented communication is that, while people can change their behaviour, they cannot
change their personalities. Person-oriented messages try to persuade the other individual that
“this is what kind of person you are.” (For example, “You are a lazy worker.”) Since most
individuals accept themselves as they are, the common reaction to person-oriented communication
is to defend themselves against it or to reject it. Even positive communication should be tied to
behaviour, and not to personal characteristics.

166
 Study unit 8
Problem-oriented communication focuses on the problem and its solution rather than on personal
traits. A statement such as “You are insensitive” is person-oriented, while “Our relationship is
deteriorating” is more descriptive of a problem. Ascribing motives to an individual is person-
oriented (e.g. “It's because you want to control other people”), whereas expressing concern about
the visible manifestations of problems is problem-oriented (e.g. “You made several sarcastic
comments in the meeting today”).
Problem-oriented communication should be linked to accepted standards or expectations rather
than be based upon personal opinions. Personal opinions may be interpreted as person-oriented
and may arouse defensiveness. For example, “I don’t like the way you dress,” is an expression of
a personal opinion and may create resistance. “Your dress is not in keeping with the company
dress code,” is a comparison to external standards and has some legitimacy.
Supportive communication is genuine and honest, not artificial or dishonest
The best interpersonal communication is based on congruence, that is, matching the
communication, verbally and non-verbally, to what the speaker is thinking and feeling. One kind of
incongruence is a mismatch between what one is experiencing and what one is aware of. For
example, an individual may not be aware that he or she is experiencing anger towards another
person, though the anger is present. Another kind of incongruence is a mismatch between what
one feels and what one says. For example, an individual may be aware of a feeling of anger but
deny having that feeling.
When giving feedback to subordinates, genuine, honest statements are always better than artificial
or dishonest statements. If one holds back one's true feelings or opinions, or do not express what
is really on one's mind, one can create the impression that a hidden agenda exists. Therefore,
one's subordinates will trust one less and will try to find out what the hidden message is.
Striving for genuineness and honesty does not mean that one should blow off steam immediately
when one is upset, nor does it mean that one cannot repress certain inappropriate feelings. Other
principles of supportive communication must also be practised, and achieving genuineness at the
expense of all other considerations is not productive.
Supportive communication is descriptive, not evaluative
When an individual uses evaluative communication, he/she makes a judgement or places a label
on other individuals or on their behaviour. Examples of evaluative communication are, “You are
bad” or “You are incompetent.” This evaluation generally makes the other person feels as if he or
she is under attack and makes him or her respond defensively. Probable responses are, “No, I am
not bad.” or “I am as competent as you are.” Arguments, bad feelings, and a weakening of the
interpersonal relationship result.
The tendency to evaluate others is strongest when the issue is charged with emotion or when one
feels personally threatened. When one has strong feelings about an issue or experience anxiety
because of a situation, one tends to make a negative evaluation of others' behaviour. Sometimes
one tries to reduce one's own anxiety by placing a label on others (“You're bad and I am good.
Therefore, I feel better.”) The problem is that placing a label on another person generally leads
that person to respond by placing a label on oneself, which makes one defensive in return.
An alternative to evaluation is the use of descriptive communication. Descriptive communication
involves the following three steps:
Describe as objectively as possible the event, behaviour or circumstance. This
description must rely on elements of the behaviour that could be confirmed by another
person. One thus needs to refer to accepted standards of behaviour. Avoid accusations and
present the necessary data or evidence, if needed. A statement such as “You have finished
fewer projects than anyone else in the department” can be confirmed and relates strictly to
the behaviour exhibited and an objective standard, not to the motives or personal
characteristics of the subordinate.

167
 Study unit 8
Describe your own reactions to or feelings about the event, behaviour or
circumstance. Describe the objective consequences which have resulted because of the
behaviour. Focus on behaviour and your own reaction, not on the other individual or his/her
personal characteristics. (For example, “I am concerned about our client service,” or “Two
customers have expressed dissatisfaction with the quality of our products.”)
Suggest a more acceptable alternative. This helps the other person save face and feel
valued. Separating the individual from the behaviour does this. The self-esteem of the other
person is preserved; it is just the behaviour, which needs to be modified. (For example, “I
would like to help you identify the things that are preventing you from performing better”.) Be
prepared to discuss additional alternatives and focus on alternate solutions, not on who is
right or wrong.
Supportive communication arouses positive rather than negative feelings about self-
worth
It is important not to deny the presence, uniqueness or importance of other individuals. One
should be careful not to convey messages of superiority, rigidity and indifference to the other
person.
Communication which is superiority-oriented gives the impression that the communicator is
informed while others are ignorant, adequate while others are inadequate and competent while
others are incompetent. It creates a barrier between the communicator and the receiver of the
message. It can take the form of put-downs, in which others are made to look bad so that the
communicator looks good. To prevent this from happening, one should use words and language,
which the other person can understand.
Rigidity is evident when the communication is portrayed as absolute or unquestionable, which
implies that no other opinion could possibly be considered. Rigidity in the communicator is
characterised by never expressing agreement with anyone else, reinterpreting other viewpoints to
conform to one's own, having an answer for everything, not expressing openness to others'
opinions, appearing unwilling to tolerate criticisms, and using evaluative statements.
Indifference is communicated when the other person's existence or importance is not
acknowledged. A person may do this by remaining silent, by making no verbal response to others'
statements, by avoiding eye contact or any facial expression, by interrupting the other person
frequently or by engaging in unrelated activities during a conversation.
One should communicate in a way which helps people feel recognised, understood,
accepted and valued. This can be done by helping subordinates feel that they have a stake in
identifying problems and by treating them as worthwhile and competent. This means that one
needs to be flexible in communication, that is, to accept that additional data and other alternatives
may exist and that other individuals can make significant contributions both to the problem solution
and to the relationship. In flexible communication, perceptions and opinions are not presented as
facts, but are stated provisionally.
Supportive communication is specific and useful
The more specific a statement is, the more useful it is. “You are a poor communicator” is not
nearly as useful as a more specific “During this meeting, you used evaluative statements 60
percent of the time and descriptive statements 10 percent of the time.” By using specific
statements one avoids extremes and either-or situations. The following is an extreme statement
which leads to defensiveness (and actually another extreme statement!): Person A: “You never ask
for my advice.” Person B: “Yes, I do, I always consult you before I make a decision.” The futility
of extreme and either-or statements lies in their denial of any alternatives. Specific statements are
more useful in feedback because they focus on behavioural events, for example, “You made that
decision yesterday without asking for my advice.”
Not all specific statements are useful just because they are qualified in some way. It may not be
useful if it focuses on things over which another person has no control. A statement like, “Your

168
 Study unit 8
personality bothers me” is usually interpreted as a personal attack. Specific communication is
useful to the extent that it focuses on an identifiable problem or behaviour about which something
can be done.
Supportive communication is joined to previous messages in some way
Sometimes a person does not get an equal opportunity to speak. When one person interrupts
another, when someone dominates the discussion, or when two or more people try to speak
simultaneously, the communication is not supportive. Other problems in this regard include long
pauses before responses and the control of the conversation by one person.
The skilled manager fosters supportive communication by asking questions based directly on the
subordinate's previous statement, by waiting for a sentence to be completed before beginning a
response, and by saying only two to three sentences at a time before pausing to give the other
person a chance to add ideas. In addition he/she avoids long pauses, and his/ her statements
refer to what has been said before.
Supportive communication means that one takes responsibility for one's statements
The supportive communicator takes responsibility for his/her own statements and acknowledges
that the source of ideas is himself/herself. Using first-person words, such as “I”, “me” or “mine”.
A person who is speaking in the third person (for example, “We think” or “They said”) does not take
responsibility for his/her own messages. Taking responsibility for one's own messages shows a
willingness to invest something of oneself in the relationship and to act as a helper.
Supportive communication requires listening, not one-way message-delivery
We have already pointed out that active listening is the most important communication skill that
one needs to possess. This implies that even when giving feedback the effective supervisor or
manager needs to be an active listener. It seems as if people are usually 25 percent effective in
their listening; that is, they listen to and understand only about a fourth of what is being
communicated. When individuals are preoccupied with meeting their own needs, when they have
already made a prior judgement, or when they hold a negative attitude to the communicator or the
message, they cannot listen effectively. Therefore, being a good listener requires developing the
ability to hear and understand the message sent by another person, and helping to strengthen the
relationship between the interacting parties.
People do not know that they are being listened to unless the listener makes some kind of
response. The mark of a supportive listener is the competence to select appropriate
responses to others' statements. The following four response types can be used:
Advising. An advising response is a response, which provides direction, evaluation,
personal opinion, or instructions. Such a response imposes on the communicator the point
of view of the listener. The advantages of an advising response are that it helps the
communicator to understand something which may have been unclear before, it helps
identify a solution to a problem, and it can provide clarity about how the communicator
should feel or act in the future. It is most appropriate when the listener has expertise which
the communicator does not possess or when the communicator is in need of direction.
However, most listeners offer much more advice than is appropriate.
One problem with advising is that it can produce dependence. Individuals become used
to having someone else generate the answers. They are not allowed to figure out the
solutions for themselves. A second problem is that advising also creates the impression
that the listener does not understand the communicator. It has been found that most
people, even when they are asking for advice, mainly want understanding and acceptance,
not advice. They want the listener to share in the communication, but not take charge of it.
A third problem with advising is that it shifts focus from the communicator's message to
the listener's advice. A fourth problem with advising is that it can imply that
communicators do not have sufficient understanding, expertise or maturity - they are
in need of help because of incompetence.

169
 Study unit 8
One way to overcome the disadvantages of advising is not to use it as a first response in
feedback. It should follow the other responses which allow communicators to have control
over the topics of conversation, and which show understanding and acceptance.
Switching responses. A switching response is a response where the listener changes the
subject. Listeners may substitute their own experience for that of the communicator (e.g.
“Let me tell you about something similar that happened to me”) or introduce a new subject
(e.g. “That reminds me of ...”). The listener may think the current problem is unclear to the
communicator and the use of examples will help. Another possibility is that the listener may
feel that the communicator needs to be reassured that others have experienced the same
problems and that understanding and support are available.
These types of responses are most appropriate when a comparison or reassurance is
needed. They can provide empathy and support by expressing the message “I understand
because of what happened to me”. They can also convey assurance that “Things will be
fine. Others have also had this experience”. The disadvantage of switching responses,
however, is that they can imply that the communicator's message is not important or
that the experience of the listener is more appropriate than that of the communicator.
It can be interpreted as, “My experience is more worthy of discussion than yours”. These
responses are more effective when they are connected to what the communicator just said.
Probing. A probing response asks about what the communicator has just said or about a
topic selected by the manager. The intent of a probe is to find additional information, or to
help the communicator say more about the topic. Questions are a useful way to avoid
evaluation and defensive reactions. Questioning helps the listener to make specific
suggestions and descriptive statements.
Questioning can sometimes have the unwelcome effect of switching the focus of
attention from the communicator's statement to the reasons behind it. The question,
“Why do you think that?”, might force the communicator to justify a feeling or perception
rather than just report it. It can also be a mechanism for escaping discussion of a topic or for
moving the topic to what the listener wants to discuss.
Reflecting. The purpose of the reflecting response is to mirror back to the communicator the
message heard and to express understanding and acceptance of the person. Reflecting the
message in different words allows the speaker to feel listened to, understood and to explore
the topic in more depth.
Keep the following rules in mind when reflecting:
Avoid repeating the same response over and over, such as “You feel that ...” or “Are you
saying that ....?”
Respond to the personal rather than the impersonal. For example, to a complaint by a
subordinate about close supervision and feelings of incompetence, an
understanding/reflective response would focus on personal feelings rather than on
supervisory style.
Respond to expressed feelings before responding to content. When expressed, feelings
are the most important part of the message to the person, and may stand in the way of the
ability to communicate clearly.
Respond with empathy and acceptance. Avoid the extremes of complete objectivity or
distance on the one hand or over-identification on the other hand.
Avoid expressing agreement or disagreement with the statements.

170
 Study unit 9

9 STUDY UNIT 9

9.1 DEFINITION OF ORGANISATIONAL DESIGN

Organisational design is defined as the formal system of communication, authority and
responsibility adopted by an organisation which constitutes its internal structure (Baron &
Greenberg, 1990:521). It is true that all organisations have some kind of internal structure by
which they operate in order to reach their goals. This structure varies from organisation to
organisation. This means that there are several different forms which an internal structure can
take. There are thus different dimensions along which the internal structure of an organisation
can vary. There are different factors which determine the specific way in which an organisation is
internally structured. There are also different ways in which one can conceptualise these different
factors, and the way in which they influence the structuring of organisations.

9.2 MICRO AND MACRO PERSPECTIVES ON

ORGANISATIONAL DESIGN
The micro and the macro perspectives on understanding organisational behaviour are shown in
Figure 9.1

171
 Study unit 9
Figure 9.1: Micro and macro perspectives on organisational behaviour (Baron &
Greenberg 1990:522)

As shown in Figure 9.1, the micro and the macro approaches to understanding organisational
behaviour are actually two sides of the same coin: The macro approach is a “top-down”
perspective, which works from social systems to groups and individuals. The micro approach is a
“bottom-up” perspective, which works from individuals through groups, to entire organisations
(Baron & Greenberg, 1990:522). Understanding organisational design (the macro approach) thus
leads to a better understanding of the dynamics of organisational behaviour. Better organisational
design should also increase the performance and satisfaction of employees. At a later stage we
shall return to this aspect.

172
 Study unit 9

9.3 THE BASIC DIMENSIONS OF AN ORGANISATIONAL

STRUCTURE
According to Baron and Greenberg (1990:522-525),Robbins, Odendaal and Roodt (2003:312-316)
and Robbins (2009:402-405) the following basic dimensions of an organisational structure can be
identified.

9.3.1 Specialisation
Specialisation refers to the degree to which tasks are subdivided in organisations. In
organisations in which there is a high degree of specialisation, we tend to find that each employee
of a group or a sub unit performs a narrow range of tasks. Usually, large organisations tend to be
high on specialisation. In smaller organisations we tend to find less specialisation. That means
that employees tend to carry out a wide range of tasks. Specialisation can also be called division
of labour. You will no doubt remember that Frederick Taylor was a proponent of specialisation, as
he was of the opinion that it would lead to greater efficiency. While this is sometimes true, we have
already pointed out that too much specialisation tends to lead to boredom on the part of the person
who has to carry out such tasks.

9.3.2 Formalisation
According to Robbins (1996:558) and Robbins (2009:405) formalisation refers to the degree to
which jobs within an organisation are standardised. Formalisation is thus the extent to which
organisations rely on written documentation (like formal job descriptions) and formal rules
and regulations to ensure efficiency. Some organisations go to extremes concerning this aspect:
they try to formulate rules and regulations for just about all situations which might arise. On the
one hand that reduces uncertainty concerning organisational functioning. As you can imagine,
however, this results in an organisation being unable to respond quickly and efficiently in cases
where situations arise which are not found “in the book” of rules and regulations. It also leaves
little room for creative and innovative thinking on the part of employees. We might find
organisations in which very little written documentation and formal rules exist. In such
organisations people “play it by ear” when specific situations arise.

9.3.3 Span of control

Span of control refers to the number of people reporting to one manager/supervisor. In the
case of a wide span of control, rather many people report to one manager/supervisor. In such a
case we are likely to find that the organisation structure tends to be rather “flat.” In the case of a
few people reporting to one manager/supervisor (a narrow span of control), we tend to find that the
organisation structure is rather “tall.” The difference between a flat and a tall organisational
structure is shown in Figure 9.2.

173
 Study unit 9
Figure 9.2: The difference between a flat and a tall organisational structure (Baron
& Greenberg, 1990:524)

In earlier years it was recommended that the span of control should not be too large. This boiled
down to not more than four to six people reporting to one manager/supervisor. In this way a
manager/supervisor can maintain close control over subordinates. A small span of control does,
however, have some disadvantages. It is expensive, because it adds levels of management. It
makes vertical communication more complex and slows down decision-making. It discourages
employees to act autonomously. Nowadays it seems clear that there is no hard and fast rule
regarding the optimum span of control. To a great degree the span of control depends on the
nature of the tasks which are being performed. If the task is of a routine and repetitive nature,
employees need less supervision than in the case of highly complex tasks being carried out. Also,
when employees have the necessary training for and experience of carrying out tasks (perhaps
even complex tasks) they need less supervision. In such cases the span of control can be
widened.

9.3.4 Centralisation/decentralisation
Centralisation refers to the degree to which only a very few people in an organisation make
important decisions, and hold the authority that this centralised decision making implies.
Decentralisation refers to the degree to which decision-making is shared by people throughout
the organisation. In a decentralised decision-making organisation we shall thus find that there is

174
 Study unit 9
widespread participation in the decision-making process. Although there are obvious benefits to a
decentralised decision-making process, and it thus seems as if a decentralised organisational
structure is preferable to a centralised one, there are other factors which one needs to take into
consideration. If decision-making is decentralised, different individuals or groups might feel equally
responsible for making important decisions. It might lead to a loss of integration or co-ordination of
effort, because each person or group makes its decisions independently of other people or groups.
Participative decision-making normally takes up quite some time. All this implies that efficiency
might sometimes be lost through the process of decentralised decision-making.

9.3.5 Complexity
Complexity refers to the degree of internal differentiation or divisionalisation which we find in
organisations. This differentiation or complexity might be of a vertical or a horizontal nature. In
organisations which are vertically complex we find many levels and a relatively long chain of
command, running from the top-management level to the person on the factory floor. Newer or
smaller organisations have a shorter chain of command and fewer levels between top-
management and the person on the factory floor. In organisations which are horizontally
complex, we find many different departments or units. This is usually the result of a growth
process which organisations experience. In such organisations there very soon arises the need to
integrate the activities of the different departments or units, and to improve communication
between them.

9.3.6 Line versus staff

These services are often related to technical advice regarding specific matters of which the
particular line or production department has little knowledge. Often, top management makes direct
use of the services of these staff departments. Line people, who are directly involved in the
production of goods and services, often feel that they are the experts in their own fields and that
they do not need or want advice from staff departments. People in staff departments might feel
that the people in line departments have a too narrow focus, and that they actually need the advice
and input from staff departments. Often, top management accepts the advice from staff
departments over that of the line departments. It is obvious that the line-staff relationship can be a
difficult one, and one which should certainly be taken into consideration when thinking about
organisational structures and organisational design.

175
 Study unit 9

9.4 INFLUENCE OF STRUCTURAL DIMENSIONS ON

ORGANISATIONAL DESIGN
When the different dimensions of organisational structure are combined, we find that two broad
types of organisational structure emerge. The one type is called the mechanistic structure. In
such a structure we find a high degree of complexity (especially of a horizontal nature), a high
degree of formalisation, a limited information network which carries mostly downward
communication, and little participation by lower-level people in decision making. The mechanistic
structure is usually typical of a pyramid-shaped organisation. In the case of the organic structure,
there is little complexity, a comprehensive information network which uses downward, upward and
lateral communication, and a lot of involvement of members in decision-making. Figure 9.3
illustrates the differences between mechanistic and organic structures.
Figure 9.3: Differences between mechanistic and organic structures (Robbins,
2003:321)

Another way of depicting the differences between mechanistic and organic structures is shown in
Figure 9.4.

176
 Study unit 9
Figure 9.4: Mechanistic and organic structures (Baron & Greenberg, 1990:526)

In practice, one might find that a particular organisation structure contains elements of both the
mechanistic and the organic types. The reason for this is the fact that organisations are complex
entities. One tends to find, however, that organisations are primarily of a mechanistic or an organic
type.

9.5 APPROACHES TO ORGANISATIONAL DESIGN

9.5.1 Universal approaches to organisational design
Because of the fact that the universal designs are of the “older” type of designs, we shall not dwell
on them too long. Even today, however, we find that many organisations still make use of some of
the principles imbedded in these universal approaches.
The ideal bureaucracy
We have already referred to the bureaucratic organisation structure in study unit 1, when we
mentioned the name of Max Weber. We also illustrated the ideal bureaucracy as conceived by
Weber. Although we nowadays think of a bureaucracy in terms of red tape, rules and regulations,
and sluggishness, we pointed out that the idea behind Weber's thinking was to have an efficient
organisation structure, based on a system of rules and procedures. We can understand that when
these rules and procedures are carried to an extreme, or when they are violated, the organisational
system might break down. It leads to the stifling of creativity in organisations. Some of the
elements of the ideal bureaucracy are still visible in modern-day organisations, but most of these
organisations try to remain innovative and productive.
The classic principles of organising
Henry Fayol, a French engineer and the chief executive officer of a mining company, was the first
to classify the essential elements of management (nowadays called management functions),
namely that of planning, organising, command, co-ordination and control. He also identified

177
 Study unit 9
fourteen principles of organising which he considered very important for managers to follow.
These fourteen principles of organising appear in Table 9.1.
Table 9.1: Fayol's classic principles of organising (Moorhead & Griffin,
1989:460)

Principles Fayol's Comments

1. Division of work Individuals and managers work on the same part or
task.
2. Authority and Responsibility Authority – right to give orders; power to exact
obedience; goes with Responsibility for reward and
punishment
3. Discipline Obedience, application, energy, behavior
Agreement between firm and individual
4. Unity of command Employee receives orders from one superior
5. Unity of direction One head and one plan for activities with the same
objective
6. Subordination of individual Objectives of the organisation come before objectives
interest to general interest of the individual
7. Remuneration of personnel Pay should be fair to the organisation and the
individual; discussed various forms
8. Centralisation Proportion of discretion held by the manager
compared to that allowed to subordinates
9. Scalar chain Line of authority from lowest to top
10. Order A place for everyone and everyone in their place
11. Equity Combination of kindness and justice; Equality of
treatment
12. Stability of tenure of personnel Stability of managerial personnel; time to get used to
work
13. Initiative Power of thinking out and executing a plan
14. Esprit de corps Harmony and union among personnel is strength

These principles have had a tremendous influence on the thinking about organising: For example,
Fayol's unity of command means that employees should receive directions from only one person,
and unity of direction means that the tasks with the same objective should have a common
supervisor. Combining these principles with division of labour and authority and responsibility
results in a system of tasks and reporting and authority relationships which is the very essence of
organising. Fayol's principles thus provided the framework for the organisation chart and the co-
ordination of work.
These principles have been criticised for different reasons. One reason is the fact that the human
element in organisations is ignored. It means that no attention is paid to factors such as individual
motivation, leadership and the role of the informal group. Fayol was also criticised for not
specifying the means of applying many of these principles. Lastly, these principles were not
backed by scientific evidence, but were based on his experience.

178
 Study unit 9
The human organisation
This approach to organisational design is the one proposed by Likert. There are three important
principles to his approach, namely supportive relationships, employee participation and
overlapping work groups. By supportive relationships is meant that individuals should be able to
experience feelings of support, self-worth and importance. By participation is meant that the work
group should be involved in decisions which effect it. In this way individuals experience
supportiveness and self-worth. By the principle of overlapping work groups is meant that work
groups are linked in such a way that managers serve as linking pins between groups. This
principle is illustrated in Figure 9.5.
Figure 9.5: Likert's overlapping work groups (The linking pin organisation)
(Moorhead & Griffin, 1989:461)

According to the principle of overlapping work groups each manager (except the one right at the
top) is a member of two groups, namely the group which he/she manages, and the group
composed of people at the same level as he/she, and his/her manager. Through the application of
the principle of overlapping work groups, every manager performs a linking pin function between
these two groups, thus ensuring effective co-ordination and communication. The concept of the
human organisation rests on the assumption that people perform best when they find themselves
in work groups which are cohesive and which strive to reach organisational goals.
Likert described four different systems of organising, namely that of Exploitive Authoritative
(much like the classic bureaucracy), Benevolent Authoritative, Consultative and Participative
Group. The characteristics of each of these systems of organising are summarised in Table 9.2.

179
 Study unit 9
Table 9.2: Characteristics of Likert's four management systems (Moorhead &
Griffin, 1989:462)

Characteristic System 1: System 2: System 3: System 4:

Exploitive Benevolent Consultative Participative
Authoritative Authoritative Group

Leadership
* Trust in sub- None None Substantial Complete
ordinates
* Subordinate's Seldom used Sometimes used Usually used Always used
Motivational forces
* Motivates Security, status Economic, ego Economic, ego All motives
tapped and others
* Level of Overall Some moderate Moderate High satisfaction
satisfaction dissatisfaction satisfaction satisfaction
Communication
* Amount Very little Little Moderate Much
* Direction Downward Mostly downward Down, up Down, up, lateral
Interaction-influence
* Amount Very little Little Moderate Much
* Co-operative None Virtually none Moderate Substantial
teamwork
Decision-making
* Locus Top Policy decided at Broad policy All levels
top decided at top
* Subordinates Not at all Sometimes Usually Fully involved
involved consulted consulted
Goal setting
* Manner Orders Orders with Set after Group
comments discussion participation
* Acceptance Covertly resisted Frequently Sometimes Fully accepted
resisted resisted

Control processes
* Level Top All levels Some below top All levels
* Information Incomplete, Often Moderately Complete,
Inaccurate incomplete, complete accurate
inaccurate accurate
Performance Mediocre Fair to good Good Excellent

180
 Study unit 9
The principle of overlapping work groups stands in contrast to the classical principle of the unity of
command. The linking pin concept of overlapping work groups for making decisions and resolving
conflicts also stand in contrast with the use of the formal chain of command for these purposes. It
must be pointed out that although research has shown that System 4 characteristics are
associated with positive worker attitudes and, in some cases, increased productivity, it is not sure
that the characteristics of this system really caused the positive results. These positive aspects
might have caused the organisation structure to be seen as supportive and participative. Likert
has also been criticised for not dealing extensively with structural aspects of organising, but
concentrating on individuals and groups.
Organisational design based upon socio-technical systems theory
In study unit 1 we referred to the fact that nowadays organisations are viewed as being open
systems, because they interact with the environment. A system might be defined as an
interrelated set of elements functioning as a whole. An organisation as a system also consists of
subsystems. The way in which the subsystems and the environment interact is displayed in Figure
9.6.
Figure 9.6: Interaction of the environment and subsystems (Moorhead & Griffin,
1989:466)

The sociotechnical approach to organisational design focuses on two important subsystems of an

organisation, namely the technical (task) subsystem and the social subsystem, and how the
organisation can be structured to integrate these two subsystems. Figure 9.7 provides a schematic
representation of the sociotechnical subsystems combination.
The technical or task subsystem transforms inputs (such as raw materials) into outputs (such as
products or services). In the sociotechnical approach to organisational design much emphasis is
placed on the ways in which this transformation process can be improved.
The social subsystem has to do with the interpersonal relationships which exist between people
in an organisation. This can take on a variety of forms. We can think of friendships which develop
between people. We can think of the different forms of interaction and communication which take
place between people in organisations. Even when people in organisations learn about the
personal preferences, the strengths and weaknesses, and the work habits of other people it is
considered to be part of the social subsystem. You will no doubt remember that during the
Hawthorne studies (which we discussed in study unit 1) it was discovered that social relationships
can play an important role in organisational behaviour.
Originally, the sociotechnical systems approach to organisational design was developed by
researchers at the Tavistock Institute in England. They studied new mining techniques which
were introduced in the coal mines to increase productivity. The researchers found that the new
techniques did not lead to an increase in productivity, because it split up well-established work
groups. The Tavistock researchers thought that it would be best to integrate the technical and the
social subsystems by instituting autonomous work groups.

181
 Study unit 9
Figure 9.7: The integration of technical and social subsystems (Moorhead &
Griffin, 1989:467)

According to Moorhead and Griffin (1989:468) the sociotechnical approach to organisational

design has been implemented with some degree of success in the General Foods plant in Topeka,
Kansas, United States of America, the Saab-Scania project in Sweden, and the Volvo plant in
Kalmar, Sweden. The sociotechnical approach to organisational design has been criticised on two
counts. Firstly, little research has been done on the way which the different types of environments
influence the characteristics of the autonomous work groups in organisations. Secondly, it does
not clearly predict how individual differences might effect the way in which individuals participate in
these autonomous work groups.
Structural approach to organisational structure
The structural approach takes the most important factors which need to be taken into account, into
consideration when deciding on the best way in which an organisation needs to be structured in
order to be effective. The structural approach to organisational design is depicted in Figure 9.8.
Figure 9.8: The structural approach to organisational design (Moorhead & Griffin,
1989:468)

From Figure 9.8 it is clear that the most important structural factors are size, technology and the
environment. Some writers (like Baron and Greenberg, 1990, and Robbins, 1996) add
organisational strategy to the list of structural factors. Robbins (1991) also discusses the aspect
of power-control as a structural factor.
There are therefore different views as to what the different structural factors are which influence
the way in which organisations are designed. What is true, however, is the fact that all
organisations are effected by the external environment in which they operate. In this external

182
 Study unit 9
environment there are a vast variety of factors, which influence organisations. Some of these
factors are the following:
the specific society in which the organisation finds itself with its many values and traditions;
the changing economic conditions;
the patterns of competition, government regulations and the different laws;
the changes in the availability of raw materials, and changes in the availability of human
resources.
As you well know, there are many other factors which one can add to the preceding list. All these
factors influence the way in which an organisation is internally structured.
All organisations also make use of some type of technology. Technology means the different
ways in which input (such as raw materials) is converted into output (such as products). All
organisations make use of some kind of strategy, which is a plan that is followed to match the
organisation's skills and resources with the opportunities/threats in the external environment
(Baron & Greenberg, 1990:520).
What is important to note is the fact that there is a complex interaction between the internal
structure of an organisation, the environment in which it functions, the strategy/strategies it adopts
and the technology it uses. This interaction is depicted in Figure 9.9.
Figure 9.9: The interaction between internal structure, external environment,
technology and strategy (Baron & Greenberg, 1990:521)

From Figure 9.9 it is clear that the internal structure of an organisation is partially influenced by the
environment, the technology it uses and the strategy it follows. The internal structure influences
the strategy which is followed, the technology that is used and is a response to the external
environment. The external environment influences the strategy and the technology which is used,
and vice versa. We could go on indefinitely pointing out how these different aspects influence one
another. What is important though, is the fact that to fully understand organisations and the
processes which occur within them, we need to pay careful attention to the internal structure of

183
 Study unit 9
organisations, and to the relationships between this structure and the external environment, the
technology and the strategy/strategies.

9.5.2 Contingency approaches to organisational design

According to a contingency approach to organisational design specific conditions such as the
environment, technology, and the organisation's work force determine the structure. We can thus
say that the organisational design is contingent or dependant on one or more of these factors.
Some authors add other contingency factors and place more emphasis on one or some of these
factors. Perhaps that is the reason why there are different views as to what constitutes
contingency approaches to organisational design. Let us take a closer look at some of these
contingency approaches to organisational design.
Let us now take a closer look at the structural factors which influence organisational design.
The role of organisational size in organisational design
Organisational size can be conceptualised in different ways. Usually, people think that an
organisation's size is linked to the number of people who are employed by the particular
organisation. That is indeed one way of thinking about organisational size. Organisational size
can also be expressed by the value of the organisation's assets, the total value of sales or
turnover, the number of clients the organisation serves, or its physical production capacity. No
matter in which way the size of an organisation is expressed, it seems to be generally true that the
larger an organisation becomes the more complex its structure also becomes.
The impact of large size on organisational structure is illustrated in Figure 9.10.

Figure 9.10: The impact of large size on organisational structure

(Moorhead & Griffin, 1989:469)

From Figure 9.10 it is clear that if an organisation grows by way of employing more
employees, we are likely to find that in such an organisation there is an increase
in specialisation and horizontal differentiation. We are likely to find an
increase in the span of control, the number of hierarchical levels, and
formalisation. Thus we will tend to find an increase in the number of rules and
regulations. Most probably we shall find an increase in vertical differentiation,
as new units are created to co-ordinate the activities of organisational members.

184
 Study unit 9
Robbins (1991:491) point out that when the above-mentioned changes take place,
top management becomes further removed from the operating levels of the
organisation (also see Robbins, 2009:412 in this regard). It becomes increasingly
difficult for top management to make rapid and informative decisions. This might
lead to decision-making being centralised, instead of decentralised. It thus
seems as if size does have a great impact on organisational design. Generally,
size has the effect on organisational structure that we have been describing. The
only real exception seems to be the aspect of the centralisation of decision making
in order for management to exercise control. In small organisations management
can exercise control by centralising decision making. In larger organisations this
seems difficult to achieve. Thus management is forced to decentralise decision-
making. We know, of course, that nowadays some organisations, through the
method of downsizing, employ fewer people and reduce the variety of products
they produce. We also need to keep in mind that size should not be considered in
isolation from the other so-called structural factors.

The role of technology in organisational design

Technology refers to the way in which an organisation transfers its inputs to outputs (Robbins,
2003:321) (Robbins, 2009:412). There are different approaches to viewing technology as a major
determinant of organisational structure. These approaches are to a large degree influenced by the
orientation of the different researchers and the type of organisations they used in their research.
When we look at a synthesis of the different research results, we find that the following conclusions
can be made regarding the role of technology in organisational design: It seems as if there is one
important distinction which can be made between the different “technologies” that organisations
employ to transfer outputs into outputs. This distinction refers to the degree of routineness of the
technology which is employed. In the case of routine activities, the technology is characterised by
automated and standardised operations that are carried out. In the case of non-routine activities,
we find the opposite type of operations. In general (but not very strongly) it is found that routine
tasks are associated with high complexity. Because of the operations being repeated, we find an
increase in horizontal and vertical differentiation, which leads to taller and more complex
organisational structures.
Routine tasks are also rather strongly associated with formalisation, and with the presence of
operating manuals, job descriptions and other types of formal documentation. It also seems logical
to conclude that routine tasks should be associated with centralisation of decision-making, while
non-routine tasks should be associated with decentralised decision-making, because of the role
that specialists play in this regard. Sometimes this is true. However, it seems as if the degree of
formalisation plays an important role in this regard, because formal regulations and centralised
decision- making are both control mechanisms and management can substitute them for each
other. Thus routine activities can be associated with centralised decision making if there are very
few rules and regulations. On the other hand, if there are many rules and regulations, routine
activities can be associated with a decentralised decision making system (Robbins, 2003:322)
(Robbins, 2009:412). One should, however, also take the size of an organisation into
consideration. It seems as if in smaller organisations the organisational structure depends
primarily on the technology which is employed, while in large organisations there is the important
need to co-ordinate complicated activities. Thus, both organisational size and technology are
important considerations in organisational design.
The role of the environment in organisational design
We have already pointed out that an organisation is viewed as an open system which is in
interaction with its environment. In general, this environment is dynamic, and poses different
challenges, problems and uncertainties for an organisation. An organisation thus needs to have a
structure which enables it to effectively deal with this dynamic environment, because it contains

185
 Study unit 9
forces which effect the performance of an organisation, but over which the organisation has very
little control.
According to Robbins (2003:322-323) and Robbins (2009:412-413) there are three important
characteristics of an organisation's environment which have an impact on organisational design.
These characteristics are capacity, volatility and complexity. The capacity of an environment
refers to the degree to which it can support growth in an organisation. An environment which has a
large capacity can help an organisation to build up its resources, so that it has something to fall
back upon when leaner times arrive. The volatility of an organisation's environment refers to its
instability, or unpredictable change which is likely to occur within it. The more unstable an
environment is, the more dynamic it tends to be. Such an unstable environment makes it difficult
to make accurate decisions regarding predictions of various outcomes. Complexity refers to the
degree of heterogeneity and concentration among environmental elements. Environments which
are homogeneous and concentrated are called simple environments. In such environments it is
relatively easy to keep one's eyes on what one's competitors do. Environments which are
heterogeneous and dispersed are called complex environments. Perhaps the environment in the
computer software business can nowadays be viewed as complex, because new packages are
being developed frequently. The three main characteristics or dimensions of the environment
which have serious implications for organisational design are shown in Figure 9.11.
Figure 9.11: Dimensions of the environment which influence organisational
design (Robbins, 2003:323) (Robbins, 2009:413)

The arrows in Figure 9.11 point towards higher uncertainty. How do these characteristics or
dimensions of the environment influence organisational design? It seems that when there is
scarcity in the environment, or it is dynamic and complex, an organisation's structure needs to
more of an organic nature. When there is abundance in the environment, or it is stable and simple
the organisational structure needs to be more of a mechanistic nature.
The role of organisational strategy in organisational design
According to Moorhead and Griffin (1989:473) an organisation's strategy is defined as the design
of a game plan to achieve organisational goals. How does an organisation's strategy influence
its organisational structure/organisational design? A person by the name of Alfred Chandler
(Moorhead & Griffin, 1989:473; Robbins, 1991:489) studied the history of seventy companies in the
United States of America. The history of these companies was traced over a period of fifty years.
According to Chandler, changes in corporate strategy preceded and led to changes in the structure
of organisations. In most of the cases, these companies began with a single product or a single
line of products. In the beginning, little structure was needed, and decision making was centralised

186
 Study unit 9
within the senior manager of the organisation. In such an organisational structure, complexity and
formalisation tended to be low. As the organisations grew, their strategies became more ambitious
and elaborate. They began producing different products or different product lines. This could be
called a vertical integration strategy, which led to increased interdependence between
organisational units and created the need for more complex co-ordination. This led to the
redesigning of organisational structures to form specialised units based on the functions which
were being performed.
When further growth occurs within an organisation, we find that product diversification increases.
Such a product diversification strategy needs an organisational structure by which resources can
be allocated efficiently, production units can be held responsible for their performance, and the
necessary co-ordination between units can be achieved. This leads to the creating of many
independent divisions, each responsible for a specific product or product line. The net result of all
this is the development of rather elaborate organisational structures, most probably of a
mechanistic nature (Robbins, 1991:489).
Robbins (2003:321) and Robbins (2009:411) points out that one should take the specific
dimension of strategy into consideration when thinking about its effect on organisational
structure. These strategy dimensions are the following: innovation, cost-minimisation and
imitation. An organisation which follows an innovation strategy constantly tries to introduce major
new products or services. An organisation which follows a cost-minimisation strategy tries to
tightly control costs and marketing expenses and cuts prices in selling a basic product. Lastly, an
organisation that follows an imitation strategy tries to make the best use of both the previous
strategies. It tries to minimise its costs, while following or copying the ideas of innovators. What
kind of organisational structure would best fit each of these strategies? The answer to this
question is found in Table 9.3.
Table 9.3: The relationship between strategy dimension and organisational
structure (Robbins: 2003:321), (Robbins:2009:412)
The Strategy-Structure Thesis

Strategy Structural Option

Innovation Organic: A loose structure; low specialisation, low

formalisation, decentralised

Cost minimization Mechanistic: Tight control; extensive work

specialisation; high formalisation; high centralisation

Imitation Mechanistic and organic: Mix of loose with tight

properties; tight controls over current activities and
looser controls for new undertakings

We assume that the meaning of Table 9.3 is clear. If not, the following statement by Robbins
(2003:321) might be of help: “Innovators need the flexibility of the organic structure; cost-
minimisers seek the efficiency and stability of the mechanistic structure. Imitators combine the
two structures. They use the mechanistic structure in order to maintain tight controls and low costs
in their activities while at the same time they create organic subunits in which to pursue new
undertakings.”
Regarding the role of strategy in organisational design, Moorhead and Griffin (1989:473) make the
following statement: “Chandler's 'structure follows strategy' concept seems like common sense.
Yet it is contradicted by the structural imperatives (factors) approach, which recommends that
design decisions be based on size, technology, and environment, not strategy. This apparent
clash has been resolved by refining the strategy concept to include the role of the top-management

187
 Study unit 9
decision maker in determining the organisation's structure. In effect, this view inserts the manager-
decision maker between the structural imperatives (factors) and the structural features of the
organisation.” This view is illustrated by way of Figure 9.12, which is an expansion of Figure 9.10.
Figure 9.12: The strategic choice approach to organisational design (Moorhead &
Griffin, 1989:474)

Imperatives Organisation Structure

Size • Span of Control

• Number of Levels in the

Hierarchy ORGANISATION
EFFECTIVENESS
Technology • Administrative Hierarchy

• Centralisation

• Formalisation

Environment

According to Figure 9.12 the structural imperatives (factors) are viewed as contextual factors within
which an organisation must operate. These contextual factors also influence the purposes and
goals of an organisation. A manager's choice of an organisational structure is effected by the
structural imperatives, the purposes and goals of the organisation, and the manager's personality,
value system and experience. An organisation's effectiveness depends on the fit among the
structural imperatives, the chosen strategies and the organisational structure.
Moorhead and Griffin (1989:473-474) refer to another view regarding the linkage between strategy
and structure, namely a reciprocal one: “That is, structure may be set up to carry out, or
implement, the strategy, but it may also effect the strategic decision-making process via the
centralisation, or decentralisation, of decision making and formalisation of rules and procedures.
Thus, strategy determines structure, which, in turn, effects strategic decision making.”
Moorhead and Griffin (1989:474) point out that it might be of help to simply view strategy as
another imperative (factor) along with size, technology and environment (much as we have done in
this study unit), but that one should keep the following in mind: “Strategy does, though, seem to
differ from the imperatives (factors) because it is a product of the analysis of the imperatives and
an articulation of the organisation's direction, purpose, and plans for the future.”
The role of power-control in organisational design
In the previous paragraph mention was made of the role of the manager's choice in deciding on a
specific organisational design (depicted in Figure 9.12). This paragraph on the role of power-
control perhaps gives another angle to the role of the manager in this regard. Robbins (1991:500-
502) makes the interesting observation that another approach to the question of what “causes”
organisational structure is to look for an (organisational) political explanation, because it seems
that strategy, size, technology and environment - even when combined - can only explain about a
maximum of sixty percent of the variability in organisational structure. This means that there is
about forty percent unexplained variability in organisational design. It seems that the power-control
dimension might explain quite a lot of this variability.

188
 Study unit 9
More specifically, the power-control explanation states that an organisation's structure is the
result of a power struggle by internal constituencies which are seeking to further their interests.
Like all decisions in an organisation, the structural decision is not fully rational. Managers do not
necessarily choose those alternatives which will maximise the organisation's interests. They
choose criteria and weigh them so that the “best choice” will meet the minimal demands of the
organisation, and also satisfy or enhance the interests of the decision maker. Strategy, size,
technology and environmental uncertainty act as constraints by establishing parameters and
defining how much discretion is available. This leads to organisational structures changing very
slowly. Only in the case of a major shake-up in top-management do we find major structural
changes.
The power-control dimension is essentially a non-contingent one, and therefore different from the
contingent ones (strategy, size, technology and environment), because after taking the contingent
dimensions into consideration, those in power would choose a structure which would best serve
their personal interests. Such a structure will obviously be one which would be low in complexity,
high in formalisation, and as far as decision making is concerned. Such a structure might be
geared to maintaining control, rather than enhancing organisational performance. Is this reasoning
correct? Apparently yes, because we find that the dominant organisational structural forms
nowadays tend to be of a mechanistic nature: “Organic structures have received a great deal of
attention by academicians, but the vast majority of real organisations, especially those of moderate
and large size, are mechanistic.” (Robbins, 1991:502.)

9.6 SPECIFIC ORGANISATIONAL DESIGNS

9.6.1 Mintzberg's approach to organisational design
According to Mintzberg an organisation's structure is in accordance with the way in which tasks are
first divided and then co-ordinated. He identifies five co-ordinating mechanisms which are used
in organisations: mutual adjustment, direct supervision, standardisation of worker skills and
work processes, as well as standardisation of outputs. These five co-ordinating mechanisms
(which can operate side by side in an organisation) are illustrated in Figure 9.13.
Figure 9.13: The five co-ordinating mechanisms according to

189
 Study unit 9

It is clear from Figure 9.13 that there are five co-ordinating mechanisms:
mutual adjustment
direct supervision
standardisation, which is applied to:
input skills
work processes
outputs
In the case of co-ordination by mutual adjustment, workers make use of informal methods of
communication in order to co-ordinate their efforts. When managers or supervisors co-ordinate the
efforts of workers, it is a case of co-ordination by direct supervision. As we have mentioned
previously, standardisation can be used in three different ways to act as a co-ordinating
mechanism: the worker skills which are regarded as inputs to the work process can be
standardised; the processes which are used to transform inputs into outputs can be standardised;
and the outputs can be standardised by ensuring that performance levels are reached or that
products conform to certain quality standards. In very small organisations we tend to find that
mutual adjustment is very often used to co-ordinate efforts. When an organisation becomes
bigger, direct supervision is added. In bigger organisations the type of standardisation which is
used depends on the nature of the specific work situation.
In the case of routine tasks being carried out, co-ordination can be achieved by standardisation of
work processes. In other complex situations, co-ordination may be achieved through
standardisation of the output - as long as the output meets the requirements, is does not really
matter what processes are carried out. In other cases, it might be necessary to co-ordinate efforts
by standardising the skills of workers. For example, hospital staff need certain skills to efficiently
treat patients. No doubt we shall find that mutual adjustment is a very important co-ordinating
mechanism in both simple and complex situations.
According to Mintzberg the five methods of co-ordination can be combined with the basic
components of structure in order to develop five forms of organisational structure, namely
that of the simple structure, the machine bureaucracy, the professional bureaucracy, the
divisionalised form and the adhocracy.

190
 Study unit 9
Before moving on to these five forms of organisational structure, we need to point out that
Mintzberg proposes that there are five basic parts/elements to any organisation, namely the
operating core, the strategic apex, the middle line, the technostructure and the support
staff. These basic elements of an organisation is shown in Figure 9.14.
Figure 9.14: The five basic elements of an organisation according to Mintzberg
(Robbins, 1991:505)

The operating core consists of the employees who perform the basic work which is related to the
production of goods and services. The strategic apex consists of the top-level managers, who
carry overall responsibility for the organisation. Managers who connect the operating core with the
strategic apex find themselves in the middle line. The technostructure is made up of analysts,
who are responsible for ensuring that standardisation takes place in the organisation. The
support staff are made up of people who find themselves in staff positions. They provide indirect
support services for the organisation. Mintzberg is further of the opinion that any one of these
parts or elements can dominate an organisation, which in turn could lead to a specific
structural form. If the operating core is in control, decision-making is decentralised, which leads
to an organisational form known as the professional bureaucracy. If the strategic apex is in
control, the organisational form is known as a simple structure. If middle management is in
control, we are likely to find groups which are essentially autonomous. In this case the
organisational structure is known as a divisional structure. When the technostructure is in
control, we have what is known as a machine bureaucracy. In cases where the support staff is in
control we find an organisational structure known as the adhocracy. Let us take a closer look at
each of these organisational designs.
The simple structure
The simple structure tends to be a flat, as is depicted in Figure 9.15
Figure 9.15: The simple structure (Robbins, 1991:506)

191
 Study unit 9
The simple structure is found in relatively small, and usually young organisations which operate
within a dynamic environment. The overall structure is predominantly of an organic nature. It has
little specialisation, is low in complexity, has little formalisation, and has authority and decision-
making centralised in a single person. Most members of the organisation report to this one person.
In this structure direct supervision is thus the main co-ordinating mechanism. The main strengths
of the simple structure are the following: it is fast and flexible and can thus adjust quickly to a
dynamic environment; it is easy to maintain; there are no different layers of cumbersome structure;
there is very little goal ambiguity, and accountability is clear. Some of its main weaknesses are
the following: it is limited to small-size organisations; it concentrates power in one person, and
there is little that can be done to offset this concentration of power. This one person can abuse
his/her power, sometimes even to the detriment of the organisation and its members.
The machine bureaucracy
The machine bureaucracy is depicted in Figure 9.16.
Figure 9.16: The machine bureaucracy (Robbins, 1991:508)

Figure 9.16 looks very much like Figure 9.14, with only the technostructure and the support staff
shown a bit differently.
Standardisation is the most important characteristic of this type of structure, and thus also the
main co-ordinating mechanism. We usually find this type of structure in large, well-established
organisations which operate in rather simple and stable environments. The machine bureaucracy
is further characterised by highly routinised tasks, very formalised rules and regulations,
centralised authority and decision-making, much emphasis on the chain of command, and a very
elaborate administrative structure. It boils down to being a very mechanistic structure. Because
standardisation is so important in this structure, staff analysts play a very important role, because
they are the people who do the standardising. Here we think of such people as time-and-motion
engineers, planners, accountants and auditors. The machine bureaucracy is thus ideally suited for
situations in which much of the tasks and operations are of a standardised and routine nature.
Decision-making can thus be centralised in top management. This type of structure does not have
to quickly adapt to changes because the environment is very stable. The fact that much
specialisation takes place in such a structure can be the cause of conflict arising between different
subunits. Also, when situations arise which cannot be handled by following rules and regulations,
there is little room for adaptations to be made. Most of us have had experience with the role that
“red tape” can play in such organisations.
The professional bureaucracy
The professional bureaucracy is illustrated in Figure 9.17.

192
 Study unit 9
Figure 9.17: The professional bureaucracy (Robbins, 1991:510)

As can be seen from Figure 9.17, the operating core forms the biggest part of the professional
bureaucracy, with a rather small technostructure, but with a fair number of support staff.
In the professional bureaucracy the standardisation of skills is the way in which co-ordination is
achieved. We tend to find a lot of horizontal specialisation by professional areas of expertise but
little formalisation. We also find that decision-making is decentralised to where the expertise lies.
This means that the power rests with the operating core of such an organisation. The
professionals need the autonomy to do their work properly. Examples of such organisations are
hospitals, universities, museums, libraries and engineering design firms. The support staff is there
to serve the operating core. What sometimes happens in professional bureaucracies is that the
different specialists start to follow their own rules and that of their professions. This leads to them
being unable to adjust to changing conditions.
The divisional structure
The divisional structure is illustrated in Figure 9.18.
Figure 9.18: The divisional structure (Robbins, 1991:511)

The divisional structure is mostly found in old and very large organisations which operate in
simple, stable environments with several diverse markets. As you can see from Figure 9.18
the divisional structure looks much like Figure 9.17, but the operating core looks different. The
operating core consists of a set of autonomous units. Each of these autonomous units can be
regarded as a machine bureaucracy in itself. The units might each produce a different product, or
serve a different market. These units are co-ordinated by a central headquarters. In most cases,
there is some vertical and horizontal specialisation between the units and the headquarters. Since
the divisions/units are autonomous, the middle managers (that is, the managers in charge of the
different divisions/units) exercise a great deal of control over their divisions/units. This implies that
decision-making is clearly split between headquarters and the divisions.
Standardisation of outputs is the primary means of co-ordination. The headquarters can
concentrate on aspects such as like long-range strategic planning, while leaving the day to day
operating decisions to the divisional managers. In this way, the divisional managers get excellent
exposure to general management. In a certain sense one can talk of the divisional structure

193
 Study unit 9
consisting of businesses within businesses. There are also some weaknesses associated with
the divisional structure. We might find that there is a duplication of services. For instance, each
division may have its own marketing research department. This will no doubt lead to an increasing
of costs, as opposed to when the organisation has a centralised marketing research department.
The locating of support services can be a bone of contention. The more the different divisions
succeed in having these services decentralised to the level of their own divisions, the less power
headquarters have over them. Sometimes divisional managers might feel that headquarters wants
them to act within too many general organisational constraints. Because the different divisions
specialise in certain products or services, it is difficult for personnel to transfer from one division to
another.
The adhocracy
The adhocracy is illustrated in Figure 9.19.
Figure 9.19: The adhocracy (Robbins, 1991:514)

From Figure 9.19 we can see that in the adhocracy the technostructure and the support staff is
almost non-existent. According to Moorhead and Griffin (1989:479) the adhocracy is typically
found in young organisations which are engaged in highly technical fields. The environments of
these organisations are complex and dynamic. Decision-making is spread throughout these
organisations, and power is in the hands of the experts. There is horizontal and vertical
specialisation but little formalisation, resulting in a very organic structure. Co-ordination is by
mutual adjustment through frequent personal communication and liaison devices. Specialists are
not found in functional teams, but function in specialised market-oriented project teams.
The adhocracy developed from the idea of task forces which were used during World War II.
Once the missions of these task forces were completed, they were disbanded. Nowadays we find
temporary adhocracies being developed when something like a film (a movie) has to be made. In
such an adhocracy, a group of experts are brought together with the sole purpose of making a film.
Once the film has been made, the group is disbanded. The adhocracy is also found in
“permanent” organisations which are very innovative. A case in point is an organisation which
operates in the computer field. It may happen that the total organisation is set up as an adhocracy,
or that some of its divisions may function as adhocracies. One can see that when a whole
organisation is run as an adhocracy, there is very little in the form of standardisation. Some people
find it very difficult to function in such an environment, because they do not like the rapid change,
operating in temporary work systems, and having to share responsibilities with other team
members. At the same time there are others who thrive in circumstances such as these.

Moorhead and Griffin (1989: 480) point out that Mintzberg believed that the fit between the parts of
an organisation was the most important aspect to take into consideration when thinking about
organisational design. This means that there needs to be a fit between the structural

194
 Study unit 9
imperatives/factors (size, technology, environment and organisational strategy), but there also
needs to be a fit between the components of the structure (rules and procedures, decision-making,
specialisation). All these characteristics should also be appropriate for the situation. When these
characteristics are not put together properly, an organisation is unable to function effectively.

9.6.2 The matrix organisational design

The following example of a matrix design (see Figure 9.20) illustrates the characteristics of this
design.
Figure 9.20: A matrix design for a College of Business Administration (Robbins,
2003:318)

In the case of Figure 9.20, each of the different academic departments of accounting, economics,
marketing and so forth are considered to be functional units, because they contain the specialists
in the different fields. The different programmes (undergraduate (BBA), Master's (MBA), and so
forth) are considered to be products/projects, and are overlaid on the functions. Members in
such a matrix structure have dual assignments, namely to their functional department, and to the
“product group”. For example, someone who teaches accounting in an undergraduate course
reports to the director of undergraduate programmes (the product/project leader for BBA) as well
as to the head of the accounting department (the functional unit). This means that this lecturer
has two different supervisors (Robbins, 1996:563).
The matrix organisational design thus combines two forms of organisational departmentali-
sation, namely that of product/project and function. Functional departmentalisation has the
advantage of grouping all the specialists together. In this way specialised resources can be pooled
and shared. The main problem of functional specialisation is co-ordinating the tasks of the
different specialists within such a department (which can also be called a functional unit). A case
in point is co-ordinating the tasks of all the marketing specialists working in the marketing
department of an organisation. Product/project departmentalisation leads to co-ordination between
different specialists, but leads to the duplication of activities and costs. A case in point is an
organisation which manufactures three different products. For every product which is
manufactured, a specialist from each of purchasing, research and development, production and
marketing is needed. The matrix design tries to make use of the strengths of each of these types
of departmentalisation, while trying to avoid the weaknesses of each. That is why it is likely that
we will find that in the most common forms of the matrix organisation product/project
departmentalisation is superimposed on a functional structure. An example of the aforementioned
matrix design is shown in Figure 9.21.

195
 Study unit 9
Figure 9.21: A matrix design (Moorhead & Griffin, 1989:481)

In the case of Figure 9.21, the focus is on project departmentalisation, namely that of Alpha
Project, Beta Project and Gamma Project. Each of these projects has a project leader, and in each
project use is made of the services of an employee from each of marketing, research and
development, purchasing and production.
According to Moorhead and Griffin (1989:480-481) a matrix structure is appropriate when the
following three conditions exist:
when there are factors operating in the environment which require an organisation to equally
focus on responding to multiple external factors and on emphasising internal operations;
when there are pressures for high information-processing capacity;
when there are pressures for shared resources.
Moorhead and Griffin (1989:481-482) refer to the case of organisations in the aerospace industry
in the early 1960s in this regard. They had a dual focus, namely their customers, mainly the
government, as well as the engineering and technical fields in which they were engaged. The
environment of these companies was changing rapidly. Technological sophistication was on the
increase, so there was a high need for information processing. They decided that it was unwise to
assign their highly trained/professional and highly paid personnel to just one project at a time.
One of the main strengths of the matrix structure lies in its ability to co-ordinate a multitude of
complex activities. In the matrix structure there is direct and frequent contact between the different
specialists. Information tends to reach those who need it quickly. The different specialists and
their professional expertise can be utilised better when they form part of project teams. In this way
it is possible to respond to environmental demands quickly.
The matrix structure is not without its problems, however.
According to Robbins (1996:563) the major disadvantages of the matrix structure is in the
confusion it creates, its propensity to foster power struggles, and the stress it places on individuals.
It creates confusion because it breaks the concept of the unity of command (when one person
reports to two different “supervisors”). This causes ambiguity (who reports to whom?) and this
leads to conflict, because product managers often want the best specialists working for them.
Power struggles between functional and product managers may result, because, unlike in the case
of a bureaucracy, the rules of the game is not clearly defined. In such circumstances, the rules of
the game are “up for grabs” (Robbins, 1996:563-564). When a person has to report to more than

196
 Study unit 9
one supervisor or manager he/she experiences role conflict. When a person is unclear as to what
is expected of him/her, he/she experiences role ambiguity. Individuals who value security and
unambiguous circumstances may find working in such an organisation very stressful.

9.6.3 The virtual organisation

The virtual organisation is one which is highly centralised, with little or no departmentalisation. It
usually consists of a small core which outsources its major business functions. Usually, virtual
organisations do not own their own manufacturing facilities. They let other organisations do their
manufacturing, while they perhaps assemble the manufactured parts. Sometimes they do not
even do this: they may let other organisations do the manufacturing, and let the manufacturing
organisation put their (the virtual organisation's) trade mark on the manufactured goods. These
types of organisations thus outsource all the functions that can be more effectively or cheaply done
by other organisations, and only concentrate on the functions they can perform best. They do this
to achieve maximum flexibility. An example of a virtual organisation is displayed in Figure 9.22.
Figure 9.22: A virtual organisation (Robbins, 2003:319)

In the case of the virtual organisation displayed in Figure 9.22 all the primary functions are being
performed by outside organisations. At the core of this organisation is a group of senior managers
who oversee any activities carried out inside the organisation and who co-ordinate the
relationships with the other organisations which perform the specific functions. In Figure 9.22 the
arrows indicate these relationships. While the major advantage of the virtual organisations is its
flexibility, its major disadvantage is the reduced management control over the key business
functions (Robbins, 2003:319).

9.6.4 The boundaryless organisation

According to Robbins (2003:319) General Electric (GE) chairman Jack Welch coined the term
boundaryless organisation when he wanted to describe his idea of what he wanted GE to
become. He wanted to turn his company into a “$60 billion family grocery store.” That is, in spite of
its monstrous size, he wanted to eliminate vertical and horizontal boundaries within the company
and break down external barriers between the company and its customers and suppliers. The
boundaryless organisation seeks to eliminate the chain of command, have limitless spans of
control and replace departments with empowered teams.
How is it possible to achieve the boundaryless organisation? Horizontal barriers are removed by
instituting cross-functional teams which contain a variety of “specialists” and by organising the
activities of these teams around processes, rather than around narrow functional tasks. It can also
be removed by rotating people through different functional areas, so that they become generalists

197
 Study unit 9
instead of specialists. Vertical barriers are removed by flattening the hierarchy, by using cross-
hierarchical teams (which include top managers, middle managers, supervisors and operative
employees), by using participative decision-making and by using so-called 360-degree
performance appraisals (where a person is evaluated by people at his/her own level, as well as by
people above and below him/her). External barriers are removed by a wide array of methods.
Some do it through the process of globalisation. The Coca-Cola company is a case in point,
because it sees itself as a global organisation. Some organisations remove external barriers by
setting up alliances with a number of other organisations. Some organisations let their employees
do their work in their own homes; sometimes a long way from the physical location of the particular
organisation. This is known as telecommuting. In cases like these extensive use is made of
electronic mail and computer networks.

9.7 THE IMPLICATIONS OF ORGANISATIONAL DESIGN

FOR PERFORMANCE AND SATISFACTION
When discussing the implications of organisational design for performance and satisfaction, we
would like to refer to a figure which we find in Robbins (1991:521) that at the same time
summarises much of what has been said in this study section. We present this figure as our
Figure 9.23.
Figure 9.23: The determinants and outcomes of organisational structure
(Robbins, 1991:521)

No doubt you will find Figure 9.23 to be rather self-explanatory. In accordance with what we have
been discussing, strategy, size, technology, environment and power-control are viewed as
important factors that play a role in the type of structure that an organisation will have. The various
structural designs differ as far as complexity, formalisation and centralisation of decision making is
concerned. The various combinations of these dimensions give rise to two broad categories of
organisational designs, namely that of a mechanistic and an organic nature. The former category
rates high on complexity, formalisation, and centralisation, while the latter category rates low on
the same dimensions. The components which are common to the different designs do not have a

198
 Study unit 9
uniform impact on the performance and satisfaction of employees who find themselves in
organisations of a specific nature. The impact of the components is moderated by individual
preferences and perceptions.
It seems as if for most people a high degree of complexity and formalisation leads to reduced job
satisfaction. A high amount of vertical differentiation leads to feelings of alienation on the part of
employees who find themselves at the lower levels, because vertical communication becomes
problematic in such situations. People who find themselves in top management positions of such
organisations are likely to experience quite a lot of job satisfaction (Robbins, 1991:520).
A high level of specialisation, which is characterised by a high amount of division of labour and the
execution of routine and minute tasks generally tends to be associated with higher employee
productivity but with a low level of job satisfaction (Robbins. 1996:574). Again, this low level of job
satisfaction is only true for employees who prefer variety in their work. People with high needs for
autonomy and self-actualisation who work in big organisations that are characterised by
centralisation of decision-making tend to experience lower job satisfaction (Robbins, 1991:520).
There are, however, people who prefer the routine and repetitive nature of highly specialised jobs.
For them, specialisation is a source of job satisfaction (Robbins, 1996:574).
It seems as if organic organisational structures are best suited to non-routine tasks and
environmental uncertainty. Such organic structures hold certain advantages for people inside
those types of organisations. People are not restricted by specific job descriptions and a lot of
rules and regulations. On the other hand, the fact that these types of organisations usually have
overlapping layers of responsibility may trouble employees who prefer doing standardised tasks
Robbins (1996:574) points out that there seems to be no evidence which supports a relationship
between span of control and employee performance: “While it is intuitively attractive to argue that
large spans might lead to higher employee performance because they provide more distant
supervision and more opportunity for personal initiative, the research fails to support this notion.” It
seems as if some people want to be left alone, while others prefer the security of a boss who is
quickly available at all times.
It also seems that decentralised decision making is related to higher job satisfaction, especially in
the case of individuals who have low self-esteem: “Because low self-esteem individuals have less
confidence in their abilities, they place a higher value on shared decision making, which means
that they're not held solely responsible for decision outcomes” (Robbins, 1996:574). This only
confirms that it is important to take individual differences into serious consideration when trying to
match people to a specific type of organisation, and a specific organisational design (Robbins,
1991:520).

199
 Study unit 10

10 STUDY UNIT 10

10.1 INTRODUCTION
What makes one organisation a winner, while another fails to make use of the same opportunities?
The key to survival and success does not lie not in the rational, quantitative approaches, but rather
in a commitment to irrational, difficult-to-measure things such as people, quality, customer service
and the flexibility to meet changing conditions. The key to successful change is employee
involvement and commitment.
Organisation development is aimed at improving the effectiveness of the organisation and its
members by means of a systematic change programme. Organisational researchers have
indicated that an effective organisation is one in which both the individual and organisation can
develop. Healthy organisations' strengths lie in change – the ability to transform their products
and organisation in response to changes in the economy.
In IPB 211 (BSKP211 new code IOPS211) you were exposed to the idea that we really are living in
a changing environment, and that the only thing which is constant, is change. Change is
avalanching upon our heads and most people are unprepared to cope with it. Tomorrow's world
will be different from today’s, calling for new organisational approaches. Change is evident in the
use of all the buzz-words in organisations, including re-engineering, restructuring, transformation,
flattening, downsizing, rightsizing and even in the popular phrase “at the end of the day.”
In the future, the only winning companies will be those which respond quickly to change. The
modern manager must not only be flexible and adaptive in a changing environment, but must also
be able to diagnose problems and implement change programmes.
Organisations are never completely static. They are in continuous interaction with external forces
(See Figure 10.1).

200
 Study unit 10

Figure 10.1: The organisational environment

External forces that could facilitate changes in an organisation, could include:

Socio-economic factors. Socio-economic factors include the growing population of South
Africa, international competition, unemployment, low productivity, low economic growth and
crime. Economic shocks continue to impose changes on organisations. These include
foreign currency fluctuations and interest rate fluctuations.
Customers. Customers increasingly expect quality products and safety and health.
Government. The new Constitution of the Republic of South Africa and various laws
necessitate change in organisations. The new Labour Law and the Law on Employment
Equity will also effect organisations. The importance attached to Affirmative Action,
Reconstruction and Development and the National Qualification Framework has implications
for organisations.
Technology. Technology is changing jobs and organisations. The substitution of computer
control for direct supervision is resulting in wider spans of control for managers and flatter
organisations. Sophisticated information technology is also making organisations more
responsive. Jobs are also being reshaped. Individuals doing narrow, specialised and routine
jobs are being replaced by work teams the members of which can perform multiple tasks and
actively participate in team decisions.
Stockholders. Stockholders expect high dividends and return on their investment. This
stresses the importance of effectiveness and efficiency.
Employees and unions. The nature of the work force is changing. The work force is more
culturally diverse and many new entrants have inadequate skills. The expectations of
employees and unions are also constantly changing. Unions demand that employees be
treated fairly. At the same time the educational level of many employees is poor.
Employees and unions want to be involved in decisions, which effect their lives, and they
want to be empowered.
Competition. The global economy means that competitors are as likely to come from
across the ocean as from across town. Heightened competition also means that established
organisations need to defend themselves against both traditional competitors who develop

201
 Study unit 10

new products and services and small entrepreneurial firms with innovative offerings.
Successful organisations will be the ones, which change in response to competition.
These changes imply that organisations should focus on adding value. This manifests in a
tendency to move from autocracy to democracy in organisations, flatter organisation structures, a
focus on core business, a tendency to split up into business units and the use of self-regulating
work groups.
Change is a way of life in today's organisations. But organisations are also faced with maintaining
a stable identity and operations in order to accomplish their primary goals. Consequently,
individuals involved in managing change have found that the way, in which change is handled, is
critical. There is a need for a systematic approach, discriminating among those features, which are
healthy and effective, and those which are not.

10.2 DEFINITION OF ORGANISATION DEVELOPMENT

Organisation development is a discipline applying behavioural science to help organisations
adapt to changes. Organisation development is aimed not only at improving the organisation's
effectiveness, but also at enhancing the effectiveness of organisation members (Harvey &
Brown, 1996:3).
Harvey and Brown (1996:4) define organisational development (OD) as a long-range effort to
improve an organisation's ability to cope with change and its problem solving and renewal
processes through effective management of the organisational culture. It is a planned, systematic
approach to change and involves changes to the whole organisation or important segments of it.
The purpose of OD is to increase the effectiveness of the system, and also to develop the potential
of all individual members. It makes use of planned behavioural science interventions and which
are carried out in collaboration with organisation members to help find improved ways of working
together towards individual and organisational goals.

10.3 THE CHARACTERISTICS OF ORGANISATION

DEVELOPMENT
Organisation development has the following characteristics:
Planned change. OD is a planned strategy to bring about organisational change. The
change effort aims at specific objectives and is based on a diagnosis of problem areas.
Collaboration. OD involves a collaborative approach to change, which include the
involvement and participation of those organisation members most effected by the changes.
Performance. OD programmes include an emphasis on ways to improve and enhance
performance and quality.
Humanistic values. OD relies on a set of humanistic values about people and organisations
which aims at gaining more effective organisations by opening up new opportunities for
increased use of human potential.
Systems. OD represents a systems approach concerned with the interrelationship of
various divisions, departments, groups and individuals as interdependent subsystems of the
total organisation.
Scientific approaches. OD is based upon scientific approaches to increase organisation
effectiveness.

202
 Study unit 10

10.4 THE EMERGENCE OF ORGANISATION DEVELOPMENT

Organisation development is one of the primary means of creating more adaptive organisations.
Three factors underlie the emergence of OD (Harvey & Brown, 1996:9):
The need for new organisational forms. Organisations tend to adopt a form, which is
more appropriate to a particular time, and the current rate of change requires more adaptive
forms.
The focus on cultural change. Because each organisation forms a culture – a system of
beliefs and values – the only real way to change is to alter this culture.
The increase in social awareness. Because of the changing social climate, tomorrow's
employee will no longer accept autocratic styles of management; therefore greater social
awareness is required in organisations.

10.5 THE ORGANISATION OF THE TWENTY FIRST

CENTURY
Organisations of the twenty-first century need to consider the following changes taking place:
Organisations are concentrating more on their core business. The total system has to be
decentralised into economically viable business units, shedding or privatising unproductive
functions and departments.
Organisations are becoming leaner, by introducing a flatter structure.
Organisations are becoming more client-focused.
Organisations are increasingly relating cost to profit, while avoiding being penny wise and
pound-foolish.
Organisations are becoming more sensitive to changes in the environment, becoming
aware of, and reacting to opportunities or deviations before they become major cracks or
problems.
The characteristics of the twenty first century organisations and the factors contributing to them are
illustrated in Figure 10.2 (Harvey & Brown, 1996:9).

203
 Study unit 10

Figure 10.2: The changing organisation of the twenty-first

century

The successful organisations of the twenty-first will share the

following characteristics:
Faster – more responsive to innovation and change.
Quality Conscious – a total commitment to quality.
Employee Involvement – adding value through human resources.
Customer oriented – creating niche markets.
Smaller – more autonomous units.

10.6 THE SYSTEMS APPROACH TO ORGANISATION

DEVELOPMENT
10.6.1 What is a system?
The focus of the systems approach is the recognition of the effect of managerial functions and the
interrelationship between sub-elements of the organisation. Rather than view the organisation as a
static set of relationships, the organisation is viewed as a set of flows of information, personnel and
material. There are three elements which make up a system (see Figure 10.3):
Inputs are the resources which are applied to the processing function.
Processes are the activities and functions which are performed to produce goods and
services.
Outputs are the products and services produced by the organisation.

204
 Study unit 10

Figure 10.3: The organisation as an open system

An organisation takes such inputs as material, people and energy, and converts them into the
products and services desired by consumers. The organisation receives inputs from its
environment, acts on those inputs by transforming them and returns these transformed elements
to the environment as products.

10.6.2 The organisation as an open system

A closed system is one which is self-contained and isolated from its environment. Closed
systems exist only in theory, for all real systems interact with their environment.
An open system influences and is influenced by the environment through the process of
interdependency, which results in a dynamic (changing) equilibrium. The open system is in
continuous interaction with its environment and therefore achieves a steady state of dynamic
equilibrium. The system could not continue to survive without the continuous influence of
transformational outflow. The open system receives feedback from its environment, which helps it
to adjust.
Open systems have the following characteristics (Harvey & Brown, 1996:37):
Subsystems. A subsystem is composed of interrelated parts called subsystems. Any
subsystem is dependent on the other elements, and change in any one of them means that
some adjustment will occur in the others.
Synergy. The system is a whole, not merely the sum of its parts and its performance should
be viewed as an integrated system.
Input-Output model. All systems transform inputs into outputs.
Goal seeking – open system. Open systems exchange information, energy or material with
their environment. Interaction among elements results in some final state or goal.

205
 Study unit 10

Entropy. Every transformation process involves the degradation or use of energy and
resources. The tendency towards entropy is a movement towards disorder and eventually
termination of functioning. To keep a system operating, there must be an infusion of energy
and resources.
Steady state. The open system seeks a state of dynamic equilibrium.
Feedback. The feedback of information regarding performance is used to adjust and control
performance.

10.6.3 The organisation as a socio-technical system

Organisation development may be referred to as a systems approach to change. An organisation
is viewed as an open socio-technical system of co-ordinated human and technical activities. The
various organisational processes and functions are not considered as isolated elements, but as
parts reacting to and influencing other system elements.
The organisation is viewed as an open system consisting of five components (see Figure 10.4)
(Harvey & Brown, 1996:39-40):
The structural subsystem. The structural subsystem includes the formal design, policies
and procedures of the organisation. It is usually set forth by the organisation chart and
includes the division of work and patterns of authority.
The technical subsystem. The technical subsystem includes the primary functions,
activities and operations, including the techniques and equipment used to produce the
outputs of the system.
The psychosocial subsystem. The psychosocial subsystem includes the network of social
relationships and behavioural patterns of members, such as norms, roles and
communications. It is referred to as the culture of the organisation.
The goals and values subsystem. The goals and values subsystem includes the vision
and mission of the organisation. Such goals might include profits, growth and survival and
are often taken from the larger environment.
The managerial subsystem. The managerial subsystem spans the entire organisation by
directing, organising and co-ordinating all activities towards the basic mission. The
managerial subsystem is important in integrating the activities of the other subsystems.

206
 Study unit 10

Figure 10.4: The sociotechnical system

10.7 STAGES IN ORGANISATION DEVELOPMENT

Organisational development is a continuous process of long term organisational improvement
consisting of various stages. Organisational development is the application of a systems
approach to the functional, structural, technical and personal relationships in organisations. OD
programmes are based on a systematic analysis of problems and a top management actively
committed to the change effort.
Many organisational development programmes use the action research model. Action research
involves collecting information about the organisation, feeding this information back to the client
system and developing and implementing change programmes to improve system performance.
The steps which are followed in action research are represented in Figure 10.5.

207
 Study unit 10

Figure 10.5: The action research model

Action research provides at least two benefits for organisations. Firstly, it is problem focused.
The change agent objectively looks for problems and the type of problem determines the type of
change action. A lot of change activities are solution-centred rather than problem-centred. The
change agent has a favourite solution - for example implementing teams or management by
objectives – and then seeks out problems his or her solution fits. Secondly, because action
research so heavily involves employees in the process, resistance to change is reduced. Once
employees have actively participated in the feedback stage, the change process takes on a
momentum of its own. The employees and groups who have been involved become an internal
source of sustained pressure to bring about change.
A five-stage model of organisational development is presented in Figure 10.6 (Harvey & Brown,
1996:46).

208
 Study unit 10

Figure 10.6: A five-stage model of organisational development

10.7.1 Stage 1: Anticipating Change

Before an OD programme can be implemented, the organisation must anticipate the need for
change. The first step is the manager's perception that the organisation is somehow in a state of
disequilibrium or needs improvement. The state of disequilibrium may result from growth or
decline or from competitive, technological, legal or social changes in the external environment.
There must be a felt need, since only felt needs convince individuals to adopt new ways.
Managers must be sensitive to changes in the external environment.

10.7.2 Stage 2: Developing the consultant-client relationship

After an organisation recognises a need for change and a consultant contacts the system, a
relationship begins to develop between the consultant and the client system. The development of
this relationship is an important determinant of the probable success or failure of the OD
programme. As with many interpersonal relationships, the exchange of expectations and
obligations (the formation of a psychological contract) depends to a high degree upon a good first
impression or match between consultant and the client system.
The consultant may be a manager or other member of the organisation, referred to as an internal
consultant, or an outside source referred to as an external consultant.
The consultant attempts to establish a pattern of open communication, a relationship of trust and
an atmosphere of shared responsibility. Issues dealing with responsibility, rewards and
objectives must be clarified, defined or worked through at this point.
The consultant must decide at what point to enter the system and what his or her role should be.
The consultant may intervene with the sanction and support of top management and either with or
without the sanction and support of the members in the lower levels of the organisation. Upon first

209
 Study unit 10

entering the client system, the OD consultant begins evaluating its readiness for organisational
development. It is a mistake to assume that because most organisations can benefit greatly from
an OD programme, they must have one. Answers to the following questions will help to assess the
client's readiness for OD:
Are the learning goals of OD appropriate?
Is the cultural system of the client ready for OD?
Are the key people involved?
Are members of the client system adequately prepared and oriented to OD?

10.7.3 Stage 3: The diagnostic phase

After the consultant has intervened and developed a working relationship with the client, the
consultant and the client begin to gather data about the client system. The collection of data is an
important activity providing the organisation and the client with a better understanding of client
system problems.
Diagnosis is a systematic approach to understanding and describing the present state of the
organisation. The purpose of the diagnostic phase is to specify the nature of the exact problem
requiring solution, to identify the underlying causal forces and to provide a basis for selecting
effective change strategies and techniques.
Harvey and Brown (1996:124) identify the following issues as critical in diagnosis:
Simplicity. Keep data as simple as possible and use simplicity in presentation.
Visibility. Use visible measures of what is happening.
Involvement. Emphasise participation and involvement of organisation members in
diagnosis.
Primary factors. Use undistorted collection of primary operating variables in diagnosis.
Measure what's important. Pursue the straightforward assessment of variables, which are
critical to success.
Sense of urgency. During diagnosis, gain an overall sense of urgency for change.
One rule for the consultant is to question the client's diagnosis of the problem, because the
client may be biased. After acquiring data relevant to the situation which is perceived to be in
disequilibrium, the consultant and client analyse the data together to identify problem areas and
causal relationships. A weak, inaccurate of faulty diagnosis can lead to a costly and ineffective
change programme. The objective of the diagnostic phase is to determine the exact problem,
which needs solution, to identify the causal forces in the situation and to provide a basis for
selecting effective change strategies and techniques. The diagnostic process is represented in
Figure 10.7.

210
 Study unit 10

Figure 10.7: The organisation diagnosis process

Two other concerns are important in organisational diagnosis.

Firstly, it is important to use a diagnostic model when diagnosing organisations. A
diagnostic model is a representation of how organisations function, and is crucial in
understanding organisations. Diagnostic models include the analytical model of Lawrence
and Lorsch, Socio-technical Systems Model, and the Force-Field Analysis Model. Although
these models are not discussed here, they are important and should be kept in mind when
you approach an organisation for a diagnosis.
Secondly, the data collection process should be considered. The most obvious step in
data collection is defining the goals and objectives of the change programme. This step is
necessary to determine which information is relevant. The next step is to identify the central
variables involved in the situation (e.g. production, turnover, culture and values). The last
step is to select a data-gathering method. Although organisations generate a large amount
of “hard” data, it may present an incomplete picture of organisational performance. The
consultant and client may decide to increase the range and depth of the available data by
using interviews, direct observation and/or questionnaires as a basis for further action
programmes.

10.7.4 Stage 4: Action plans, strategies and techniques

The diagnostic phase leads to a series of interventions, activities or programmes aimed at
resolving problems and increasing organisation effectiveness. Harvey and Brown (1996:205)
distinguish between three categories of interventions, namely structural, technical and behavioural
interventions.

211
 Study unit 10

Structural interventions. Organisational structure is important since it provides the

framework, which relates elements of the organisation to one another. A poor structure may
inhibit efficiency. Restructuring and downsizing are structural interventions.
Technical interventions. Changes are often required in technical processes to bring them
up to the state of the art in machinery, methods, automation and job design.
Behavioural interventions. Behavioural interventions place emphasis on human
resources.
For OD strategies to be successful, the interdependencies between various sub-elements of the
organisation must be considered. A change in one subsystem will have an impact upon other
elements of the system. Figure 10.8 shows an integrated approach to change.
Figure 10.8: An integrated approach to change

The OD consultant should consider the following three aspects in selecting the appropriate
intervention:
The potential results of the technique. Will it solve the basic problems? Does it have any
additional positive outcomes?
The potential implementation of the technique. Can the proposed technique actually
work in a practical application? What the are costs of the technique? How do the estimated
costs of the technique compare with the expected results?
The potential acceptance of the technique. Is the technique acceptable to the client
system? Is the technique adequately developed and tested? Has the technique been
explained and communicated to members of the client system?
OD interventions can be categorised as follows (see Table 10.1).

212
 Study unit 10

Table 10.1: Categorisation of OD interventions

Category Individual Team Intergroup Organisation
Behavioural Laboratory Team building Intergroup Goal setting
learning Process development Grid OD
Career planning consultation Third-party Surveys
Stress Role negotiation intervention
management Role analysis Organisation
Goal setting mirror
Quality of work
life
Structural Job enrichment Job enrichment Job enrichment Grid OD
Stress Teambuilding Goal setting Surveys
management Quality circles Total quality Restructuring
Quality of work Role negotiation
life
Role analysis
Self-managed
teams
Technical Job design Job design Job design Grid OD
Quality control Total quality Surveys
Reengineering
Likert System

10.7.5 Stage 5: Self-renewal, monitoring and stabilising action

programmes
Once an OD programme is implemented, the next step is to monitor the results and stabilise the
desired changes. The stage concerns the assessment of the effectiveness of change strategies in
attaining stated objectives. Each stage of an OD programme needs to be monitored to gain
feedback on member reactions to change efforts. The system members need to know the results
of change efforts in order to determine whether they ought to modify continue or discontinue the
activities.
Once a problem has been corrected and a change programme implemented and monitored,
means must be devised to make sure that the new behaviour is stabilised and internalised. If this
is not done, the system tends to regress to previous ineffective modes or states. The client system
needs to develop the capability to maintain innovation without outside support.

213
 Study unit 10

10.8 MANAGEMENT OF CHANGE

10.8.1 The Life-Cycle of Resistance to Change
Harvey and Brown (1996:154) distinguish between the following phases in the life cycle of change:
Phase 1. In the first phase there are only a few individuals who see the need for change,
and take reform seriously. They may be openly criticised, ridiculed, and persecuted by
whatever methods the organisation has at its disposal and deems appropriate to handle the
dissidents and force them to conform to established organisational norms. Resistance
appears massive. At this point the change programme may die or it may continue to grow.
Phase 2. As the movement for change begins to grow, the forces for and against the
change become identifiable. The change is discussed, and it is more thoroughly understood
by more of the organisation's members. The threat associated with the change can be
lessened because of increased understanding.
Phase 3. In this phase there is direct conflict between the forces for and against change.
This phase will probably mean life or death to the change effort, as those enthusiastic about
the change frequently underestimate the strength of those resistant to change. Those in an
organisation who see a change as good and necessary find it difficult to believe the extent to
which the opposition will go to put a stop to change.
Phase 4. If, after the decisive battles, the supporters of the change are in power, the
remaining resistance is seen as stubborn and a nuisance. There is still a possibility that the
resisters to change will mobilise enough support to shift the balance of power. Wisdom is
necessary for dealing with the overt opposition and with that element which, although not
openly opposed, is not yet thoroughly convinced about the need for change.
Phase 5. In the last phase the resisters to the change are as few and as alienated, as were
the advocates in the first phase.
Regardless of the degree of resistance to the organisational change programme, the change will,
to some extent, evolve through these five phases. In some change programmes, some of the
phases may be brief, omitted or repeated. The last phase may not even be reached, when the
change process will move again into the first phase.

10.8.2 Change forces

Harvey and Brown (1996:156) distinguish between the following major forces in the change
process: advocates of change, degree of change, time frame, impact on culture, and evaluation of
change (see Figure 10.9).

214
 Study unit 10

Figure 10.9: The major change forces

Advocates of change. One of the most important factors is determining who will spearhead
the change programme. This may be an executive, a manager, an internal consultant or an
external consultant brought in for a specific project.
Degree of change. The greater the degree of change, the more difficult it is to implement it
successfully. It is more difficult to change a strategy (e.g. developing a new product line)
than to change the format of a sales form.
Time frame. The more gradual the change and longer the time frame, the greater the
chance of success. Some organisations, however, have become so ineffective, that any
chance they have for survival depends on radical change introduced swiftly.
Impact of culture. The change programme's impact on existing systems and culture is
important because the greater the impact on existing cultural norms, the greater the amount
of resistance likely to emerge and the greater the difficulty in implementing the change
programme.
Evaluation of change. Some system of evaluating the change must be considered.
Standards or levels of performance are developed to measure the degree of change and its
impact on organisational effectiveness.

10.8.3 A model of change

According to Kurt Lewin any change process consists of three phases, namely unfreezing the
status quo, movement to a new state (change), and refreezing the new change to make it
permanent (see Figure 10.10). Traditionally the focus was on identifying sources of resistance and
ways to manage it. Currently the development of a vision, getting political support for it and
management of the transition towards it, are stressed (Cummings & Huse, 1989:108).

215
 Study unit 10

Figure 10.10: Lewin's Three-Step Change Model

The status quo can be considered to be an equilibrium state. To move from this equilibrium – to
overcome the pressures of both individual resistance and group conformity – unfreezing is
necessary. It can be achieved in three ways (see Figure 10.11). The driving forces, which direct
behaviour away from the status quo, can be increased. The restraining forces, which hinder
movement from the existing equilibrium, can be decreased. A third alternative is to combine the
two approaches.
Figure 10.11: Forcefield analysis (Kurt Lewin)

Unfreezing
People will tend to maintain the status quo and to resist change. Organisation members should be
unfreezed to overcome resistance to change. Individuals must be prepared for change and must
release physical and psychic energy for it.
Creating a readiness for change
Unfreezing refers to the preparation of a client (individual, group or organisation) for change.
Conditions are created to untie the client from the status quo. The client's mental and emotional
set has to be broken so that he/she will be more agreeable to consider, if not accept change
(Burke, 1996). Dissatisfaction with the status quo can be created to encourage employees to
experiment with new behavioural forms. It is, however, not easy to create this dissatisfaction and
people and organisations often have to experience pain before they are willing to undertake
significant change (Cummings & Huse, 1989:110). Dissatisfaction can be generated in the
following ways:

216
 Study unit 10

Make employees aware of the need for change. Employees must understand the need for
change. Readiness for change is often obvious, for example a decrease in sales figures, an
increase in costs (which threaten profits), high labour turnover and high absence in comparison
with other industries, and unsuccessful marketing strategies. It is easier to generate motivation for
change if a competitive crisis is present. Otherwise threats regarding competition could be shared
with employees to create a need for change.
According to Beer and Walton (1990:154-161) competitive pressure should be present before
interventions would be relevant and effective. Traditional emphasis on process intervention is
being broadened to include organisational design, and the two approaches are being integrated
more effectively. The participative normative-re-educative strategy for change is being augmented
with strategies which focus on task and business. The therapeutic model of intervention is being
enlarged to include a managerial/power perspective (Beer & Walton, 1990:160).
Disclose differences between the present and desired state. The above-mentioned
factors will not necessarily lead to an understanding of the need for change. You can gather
facts (current situation) and contrast it with the desired situation (mission and objectives of
the organisation). If the assumption is that members of the organisation identify with the
objectives, and they observe a significant difference between the present and desired
situation, they can experience a need to reduce the gap between the present and desired
situation. One way to open their eyes is to make them aware of the severe consequences of
inaction, such as the possible closing of their facilities.
Another way to create an awareness of a need for change is to describe a more desirable
future situation. People tend to be satisfied with the status quo until a better, more
desirable situation are presented to them (Burke, 1987:115). This involves the creation of a
vision of the preferred future state of the organisation. The vision provides the direction for
the change and serves as a landmark to assess progression. Leaders should be more
concerned about the determination of a desired state, than how to get there. A leadership
function therefore is to make certain that a plan for the future is in place and then to generate
energy and enthusiasm within the organisation to support the transition.
Communicate positive expectations regarding the change. Expectations of employees
may play an important role in the motivation for change. These expectations may serve as a
self-fulfilling prophecy and encourage employees to invest energy in change programmes
which they expect to succeed. Burke (1987:116) refers to the use of formal leaders as well
as informal leaders in the organisation to bring about change. If respected individuals do
not support the change efforts, resistance of employees will be higher than would otherwise
be the case. Informal leaders should be involved in the earliest planning of change. Harvey
and Brown (1992:208) stress the role of the consultant to motivate change. Sharing
“success stories” with the organisation can facilitate change. Words of comfort from the
consultant, as well as openness, honesty and confidence may have a motivating effect.
The political process in the organisation (that is activities and processes arising from the
interests of a specific person and/or group, which are not in favour of the organisation)
should be addressed during the change process. Organisation members often ask the
question: “How will the change effect me?” rather than “What is the plan for the future?” It is
important to inform them about personal advantages of the change programme for them.
As soon as employees understand the necessity of change, they must be convinced that the
proposed changes are workable. This can be facilitated by pilot projects which involve
employees, which may indicate that the assumptions underlying changes are valid. Pilot projects
will promote feelings of security, which will help employees to change.
Managing resistance to change
Three sources of resistance are distinguished, namely facts, beliefs and values.

217
 Study unit 10

Facts. Change is a threat to the security of people because they have a fear of the unknown.
The facts of the change are often inaccurately distributed via the grapevine. To prove their
points, individuals tend to use facts selectively. The correct use of facts may, however, help
to overcome the fear of the unknown. A lack of understanding and information creates a
vacuum, which is then filled by humour, speculation and a lack of security.
Beliefs. Facts can be proved, beliefs not. Beliefs are subjective and may cause people to
feel that change is right or wrong and good or bad. Differences in perceptions may create
resistance to change. Employees, who experienced change as negatively in the past, may
see future changes as “bad.”
Values. Values are those things which people believe to be worth pursuing or doing. What
we value is important to us. Our values meet our needs and effect our behaviour. Because
change often requires learning new ways to do things, people view change as an
inconvenience and place a low value on it. When people believe that change is of value to
them, there tends to be low resistance to change.
There are three major focuses of resistance, namely the self, others and the work environment:
Self. It is natural for people to want to know “What's in it for me? What will I gain or lose?”
When the facts of change have a negative effect on an employee's economic well-being,
such as lower pay or longer hours without additional compensation, employees tend to resist
change. Employees also resist changes which result in a loss of status or esteem.
Others. People tend to consider how the change will effect their friends, peers and
colleagues. If an employee analyses the facts and believes that the change will effect others
negatively, he or she may be resistant to the change.
Work environment. The work environment includes the physical setting and the climate.
People like to be in control of their environment, and they resist changes which deprive them
of their control. Employees' analysis of the facts towards the current versus the changed
environment will effect their resistance to change.
Manage the change process
Change implies the learning of new attitudes and/or behaviour by making the person aware of new
sources of information, or by helping him or her to look at old information in a new way. Change
can take place in two ways, namely:
By identifying with a role model, mentor, friend or other person and by learning to see things
from his or her frame of reference.
By scanning the environment to find a specific problem.
It is difficult to manage the change process because people seldom react as was planned.
Organisational politics are also involved and peoples' perceptions, emotions and behaviour are
effected by changes. Burke (1987:118-125) gives the following guidelines for managing the change
process:
Breaking with the past. As soon as changes are planned, time and energy should be
invested to part with the past (a certain way of working, a programme, a project or a product).
A formal opportunity, involving people who made personal contributions to a previous state of
affairs, can be used to part with a previous way of doing things.
Unfinished business. Human beings often tend not to form closure once an issue is
completed. They often tend to waste mental and emotional energy by completing unfinished
business (such as thinking of reasons why not to change). This energy may manifest in talk
about previous ways of doing things, critique towards new ways of acting or sabotage of
change efforts. Resistance to change is often nothing else than efforts of employees to reach
closure.

218
 Study unit 10

Pride. People often take pride in what they do if they have worked in the same way for
years. If they are told that they have to do things in a new way, they may get the impression
that what they have done is worthless or wrong. Management on the other hand, wants to
change as quickly as possible and wants to forget the past. If employees think that what
they have done is worthless, they may tend to loose esteem and use their energy to repair
damaged pride. Acknowledging the value of various employees' previous ways of doing
things can solve the problem.
Managing the transition. The larger and more complex the change efforts, the more
systematic and concentrated attention of managers towards the change effort are required.
The following aspects should be attended to:
Employees can be involved to ensure their commitment to the implementation of changes.
Involvement of employees in planning how to reach objectives is essential to facilitate the
implementation of changes. It is advantageous to involve employees in changes which will
effect them. Managers also have the opportunity to explain the logic of the change efforts to
them.
Management should not focus excessively on one target area for change. According to the
systems theory it can be reasoned that change in one subsystem will effect all the other
subsystems. Multiple leverage should therefore be considered. A change in strategy
precedes structural changes. If structural changes take place, changes in management
information systems are necessary.
Feedback on the results of change efforts is necessary because people tend to expect the
worst when situations are ambiguous.
A slogan, acronym, or symbol can be used to represent change objectives. This will help to
concretise change objectives, which are often vague and abstract for employees.
Stabilising the change (“Refreezing”)
Refreezing involves the stabilising of changes by helping the person to integrate the new activities
in his or her routine activities. The following mechanisms can be used to stabilise changes:
The individual should be given the opportunity to determine if the new attitudes and/or
behaviour really fit his or her self-concept, are congruent with other parts of his/her
personality and if they can be integrated comfortably.
The individual should be given the opportunity to test if others will accept and confirm the
new attitudes and behaviour.
It is important to tell people which things would not change. The latter serves as anchor to
provide stability to manage changes. The reward system can be used to reinforce
behaviour.
Formal and public acknowledgement of employees who help to move the organisation into
the desired direction may help to specify what acceptable behaviour is.
Guardians may be employed to serve as role models and norm carriers of the new culture
and changes. The selection and placement of these persons in the organisation can do
much to stabilise the change. (The guardians should be selected on the basis of the
salutogenic constructs discussed in study unit 1. The reason for this is that an individual high
on the salutogenic constructs – such as internal locus of control, self-efficacy, sense of
coherence, learned resourcefulness, and hardiness – will be better equipped to cope with
changes.)

219
 Study unit 10

10.8.4 Strategies to manage resistance to change

If resistance to change can be managed, the chances of a successful organisational development
programme are enhanced. Resistance to change can be predicted, but it cannot be repressed
effectively in the long run (Harvey & Brown, 1996:162).
Resistance to change can be managed in the following ways (Harvey & Brown, 1996:163-165;
Lussier, 1990:334-335):
Develop a positive climate for change. Maintaining good human relations can contribute
towards a positive climate for change.
Education and communication. The uncertainty and fear of the unknown associated with
change can be minimised by an effective communication programme. The lack of reliable
information leads to rumours and uncertainty. Information concerning the “what” and “why”
of the change programme should be supplied to employees.
Create a vision. The most powerful impact of a leader is through communicating the vision
of the organisation. The vision can inspire members and reduce their resistance to change.
Encourage an interest in improvement. Employees should be encouraged to do their
best. They should also have the opportunity to develop new skills and abilities.
Plan. To implement changes successfully takes good planning. The possible resistance
should be identified and plans should be made to overcome it.
Provide facts. Facts should be provided to employees. Half-answers will only make
employees feeling more confused and angry. Giving facts in advance will help to overcome
the fear of the unknown.
Involve employees. A commitment to change is crucial for the effective implementation of
change. One way to get commitment is by involving employees in the change process.
Facilitation and support. Employees should be allowed to express their feelings in a
positive way. Giving thorough training helps reduce frustration. A subtle rather than
confrontational approach should be used. The people driving the change programme should
not become emotionally involved. They should rather help employees to work through there
own emotions regarding the changes. Training managers and supervisors in facilitation skills
will help them to implement changes more successfully.
Leadership. The leadership of key managers in the organisation is critical. Other managers
who are effected by the need for change should be involved and supportive. Bringing the
informal leaders into the organisation can ensure “grass-roots” support for the change.
Flexible reward systems. Flexible reward systems which take account of individual
differences in employees can help in the acceptance of changes. Profit sharing, bonuses,
skill and knowledge-based pay, gain sharing and stock ownership plans have recently
become common in businesses. Profit sharing uses the performance of business to
calculate pay. Knowledge-based pay or skill-based pay uses the knowledge or skills a
worker has to determine pay.
Explicit and implicit coercion. Managers may force people to go along with a change by
explicit or implicit threats involving loss of jobs, raises and promotion. Employees who refuse
to change may also be transferred or dismissed.

220
 Study unit 11

11 STUDY UNIT 11

11.1 DEFINITION OF ORGANSATIONAL CULTURE

Schein (1983:14) defines organisational culture as the pattern of basic assumptions which
a given group has invented, discovered or developed in learning to cope with its problems of
external adaptation and internal integration. It is a pattern of assumptions which has worked
well enough to be considered valid and, therefore, to be taught to new members as the
correct way in which to perceive, think and feel in relation to these problems. Organisational
culture refers to values and norms in the organisation. People are not always aware of
these values and norms (Burke & Litwin, 1989:279).
Organisational culture (especially basic assumptions and values) is not necessarily the overt
behaviour which can be observed when visiting an organisation. It is not only the written
policy or values, but also the basic assumptions which influence the behaviour, architecture
and layout of offices (Schein, 1983:14). Organisational culture includes traditions, events
and established practices which created patterns of relating and problem solving in the
organisation. It is the rules and guidelines prescribing to participants how they should
participate, how they should act and what they should not do. On a more visible level,
organisational culture manifests in myths, rituals, stories, legends and specialised
language (Wiener & Vardi, 1990:296).
Organisational culture consists of a coherent set of assumptions which distinguishes one
group from another (Gagliardi, 1986:119). Gorman (1987:3-9) stresses the hidden nature
of culture and the covert way in which it directs behaviour, ideas and feelings. Culture is the
sum of collective or shared learning which takes place as the group develops the capacity to
survive in the external environment and cope with their internal issues.
According to O'Reilly, Chatman and Caldwell (1991:487-516) the following key
characteristics that an organisation values; it captures the essence of an organisation's
culture:
Innovation and risk taking. The degree to which employees are encouraged to be
innovative and take risks.
Attention to detail. The degree to which employees are expected to exhibit precision,
analysis and attention to detail.
Outcome orientation. The degree to which management focuses on results or
outcomes rather than on the techniques and processes to achieve these outcomes.
People orientation. The degree to which management decisions take into
consideration the effect of outcomes on people within the organisation.
Team orientation. The degree to which work activities are organised around teams
rather than individuals.

221
 Study unit 11
Aggressiveness. The degree to which people are aggressive and competitive rather
than easygoing.
Stability. The degree to which the organisational activities emphasise maintaining the
status quo in contrast to growth.

11.2 ORGANISATIONAL CULTURE AND CLIMATE

Organisational culture should not be confused with organisational climate. Organisational
climate can be observed and measured more directly and has a longer research history than
organisational culture (e.g. Litwin & Stringer, 1968; TagiurI & Litwin, 1968). Organisational
climate can be described as a psychological state which is strongly influenced by
organisational factors such as systems, structures and management behaviour.
Organisational climate is a manifestation of organisational culture on the surface. It is the
relatively enduring quality of the internal environment of the organisation as perceived by its
members. Climate is employees' perceptions of the atmosphere of the internal environment.
Organisational climate is important because the employees' perceptions of the organisation
serve as the basis for the development of their attitude towards it. Their attitudes, in turn
effect their behaviour.

Organisational climate includes the following dimensions (Lussier, 1990:343):

Structure. The degree of constraint on members – the number of rules, regulations
and procedures.
Responsibility. The degree of control over one's job.
Rewards. The degree to which one is rewarded for one's efforts or punished when it is
appropriate.
Warmth. The degree of satisfaction with human relations.
Support. The degree of being helped by others and co-operation.
Organisational identity and loyalty. The degree to which employees identify with the
organisation and their loyalty to it.
Risk. The degree to which risk-taking is encouraged.
Some of the signs that an organisation may have a climate problem which should be
measured include tardiness, absenteeism and turnover. When employees have many
complaints, sabotage work, talk about striking, lack pride in their work and when morale is
low, the organisation may have a climate problem which should be corrected.

11.3 COMPONENTS OF ORGANISATIONAL CULTURE

The following four components serve to clarify the nature of organisational culture.
Organisational culture consists of the following four components (Cummings & Huse,
1989:421):
Assumptions. Assumptions describe what is important and how problems in the
organisation are solved. Assumptions prescribe how people should observe things and
how they should think and feel about it. (Assumption: Client service is crucial for the
success of the organisation.) These assumptions could be studied through intensive
observation, focused questions and intensive self-analysis. It is easier to understand
values, norms and artefacts when assumptions are understood. People are normally
unaware of these assumptions.

222
 Study unit 11
Values and beliefs. People cannot easily become aware of their values and beliefs.
Values describe the things which are important for organisation members. (Value:
Client service is important and therefore care should be taken of the way in which it is
handled.) Values can be studied by using interviews, observation and questionnaires.
A questionnaire is normally less useful in measuring values, because it makes
assumptions about the dimensions which should be studied. It is impossible to
determine if a certain dimension is relevant before the deeper levels of culture are
investigated.
Behavioural norms. Behavioural norms are unwritten behavioural rules of which
people can be aware. These norms prescribe how people should behave in specific
situations. (Norm: Employees must listen to clients and respond to their needs.)
Artefacts. Artefacts are the highest level of cultural awareness and refer to creations
which are visual manifestations of other cultural levels. It includes the observable
behaviour of employees, dressing, structures, systems, policies, procedures, rules,
records, annual reports and physical layout of the organisation. It is, however, difficult
to judge artefacts accurately - it is not necessarily a reliable indicator of how people
behave. One of the problems in studying stories, myths, rituals and other artefacts is
that incorrect inferences are made from them.

11.4 CHARACTERISTICS OF ORGANISATIONAL

CULTURE
Organisational culture represents a common perception held by the organisation's members.
It could therefore be expected that individuals with different backgrounds or at different
levels in the organisation would tend to describe the organisation's culture in similar terms
(Meyerson & Martin, 1987:623-647).
Acknowledging that organisational culture has common properties does not mean that there
cannot be subcultures within any given culture. Most large organisations have a dominant
culture and sets of subcultures (Jermier, Slocum, Fry & Gaines, 1991:170-194; Sackmann,
1992:140-161).
A dominant culture expresses the core values which are shared by a majority of the
organisation's members. Subcultures tend to develop in large organisations to reflect
common problems, situations or experiences which members face. These subcultures are
likely to be defined by department designations and geographical separation. It will include
the core values of the dominant culture plus unique values important to the department or
geographical area.
In a strong culture, the organisation's core values are both intensely held and widely
shared. The more members who accept the core values and the greater the commitment to
those values, the stronger the culture is. A strong culture will have a great influence on the
behaviour of its members, because the high degree of sharing and intensity create an
internal climate of high behavioural control.
Research (Adler, 1991) indicates that the national culture has a greater impact on
employees than their organisation's culture. As influential as organisational culture is to
understanding the behaviour of people at work, national culture is even more so. Geert
Hofstede found that national culture has a major impact on employees' work-related values
and attitudes. Hofstede found that employees and managers vary on four dimensions of
national culture, namely individualism vs. collectivism, power distance, uncertainty avoidance
and masculinity vs. femininity.
Individualism vs. collectivism. Individualism refers to a loosely knit social framework
in which people are supposed to look after their own interests and those of their
immediate family. Collectivism is characterised by a tight social framework in which

223
 Study unit 11
people expect others in groups to which they belong (such as an organisation) to look
after them and protect them when they are in trouble. In exchange for this security,
they feel they owe loyalty to the group. According to Hofstede, the degree of
individualism in a country is closely related to that country's wealth. Rich countries, like
the United States of America, Great Britain and the Netherlands are very individualistic,
while poor countries, like Colombia and Pakistan, are very collectivist.
Power distance. Power distance is a measure of the extent to which a society
accepts the fact that power in institutions is distributed unequally. A high power-
distance society accepts wide differences in power in organisations. Titles, rank and
status carry a lot of weight. Countries high in power distance include the Philippines
and India. In contrast, a low power distance society plays down inequalities as much
as possible. Superiors still have power, but subordinates are not fearful of their
managers. Denmark, Israel and Austria are examples of countries with low power
distance scores.
Uncertainty avoidance. Members of societies which have low uncertainty avoidance
accept uncertainty, are relatively comfortable with risks and are relatively tolerant of
behaviour and opinions which differ from their own, because they don't feel threatened
by them. Countries which fall into this category include Singapore, Switzerland and
Denmark. A society high in uncertainty avoidance is characterised by a high level of
anxiety among its people, which manifests in nervousness, stress and aggressiveness.
Because people feel threatened by uncertainty and ambiguity in these societies,
mechanisms are created to provide security and reduce risk. Organisations are likely
to have more formal rules, there will be less tolerance for deviant ideas and behaviour,
and members will strive to believe in absolute truths. Employees in countries with high
uncertainty avoidance demonstrate relatively low job mobility and lifetime employment.
Countries in this category include Japan, Portugal and Greece.
Masculinity vs. femininity. Some cultures (e.g. Japan and Austria) emphasise
masculinity. That is quantity of life, value assertiveness and the acquisition of money
and material things. Other cultures (e.g. Norway, Sweden and Denmark) emphasise
femininity. That is quality of life, relationships, sensitivity and concern for the welfare of
others.
Examples of Hofstede's cultural dimensions are reported in Table 11.1.

224
 Study unit 11
Table 11.1: Hofstede's cultural dimensions
Country Individualism/C Power Distance Uncertainty Masculinity vs
ollectivism Avoidance Feminity
Australia Individual Small Moderate Strong
Canada Individual Moderate Low Moderate
England Individual Small Moderate Strong
France Individual Large High Weak
Greece Collective Large High Moderate
Italy Individual Moderate High Strong
Japan Collective Moderate High Strong
Mexico Collective Large High Strong
Singapore Collective Large Low Moderate
Sweden Individual Small Low Weak
United States Individual Small Low Strong
Venezuela Collective Large High Strong

11.5 THE EFFECTS OF ORGANISATIONAL CULTURE

Culture performs the following functions in organisations:
It defines boundaries. It creates distinctions between one organisation and others.
It conveys a sense of identity for organisation members.
It facilitates the generation of commitment to something larger than the individual's
self-interests.
It enhances the stability of the social system because it provides appropriate
standards for what employees should say and do.
It serves as a sense-making and control mechanism which guides and shapes the
attitudes and behaviour of employees.
While we are non-judgmental regarding the nature of culture, it may have dysfunctional
aspects.
Robbins (2003:384) and Robbins (2009:428) distinguish between the following dysfunctional
aspects of organisational culture:
Barrier to change. Culture may be dysfunctional where the shared values are not in
agreement with those which will further an organisation's effectiveness. This may
especially happen when an organisation's environment is dynamic. When the
environment is undergoing rapid change, the organisation's culture may no longer be
appropriate.
Barrier to diversity. Hiring new employees who, because of race, gender or other
differences, are not like the majority of the organisation's members, may create a
problem. This aspect may especially create problems when implementing affirmative
action in South African organisations.
Barrier to mergers and acquisitions. Historically, management considered the key
factors in making merger or acquisition decisions to be related to financial advantages
or product strategy. Recently, cultural compatibility has become the major concern.

225
 Study unit 11

11.6 THE DEVELOPMENT OF ORGANISATIONAL

CULTURE
Organisational culture develops as a result of previous crises, achievements, successes and
failures in an organisation. These aspects lead to the formation of assumptions regarding
the following aspects:
reality (“you can't trust banks”);
truth (“people are an organisation's most important asset”);
time (“you have to look busy when people are watching you”);
human nature (“women do not show the same work commitment as men”), and
human relations (“do not allow subordinates to become familiar”).
The founders of an organisation traditionally have a major impact on the organisation's
culture. They have a vision of what the organisation should be. They are also unconstrained
by previous customs or ideologies. The culture develops as employees identify with the
leader as role model. The founder of the organisation serves as role model. Beliefs, values
and assumptions of this person which withstand the test of practice, lead to shared
assumptions.
The selection process, performance evaluation criteria, reward practices, training and career
development activities and promotion procedures ensure that those hired fit in with the
culture, those who support it are rewarded and those who challenge it are penalised.
Once an organisation's culture is started and begins to develop, there are a number of
practices which can help solidify the acceptance of core values and ensure that the culture
maintains itself. These practices include:
Selection of entry-level personnel. The first step is to select candidates whose
characteristics and values fit those of the organisation. Evidence indicates that those
candidates who have a realistic job preview of the culture will turn out better.
Placement in the job. New personnel are subjected to a series of different
experiences the purpose of which is to enable them to question the organisation's
norms and values and to decide whether or not they can accept them.
Job mastery. Once the initial cultural shock is over, the next step is that the employee
should master his or her job. This is done via extensive and carefully reinforced field
experience.
Measuring and rewarding performance. The next step of the socialisation process
consists of meticulous attention to measuring operational results and to rewarding
individual performance. Reward systems should be consistent and comprehensive and
should focus on those aspects of business which are most crucial to success and
corporate values.
Adherence to important values. The next step involves careful adherence to the
organisation's most important values. Identification with these values helps employees
reconcile personal sacrifices brought about by their membership in the organisation.
They learn to accept these values and to trust the organisation not to do anything that
would hurt them.
Reinforcing the stories and folklore. The next step involves reinforcing
organisational folklore. This entails keeping alive stories which validate the
organisation's culture and way of doing things. The folklore helps explain why the
organisation does things in a particular way. One of the most common forms of folklore
is stories with the morals the enterprise wants to reinforce.

226
 Study unit 11

Recognition and promotion. The final step is the recognition and promotion of
individuals who have done their jobs well and who can serve as role models to new
people in the organisation. By pointing out these people as winners, the organisation
encourages others to follow their example.

11.7 CHANGING ORGANISATIONAL CULTURE

The following aspects must receive attention when trying to change an organisation's culture:

11.7.1 Diagnosing the current culture

Organisations must become aware of their current culture. Organisations which do not have
knowledge of their culture are vulnerable, especially because of the covert nature of
organisational culture. Awareness facilitates change (Gorman, 1987:8), although doubt is
expressed about the probability that values will change when a person is aware of them
(Gagliardi, 1986:118). It is, however, important to understand the cultural characteristics of
an organisation. Outsiders can play an important role in helping organisations to become
aware of their culture.

11.7.2 Motivation for change

Harvey and Brown (1992:90) point out that culture change requires a change in the hearts
and beliefs of employees. Motivation to change can be enhanced in the following ways:
Create dissatisfaction with the status quo.
Encourage employees to believe that change is possible and wanted.
Do not force culture change on people. A participative approach is required to
influence the deepest level of culture. Atop-down approach to change may be used
when a single culture exists or when the focus is on changing norms rather than
assumptions.
Develop a shared vision and mission. Harvey and Brown (1992:522-523) define a
vision as a mental image of a possible and desirable future state of the organisation
which articulates a view of a realistic, credible, attractive future for the organisation, a
condition which is better in some important ways than what now exists.
Define objectives and target behaviour. The operational objective of the change
effort should be defined clearly. It should also be explained to employees how each
objective relates to the assumptions, values, norms and behaviour which form the
basis of the new culture. The objectives should be measurable and reachable, as well
as related to the results which the organisation expects.
Structuring of interventions. A combination of techno-structural and human process
interventions should be used to realise the vision and mission. According to Sathe
(1983:18) the behaviour of people should be changed in order to change their values
and beliefs. Training programmes can be used to facilitate behaviour changes
Role of management. The pro-active involvement of the manager and his or her
management personnel is crucial for cultural change.
Recognition of performance. Employees should be encouraged to change. A fair
performance appraisal and reward system is necessary to recognise performance.

227