Theories of Motivation

Motivating the Workforce

Motivation is an inner drive that

directs a person’s behavior toward
goals.
The basic model of motivation shows
that when a need exists, an individual
engages in goal-directed behavior
designed to satisfy that need.
 MAJOR THEORIES OF MOTIVATION
I. Need Approaches:
- Maslow’s Hierarchy of Needs
- Alderfer’s ERG Theory
- Herzberg’s Two Factor Theory
- McClelland’s Learned Needs Theory
II. Cognitive Approaches:
- Expectancy Theory
- Equity Theory/ Social Comparison
- Goal Setting Theory
III. Reinforcement Theory Or Operant Conditioning : How
Rewards & Reinforcements Sustain Motivation Over Time
(Behavior Modification)
 Maslow’s Need Hierarchy
Self-
Actualization
Desire for
self-
Esteem fulfillment.
Need for
reputation,
prestige, and
Love recognition
The desire from others.
to love and
be loved.
Safety
Consists of
the need to
be safe.
Physiological
Most basic
need.

4
 Alderfer’s ERG Theory

Need Need
Growth Needs Regression
Progression

Relatedness Needs

Existence Needs
Alderfer ERG Theory
• Existence – needs satisfied by factors such as food, air, water, pay, and working
conditions
• Relatedness- needs satisfied by meaningful social and interpersonal
relationships
• Growth – needs satisfied by creative contributions
• In addition to satisfaction-progression hierarchy, there is frustration-
regression.

6
 Herzberg’s 2-Factor Theory

Determinants of Job Determinants of Job

Dissatisfaction are Satisfaction are
Hygiene Factors: Motivator Factors:
 Pay, fringe benefits  Work itself,
 Working conditions  Responsibility
 Quality of supervision  Advancement
 Interpersonal relations  Recognition
Job Environment Factors Job Content Factors
McClelland’s Need Theory
1. Need For Achievement: Desire to excel and
accomplish something difficult.
• Achievement-motivated people prefer
• Tasks of moderate ability that they can achieve
• Situations in which their performance is due to their own
efforts
• More feedback on their success and failures than do low
achievers
2. Need For Affiliation: Desire to spend time in social
relationships and activities.
3. Need For Power: Desire to influence, coach,
teach, or encourage others to achieve.
8
A Comparison of Internal Need Theories of Motivation

Maslow’s Alderfer’s Herzberg’s McClelland’s

Hierarchy ERG Two Factor Acquired
of Needs Theory Theory Needs Theory

Self- Achievement
Actualization Growth
Motivator

Esteem Power
Relatedness

Belonging

Security Affiliation
Existence
Hygiene
Physiological
Goal Setting
People’s Behavior is Guided by Intentions
• Goals provide direction Specific goals
are more effective
• Goals mobilize behavior Difficult goals
generate more effort
• Feedback about goal attainment sustains
behavior.
Goal Commitment

Publically stated goals

+
Commitment to
High nAch
Goals
+
Internal Locus of Control
Goal Setting Applications

• Management by Objectives (MBO)

• Performance review procedure by which employees
and managers jointly make goals for next review
period. They also work out the details for reaching
those goals. Performance is regularly monitored.
Victor Vroom’s Expectancy Theory

People will be motivated to engage in

a behavior (make a choice) to the
degree that they believe that the
behavior will lead to a valued outcome
 Expectancy Theory: An Overview
Effort Skills and
Expectancy abilities

Performance X
Instru- Job
mentality Motivation Performance
Rewards X
Valence of
Rewards Role perceptions
and opportunities

16
Expectancy Model:
Components
Expectancy: The degree to which you expect
that hard work (effort) will lead
to good performance or high
accomplishments
Instrumentality: The perception that if you
perform well you will be
rewarded
Valence: How much do you value the rewards
you may receive
 Expectancy Theory, con’t
• Force: the motivation to choose a particular course of
action.

Force  E  (V * I )
Where: E= Expectancy (probability that effort leads to
performance)
V=Valence (rating of how satisfying various
rewards will be)
I=Instrumentality (relationship between taking
this option and gaining this reward)
 Example: Choose between Job A vs. Job B

• 1. What are the possible outcomes I would get from getting a job, and how much do I value each of these outcome
(Valence)
• Good salary 7
• Good Pension 6
• Interesting work 8
• Travel opportunities 4
Valences are measured on a scale from 1 (not at all satisfiying) to 10 (extremely satisfying)
Expectancy example, cont
• Instrumentality: What is the relationship (subjective
correlation) between choosing job A or job B and obtaining
this outcome?

Instrumentality Instrumentality
for Job A for Job B
High salary .75 .50
Good Pension . .25 .75
Interesting work .50 .75
Travel .75 .25
Expectancy example, con’t

Expectancy: What is the probability that if I work hard, I will

be successful:
• In Job A: .40
• In Job B: .70
Force: Which job should I choose
Force  E  (V * I )
Job A: Valence Instrum. V*I
High salary 7 .75 5.25
Good Pension 6 .25 1.50
Interesting work 8 .50 4.00
Travel 4 .75 3.00
Sum 13.75
Expectancy .40
Force=.40(13.75) = 5.5
Job B. Valence Instrum. V*I
High salary 7 .50 3.50
Good Pension 6 .75 4.50
Interesting work 8 .75 6.00
Travel 4 .25 1.00
Sum 15.00
Expectancy .70
Force=.70(15.00) = 10.5
 Application of Expectancy Theory
• Clarify expectancies between effort and performance and follow
through with rewards.
• Pay for performance
• Stock option plans and other incentive programs
• Provide valued rewards
• Cafeteria-style benefits
 Distributive Justice:
Perceptions of how fairly
rewards are distributed
Theory 1: Exchange Theory

If Inputs = Outputs Satisfaction

Effort, Rewards O
Motivation, Bonus =1
Performance, Promotions I
Skills, Pay Raise
Expertise Recognition
Theory 2: Equity Theory --
Compare I/O ratios to others

Self Other

Outcome Outcome
= Satisfaction
Input Input
Examples of Equity (O / I)
1. 2.
Self Other Self Other

4 4 4 8

4 4 4 8

3. Self Other 4. 5.
Self Other Self Other

4 4 4 8 2 4

2 2 2 4 4 8
Examples of Inequity
1. Underpayment = Self O/I < Other O/I
Example
Self Other
4 8

4 4

2. Overpayment = Self O/I < Other O/I

Example
Self Other
4 2

4 4
POSSIBLE REACTIONS TO INEQUITY: A SUMMARY

TYPE OF REACTION
Behavioral Psychological
Type of Inequity (what you can do is...) (what you can think is...)
Overpayment Raise your inputs (e.g., work Convince yourself that your
inequity harder), or lower your outcomes outcomes are deserved
(e.g. work through a paid based on your inputs (e.g.,
vacation) rationalize that you work
harder than others and so
you deserve more pay)
Underpayment Lower your inputs (e.g., reduce Convince yourself that oth-
inequity effort), or raise your outcomes ers’ inputs are really higher
e.g., get a raise in pay) than your own (e.g., ration-
alize that the comparison
worker is really more quali-
fied and so deserves
higher outcomes)
14
Procedural Justice
• Perceived fairness of the processes by which
organizational decisions are made
• Voice: giving employees a say in how decisions are
made
• Error correction: allow opportunity for errors to be
corrected
• Consistently apply rules and policies
• Bias suppression
Interactional Justice
• Quality of interpersonal treatment (by
supervisor) when decisions are made and
communicated
• Information justification: thoroughness of
information received about at decision
• Social sensitivity: amount of dignity and
respect demonstrated in the course of
presenting an undesirable decision.
Motivating Jobs Through Job Redesign

• Scientifically managed jobs: boring,

repetitive, few skills utilized
• Job Enlargement: add more tasks of similar
skill level to the job Horizontal Loading
• Job Enrichment: add more responsibility
and autonomy to the job Vertical Loading
 Job Enlargement and Job Enrichment: A Comparison
(high)
Enlarged Job

Level of Responsibility
(vertical job loading)
Job enlargement adds more tasks
at the same level of responsibility.

(high)
Task Task Task Task
Level of Responsibility

1 2 3 4
(vertical job loading)

Standard Job (low)

(low) Number of Tasks (high)
(horizontal job loading)
(high)
Task Task

Level of Responsibility
Enhanced Job

(vertical job loading)

1 2 Job enrichment adds
(low)
more responsibility
to the same number
(low) Number of Tasks (high) Task Task
(horizontal job loading) of tasks.
1 2

(low)
(low) Number of Tasks (high)
(horizontal job loading)
18
Job Characteristics model

Job Characteristics Critical Psyc. States Job Outcomes

Skill Variety Experienced Internal work

Task Identity }
Task Significance
Meaningfulness of
Work
motivation
Job satisfaction
Growth
Responsibility for Satisfaction
Autonomy work outcomes Low absenteeism
High quality
Feedback Knowledge of performance
Results

Growth Need Strength

Enriching Jobs: Some Suggestions From
the Job Characteristics Model

Principles of Job Description Core Job Dimensions

Incorporated

1. Combines jobs enabling worker to perform Skill variety

the entire job Task identity

2. Establishes client relationships allowing providers Skill variety

of a service to meet the recipients Autonomy
Feedback

3. Load jobs vertically allowing greater responsibility Autonomy

an control over work

4. Open feedback channels giving workers knowledge Feedback

of the results of their work

20
Motivation Strategies- Extrinsic
Rewards

PAY

BONUS

BENEFITS
Intrinsic Rewards

Sense of Meaningfulness
Sense of Choice
Sense of Competence
Sense of Progress
Motivation Strategies

JOB ROTATION

JOB ENLARGEMENT

JOB ENRICHEMENT

FLEXIBLE SCHEDULING
 Motivation and Morale

Morale is whether the people in the work environment are

happy. an employee’s attitude toward his or her job, employer,
and colleagues.

Motivation is whether the people in the work

environment have enough incentive to do their jobs.
Morale of Employees
High Morale
• High levels of productivity
• High returns to stakeholders
• Employee loyalty

Low Morale
• Absenteeism
• Lack of commitment
• High turnover
 Motivating the Workforce
Respect

Involvement

Appreciation

Compensation

Promotion

Pleasant work environment

Positive organizational culture

Strategies for Enhancing Job Satisfaction and Morale

Reinforcement/behavior modification

Management by objectives

Participative management and

empowerment

Job enrichment and job redesign

Modified work schedules

Leadership
What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of goals.

Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.
1. Trait Theories
Traits Theories of
Leadership Leadership Traits:

Theories that consider • Ambition and energy

personality, social, • The desire to lead
physical, or intellectual
• Honest and integrity
traits to differentiate
leaders from non-leaders. • Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge
Trait Theories

Limitations:
• No universal traits found that predict leadership in
all situations.
• Unclear evidence of the cause and effect of
relationship of leadership and traits.
2. Behavioral Theories
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from non leaders.

• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.
a. Ohio State Studies
Initiating Structure
The extent to which a leader is
likely to define and structure his
or her role and those of sub-
ordinates in the search for goal
attainment.

Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect
for subordinate’s ideas, and regard for their feelings.
b. University of Michigan Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a
personal interest in the needs of employees and
accepting individual differences among members.

Production-Oriented Leader
One who emphasizes technical
or task aspects of the job.
 c. The
Managerial Grid
(Blake and Mouton)
3. Contingency Theories
The best way to organize depends on the
nature of the environment to which the
organization must relate.
a. Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.

Task Structure
The degree to which the job assignments are
procedurized.

Position Power
Influence derived from one’s formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.
Findings from Fiedler Model
b. Hersey and Blanchard’s Situational
Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness.
Unable and Unable but Able and Able and
Unwilling Willing Unwilling Willing

Follower readiness:
ability and willingness

Leader: decreasing need

for support and supervision

Directive High Task and Relationship Supportive Monitoring

Orientations Participative
Leadership Styles and Follower Readiness
(Hersey and Blanchard)
Follower Unwilling Willing
Readiness

Able Supportive
Monitoring
Participative

Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations
c.Leader–Member Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and
subordinates with in-group status will have higher
performance ratings, less turnover, and greater job
satisfaction.
Leader-Member Exchange Theory
d. The Path-Goal Theory
Leadership styles
• Autocratic Management Style
• Democratic Management Style
• Laissez Faire Management style
Autocratic Management Style
• An autocratic manager dictates orders to their
staff and makes decisions without any
consultation.
• The leader likes to control the situation they are in.
• Decision are quick .
• This type of management style can decrease
motivation and increase staff turnover
Democratic or participative style
• A democratic manager delegates authority to the
staff, giving them responsibility to complete the task.
• Staff will complete the tasks using their own work
methods on time.
• Employees are involved in decision making giving
them a sense motivating individuals.
• Increases job satisfaction by involving employees or
team members .
• Slow decision making process.
 Laissez Faire Management style
• A laissez faire manager sets the tasks and gives staff
complete freedom to complete the task as they see fit.
“leave it be”.
• It works for teams in which the individuals are very
experienced and skilled self-starters.
• There is minimal involvement from the manager.
• The manager coaches or supply information if required.
• Benefits - staff are developed to take responsibility .
• Staff feel lost and not reach the goals set within the
time frame
 Employee Control
Leaders control

Autocratic Laissez - Faire

Transactional and Transformational
Leadership
Transactional Leaders

Leaders who guide or motivate their followers

in the direction of established goals by
clarifying role and task requirements.

Transformational Leaders

Leaders who provide individualized

consideration and intellectual stimulation,
and who possess charisma.
Characteristics of Transactional Leaders
Contingent Reward: Contracts exchange of
rewards for effort, promises rewards for good
performance, recognizes accomplishments.
Management by Exception: Watches and
searches for deviations from rules and
standards, takes corrective action.
 Characteristics of Transformational
Leaders
Idealized Influence: Provides vision and sense of mission,
instills pride, gains 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.
Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises.
Characteristics of Charismatic Leader
A) Vision
B) Willingness to take personal risks
C) Sensitive to follower needs
D) Exhibit extraordinary behaviors
Servant Leadership
Servant Leadership
Organization Design
Organization Design

1. Organization Culture
2. Organization Structure
Culture
Influencing an Organizational Culture (3 of 5)

• What Is Spirituality?
• Workplace spirituality is not about organized religious practices.
• It is not about God or theology.
• Workplace spirituality recognizes that people have an inner life that
nourishes and is nourished by meaningful work that takes place in the
context of community.
• The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context
of the community.
Characteristics:
• Strong sense of purpose
• Focus on individual development
• Trust and openness
• Employee empowerment
• Toleration of employee expression
Reasons for growing interest:
• As a counterbalance to the pressures and stress of a turbulent pace of life and the lack of community many people feel and their
increased need for involvement and connection.
• Formalized religion hasn’t worked for many people.
• Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work.
• The desire to integrate personal life values with one’s professional life.
• An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.
 How to develop a spiritual culture in organization
• Create a purpose that is beneficial to the betterment of society, not just individuals.
• Make sure that any action your company takes does not negatively affect other people and other companies.
• Hire and recruit people who understand your company’s mission statement and actively work according to your company’s
purpose.
• Make sure all your existing employees and managers are aware of your company’s purpose.
• Create an environment of inclusion, diversity in your company. Promote and encourage diversity in your employees’ thoughts
and ideas.
• Educate and train your employees in the skills of self-leadership and self-awareness. Encourage them to realize their value and
self-worth.
• Train your employees on proper business conduct so that they can serve your clients in a better, meaningful way.
• Encourage your employees to be more creative.
• Discourage and eliminate fear among your employees. Spirituality can only flourish in the absence of fear. For example, if
employees are afraid of making mistakes, they will never be able to learn from them.
• Foster an environment of trust in your workplace where employees can work, learn, and contribute together for a more significant
cause.
 How to develop a spiritual culture in organization
• Create a purpose that is beneficial to the betterment of society, not just individuals.
• Make sure that any action your company takes does not negatively affect other people and other companies.
• Hire and recruit people who understand your company’s mission statement and actively work according to your company’s
purpose.
• Make sure all your existing employees and managers are aware of your company’s purpose.
• Create an environment of inclusion, diversity in your company. Promote and encourage diversity in your employees’ thoughts
and ideas.
• Educate and train your employees in the skills of self-leadership and self-awareness. Encourage them to realize their value and
self-worth.
• Train your employees on proper business conduct so that they can serve your clients in a better, meaningful way.
• Encourage your employees to be more creative.
• Discourage and eliminate fear among your employees. Spirituality can only flourish in the absence of fear. For example, if
employees are afraid of making mistakes, they will never be able to learn from them.
• Foster an environment of trust in your workplace where employees can work, learn, and contribute together for a more
significant cause.
 Types of Culture
Clan culture
• Advantages of Clan Culture
• The team enjoys working together.
• Communication between team members is open and effective.
• Employees are likely to be highly engaged at work.
• High possibility for market growth.
• Disadvantages of Clan Culture
• Difficult to maintain as a business grows.
• Since it is a horizontal leadership structure, career paths might be unclear.
• Productivity may be sacrificed due to too much collaboration.
• Taking other employees’ feelings into account may lead to an inability to take charge and make tough decisions.
 Types of Culture
Adhocracy culture
• Advantages of Adhocracy Culture
• High risk, high reward. Greater potential for growth and breakthroughs.
• Employees are motivated to use their creativity and develop new ideas.
• Employees feel supported when suggesting new ideas.
• More likely to invest in professional development opportunities.
• Disadvantages of Adhocracy Culture
• Potential for a lack of stability due to the number of new initiatives undertaken.
• Risk that new ventures will not be successful and will hurt the company.
• Junior employees may feel intimidated due to the need to work aggressively and
decisively.
• This work culture may create an environment where employees feel competitive
towards each other due to pressure to come up with new, fresh ideas all the time
 Types of Culture
Market culture
• Advantages of Market Culture
• Employees are enthusiastic about their work.
• The competitive atmosphere encourages all workers to work hard and reach company goals.
• The organization is focused on profitability; this is an objective that employees can get on board
with.
• Companies with market cultures are often successful and profitable.
• Disadvantages of Market Culture
• It can be challenging for employees to engage with their work since each decision is tied to a
number.
• The constant competition this environment fosters can create a toxic work environment.
• Employees can feel stressed at work due to constant pressure to perform.
• It’s not uncommon for employees to become burned out because they are expected to constantly
climb the ladder and deliver results no matter personal costs.
Types of Culture
Hierarchy culture
• Advantages of Hierarchy Culture
• Since this corporate culture is conservative, the company remains stable.
• The company’s processes are clearly defined to meet its objectives.
• Employees know exactly what is expected of them when they go to work.
• Workers experience a sense of security knowing that expectations and
working conditions are predictable.
• Disadvantages of Hierarchy Culture
• It prioritizes procedures over people which creates an inflexible work culture.
• This culture can discourage innovation because employees are discouraged
from suggesting new ways to approach things.
• May be difficult to respond quickly to changes in the market.
• Company goals take priority over the individual, which means little attention
is paid to employee engagement.
Organiztion Structure
Departmentalization Bases
• Purpose- Functions like marketing, finance, operations etc.
• Place- Western, eastern, northern, southern region
• Process- like in cotton production- spinning, weaving, dyeing etc.
• Product- Chocolates, cookies, cakes
• Person- e.g. different customers- domestic or international
Types of Structures

• Organic

• Mechanistic

10-95
Mechanistic Structures
Mechanistic Structures Designed to induce people to
behave in predictable ways.
• Decision making is centralized
• Subordinates are closely supervised
• Information flows downward in the
hierarchy
• Tasks are clearly defined
• Integrating mechanisms are simple
• Work is very standardized

10-96
10-97
Organic Structures

• Promote flexibility, so people initiate change and can adapt quickly

• Decision making is decentralized
• Roles are loosely defined
• Integrating mechanisms are complex
• Tasks rely on mutual adjustment
• Information flows freely

10-98
 From - Mechanistic To - Organic
Function driven Purpose driven
Closed Open
Parts Whole
Top down –hierarchical, Local focus
Controlled Empowered
Corporate Boundaryless
Centralized Distributed/Networked
Departmentalized Connected
Sameness Diversity
Stability Growth/Change 10-99
Traditional Forms of
Organizational Structure
• Organizational structure
• refers to formalized patterns of interactions that link a firm’s tasks,
technologies, and people

10-100
Traditional Forms of Organizational Structure

Structure provides a means of balancing two conflicting forces

• Need for the division of tasks into meaningful groupings

• Need to integrate the groupings for efficiency and effectiveness

10-101
Simple Structure
• Simple Structure
• An organizational form in which the owner-manager makes most of the
decisions and controls activities, and the staff serve as an extension of
the top executive.

10-102
Simple Structure
• Advantages • Disadvantages
• Highly informal • Employees may not
• Centralized decision making understand their
• Little specialization responsibilities
• May take advantage of lack of
regulation

10-103
Functional Structure

Exhibit 10.2
10-104
Functional Structure
• Functional Structure
• An organizational form in which the major functions of the firm, such as
production, marketing, R&D, and accounting, are grouped internally.

10-105
Functional Structure
• Advantages
• Enhanced coordination and control
• Centralized decision making
• Enhanced organizational-level perspective
• More efficient use of managerial and technical talent
• Facilitated career paths and development in specialized areas

10-106
Functional Structure
• Disadvantages
• Impeded communication and coordination due to differences in values
and orientations
• May lead to short-term thinking (functions vs. organization as a whole)
• Difficult to establish uniform performance standards

10-107
Divisional Structure

Exhibit 10.3
10-108
Divisional Structure
• Divisional organizational structure
• An organizational form in which products, projects, or product markets
are grouped internally.
• Also called multidivisional structure or M-Form

10-109
Divisional Structure
• Advantages
• Separation of strategic and operating control
• Quick response to important changes in external environment
• Minimal problems of sharing resources across functional departments
• Development of general management talent is enhanced

10-110
Divisional Structure
• Disadvantages
• Can be very expensive
• Can be dysfunctional competition among divisions
• Differences in image and quality may occur across divisions
• Can focus on short-term performance

10-111
Matrix Structure
• Matrix organizational structure
• an organizational form in which there are multiple lines of authority and
some individuals report to at least two managers.

10-112
Matrix Structure

Exhibit 10.4
10-113
Matrix Structure
• Advantages • Disadvantages
• Facilitates the use of • Can cause uncertainty and
specialized personnel, lead to intense power
equipment and facilities struggles
• Provides professionals with a • Working relationships become
broader range of responsibility more complicated
and experience • Decisions may take longer

10-114
Types of Boundaries
• Vertical boundaries between levels in the organization’s
hierarchy
• Horizontal boundaries between functional areas
• External boundaries between the firm and its customers,
suppliers, and regulators
• Geographic boundaries between locations, cultures and
markets

10-115
Boundaryless Organizational Designs
• Boundaryless organizational designs
• Organizations in which the boundaries, including vertical, horizontal,
external, and geographic boundaries, are permeable.

10-116
The Barrier-Free Organization
• Barrier-free organization
• An organizational design in which firms bridge real differences in
culture, function, and goals to find common ground that facilitates
information sharing and other forms of cooperative behavior.

10-117
Pros and Cons of
Barrier-Free Structures

Exhibit 10.7
10-118
The Modular Organization
• Modular organization
• An organization in which non-vital functions are outsourced, which
uses the knowledge and expertise of outside suppliers while retaining
strategic
control.

10-119
Organic structure: Joint Venture
Pros and Cons of Modular Structures

Exhibit 10.8 10-122

The Virtual Organization
• Virtual organization
• a continually evolving network
of independent companies that
are linked together to share
skills, costs, and access to one
another’s markets.

10-123
Example: Virtual Organization
• This textbook and supplemental material was completed by a
virtual team
• The authors are in Texas and New York
• The editors work in Illinois
• The compositors are in India
• The PowerPoint author works in South Carolina
• Deadlines are coordinated by the MH editor in Burr Ridge, IL to
pull the book
together
10-124
Pros and Cons of Virtual Structures

Exhibit 10.9 10-125

Boundaryless Organizations:
Making Them Work
• Factors facilitating effective coordination and integration of key
activities
• Common culture and shared values
• Horizontal organization structures
• Horizontal systems and processes
• Communications and information technologies
• Human resource practices

10-126
Creating Ambidextrous
Organizational Designs
• Ambidextrous organizational designs

• Organization designs that attempt to simultaneously

pursue modest, incremental innovations as well as
more dramatic, breakthrough innovations.

10-127
ORGANIZTIONAL CHANGE
Kurt Lewin’s Process of Change
Forces for Change
Exhibit 18-1 Forces for Change
Force Examples
Nature of the workforce More cultural diversity
Aging population
Increased immigration and outsourcing
Technology Faster, cheaper, and more mobile computers and handheld devices
Emergence and growth of social-networking sites
Deciphering of the human genetic code
Economic shocks Rise and fall of global housing market
Financial sector collapse
Global recession
Competition Global competitors
Mergers and consolidations
Increased government regulation of commerce
Social trends Increased environmental awareness
Liberalization of attitudes toward gay, lesbian, and transgender employees
More multitasking and connectivity
World politics Rising health care costs
Negative social attitudes toward business and executives
Opening of new markets worldwide
 Overcoming Resistance to Change (1 of 4)

Exhibit 18-2 Sources of Resistance to Change

Individual Sources
Habit—To cope with life’s complexities, we rely on habits or programmed responses. But when confronted with
change, this tendency to respond in our accustomed ways becomes a source of resistance.
Security—People with a high need for security are likely to resist change because it threatens their feelings of
safety.
Economic factors—Changes in job tasks or established work routines can arouse economic fears if people are
concerned that they won’t be able to perform the new tasks or routines to their previous standards, especially
when pay is closely tied to productivity.
Selective information processing—Individuals are guilty of selectively processing information in order to keep
their perceptions intact. They hear what they want to hear, and they ignore information that challenges the
world they’ve created.
Overcoming Resistance to Change (2 of 4)

[Exhibit 18-2 Continued]

Organizational Sources
Structural inertia—Organizations have built-in mechanisms—such as their selection
processes and formalized regulations—to produce stability. When an organization is
confronted with change, this structural inertia acts as a counterbalance to sustain
stability.
Limited focus of change—Organizations consist of a number of interdependent
subsystems. One can’t be changed without affecting the others. So limited changes in
subsystems tend to be nullified by the larger system.
Group inertia—Even if individuals want to change their behavior, group norms may act as
a constraint.
Threat to expertise—Changes in organizational patterns may threaten the expertise of
specialized groups.
Threat to established power relationships—Any redistribution of decision-making
authority can threaten long-established power relationships within the organization.
 Overcoming Resistance to Change (3 of 4)

• Overcoming Resistance to Change

• Communication
• Participation
• Building support and commitment
• Develop positive relationships
• Implementing changes fairly
• Manipulation and cooptation
• Selecting people who accept change
• Coercion
 Overcoming Resistance to Change (4 of 4)

• The Politics of Change

• Change threatens the status quo, making it an inherently political activity.
• Politics suggests the impetus for change is more likely to come from:
• Outside change agents.
• Employees new to the organization who have less invested in the status
quo.
• Managers slightly removed from the main power structure.
OD INTERVENTIONS
 Organization-Level
Diagnostic Model
Inputs Design Components Outputs
Technology
General

Organization
Effectiveness
Environment Strategy Structure

Industry
Structure
HR Measurement
Systems Systems

5-136
 Group-Level Diagnostic Model

Inputs Design Components Outputs

Goal Clarity

Organization Task Team Team

Design Structure Functioning Effectiveness

Group Group
Composition Norms

6-137
 Individual-Level Diagnostic Model

Inputs Design Components Outputs

Organization Goal Variety
Design
Task Individual
Group Identity Autonomy Effectiveness
Design
Task Feedback
Personal Significance about Results
Traits

6-138
 Action Research Model
Problem Identification
Joint diagnosis

Consultation with a
behavioral scientist Joint action planning

Data gathering & Action

preliminary diagnosis

Data gathering after

Feedback to Client action

2-139
AI Process
• The method creates meaning by
drawing from stories of concrete
successes and lends itself to cross-
industrial social activities.

• An appreciative or positive question is

“A question that seeks to uncover and
bring out the best in a person, a
situation or an organization.”
 Problem-Solving Appreciative
Inquiry
•Perceived Need
Identification of Problem • Appreciating the Best of
•Analysis of Causes What Is
• Envisioning What Might Be
•Analysis of Possible Solutions
• Designing What Should Be
•Acton Planning
• Delivering What Will Be

Context=A Problem to be
Context = A Mystery to be Uncovered
Fixed
The AI Change Process

Discover

AFFIRMATIVE
Deliver TOPIC
Envision
CHOICE

Design
 Definition of Interventions

An intervention is a set of sequenced and planned

actions or events intended to help the organization
increase its effectiveness.

Interventions purposely disrupt the status quo.

9-143
Objectives of T-Groups

• Increased understanding about one’s own behavior

• Increased understanding about the behavior of
others
• Better understanding of group process
• Increased interpersonal diagnostic skills
• Increased ability to transform learning into action
• Improvement in the ability to analyze one’s own
behavior

12-144
Process Consultation
A set of activities on the part of the
consultant that helps the client to
perceive, understand, and act upon the
process events which occur in the client’s
environment.

12-145
STRESS
Stress at Work (3 of 4)
Exhibit 18-8 A Model of Stress from
Managing Stress at Work (2 of 11)

• Individual Approaches
• An employee can take personal responsibility for reducing stress levels.
• Individual strategies include:
• Time-management techniques.
• Increased physical exercise.
• Relaxation training.
• Expanded social support networks.
Managing Stress at Work (4 of 11)

• Strategies include:
• Better selection and placement, and training.
• Goal-setting.
• Redesigning jobs.
• Employee involvement.
• Organizational communication.
• Employee sabbaticals.
• Wellness programs.
Negotiation and conflict
Negotiation
Process
Power & Politics: 5 Bases of Power