ORGANISATIONAL BEHAVIOUR

1. ORGANISATIONAL BEHAVIOUR By ACHMAD SUDJADI DEPARTMENT OF MANAGEMENT JENDERAL SOEDIRMAN UNIVERSITY

2. BIOGRAFI Nama : Achmad Sudjadi Lahir : Magelang, Oktober 1961 Pendidikan : S1 - FE UNSOED (1985) S2 – TMI ITB (1989) S3 – School of Mgt, Liverpool Univ. (2004) Pekerjaan : Dosen (S1, S2 UNSOED)

3. References:1. Robbins, S.P (2003). Perilaku Organisasi jilid 1 & 2 (Indonesia Edition). Jakarta: Gramedia.2. Drummond, H. (2000). Introduction to Organisational Behaviour. Oxford: Oxford Univ. Press.3. Brooks (2003). Organisational Behaviour. Essex: Prentice Hall.4. Hellrigel & Slocum (2004). Organisational Behaviour 10th edition. Canada: Thompson.5. Journals related with topics in OB.6, Sudjadi, Achmad (2004). Leadership styles, org. commitment, and job satisfaction in normative and utilitarian organisations (Unpublished PhD thesis). Liverpool: The University of Liverpool.

4. What is organisation? • An organisation is the rational coordination of activities of a number of people for the achievement of some common explicit purpose or goal, through division of labour and function, and through a hierarchy of authority and responsibility (Schein, 1980, p. 15) • Hall (1987 p. 40) defines organisations as possessing, ‘a relatively identifiable boundary …. Ranks of authority, communications systems, and membership coordinating system.’

5. Definition of OB • Organisational behaviour (OB) is the study of human behaviour in organisational context, with a focus on individual and group processes and actions. • Hence, it involves an exploration of organisational and managerial process in the dynamic context of the organisation and is primary concerned with the human implications of such activity (Brooks, 2003:2)

6. HOW TO STUDY OB? • Aims of the Organisation • INDIVIDUALS • GROUPS • ORGANISATION STRUCTURE

7. WHY OB IS IMPORTANT: The development of management concepts? • PRODUCTION /PRODUCTIVITY ERA • Employees is a function of production process • Mechanisation/Automation • Employee ∞ Machine • MARKETING ERA • STRATEGIC MANAGEMENT • INNOVATION • TOTAL QUALITY MANAGEMENT • MANAGING CHANGE

8. ORGANISATION COMPONENTS • MAN (SUPERIOR VS FOLLOWER) • MONEY • MACHINE • MECHANISM OF THE ORGANISATION • MANAGEMENT • WHICH COMPONENT IS EASILY CHANGED ? • MAN as a competitive element which cannot be easily copied.

9. LEADER OR MANAGER FOLLOWERSHow to sustain the organisation in the changing and competitive environment?- People has an important role in the organisation (LEADER AND FOLLOWERS HAVE TO WORK TOGETHER). Effective, Efficient, Sustainable. Goals

10. WHAT MANAGERS DO (HENRY FAYOL) • PLANNING (goal, strategy) • ORGANISING (design org.structure, staffing, job analysis) • LEADING (motivate, communicate, solve conflict) • COORDINATING • CONTROLLING

11. Unity Competition crisis debate Human behaviours in organisations

12. What should the orgs want their members behave? • SUPPORT TO THE ORG. GOALS. • Active • Productive • Innovative/creative • Commit, etc. • How to MOTIVATE people to behave ?

13. The roles of manager(Mintzberg, 1960) • Relationship role • (Leader, figurehead, liaison) • Information role • (Monitor, disseminator, spokesman) • Decision role • (Entrepreneur, disturbance handler, resource allocator, negotiator)

14. TANTANGAN OB: • Menghadapi globalisasi • Mengelola angkatan kerja yang beragam • Memperbaiki kualitas dan produktivitas • Memperbaiki ketrampilan menangani orang • Pemberian kuasa kpd orang lain (empowerment) • Berhadapan dengan “temporariness” • Merangsang innovasi • Memperbaiki perilaku etis

15. Antecedents of human behaviour (1) • PEOPLE ARE MADE DIFFERENTLY • Biographic characteristics (age, gender, marital status, work experience) • Ability (Intellectual ability  mental & creative work; physical ability repetitive work; congruency between ability and job) • Learning, see Pavlov experiment - Bell rings ----- start/stop work, - Inspection - Rules continued…

16. Antecedents of human behaviour (2) • VALUES --- ATTITUDES --- BEHAVIOUR • Values, loyalty, ethics (tradisional vs. modern) • Attitudes • Job satisfaction • Needs fulfilment • Organisational/professional commitment continued…

17. Antecedents of human behaviour (3) • Personality: what kind of personality supports positive behaviour. • Example: • Locus of control: Orang sukses, karena nasib (faktor external) vs karena kemampuan diri (internal) • Emotional aspects continued…

18. MOTIVATION • The word ‘motivation’ derives from the Latin word “mouvre” which means to ‘move’ • How to motivate people to work harder and better.

19. Definisi Motivasi: • Kesediaan utk melaksanakan upaya tinggi untuk mencapai tujuan-tujuan keorganisasian, yang dikondisikan oleh kemampuan upaya, utk memenuhi kebutuhan individual tertentu (Robins, 1999:50) • …motivasi merupakan hasil sejumlah proses yang bersifat internal atau eksternal bagi seorang individu, yang menyebabkan timbulnya sikap entusiasme dan persistensi dlm hal melaksanakan kegiatan tertentu (Gray et al., 1984: 69)

20. Teori Kebutuhan Maslow. • Manusia sbg makhluk yang serba berkeinginan • Sebuah kebutuhan yang terpenuhi bukan suatu motivator perilaku. Hanya kebutuhan yang tak terpenuhi MEMOTIVASI perilaku • Kebutuhan manusia diatur dalam suatu seri tingkatan – suatu hierarki menurut pentingnya masing-masing kebutuhan.

21. INDIVIDUAL MOTIVATION • SANG INDIVIDU HUMAN STIMULUS PERILAKU NEEDS HUMAN NEEDS

22. WHAT MOTIVATES PEOPLE • Needs • Goals • Expectation • Self efficacy • Fairness • Job Design • Social influence • Dispositional factors

23. MASLOW’S THEORY OF HUMAN NEEDS (1954) • Physiological needs • Physical needs • Love needs • Esteem needs • Self Actualisation needs

24. Herzberg’s two factor theory • Hygiene (extrinsic)factors: company policy, quality of supervision, salary, working condition • Motivators (intrinsic): achievement, recognition, work itself, responsibility, and advancement

25. GOAL SETTING /MBO (1) People choose goals which enable them to fulfil particular needs or aspiration. Goal setting/MBO assumes that: 1. goals encourage strategic thinking, attention to management, and the formulation of action plan. 2. Goals regulate efforts, that is they enable employees to order priorities and plan 3. Goals encourage persistence, despite obstacle continued ………

26. GOAL SETTING /MBO (2) Always provided that: • Employees are committed to the goals • The goals are clear • Above all, the goals are challenging but not too difficult Evidence suggests that difficult goals are more motivating than easy one, provided they are not too difficult. Moreover, specific goals are more motivating than general goals (Locke and Latham, 1990; Mitchell, 1997)

27. SELF EFFICACY (1) • Self-efficacy is an individual’s perception of his/her ability to complete a task. • Self-efficacy is linked to self-esteem. • Manager should manage self esteem and self-efficacy of their subordinates to their job done better.

28. SELF EFFICACY (2) • PERFORMANCE DEPENDS UPON SELF-BELIEF. • More specifically, if we are believe we can succeed, we are more likely to pursue difficult goals and to commit ourselves to the challenge (eg. Sanna and Pusecker, 1994)

29. EXPECTANCY THEORY (1) • Goal based theories link motivation to what we want to do. Self-efficacy theories link motivation to what we thinkwe can do. Expectancy theory links motivation to the perceived consequences of our actions.

30. EXPECTANCY THEORY (2) • Expectancy theory suggests that motivation is a function of three factors (Vroom, 1964), these are: • 1. Expected outcomes • 2. The extent to which outcomes are • valued by the individual. • 3. The estimated probability of attaining • those outcomes

31. EXPECTANCY THEORY (3) • If you expect that obtaining a good degree will lead to a good job, and if obtaining a good job is important to you, expectancy theory predicts that you will work hard to obtain the requisite qualification.

32. OUTCOME THEORIES • Outcomes theories of motivation link the results of behaviour and subsequent performance. • These are EQUITY and PROCEDURAL JUSTICE.

33. EQUITY THEORY (1) • Equity theory states that people strive for fairness in social exchange relationship (Adams, 1963, 1965). • Equity theory rests upon two elements: • (1) INPUTS, and (2) OUTCOMES. • Inputs refer to mental and physical efforts, the exercise of skill, qualification, experience, etc. • Outcomes refer to salaries, recognition, fringe benefits, seniority, etc.

34. EQUITY THEORY (2) • An individual perceives their situation as equitable where: the ratio of inputs to outcomes is equal to that of a comparable co-workers. • Equity theory is derived from Festinger’s (1957) theory of cognitive dissonance. According to Festinger, people strive to maintain consistency between beliefs and behaviour. • A situation of perceived inequity creates a mis-match between beliefs and behaviour. • Equity theory states that such inconsistency will prompt the individual to restore equity by: (1) altering inputs, or (2) by altering outcomes.

35. EQUITY THEORY (3) • Perceived inequity may prompt the individual to reduce their effort OR demand a pay review. • Alternatively, the individual may distort inputs or outcomes cognitively, that is, persuade themselves the situation is equitable or change the object of comparison. • Another possibility is to act upon the other person to alter their inputs or outcomes.

36. PROCEDURAL JUSTICE • Procedure is more important than outcomes. • Negative reactions to perceived under-payment are less pronounced if the person believes that the decision process was fair (e.g. Pfeffer and Langton, 1993). • Ex: a job evaluation exercise may have concluded that the work of technician A is more complex than that of technician B. Theories of procedural justice suggests that although technician B may disagree with the resultant outcome, perceived inequity is likely to be reduced of technician B accept that the job evaluation exercise was fair and thorough.

37. JOB DESIGN (1) • Theories of job design link job satisfaction and motivation. • Job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences (Locke,1976, p.1300). • Job design theories suggest that people will work harder and longer if their jobs yield pleasure and satisfaction.

38. JOB DESIGN (2) • Herzberg (1968) suggests that orgs should design job to facilitate achievement, recognition, and responsibility known as JOB ENRICHMENT. • Two other techniques are JOB ROTATION AND JOB ENLARGEMENT. • The best known contribution to job enrichment is Hackman and Oldham’s (1980) Job Characteristic Model. • According to the model, job satisfaction depends upon five factors:

39. JOB DESIGN (3) • These are: • (1) Skill variety: job requires variety of skills. • (2) Task identity: workers do all / part of the job. • (3) Task significant: employee’s performance affects other people in the org, customer, client, etc. • (4) Autonomy: employee can choose their own working method or not. • (5) Feedback: information of their performance • The score is HIGH ------ to ------- LOW

40. JOB DESIGN (4) • According to Hackman and Oldham, the higher a job scores upon each factors, the greater the motivation potential. • Job design theories assume that: • PEOPLE SHARE THE SAME BASIC NEEDS • THOSE NEEDS MAY BE SATISFIED BY JOB CHARACTERISTICS. • The evidence suggests that job satisfaction is influenced by a variety of personal factors including age (Clark, Oswald, and Ware, 1996).

41. SOCIAL INFLUENCE • Perceived job characteristics may be a product of the prevailing beliefs, values, and meaning of the workplace (Pearson and Chong, 1997). • Ex: Working at farm area is less meaningful than that at the office. • Businessman (selling ice at the market) is less meaningful that government official.

42. DISPOSITIONAL FACTORS AND JOB SATISFACTION • Job attributes, namely, scope, autonomy, and variety are conducive for job satisfaction, regardless of individual differences (Judge, Locke, and Durham, 1997).

43. BEYOND MOTIVATION: ORGANISATIONAL COMMITMENT • Organisational commitment concerns an individual’ s psychological attachment to the organisation. • A committed employee is one who: • (1) has a strong desire to remain a member of the organisation • (2) is willing to exert high levels of effort on behalf of the organisation, and • (3) believes in the values and goals of the organisation (Cook and Wall, 1980; Meyer and Allen, 1997; Mowday, Porter, and Steers, 1982).

44. FORMS OF COMMITMENT • AFFECTIVE (want to stay) • CONTINUANCE (need to stay) • NORMATIVE (ought to stay) (Meyer and Allen, 1993)

45. Comparison of organisational commitment between the organisations (full sample)Source : Achmad Sudjadi (2004). Unpublished PhD Thesis, The University of Liverpool.

46. Comparison of organisational commitment of the lowest participant between the organisations

47. Comparison of affective, continuance, and normative organisational commitment within the organisations

48. LEADERSHIP THEORY Bryman (1992: 2) defines leadership in terms of a process of social influence whereby a leader steers members of a group towards a goal. • TRAITS APPROACH (leader is born) • BEHAVIOURAL APPROACH (what the leaders’ do) • SITUATIONAL / CONTINGENCY (depends on the situation) • TRANSFORMATIONAL / CHARISMATIC LEADERSHIP.

49. Traits Approach of Leadership • The trait approach was prominent up to the late 1940s. The term trait refers to a variety of individual attributes, including aspects of personality, temperament, needs, and values (Yukl, 2002: 175). • This approach seeks to determine the personal attributes and characteristics of effective leaders and assumes that the leaders have traits that distinguish them from non-leaders and such the traits are relatively stable and enduring. • The traits that have been studied include: (1) physical characteristics, such as height and personal appearance; (2) personality characteristics, such as dominance, self-confidence, emotional stability, and independence; (3) social characteristic such as interpersonal skills, sociability, tactfulness, and diplomacy; and (4) personal ability and skills, such as intelligence, knowledge, and fluency of speech (Daft, 2002; Bass, 1990).

50. Traits Approach • Stogdill (1948) reviewed trait studies and found that the pattern of results was consistent with the conception of a leader as someone who acquires status through demonstration of ability to facilitate the effort of the group in attaining its goals. The relevant traits included intelligence, alertness to the needs of others, understanding the task, initiative and persistence in dealing with problems, self-confidence, and desire to accept responsibility and occupy a position of dominance and control. • Further Stogdill argues that …… A person does not become a leader by virtue of the possession of some combination of traits but the pattern of personal characteristics of the leader must bear some relevant relationship to the characteristics, activities, and goals of the followers (Stogdill, 1948: 64).