Organisational Behaviour: Foundations and Dynamics

Module A: Foundations of Organisational Behaviour

The field of Organisational Behaviour (OB) is focused on understanding employee workplace

behaviours1.

Learning Outcomes (Module A)

The objectives include the ability to:

• Demonstrate a clear and critical understanding of OB and its importance to HR practitioners

and industrial-organisational psychologists1.

• Explain the role of individual differences in organisational behaviour1.

• Discuss the South African workplace, including social and contextual factors influencing
workplace behaviours1.

• Differentiate between work groups and teams1.

• Critically examine factors that shape group dynamics within an organisation1.

• Appreciate and discuss the complexities of diverse teams and team dynamics1.

• Propose context-sensitive management strategies to enhance team effectiveness, efficacy,

and cohesion, given a scenario1.

• Analyse how organisational structure, culture, and external contextual factors shape
behaviour within organisations1.

• Integrate individual, group, and organisational perspectives to understand workplace

behaviour holistically1.

Levels of Analysis in Organisational Behaviour

The study of OB operates across three interlocking levels1:

1. Individual Level (Inner Circle): Focuses on perceptions, emotions, attitudes, personality,

motivation, and diversity1.

2. Group Level (Mid Circle): Focuses on teams, decision making, creativity, trust, conflict,
leadership, power & politics, and communication1.

3. Organisational Level (Outer Circle): Focuses on organisational culture, strategy, and

structures1.

Origins and History

• Scientific Management: Productivity is maximised when organisations provide precise

instructions based on time-and-motion studies2.

• Mary Follet Writings: Rediscovered, this perspective views management as "the art of getting
things done through people"2.

• Hawthorne Model/Effect: Assessed the effect of external stimuli on employee productivity2.

The Hawthorne effect notes that employees improve their behaviour if they are aware of being
assessed2.
Multidisciplinary Nature of OB

Organisational Behaviour is multidisciplinary, drawing from2:

• Psychology: Scientific study of the mind and behaviour2.

• Sociology: Studies people in relation to their social environments and cultures2.

• Anthropology: Explores the origins of humanity and how societies shape the world2.

• Political Science: Studies governance and power in relation to ideologies, institutions, and
behaviours2.

Critical Perspectives

Issues surrounding the creation of OB knowledge include3:

• Imperial dominance: Domination by Northern researchers, practitioners, and ways of

generating knowledge3.

• Prioritizing quantitative & positivist methods: The positivist view holds that factual
information should only be gathered via observation and empirical measurement3. This results
in an imbalance between quantitative versus qualitative OB theories3.

• Decontextualization3.

The historical context of OB in South Africa includes the impact of colonialism on African
management practices, the disruption of indigenous management systems, and the
continuation of colonial impact through apartheid3. The concept of Ubuntu in African
management involves collective solidarity, emphasizing "I am who I am because of who we all
are" and interconnectedness3.

Individual Level of Analysis

Individual Differences

Every employee has unique experiences, qualities, skills, values, beliefs, attitudes, and
personality4. It is important in OB to recognize the effects of these differences4.

The meaning of work is linked to OB concepts such as individual differences, values & job
attitudes, motivation, and organisational culture4.

Attitudes

Attitudes are judgements about objects, people, or events4. They consist of three segments:

1. Affective Segment: The emotional segment (e.g., "I dislike my supervisor")4.

2. Cognitive Segment: The opinion segment (e.g., "My supervisor is unfair because he gave a
promotion to someone who deserves it less than me")4.

3. Behavioural Segment: The intention to behave a certain way (e.g., "I'm looking for other work
and will complain about my supervisor")4.

Cognitive Dissonance is the incompatibility between attitudes, or between behaviour and

attitudes5. When it occurs, people try to reduce it by changing their attitudes/behaviour, or
justifying the difference (e.g., "staying at a job you don't like because the salary is good")5.
Job Attitudes

Job attitudes are judgements about the workplace and work-related tasks/people5.

• Organisational Commitment: The degree to which an employee identifies with a particular

organisation and its goals5.

• Employee Engagement: The degree of enthusiasm an employee feels for their job5.

• Job Satisfaction: A positive feeling about a job resulting from evaluating its characteristics5.
Job satisfaction is affected by job conditions, individual differences, and pay, and it affects job
performance, customer satisfaction, and life satisfaction5.

Personality

Personality is a relatively stable set of psychological attributes5. There is a debate regarding

"nature vs. nurture"—whether personality is hereditary (nature) or shaped by environment and
experiences (nurture)5.

The Big Five Personality Theory proposes that personality falls within a spectrum of five
traits5:

1. Openness to experience: Range of interests and fascination with novelty5.

2. Conscientiousness: Tendency to be responsible, organised, and dependable5.

3. Extraversion: Orientation towards the outer world5.

4. Agreeableness: The extent to which people are good-natured, cooperative, and trusting5.

5. Neuroticism: Tendency to frequently experience unpleasant emotions5.

Other key personality traits6:

• Locus of Control: Belief about whether circumstances are internal (in their control) or
external (out of their control)6. Those with an internal locus of control are generally more
satisfied with pay/coworkers, generally exhibit higher performance, and generally have higher
salaries and are more socially integrated6.

• Self-Efficacy: Confidence in the ability to complete specific tasks, which predicts task
performance6. Types include crisis, entrepreneurial, social, and creative self-efficacy6.

• Core Self-Evaluations: Fundamental evaluations about one's own capabilities and self-
worth, including generalised self-efficacy, self-esteem, locus of control, and emotional
stability6.

Motivation

Motivation involves the processes accounting for the intensity (how hard a person tries),
direction (whether effort is channeled toward the right goal), and persistence (how long effort
is sustained) towards a goal6.

Importance of Motivation7:

• Greater efficacy7.

• Promotion of innovation7.
• Reduced absenteeism and labour turnover7.

• Decreased wastage and damages7.

• Fosters team spirit and amiable relations7.

• Improves corporate image7.

Motivation Theories are useful for job design, engagement, and understanding individual
differences7.

• Content-Based Theories: Focus on how needs and internal drivers motivate people7.
Examples include Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory78.

• Process-Based Theories: Focus on how motivation works; mental processes behind

decision-making, effort, and persistence8. Examples include Expectancy Theory, Equity Theory,
and Goal-Setting Theory9.

Group Level of Analysis

Groups, Work Groups, and Teams

Concept Definition Characteristics

Two or more people interacting with each other and

Groups influencing each other10. Shared interests, passions, General interaction10.
and ways of being10.

Work A small number of people working collaboratively, with Individual input and
Groups individual input and accountability10. accountability10.

Interdependent collection of two or more individuals

High interdependence;
Teams with a common goal and responsibility for specific
collective responsibility11.
outcomes10.

Group vs. Team11:

• Group Performance: Evaluated individually11.

• Team Performance: Assessed as a group11.

• Group Accountability: Individual responsibility11.

• Team Accountability: Individual and collective responsibility11.

• Group Dependence: No interdependence11.

• Team Dependence: High interdependence11.

Team Development and Types

• Tuckman's Team Development Model follows a curve of effectiveness over time: Forming,
Storming (Instructor), Norming (Coach), Performing (Facilitator), Adjourning1112. Leadership
roles change throughout this development12.

Types of Teams1113:
• Functional: Team members are in the same department; results in greater cohesion (similar
expertise/skills) but a lack of skill diversity11.

• Cross-Functional: Team members are from different departments; possesses diverse

skillsets and perceptions, but requires good diversity management11.

• Virtual: Geographically dispersed, using primary communications via telecommunications;

often cost-effective and more flexible but can lead to isolation and loneliness11.

• Global: Members are from different countries; characterized by informational diversity but
challenged by distance in time and space13.

• Venture: Operates semi-autonomously to design and create new products/processes;

innovative and quick, but sometimes lacks cohesiveness between the venture team and the
parent organisation13.

Team Design and Effectiveness

Team Effectiveness is the quality of a team accomplishing its goals and objectives14.

Team Design involves intentionally organising individuals into a cohesive, effective team
unit13.

1. Composition (Individual Differences as Input)

Team composition focuses on assembling the right mix of individual qualities14:

• Team Abilities (KSAs): Knowledge, skills, and abilities, expertise, time, and resources—must
be in close alignment with team goals1314. This is crucial for problem-solving and decision-
making14.

• Personality: Key traits influencing team success include conscientiousness, openness to

experience, and agreeableness14.

• Role Allocation: Strategic selection of roles designed to drive the team toward its goals14.

• Work Preferences14.

Team Diversity refers to differences among members15:

• Informational: Diverse in KSAs (knowledge, skills, and abilities)15.

• Demographic: Diverse in social identities15.

2. Context

Effective teams require14:

• Adequate Resources: Internal and external resources needed for maintaining performance
capacity14.

• Climate of Trust: Necessary for the team to be effective; the leader must cultivate trusting
and safe space14.

• Performance Evaluation & Reward Systems: Must be fair and enforce accountability14.

3. Process (Dynamics)
Processes are the actions/behaviours of the team caused by the inputs16.

• Common Purpose/Goals: A clear purpose links to high performance and effectiveness14.

Goals should be specific, realistic, and measurable14.

• Team Efficacy (Collective Efficacy): The team's perception of its ability to effectively work
together1415. Team efficacy includes the team's beliefs about its ability to achieve a goal
together14.

• Conflict Levels: Frequency of disagreement14.

Process Gains vs. Process Losses17: Actual Performance = Potential Team Performance +
Process Gains – Process Losses.

Process Gains (Factors Enhancing

Process Losses (Factors Decreasing Performance)
Performance)

Cohesion (strength of group

Resistance17.
bonds)17.

Social Loafing (exerting less effort in a group than when

Functional activities17.
working alone)1517.

Groupthink (norm for consensus overrides realistic

appraisal of alternatives)17.

Cohesion17: Leads to higher job satisfaction and work engagement. Enhanced by

homogeneous composition, small team size, frequent communication, and clear goals17.

Preventing Process Losses1517:

• Social Loafing: Prevented by role clarity, transparency through delegating, and making tasks
meaningful for goals15.

• Groupthink: Prevented by having someone play the devil's advocate, managing group size,
and leadership encouraging active participation17.

Social Phenomena related to Performance15:

• Social Facilitation: Tendency to work better in the presence of others (increased

performance from working together)15.

• Social Inhibition: Tendency to work worse in the presence of others (decreased performance
from working together)15.

Team Management and Leadership

Team Management involves the coordination and organisation of teams to accomplish

goals12.

• Monitoring & Evaluation: Ensuring the team is working satisfactorily; monitoring member
engagement and job stress12.

• Task Delegation: Fairly distributing tasks according to skillsets12.

• Communication: Clarity of goals, expectations of members, deadlines, and team
performance feedback12.

Team Rewards12:

• Skill-based pay: Rewarding the acquisition of relevant skillsets12.

• Gain-sharing systems: Rewarding the team based on the performance of the organisation12.

• Team bonus plans: Rewarding the team based on the performance of the team12.

Leadership is the ability to influence a group of people toward accomplishment12.

Leadership Style Description

Authoritative Leadership Absolute control and command18.

Transformational
Focuses on shared goals18.
Leadership

Servant Leadership Serves the needs of team members before own needs18.

Requires effective communications, technological competencies,

Virtual Team Leadership
and building trust and safety18.

Ability to effectively function and manage interactions within a

Global Team Leadership
culturally diverse context18.