Comprehensive Organizational Behavior Course Notes

All Sessions Analysis & Key Concepts

SESSION 1: INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

Definition & Importance

• Organizational Behavior (OB): Field of study investigating impact of individuals, groups, and
structure on behavior within organizations to improve organizational effectiveness

• Key Disciplines Contributing to OB: Psychology, Social Psychology, Sociology, Anthropology

Manager's Functions & Skills

Four Management Functions:

1. Planning

2. Organizing

3. Leading

4. Controlling

Three Essential Skills:

1. Technical Skills - Specialized knowledge/expertise

2. Human Skills - Work with, understand, motivate people

3. Conceptual Skills - Analyze & diagnose complex situations

Mintzberg's Manager Roles (10 roles across 3 categories)

• Interpersonal Roles: Figurehead, Leader, Liaison

• Informational Roles: Monitor, Disseminator, Spokesperson

• Decisional Roles: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator

Four Managerial Activities & Time Allocation

1. Traditional Management (32%) - Planning, decision making, controlling

2. Communication (29%) - Information exchange, paperwork

3. Human Resource Management (20%) - Motivation, discipline, conflict, staffing, training

4. Networking (19%) - Socializing, politicking, external interactions

Challenges & Opportunities for OB

1. Responding to economic pressure

2. Responding to globalization

3. Managing workforce diversity

 4. Improving customer service

5. Improving people skills

6. Working in networked organizations

7. Enhancing employee well-being

8. Creating positive work environment

9. Improving ethical behavior

SESSION 2: ATTITUDES & JOB SATISFACTION

What Are Attitudes?

Definition: Evaluative statements (favorable/unfavorable) about objects, people, or events reflecting

how we feel

Three Components:

1. Cognitive Component - Beliefs about reality

2. Affective Component - Emotional feelings (most important)

3. Behavioral Component - Intention to behave in certain way

Attitude-Behavior Relationship

• Cognitive Dissonance: Incompatibility between attitudes or between behavior & attitudes

• People seek consistency among attitudes & between attitudes & behavior

• Moderating Variables affecting attitude-behavior relationship:

• Importance of attitude

• Correspondence to behavior

• Accessibility

• Social pressures

• Direct personal experience (strongest predictor)

Major Job Attitudes

1. Job Satisfaction

• Positive feeling about job resulting from evaluation of its characteristics

• Measurement Approaches:

• Single global rating

• Summation of job facets (nature of work, supervision, pay, promotion, coworker

relations)

2. Job Involvement
 • Degree of psychological identification with job where performance is important to self-worth

3. Psychological Empowerment

• Belief in degree of influence over job, competence, meaningfulness, autonomy

4. Organizational Commitment

• Identifying with organization and its goals; wishing to maintain membership

• Three Types:

• Affective (emotional attachment)

• Continuance (cost-based - invested time/effort)

• Normative (obligation-based - feels indebted)

Job Satisfaction Causes

• Interesting work with training, variety, independence, control

• Social context - interdependence, feedback, support, coworker interaction

• Pay - influences satisfaction only to ~$40K/year

• Personality - core self-evaluations (positive outlook → more satisfied)

• Life satisfaction - correlation with work satisfaction

Employee Responses to Dissatisfaction

1. Exit - leave organization

2. Voice - speak to manager, use grievance procedures

3. Loyalty - stay & hope things improve

4. Neglect - reduce effort, absenteeism, tardiness

Implications for Managers

• Use metrics & situational variables rather than hunches

• Develop interpersonal skills

• Monitor employee satisfaction through multiple facets

• Discuss perceptions about fairness, compensation, abstract measures

SESSION 3: PERSONALITY & VALUES

Personality Definition

• Dynamic concept describing growth & development of person's whole psychological system

• Sum total of ways individual reacts to & interacts with others

• Measured via: Self-report surveys (most common)

Personality Determinants

• Heredity vs Environment: Both influential

• Heredity sets stage; environment shapes through experience

The Big Five Personality Model

1. Conscientiousness - Best predictor of job performance

• Persistence, attention to detail, high standards

2. Extraversion - Important for leadership emergence

• Sociability, assertiveness, ambition

3. Openness - Creative, flexible

• Imagination, curiosity, intellectual interest

4. Agreeableness - Cooperation, helpfulness

• Compassion, trusting, empathetic

5. Neuroticism - Anxiety, irritability

• Emotional stability (inverse)

Myers-Briggs Type Indicator (MBTI)

Four Dimensions:

1. E/I - Extroverted vs Introverted (energy orientation)

2. S/N - Sensing vs Intuitive (information intake)

3. T/F - Thinking vs Feeling (decision making)

4. P/J - Perceiving vs Judging (world approach)

Creates 16 Types (e.g., INTJ = Visionary, ESTJ = Organizer, ENTP = Conceptualizer)

Implications for Managers

• Consider personality in hiring decisions

• Screen for conscientiousness & appropriate Big Five traits

• Use MBTI for team development & communication

• Recognize different personality types' strengths

• Understand how personalities fit organizational culture

SESSION 4: EMOTIONS & MOODS

Note: File content available but truncated in extraction - core focus on emotions as individual factors
affecting OB covered in perception & motivation sessions
SESSION 5: PERCEPTION & DECISION MAKING

Perception Definition

• Process by which individuals organize & interpret sensory impressions to give meaning to
environment

• Critical: People's behavior based on their PERCEPTION of reality, not reality itself

Factors Influencing Perception

Perceiver Characteristics:

• Attitudes, motives, interests, past experiences, expectations

Target Characteristics:

• Novelty, movement, size, background, proximity

Situational Factors:

• Context, environment, time

Attribution Theory

Definition: When observing behavior, determine if internally or externally caused

Three Determinants:

1. Distinctiveness - Does person behave differently in different situations?

2. Consensus - Do others in similar situation respond same way?

3. Consistency - Is person's behavior consistent over time?

Attribution Biases:

• Fundamental Attribution Error: Underestimate external factors, overestimate personal

factors

• Self-Serving Bias: Attribute own success to internal factors, failure to external factors

Shortcuts in Judging Others (Perceptual Distortions)

1. Selective Perception - Notice what stands out; ignore background

2. Halo Effect - One characteristic influences overall impression

3. Contrast Effects - Reaction to person influenced by others recently encountered

4. Stereotyping - Judge based on group perception (can be accurate but risky)

Applications in Organizations

Employment Interviews:

• Early impressions quickly entrenched

• Most decisions made in first 4-5 minutes

 • Perceptual biases create inaccurate judgments

Performance Expectations:

• Self-Fulfilling Prophecy/Pygmalion Effect: Expectations determine behavior

• People attempt to validate perceptions even if faulty

Performance Evaluation:

• Subjective measures problematic due to perceptual biases

• Selective perception, contrast effects, halo effects affect ratings

Decision Making Models

Rational Model:

• Define problem

• Identify criteria

• Allocate weights

• Develop alternatives

• Evaluate alternatives

• Choose best

Bounded Rationality:

• People satisfice (find acceptable solution) rather than optimize

• Limited information processing

• Individual differences & constraints affect decisions

Intuition:

• "Gut feelings" - complement but shouldn't replace systematic analysis

• Combines unconscious mental processing with experience

Common Decision Biases

• Anchoring bias - fixate on initial information

• Availability heuristic - overweight easily recalled information

• Confirmation bias - seek info confirming preconceptions

• Overconfidence bias - overestimate accuracy

• Sunk cost fallacy - continue investing in failing projects

Creativity

Three-Stage Model:

1. Problem Definition - Clear understanding

 2. Idea Generation - Brainstorm without judgment

3. Evaluation - Test feasibility

Creative Culture Requires:

• Psychological safety to propose ideas

• Diversity of thought

• Time & resources for exploration

• Reward for ideas (success or smart failures)

Implications for Managers

• Understand perceptions affect productivity

• Address perceptual distortions

• Use evidence-based management with intuition

• Encourage creativity

• Design fair performance systems

SESSION 6: MOTIVATION THEORIES

Definition

Motivation = Processes accounting for individual's intensity (effort), direction (goal),

and persistence (time) toward attaining goal

Early Theories

Maslow's Hierarchy of Needs:

1. Physiological - food, water, shelter

2. Safety - security, protection

3. Social - belonging, friendship

4. Esteem - status, recognition, respect

5. Self-Actualization - become all you're capable of

Research doesn't validate; widely accepted but not empirically supported

McGregor's Theory X & Y:

• Theory X: Negative assumptions (employees dislike work, need coercion)

• Theory Y: Positive assumptions (work natural, people self-motivated)

• Theory Y assumes higher-order needs dominate

• No evidence confirms either set

Herzberg's Two-Factor (Motivation-Hygiene) Theory:

• Hygiene Factors (prevent dissatisfaction): Supervision, pay, company policies, working

conditions

• Motivators (create satisfaction): Advancement, recognition, responsibility, achievement

• Key: Removing dissatisfaction ≠ Creates satisfaction; opposite of satisfaction ≠ dissatisfaction

Contemporary Theories

Self-Determination Theory:

• People prefer feeling in control of actions

• Cognitive Evaluation: Extrinsic rewards reduce intrinsic interest

• Key Elements:

• Autonomy (control)

• Competence (capability)

• Relatedness (positive connections)

• Application: Rewards motivate when seen as feedback (competence), not coercive

Goal-Setting Theory:

• Goals tell employee what's needed & how much effort required

• Evidence-Based Findings:

• Specific goals increase performance

• Difficult goals (when accepted) > easy goals

• Feedback > no feedback

• Goal Commitment affected by:

• Public goals

• Internal locus of control

• Self-set vs assigned

• Contingencies:

• Task complexity matters

• Cultural differences (collectivist/high power-distance may prefer moderate goals)

Reinforcement Theory:

• Behavior function of consequences

• Operant Conditioning: People learn to behave to get wanted/avoid unwanted outcomes

• B.F. Skinner: Pleasing consequences → behavior repeated

 • Ignores cognition; behavior focus only

Equity Theory:

• Compare own inputs/outcomes ratio to others

• Perceive fairness when ratios equal

• Inequity creates tension; people adjust inputs or perception

SESSION 7: GROUPS & TEAMS

Group Definition

• Two+ individuals, interacting & interdependent, pursuing objectives

• Formal Groups - Defined by organization structure

• Informal Groups - Natural formations for social contact

Social Identity Theory

• When/why people consider themselves group members

• Key Finding: People's self-esteem tied to group performance

• Negative Side: Ingroup favoritism (see own group as better)

Characteristics Making Social Identity Important

1. Similarity - Same values/characteristics

2. Distinctiveness - Different from other groups

3. Status - High-status groups preferred

4. Uncertainty Reduction - Group helps understand self/fit

Five Stages of Group Development

1. Forming - Uncertainty about purpose/leadership; determine acceptable behaviors

2. Storming - Intragroup conflict; struggle for control; resistance to constraints

3. Norming - Close relationships develop; cohesiveness; strong group identity

4. Performing - Fully functional; energy toward task execution

5. Adjourning - Temporary groups disband; member responses vary

Group Effectiveness - Varies by:

• Sense of purpose & strategy

• Positive social focus

• May not proceed linearly through stages

Punctuated-Equilibrium Model (Temporary Groups)

 • Phase 1 - First meeting sets direction; inertia through midpoint

• Transition - Midpoint triggers awareness of limited time; major changes

• Phase 2 - New equilibrium; execution of transition decisions

• Final Meeting - Accelerated activity

Group Properties

1. Roles

• Set of expected behavior patterns in position

• Role Perception - How you think should act

• Role Expectations - How others think you should act

• Psychological Contract - Unwritten mutual expectations

• Role Conflict - Divergent expectations

2. Norms

• Acceptable behavioral standards (shared by group)

• Types:

• Performance norms

• Appearance norms

• Social arrangement norms

• Resource allocation norms

• Hawthorne Studies - Demonstrated norms' power on productivity

3. Status

• Socially defined rank/position

• Derived from:

• Power wielded

• Ability to contribute to goals

• Personal characteristics

• Effects:

• High status → more freedom to deviate from norms

• High status → more assertive

• Status inequity → resentment

4. Group Size Effects

• Large groups good for diverse input

 • Small groups better for execution

• Social Loafing - Tendency to reduce effort in group settings

Group Cohesiveness

• Degree members attracted to each other

• Related to productivity (depends on norms)

• Increase Cohesiveness By:

• Smaller size

• Agreement with goals

• Increased member time together

• Increase group status

• Stimulate intergroup competition

Diversity in Groups

• Short-term: Increases conflict

• Long-term: May improve creativity & open-mindedness

• Faultlines - Potential dividing lines based on characteristics

SESSION 8: LEADERSHIP

Leadership vs Management

• Leadership - Ability to influence group toward vision/goals

• Not all leaders are managers; not all managers are leaders

• Nonsanctioned Leadership - Often as important as formal influence

Leaders:

• Challenge status quo

• Create vision

• Inspire followers

Managers:

• Formulate plans

• Create efficient structures

• Oversee operations

Trait Theories of Leadership

Big Five Traits Predictive of Leadership:

 • Extraversion - Most important for leadership emergence (not effectiveness)

• Conscientiousness - Key predictor

• Openness - Creative, flexible

• Emotional Intelligence - Especially important for higher levels

• Empathy is core component

• Sense others' needs

• Read reactions

Conclusion: Traits predict leadership emergence better than effectiveness

Behavioral Theories

Ohio State Studies - Two Key Behaviors:

1. Initiating Structure - Define role, organize work, emphasize deadlines

2. Consideration - Trust, respect ideas, care for feelings

University of Michigan Studies - Two Types:

1. Employee-Oriented Leader - Personal interest in needs

2. Production-Oriented Leader - Task focus

Managerial Grid - Combines concern for people & production

Contingency Theories

Fiedler's LPC Model (Most researched):

• Match leader to situation

• Consider task structure, leader-member relations, position power

Situational Leadership Theory (SLT):

• Adapt to follower readiness

• Four levels of follower readiness → different leader styles

• Research support disappointing

Leader-Member Exchange (LMX):

• Leaders differentiate among followers

• In-group: trusted, high attention, privileges

• Out-group: limited attention

• Well-supported research

Transformational vs Transactional Leadership

Transactional Leaders:
 • Guide followers per established goals

• Clarify role & task requirements

• Typical of traditional leadership research

Transformational Leaders:

• Inspire followers transcend self-interest

• Change follower awareness

• Excite, arouse, inspire extra effort

• Builds on transactional & produces higher performance

Four I's of Transformational Leadership:

1. Idealized Influence (charisma)

2. Inspirational Motivation

3. Intellectual Stimulation

4. Individualized Consideration

Why Effective:

• More creative

• Encourage creativity

• Decentralize responsibility

• High propensity for risk

• Long-term compensation

• Greater management agreement on goals

• Increase follower self-efficacy

Cultural Universals (GLOBE Study):

• Vision, foresight, encouragement, trustworthiness, dynamism, positiveness, proactiveness

Authentic Leadership

• Leading from genuine values & beliefs

• Self-awareness, relational transparency, balanced processing, internalized moral perspective

SESSION 9: POWER & POLITICS

Power Definition

• Power - Capacity to influence behavior of B so B acts per A's wishes

• Function of dependence - Greater B's dependence on A, greater A's power

 • Dependence based on:

• Alternatives B perceives

• Importance B places on alternatives A controls

Contrast: Leadership vs Power

• Leadership - Requires goal compatibility

• Power - Requires only dependence

• Direction - Leadership downward; power beyond

Five Bases of Power

Formal Power:

1. Coercive Power - Fear of negative results (dismissal, demotion)

2. Reward Power - Control valued rewards (pay, recognition, assignments)

3. Legitimate Power - Position-based authority (formal hierarchy)

Personal Power:
4. Expert Power - Special skill/knowledge (increasingly important)
5. Referent Power - Identification with charismatic person (admiration/desire to please)

Most Effective: Personal power (expert & referent)

• Coercive: Usually backfires

Dependence Creation

What creates dependence?

1. Importance - What you control is perceived as important

2. Scarcity - Resource is scarce/limited

3. Nonsubstitutability - Few viable substitutes exist

Nine Influence Tactics

1. Legitimacy - Authority/organizational policies

2. Rational Persuasion - Logic & facts

3. Inspirational Appeals - Values, needs, aspirations

4. Consultation - Involvement in planning

5. Exchange - Rewards for compliance

6. Personal Appeals - Friendship/loyalty

7. Ingratiation - Flattery, friendly behavior

8. Pressure - Threats, demands

9. Coalitions - Enlist others' support

Most Effective: Rational persuasion, inspirational appeals, consultation (when audience interested)
Least Effective: Pressure (typically backfires)

Political Skill

• Ability to influence others to enhance objectives

• Politically skilled more effective with ALL tactics

• More effective when stakes are high

Political Behavior

• Activities outside formal role affecting distribution of advantages

• When facts ambiguous, politics flourish

• Includes: Withholding info, whistleblowing, rumors, leaking

Individual Sources of Political Behavior

• High self-monitors

• Internal locus of control

• High need for power

• Machiavellian personality

Organizational Sources

• Declining resources

• Pattern shifts

• Promotion opportunities

• Culture: Low trust, role ambiguity, unclear performance eval, zero-sum rewards

• Democratic decision making

• High performance pressure

Employee Responses to Politics

• Generally negative (unless politically skilled)

• Outcomes:

• Reduced job satisfaction

• Increased stress/anxiety

• Higher turnover

• Defensive Behaviors: Reactive/protective to avoid blame

Impression Management (IM)

• Process by which individuals control impression others form

 • Mostly high self-monitors

• Not necessarily false impressions

• Effectiveness varies by situation:

• Self-promotion effective in interviews

• Ingratiation effective for performance ratings

Ethics in Political Action

• Questions to consider:

• What utility in politicking?

• How does utility balance against harm to others?

• Conforms to equity/justice standards?

• Power vulnerability: Risk of ethical lapses when powerful

SESSION 10-11: CONFLICT & NEGOTIATION

Conflict Definition

• Process beginning when one party perceives another negatively affected something they
care about

• Requires:

• Perception

• Opposition/incompatibility

• Interaction

Views of Conflict

Traditional View:

• All conflict bad & dysfunctional

• Result of poor communication, lack of trust

• Should be avoided

Interactionist View:

• Some conflict necessary

• Harmonious group becomes static, apathetic, unresponsive

• Functional Conflict - Supports goals

• Dysfunctional Conflict - Hinders goals

Three Types of Conflict

 1. Task Conflict - Content & goals of work

• Can be functional if managed properly

2. Relationship Conflict - Interpersonal relationships

• Almost always dysfunctional

• Most psychologically exhausting

3. Process Conflict - How work gets done

• Can be functional or dysfunctional

Three Loci of Conflict

1. Dyadic - Between two people

2. Intragroup - Within group/team

3. Intergroup - Between groups/teams

Five-Stage Conflict Process

1. Potential Opposition - Communication, structure, personal factors create potential

2. Cognition & Personalization - Perceived conflict becomes felt conflict when emotional

3. Intentions - Decisions to act (intervene between perception & behavior)

4. Behavior - Overt actions/reactions

5. Outcomes - Functional or dysfunctional

Conflict-Handling Intentions

Competing - High assertiveness, low cooperation

Collaborating - High both (win-win)
Avoiding - Low both
Accommodating - High cooperation, low assertiveness
Compromising - Moderate both

Managing Functional Conflict

• Recognize disagreement vs. using different language

• Open, frank discussion focused on interests not issues

• Discuss differences openly

• Address directly (most disruptive conflicts never addressed)

• Emphasize shared interests

• Cooperative style with group goal identification

Negotiation

• Process where two+ parties exchange goods/services, agree on exchange rate

 • Affects relationship & how negotiators feel about themselves

Distributive vs Integrative Bargaining

Distributive (Zero-Sum):

• Fixed pie negotiation

• One party's gain = other's loss

• Tactics:

• Make first offer (aggressive anchors)

• Reveal deadline

• Leaves loser feeling bad

Integrative (Win-Win):

• Assumes possible win-win settlements

• Conditions needed (seldom exist):

• Open information

• Candid about concerns

• Sensitivity to other's needs

• Trust

• Flexibility

• Better: Builds relationships

Five Steps of Negotiation Process

1. Preparation & Planning

• Do homework

• Determine BATNA (Best Alternative To Negotiated Agreement)

• Develop strategy

2. Define Ground Rules

• Who negotiates?

• Where/when?

• Time constraints?

• Exchange initial proposals

3. Clarification & Justification

• Explain, amplify, justify demands

• Provide supporting documentation

 4. Bargaining & Problem Solving

• Give-and-take

• Concessions likely needed

5. Closure & Implementation

• Formalize agreement

• Develop procedures

• Handshake or formal contract

SESSION 13: ORGANIZATIONAL CULTURE

Note: Comprehensive session covering culture, values, and organizational climate

Culture Definition

• Shared values, beliefs, symbols in organization

• "Way things are done here"

• Influences behavior, attitudes, performance

Culture Creation & Maintenance

• Founders: Set initial culture through values & actions

• Ceremonies & Rituals: Reinforce values

• Stories & Myths: Convey culture

• Physical Symbols: Design, layout communicate culture

• Selection & Socialization: Hire & train aligned employees

• Leadership Behavior: Model cultural values

Types of Organizational Culture

• Clan - Family-like, people-focused

• Adhocracy - Innovation, risk-taking

• Market - Results-driven, competitive

• Hierarchy - Process-focused, stability

Ethical Culture

• Leadership sets tone

• Clear policies & consequences

• Reward ethical behavior

• Punish unethical behavior

 • Support whistleblowing

SESSION 14: ORGANIZATIONAL CHANGE

Planned vs Unplanned Change

• Planned Change - Intentional, goal-oriented

• Change Agents - Those managing change (managers, employees, consultants)

Forces Driving Change

1. Nature of workforce (diversity, demographics)

2. Technology

3. Economic shocks

4. Competition

5. Social trends

6. World politics

Sources of Resistance

Individual:

1. Habits

2. Security (high need)

3. Economic fears

4. Fear of unknown

5. Selective information processing

Organizational:

1. Structural inertia

2. Limited focus (interdependent systems)

3. Group inertia (norms)

4. Threat to expertise

5. Threat to power relationships

Eight Tactics for Overcoming Resistance

1. Education & Communication - Logic, facts dispel misinformation

2. Participation - Difficult to resist decisions you helped create

3. Support & Commitment - Counseling, training, therapy

4. Positive Relationships - Trust facilitates change acceptance

 5. Fair Implementation - Procedural fairness critical

6. Manipulation & Cooptation - Covert influence (risky if discovered)

7. Select Accepting People - Personality predisposes to change

8. Coercion - Direct threats/force

Lewin's Three-Step Model

1. Unfreezing - Overcome inertia, create urgency

• Increase driving forces away from status quo

• Decrease restraining forces

2. Movement - Transition to new state

3. Refreezing - Stabilize new situation to prevent reversion

Kotter's Eight-Step Plan

1. Create urgency

2. Build guiding coalition

3. Form vision & strategy

4. Communicate vision

5. Remove obstacles

6. Create quick wins

7. Build momentum

8. Anchor changes in culture

Organizational Development (OD) Interventions

1. Sensitivity Training - Unstructured group interaction

2. Survey Feedback - Employee perception questionnaires

3. Process Consultation (PC) - Outside consultant coaching

4. Team Building - Increase trust, openness, coordination

5. Intergroup Development - Improve attitudes between groups

6. Appreciative Inquiry (AI) - Focus on positive, future possibilities

Creating Culture for Change

Innovation Culture:

• Structural: Organic, long management tenure, slack resources, high inter-unit

communication

• Culture: Encourage experimentation, reward both successes & failures, celebrate mistakes
 • Human resources: Training, high job security, champion change agents

Idea Champions:

• Characteristics: Extremely high confidence, persistence, energy, risk-taking

• Transformational leadership traits

• Considerable decision-making discretion

SESSION 15: ORGANIZATION STRUCTURE

Six Structural Elements

1. Work Specialization

• Division of labor into separate activities

• Benefits: Efficiency, productivity

• Drawbacks: Boredom, fatigue, stress, low productivity

2. Departmentalization (grouping jobs)

• By function (engineering, accounting, etc.)

• By product/service

• By geography/territory

• By process

• By customer type

3. Chain of Command

• Unbroken authority line top to bottom

• Authority - Rights to give orders & expect obedience

• Unity of Command - One superior per person

• Less relevant today due to technology & empowerment

4. Span of Control

• Number employees manager can direct

• Wider spans = more efficient (cost)

• Narrow spans = closer control but expensive

• Trend: Toward wider spans

5. Centralization vs Decentralization

• Centralized - Top makes all decisions

• Decentralized - Decisions pushed to managers close to action

 • Trend: Toward decentralization

6. Formalization

• Degree jobs standardized

• High formalization - Minimal discretion, programmed

• Low formalization - Discretion & freedom

Three Organizational Designs

1. Simple Structure

• Characteristics: Low departmentalization, wide spans, centralized authority, little

formalization

• Strengths: Simple, fast, flexible, inexpensive, clear accountability

• Weaknesses: Difficult past small size, risky (depends on one person)

2. Bureaucracy

• Characteristics: Standardization, formalized rules, functional departments, centralized,

narrow spans

• Strengths: Efficient at routine activities

• Weaknesses: Subunit conflicts, goals override, obsessive rule-following, ineffective with

novelty

3. Matrix Structure

• Combines functional & product departmentalization

• Breaks unity of command (multiple bosses)

• Strengths: Coordinates complex activities, efficient specialist allocation

• Weaknesses: Confusion, power struggles, role conflict/ambiguity, stress

Contemporary Designs

Virtual Organization:

• Small core outsources major functions

• Highly centralized, little departmentalization

• Strengths: Flexibility

• Weaknesses: Reduced control, perpetual change, unclear roles

Boundaryless Organization:

• Eliminates chain of command, unlimited spans, empowered teams

• Cross-functional teams, participative decision-making

• Breaks vertical, horizontal, geographic, cultural boundaries

Mechanistic vs Organic Structures

Mechanistic (Bureaucratic):

• Extensive departmentalization

• High formalization

• Limited information network (downward)

• Little participation

Organic (Boundaryless):

• Cross-hierarchical teams

• Low formalization

• Comprehensive information network

• High participation

Structural Determinants

1. Strategy

• Innovation → Organic structure (flexibility needed)

• Cost Minimization → Mechanistic (efficiency)

• Imitation → Combined (mechanistic for current, organic for new)

2. Size

• Large organizations (2,000+) → More specialization, departmentalization, levels,

formalization

• Size impact decreases as organization expands beyond 2,000

3. Technology

• Routine activities → Mechanistic

• Nonroutine activities → Organic

4. Environment

• Scarce, dynamic, complex → Organic (uncertainty)

• Abundant, stable, simple → Mechanistic

Implications for Managers

• Recognize specialization creates efficiency but excess creates dissatisfaction

• Avoid rigid hierarchies limiting empowerment

• Balance virtual/boundaryless advantages against pitfalls

• Downsize carefully (negative affect impact)

 • Balance organic/mechanistic based on environment

KEY TAKEAWAYS FOR PROJECT APPLICATIONS

For Urban Skyline Phase 2 (Construction Project)

• Group Dynamics: Form cohesive teams at different project stages

• Leadership: Use transformational leaders for major phase transitions

• Motivation: Set specific, challenging goals; provide feedback; recognize achievements

• Conflict: Manage task conflicts constructively; minimize relationship conflicts

• Structure: Use matrix structure for contractor coordination

• Communication: Address perceptual distortions early

For Sustainable Dome Construction (Capstone)

• Innovation: Create champions for TPU & sisal fiber innovation

• Change Management: Use Lewin's model for new material adoption

• Motivation: Appeal to intrinsic values (sustainability, innovation)

• Teams: Diverse teams → long-term creativity benefits

• Power Dynamics: Build coalitions with material suppliers