Module 1 Merged

Organization Management
Assoc. Prof. Eng. Elena FLEACĂ, Ph.D., PMP
Management of Digital
Enterprise
Course topics
✓ I Module I. Understanding ORGANIZATION

MANAGEMENT
✓ II Module II. Behavior within Organizations
✓ III Module III. The Structure and Design of Organizations
✓ IV Module IV. The Processes of Organizations

Module 1. Understanding ORGANIZATION
MANAGEMENT - overview
• Learning objectives:
• What are organizations?

• What is the nature of managerial
work?
• Which are the three approaches to
effectiveness?
• What is the model for
Organizational Effectiveness?
What are organizations?
• Organization:
• an entity that enable people to pursue accomplishments that cannot
be achieved by individual acting alone.
• a coordinated unit consisting of at least two people who function to
achieve a common goal/set of goals.
• The expectations of customers are changing organizations must be
prepared to deal with:
• consumer needs for social responsibility,
• good citizenship, and
• responsible management and leadership.
• To better understand the people and employees behavior  to formally
study people, structures, and processes in relation to organizations.
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Organizations – as a sum of individuals
 Organizational behavior follows the principles of human behavior:

• different capabilities for learning and for handling responsibilities
• different ethnic backgrounds,
• different attitudes, beliefs, aspiration levels or expectations.
Managers have to be aware of these diversities and take actions,
accordingly.
 Organizations are social systems:

• the relationships among individuals and groups  expectations for
individuals behavior  results in certain roles that must be performed:
 leadership roles based on systems of authority, status and power;
 followers roles meaning to put in place the tasks.
Groups in organizations have a powerful impact on individual
behavior and on organizational performance.
What are organizations?
 The structure:
• a blueprint that indicates how people and jobs are grouped
together in an organization, being represented by an organization
chart.
 The Processes:
• activities that give life to an organizational structure
• common behavioral processes are communication, decision
making, and organization development.
Every organization must respond, at least to:

• the needs of its customers,
• the legal and political constraints, and
• the economic and technological changes.

The organization – a synoptic view
The Structure
Behavior in Processes of
and Design of
Organizations Organizations
Organizations
The Individual Groups Job Design Organizational Design Communication Decision Making
· Individual
· Group behavior · The structure of
characteristics · Communication
· Group Conflicts · Work content tasks · Decision types
· Individual model
· Power & · Work method · Span of control · Decision process
motivation · Directions of
Interpersonal · Work relationships · Delegation of · Social responsibilty
· Rewards and communication
Influence authority
Appraisals
This is our journey during the

course!
BEHAVIOR in organization
 The individual:
• the foundation, and understanding his/her thoughts, beliefs and
needs is the key toward accomplishing high work performance.
 Individual characteristics:
• learning to manage human diversity in terms of attitudes,
perceptions, personality, values, and individual performance.
 Individual motivation:
• Shape the ability to work and interact each other
• various theories attempt to explain and predict people behavior, and
how is sustained and stopped.
• the complexity of motivation  impossible to clearly say what the
best theory of motivation is.
 Rewards and Appraisal:
• the most powerful influences on individual performance
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organization.
 The group:
• By being part of groups, humans comunicate and exchange the
beliefs and values, and will accomplish their needs and
aspirations.
 Group behavior:
• group created by managerial decisions based on assigned jobs
and tasks – formal groups
• groups formed as a consequence of employees’ actions - informal
groups.
 Group conflict and power:
• any group creates its own culture and develops an unique set of
characteristics: structure, cohesiveness, roles, norms and
processes.
• groups may cooperate and compete with other groups, and this
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competition can lead to conflict.
 The group:
• By being part of groups, humans comunicate and exchange the
beliefs and values, and will accomplish their needs and aspirations.
 Power and interpersonal influence:
• the ability to get someone to do something you want done
• to make things happen in a way you want them to happen
• means to control other people.
 Interpersonal influence:
• power in action, using different sources to influence the others
people, team members or subordinates.
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THE STRUCTURE & DESIGN of organization
 To achieve organizational effectiveness, managers have to clearly

understand organizational structure: jobs, as piece of work, and
structure, as the configuration of all pieces of work.
 Job Design – the process by which managers specify the contents,

methods of work, and relationships to both satisfy organizational
and individual performance.
 Organizational Design - the process by which managers create

new structure of tasks, lines of authority, and interpersonal
relationships toward improving the working performance.
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THE PROCESSES of organization
 The processes give life to the organizations:

• a sequence of activities performed with the aim to transform different
inputs into outputs, by adding value.
ORGANIZATION SYSTEM
MANAGEMENT
PROCESSES
Inputs BEHAVIORAL Outputs

Human Resources PROCESSES Products & Services
Technical Resources Profit & Loss
Information Information
Financial Resources TECHNICAL
Social Responsibility
Technology and PROCESSES Behaviours
know how Customer satisfaction
SUPPORT
PROCESSES
Feedback
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THE PROCESSES of organization
• Management processes assure the coherent functioning of the

organization, based on the well-known circle Plan Do, Check, Act.
• Behavioral processes assure the effective organizational

performance: communication and decision making process.
• Technical processes are in charge with transformation of raw

materials into finite products.
• Support processes help technical processes to fulfill their

objectives: marketing, logistics, human resources, legal, etc.
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Behavioral processes in organization
 Communication process:
• The survival is related to management ability to receive, transmit, and
act on information
• links the organization to its environment, as well as to its parts.
• Information integrates the activities within the organization.
 Communication model – answers to five simple questions:
 Who?, ……
 To Whom?, ……
 What is to be transmitted?, ……..
 In What way?, …..
 With what effect? ………
 Directions of communication –downward and upward communication,
horizontal and diagonal communication.
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Behavioral processes in organization
 Decision making process:
• is a key process due to its consequences on people’s lives and well-
being
• ethics and social responsibility behavior play a crucial role in
managerial decisions.
• difficult endeavor because managers must evaluate their decision on
what course to follow as:
• good or bad,
• right or wrong,
• ethical or unethical 
conflicts arise between manager’s personality, core values and the
culture and value of the organization.
The key challenges for managers - to create an working

environment that is ethical, value centered, and performance driven.
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What is the nature of managerial work?
 The necessity for managing arises whenever work is specialized and

undertaken by two or more persons  the specialized work must be
coordinated, creating the necessity for managerial work.
• The Classical School of Management points out the 4 functions of

management which are performed with the aid of related processes:
 Planning
 Organizing
 Leading
 Controlling
• with the aims to obtain the organization effectiveness.
 Effectiveness = is the capability of producing a desired result,
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 In order to achieve the overall performance effectiveness, managers have
to Plan, Organize, Lead, and Control effective Performance at three
levels: individual, group, and organizational.
EFFECTIVENESS
Coordination the
work of: Individual
Managerial Aims
· Individuals Effectiveness
work
· Groups Group
· organizations Effectiveness
Organizational
Effectiveness
FUNCTIONS
· Planning
· Organizing
· Leading
· controlling
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 Planning Effective Performance
• defining the ends/goals to be achieved and determining appropriate
means to achieve these
• can be complex/simple, implicit/explicit. Specific activities for planning:
 Define the results/goals/ends
 Determine different course of actions
 Compare alternatives according to criteria established
 Choose the best way to action ( cost-benefit analysis).
 Organizing Effective Performance

• translates required planned activities into a structure of tasks and
authority
• the main out of this function is called Organization Structure.
• Specific activities for organizing:
 Design each job by defining the responsibility and authority levels
 Group jobs into units, called departments, based on different
criteria
 Leading Effective Performance:
• day-to-day contact with individual and groups
• leading is uniquely personal and interpersonal; leading is the most
human oriented
• people are different and have unique needs, personalities, attitudes,
and wants manager has to direct them toward common purpose.
 Controlling Effective Performance
• activities that ensure the actual outcomes are consistent with planned
outcomes.
• is the completion of a logical sequence, in 2 steps:
 Whether the intended results were achieved?
 If they aren’t achieved, why not?
 The planning function was faulty?
 The organizing function was faulty?
• involves the performance (comparing actual performance against
standards of performance) evaluation at three levels: Individual,
Group, and Organizational performance evaluation
 The Henry Mintezberg managerial roles or organized sets of behavior.
Leader
Liaison
Figurehead
INTERPERSONAL Roles
Negociator
INFORMATIONAL Roles Managerial Roles DECISIONAL Roles
Resource Allocator
Monitor
Spokesperson Entrepreneur
Disturbance
Handler
Disseminator
Derived directly from the managers formal authority granted

Interpersonal Roles
by the organization
1. The Figurehead role Representing the organization by showing the flag
Influencing or directing others by translating the authority into

2. The Leader role
actual activities
The contacts with those outside the formal authority chain of
3. The Liaison role command such as customers, suppliers, government officials,
etc.
Builds on the interpersonal relationships and underlines the
Informational Roles
importance of building the contacts network
Engaging in seeking information to keep aware of circumstances
1. The Monitor role
that may affect the unit/organization
2. The disseminator
Receiving information and enabling access to others
role
3. The Spokesperson Representing the views and opinions of the unit for which he/she
role is responsible (internal and external representation)
Relates to decision-making requirements of the manager’s

Decisional roles
job
Engaging in activities that explore new opportunities or starts
1. The entrepreneurial
new projects based in an ongoing assessment about whether to
role
continue or abandon new ventures
2. The disturbance Acting as a problem – solver or conflict settler to keep small

handler role problems form developing into larger ones
3. The resource allocator Deciding how resources under his/her authority will be
role distributed; with direct effect on units performance
Making accommodations with other units or other organizations

4. The negotiator role by being aware of what resources can or cannot be committed to
particular negotiated solutions.
 What skills do managers need?
Conceptual Skills Technical Skills Interpersonal Skills
Top
management
Middle
management
Lower
management
 What skills do managers need?
Managerial skills Description
· Cognitive ability such as logical reasoning, judgment,

and analytical ability
Conceptual skills
· Are predictor of managerial effectiveness and
determines who reach the highest level in organization
· Specialized knowledge about processes, procedures,
Technical skills and equipment
· Are very important early in managerial career
· Sensitivity, persuasiveness, and empathy are very
important at all levels of management
Interpersonal skills
· These skills alone are unlikely to guarantee significant
achievements
Which are the three approaches to effectiveness?
 Goal approach: the oldest and the most widely used evaluation approach:
• organizations exist to accomplish goals  individuals and groups
should be evaluated in terms of goal accomplishment.
• reflects purposefulness, rationality, and achievement, the fundamental
tenets of western societies.
 Management by objectives is based on goal approach:
• specify in advance the goals, the subordinates accomplish and they
are evaluated periodically the degree to which they accomplish them.
 Problems with goal approach:
• Hardly to measure for organization that does not produce tangible
results
• Eg. For university the goal is to provide a good education at a fair cost
 How would we know whether the university reaches the goal?
• What is a good education?
• What is the fair cost?
 Problems with goal approach:
• Goals cannibalization: achieving one goal often diminishes the
capability to achieve other goals
• Eg.: the goal to maximize the profit and provide absolutely safe
working conditions create conflicts because one goal is achieved at
the expense of the other.
It is easy to understand that managers should achieve organizations
goals, but it is hardly difficult to know how to do this.
The system theory approach enables managers to understand the

effectiveness concept holistically, by understanding the causes of:
• individual,
• groups, and
• organizational effectiveness.
 System theory approach
System – a group of elements that individually establish relationship
with each other and interact with their environment both as an individual as a
collective.
• Conceptual systems (language is a concept with words and rules)
• Concrete systems – equipment, machines, etc.
• Abstract systems – the culture of an organization, the processes
inside
PROCESSES
INPUTS INPUTS
· Human · Manufacturing
· Information · Decision making · Products
· Financial · Marketing · Services
· Equipment · logistics
Feedback loop
Environment
 By viewing the individuals, groups, processes, and structures of
organization in terms of a system,  identify common and uncommon
themes that explain the behavior and effectiveness of people.
 There are two important aspect related to system theory:
 Feedback loop :
 The organization depends on the environment not only for its
inputs but also for the acceptance of its outputs (eg. Market
research to find out the wants from the market).
 The feedback reinforces the learning and developing personality,
group behavior, and leadership.
 Input-output cycle – there are two major type of inputs resources:
• Human resources: people who work in the firm in exchange for
wages and other tangible or intangible rewards
• Technical resources (Non-human): inputs to be processed in
combination with human resources to produce outputs (other
resources).
The
Inputs Processing Outputs
environment
• Technical and
administrative • Steel, rubber,
The market
Staff plastics Technological
Manufacturer Cars buy or do not
• Engineers • Equipment processes
buy the cars
• Management • IT Tools
team
• Performing
research,
The
• Laboratories, • Teaching
• Teachers, businesses
books, students
University administrative Engineers accept or
software, • Providing
staff reject the
technical
students
information
to society
Hospital …… …… ….. …. …
 Key aspects of system theory:
1. The survival of organization depends on its ability to adapt to the

demand of its environment
2. The inputs-process-output cycle must be the focus of managerial
attention.
 Stakeholder approach
• to achieve balance among different parts of the system by satisfying
the interests of the organization stakeholders
• Stakeholders - all individuals or groups who have a stake in the
organization.
• emphasizes the relative importance of different groups and individuals
interests in an organization.
Stakeholder Balancing stakeholders interests

approach
INPUTS PROCESSES INPUTS

System Theory
Various stakeholders Various stakeholders Various stakeholders
Feedback loop
Environment
 Types of stakeholders:
• Employees, managers, customers, suppliers, contractors, creditors,
department managers, public, officials etc.
• each of these entities has an unique interests that form an amount of
different interests
 Pay attention to :
• The stakeholder controls resources that are valuable to the
organization  To whom interest should we satisfy first?
• The organization is effective to the extent that it satisfies the interest
of the group controlling the most important resources
• Different groups negotiate their claims by developing coalitions
capable of combining the power of each member of the coalition.
• Managers have to identify the most powerful coalitions and
satisfy the demands of the most influential members of these
coalitions.
• This decision depends on the value judgment.
• Value judgment reflects human value about what is important, but
these judgments shift with individual, place, and time.
What is the model for Organizational Effectiveness?
Management processes Sources of Effectiveness
Planning
Individuals Groups Organizations

Organizing
· Objectives · Goals
· Mission
· Job desing & structure · Department structure
Leading · Processes
· Person – centered · Group – centered
· Entity – centered influence
influence influence
· Organization standards of
· Individual standards of · Group standards of
performance
Controlling performance performance
Bibliography
1. Peter Drucker, Management Challenges for the 21st Century, Harper
Collins, New York: Harper Business, 2001.
2. Andrew J. Dubrin, Essentials of Management, 9th Ed., South – western
Publishing, Mason, 2012.
3. Robert Konopaske and John M. Ivancevich, Global Management and
Organizational Behavior, New York: McGraw Hill/Irwin, 2004.
4. Michael C. Jackson, System Approach to Management, New York: Kluwer,
2000.
5. Henry Mintzberg, The Nature of Managerial Work, Englewood Cliffs, New
York: Prentice Hall, 1980.
6. Stephen P. Robbbins, Timothy A. Judge, Organizational Behavior, 15th Ed.,
Prentice Hall, 2012.
7. J. Gibson, Jh. Ivancevich, J. Donnelly, R. Konopaske, Organizations.
Behavior, Structure, Processes, 14th Ed. , New York: McGraw Hill/Irwin,
2014.
8. Michael A. Hitt, J. Stewart Black, Lyman W. Porter, Management,
International Edition, Pearson Prentice Hall Publishing, New Jersey, 2005.
9. MacClelland DC, The Achieving Theory, A Free Press Paperback, New
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York: Macmillan Publishing Co., 1967.
Management of Digital Enterprise

Module 2. BEHAVIOR within Organization
The INDIVIDUAL
• To understand the basis of
individuals behavior
• To know the key motivation
theories
• To discuss the organizational
reward systems
What is meant by the individual behavior?
 The rule needed to understand the individual variables is:
1) to observe and recognize the individual differences ,and
2) to discover relationships among the variables.
 The scholars have come to the general agreement that human behavior:
 Is caused
 Is goal directed
 Is motivated
 Can be directly observed by the individual's actions  is measurable
 Can be indirectly observed based on the individual's thinking and
perceiving
 It is recognized that peoples behavior patterns do change, sometimes when

managers would prefer that they remain stable

What is meant by the individual behavior?
Work Environment
· Job description
· Organizational
structure
· Rules and norms
· Rewards and Behavior Outcomes
sanctions
· Resources · Problem solving
· Performance
· Thinking process
The Individual · Personal
· Communication
Nonwork Environment development
· Talking & Listening
· satisfaction
· Observations
Attitudes and Values Age, Race, Gender
· The family
· Economics
conditions Abilities and Skills Personality and perception
· Hobbies

Individual differences
Individual differences Descriptions
· A biological or learned trait that permits a person to do something

1. Ability
mental or physical
· Are task – related competencies (negotiate, clearly communicate,
2. Skills
operate a computer etc.)
· A mixed of affective and cognitive components, learned and organized
3. Attitudes by experience, that determine the response to people, objects, and
situations.
· The conscious, affective desire or wants of people that guide their
behavior
4. Values
· The constellation of likes, dislikes, viewpoints, rational and irrational
judgments that determine the persons view of world

Individual differences - ABILITIES
Mental abilities Descriptions
Flexibility • Holding in mind a particular visual configuration
Fluency • Producing words, ideas, and verbal expressions
Inductive reasoning • Forming and testing hypotheses directed at finding relationships
• Recalling perfectly for immediate reproduction a series of items

Span memory
after only one presentation of the series
Number facility • Rapidly manipulating numbers in arithmetic operations
• Finding figures, making comparisons, and carrying out simple
Perceptual speed
tasks involving visual perceptions
Deductive reasoning • Reasoning from stated premises to their necessary conclusion
Spatial orientation and • Perceiving spatial patterns and manipulating or transforming the
visualization image of spatial patterns
• Knowledge of words and their meaning as well as the
Verbal comprehension
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Sources: Marvin D. Dunnette, Aptitudes, Abilities, and Skills, in Handbook of Industrial and Organizational Psychology, 1976, pp. 481-83
 The individual attitudes:
 are learned
 define our predisposition toward given aspect of the world
 provide the emotional basis of our interpersonal relations and identification with
others
 are organized and are close to the core of personality.
 Gender differences:
 research has shown that men and women are generally similar in terms of memory,
reasoning ability, learning ability, creativity and intelligence (Becker, D.V., Kenrick, S.L., Neuberg,
K.C., Blackwell, and Smith, D.M., The Confounded Nature of Angry Men and Happy Women, Journal of Personality and Social
Psychology, February 2007.)
 the key differences consist of:

1. Absenteeism from the job due to the role of caregivers to children, elderly
parents, and ill spouses.
2. Leadership style because the women prefer participative, team oriented,
and charismatic leadership dimensions more than males (Paris, L., Howell, J., Dorfman, P.,
and Hanges, P., Preferred Leadership Prototypes of Male and Female Leaders in 27 Countries, Journal of International Business Studies
40, No. 8., 2009.)

 The Personality and behavior:

 Locus of control: determines the degree to which they believe that their
behavior influence what happens to them. They see the control of their
lives as coming from inside themselves – internal locus of control.
 Self-efficacy: the believe that we can perform adequately in a
particular situation. When individuals acquire an internal control
orientation that leads them to set goals and develop action plans to
accomplish them, they develop a sense of self-efficacy.
 A person with low self-efficacy sees problems and worries and
thinks in terms of failing or not being able to do a high quality job.
 A person with high self-efficacy is positive, success driven, and goal
oriented.

Individual differences : Self-Efficacy Concept
Self-Efficacy
beliefs
Low High
I do NOT think I can complete the task! I can complete the task!
I do not have an outstanding quality! I have an outstanding quality!
Low performer
High performer
· Being passive · Being assertive

· Avoiding difficult tasks · Selecting best opportunities
· Weak aspirations and low · Neutralizing obstacles
commitment · Setting goals
· Focus on personal deficiencies · Establishing standards
· Making weak efforts · Planning, preparing,
· Quiting because of setbacks practicing
· Blaming setbacks on bad luck · Trying hard and persevering
· Worry, experience stress, depresses · Learning from setbacks
· Think of excuses for failing · Visualizing success

 The implication of self-efficacy on organizational behavior are numerous and important,

especially in motivation and task performance.
 There are three general factors that can influence the attitude change: trust in sender, the
message itself, and the situation:
 Employees who do not trust the manager won’t accept the manager message or
change an attitude.
 Similarly, if the message is not convincing, there is no pressure to change. A
manager who has little prestige and is not shown respect by peers and supervisors
is in a difficult position if the job requires changing subordinates attitudes so that
they work more effectively  The greater the communicators prestige, the
greater the attitude change.
 Why?
 Linking the communicators produces attitude change because people try to
identify with a liked communicator and tend to adopt attitudes and behaviors of
the liked person.
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What can we learn from motivation theories?
 Motivation- explanatory concept used to make sense out of the behaviors we observe.
 is inferred: instead of measuring it directly, we note what conditions exist and
observe behavior, using this information as a basis for our understanding of the
underlying motivation.
 is difficult to define and analyze; motivation has to do with:
 the direction of the behavior
 the strength of the response, as the individual chooses to follow a course of
action
 the persistence of the behavior, or how long the person continues to behave in
a particular manner.
 Managers are expected to understand the existing types and degrees of motivation!
 The researchers describe the Generation Y (between 20 – 30 years old): are very
comfortable with technology, prefer jobs defined by tasks, not by time; are more
individualistic and focused on their own interests and lifestyles.
 The workplace preferences: a fair boss, more team oriented; safety in the workplace and
work that is meaningful; training and learning opportunities; flexibility in the work schedule;
timely and fairly reward systems; constructive and frequent feedback.
Motivation theories
Motivation Managerial
Explanations Key founders
theories implications
· Abraham Maslow - five
· Focuses on factors
level need hierarchy · Being aware of
internally to
· Clayton Alderfer – ERG differences in
individuals that
theory needs, desires, and
Content energize, direct,
· McClelland – Learned goals because
motivation sustain, and stop the
needs theory each individual is
behavior
· Frederich Herzberg – unique in many
· The factors can only
Two factor theory ways
be inferred
· Focuses on factors · Understanding how

· Stacey Adams – equity individuals make
externally to
theory choices based on
Process individuals that
· Victor Vroom – the preferences,
motivation energize, direct,
expectancy theory of rewards, and
sustain, and stop the
chioces accomplishments.
behavior
Motivation theories
 The content motivation theories suggest that managers have to:
 Determine what needs trigger desired performance, group, and
personal behaviors
 Be able to offer meaningful rewards that help the employee satisfy
needs
 Know to offer appropriate rewards to optimize performance behavior
 Not assume that a persons need deficiencies will repeat themselves in a
regular pattern  People change because of experiences, life events,
aging, cultural and environmental changes, and other factors.
 The process motivation theories suggest that managers have to

 Understand that motivation varies from situation to situation because
people select behaviors to meet their needs and determine whether
they made the most successful choice.
CONTENT motivation theories
1. Maslows Need Hierarchy:
 Assumption:
 Peoples need depend on what they already have  a satisfied need is NOT a
motivator.
 People attempt to satisfy the lowest –level (basic needs) before directing behavior
toward satisfying upper-level needs.
 Lower-order needs must be satisfied before a higher-order need begins to control a
persons behavior.
Higher order needs

The need to fulfill oneself maximizing the use of
Self-actualization
abilities, skills, and potential
Esteem The need for self-esteem and for respect from others
The need for friendship, affiliation, interaction and
Affiliation, social, love
love
Lower order needs
The need for freedom from threat, the security from
Safety and security
surroundings
Your Psychological
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2. Alderfers ERG Theory:

 Assumption:
 Alderfer agreed that human needs are arranged hierarchical, but he defined three sets of
needs:
1. Existence – needs satisfied by food, air, water, pay, and working conditions.
2. Relatedness – needs satisfied by social and interpersonal relationships.
3. Growth - needs satisfied by making creative and productive contributions.
 Aldefers ERG theory suggests that in addition to the satisfaction-progression process
of Maslow, a frustration-regression process is also at work.
 If a person is continually frustrated in attempts to satisfy growth needs, relatedness
needs reemerge as a major motivating force, causing the individual to redirect efforts
toward exploring new ways to satisfy this lower-order needs.

3. McClellands Learned Needs Theory:
 Assumption:
 A person with a strong need will be motivated to use appropriate behaviors to
satisfy the need.The persons needs are learned from the culture of the society and
there are three types:
1. Achievement
2. Affiliation
3. Power
 The economic growth of a society is based on the level of achievement inherent
in its population  the economically backward nations can be improved by
stimulating the need for achievement in the populace.
4. Herzbergs Two-Factor Theory:

 Assumption:
 Job satisfaction results from the presence of intrinsic motivators and job
dissatisfaction stems from not having extrinsic factors.
 Job satisfaction is NOT a one-dimensional concept; it is a bipolar continuum with
two distinct kinds of experiences: satisfies and dissatisfies.
4. Herzbergs Two-Factor Theory:
Intrinsic motivators = JOB CONTENT Their presence
· Feeling of achievement
· Meaningful work
· Opportunities for advancement and
HIGH
growth
JOB SATISFACTION
· Recognition
Hygiene factors = JOB CONTEXT Their absence
· Pay and status
· Job security
· Working conditions
· Policies and procedure HIGH
· Interpersonal relationship JOB DISSATISFACTION

4. Herzbergs Two-Factor Theory: Examples
· You are well paid, have job security,
· Hygiene factors are
have good relationships with you · LOW Job Dissatisfaction
PRESENT
colleagues and your boss
· Intrinsic motivators
· You are given challenging duties for · HIGH Job Satisfaction
are PRESENT
which you are accountable
· You are well paid, have job security,
· Hygiene factors are
have good relationships with you · LOW Job Dissatisfaction
PRESENT
colleagues and your boss
· Intrinsic motivators
· You are NOT given ANY challenging · LOW Job Satisfaction
are NOT PRESENT
duties and you are bored with your job
· You are NOT well paid, have little job
security, have poor relationships with · Hygiene factors are
· HIGH Job Dissatisfaction
you colleagues and your boss NOT PRESENT
· You are NOT given ANY challenging · Intrinsic motivators

· HIGH Job Satisfaction
duties and you are very bored with are NOT PRESENT
your
Yourjob
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Maslow Aldefer McClelland Herzberg
Motivators
Self – actualization Achievement
Work Content:
· responsibility
Higher – order
Growth · Advancement
· Growth
needs
Esteem Achievement
Power Recognition
Hygiene factors
Affiliation and, love
Work context:
· Relationships
Relatedness with peers,
Safety and security
Basic needs
superiors, and
Affiliation subordinates
· Job security
· Working
Physiological Existence conditions
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PROCESS motivation theories
Adams Equity Theory of Motivation:
 Assumption:
 Individuals work in exchange for rewards from the organization and they are
motivated by the desire to be equitably treated at work.
 The employees compare their efforts and rewards with those of others in similar
work situations.
 The major elements:
 The person – the individual from whom equity or inequity is perceived
 The comparison entity – the referent agent regarding the ratio of inputs and
outcomes.
 Inputs – the individual characteristics brought by the Person to the job.
 Outcomes – the Persons consequences related to the job.
I YOU
My OUTCOMES Your OUTCOMES
My INPUTS
= Your INPUTS
Equity
My OUTCOMES Your OUTCOMES Positive

My INPUTS
 Your INPUTS Inequity
Your own footerMy OUTCOMES Your OUTCOMES Negative

My INPUTS
 Your INPUTS Inequity
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PROCESS motivation theories
Adams Equity Theory of Motivation: recommended techniques to restore equity:
 Changing inputs: put less time or effort into the job.
 Changing outcomes: confront the boss and ask for a rise, more time off, or better
assignments.
 Changing the reference person: make comparison with the inputs/outcome ratios of
other person.
 Changing the inputs or outcomes of the reference person: asking the reference
person to work harder or to take more responsibility on projects.
 Changing the situation: transfer to get away from an inequitable situation or quit the
job.
 Conclusion: the employees are concern with the fairness of decision making in all areas of
work, including decisions related to compensation, performance appraisals, training, and
work group assignments.
 Recommendations:
 Procedural justice = processes and procedures used to make resource and
allocation decision are perceived as fair and equity.
 Procedural justice has positive impact on employees’ behavior such as: being
committed to the organization, being intrinsically motivated, staying with the
organization, engaging in organizational citizenship behavior, trusting their bosses,
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performing the jobs well.

Motivation theories - CONCLUSIONS
1. Motivation can be managed and influenced based on a context that encourages, supports,
and sustains improvement.
2. The ability, competence, and opportunity all play a key role in motivating people.
3. Each employee has his/her needs, abilities, and goals. Managers have to be sensitive to these
variations.
4. The only constant is CHANGE. Managers are required to permanently monitors the
employee’s needs, abilities, and goals.
5. The manager style, techniques, and work behavior are being observed and can be easily
imitated. The manager as role models can be influential in motivating employees.
6. The incentives must be linked to performance. When employees note that valued outcomes
can be achieved through performance, a major part of motivation is resolved.
7. Establishing moderately difficult goals to direct behavior is an important part of any
motivational strategy.
8. Managers have to provide employees with jobs that offer equity, task challenge, variety, and
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opportunities for need satisfaction.
Why do we need an organizational reward system?
 The reward programs are needed in order to:
1. Attract qualified people to join the organization
2. Keep employees coming to work
3. Motivate employees to achieve high performance at work.
 There are a plenty of researches that determines whether individuals are satisfied with
rewards. The main findings can be summarized as follows:
1. Satisfaction with a reward is a function of both how much is received and how
much the person feels should be received  is an effect of the comparison people
make.
2. The individuals feelings of satisfaction are influenced by comparisons with what
happened to others.
3. Satisfaction is influenced by how satisfied employees are with both intrinsic and
extrinsic rewards.
 Intrinsic rewards = related to the work content (achievement and
accomplishment)
 Extrinsic rewards = related to the work context (salary and promotions).
4. People differ in the rewards they desire and in the relative importance of rewards.
5. The extrinsic rewards are satisfying because they lead to other rewards: money
lead to prestige, power, security, and status.
The reward process
Abilities Skills
Motivation to Individual Performance

perform performance Evaluation
Experiences
Extrinsic Rewards Intrinsic Rewards
· Salary and wages · Task completion

· Fringe benefits · Achievement
· Promotions · Autonomy
· Personal Growth
Reward Package
Satisfaction
Feedback

The organizational reward system
Extrinsic rewards External to the job
· Money modifies behavior
· The pay-performance connection has to be clear to employees
Salary and Wages
· The smaller differences in pay between lower and upper levels have resulted in
higher commitment to organizational goals
· The pension plan, health insurance, and vacations
Fringe benefits
· Are based on seniority or the length of employment
· Matching the right person to the jobs
Promotions
· Can be linked to the acknowledgement of the work well done
Intrinsic rewards Related to the job content
· The ability to start and finish a task is a form of self-reward and can have a
Task completion
powerful motivating effect
· A self-administered reward derived from reaching a challenging goal
Achievement · Carefully attention to goal-setting programs in correlation with individual
differences
· The freedom to do what the employee considers best in a particular situation
Autonomy · The desire to operate without being closely supervised
· Is determined by the job and organizational design
· By expanding the unique individual capabilities
Personal growth
· By maximizing or at least satisfying skill potential
The organizational reward system
 The relationship between reward package and satisfaction is dynamic and is

shaped by the individual differences.
 However, any organizational reward system should satisfy three conditions:
 Be sufficient to satisfy basic needs
 Be considered equitable
 Be individual oriented.


Module 3. BEHAVIOR within Organization
The GROUP
• To understand the group and
team behavior
• To be aware of conflicts and
resolution strategies
• To know the power sources and
interpersonal influence tactics
What is the group behavior?
 The collection of individuals in which behavior and/or performance

of one member is influenced by behavior and/or performance of
other members.
 Types of group:
Any organization has technical requirements that arise from
its stated goals. Accomplishments of these goals require certain
tasks be performed  employees are assigned to perform tasks 
employees are members of different groups based on their position in
the organization (formal groups).
Whenever individuals associate on a fairly continuous basis,

groups tend to form whose activities may be different from those
required by the organization (informal groups).

What is the group behavior?
 Formal groups:
 Command group – specified by the organization chart comprising
the subordinates who report directly to a given supervisor.
 Task group –employees who work together to complete a particular
task or project;
 Team - a special type of task group is team. The team performance
is affected by all the factors that influence groups.
 Informal groups:
 Interest group –to achieve some mutual objectives that are not
related to those of the organization.
 Friendship group –something in common such as gender, age,
political benefits etc. that extend their interaction and communication to
off-the-job activities.
Managers are required to influence these informal groups by building

good relations with the informal group’s leader, and supporting
members’
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The reasons behind the group
 To satisfy the needs – security, social, esteem, and self-actualization

needs can be satisfied the affiliating with the group.
Security need: The aloneness leads to a degree of insecurity. Interaction
and communication among the group’s members serve as a buffer to
management demands.
Social need: the need to socialize exists not only on the job but also away
from the work place.
Esteem need: by being member of an group will lead to have high level of
prestige; the membership status provide much need-satisfaction.
 The proximity and attraction: the physical distance between employees
performing a job creates opportunities to exchanges ideas, thoughts, and
attitudes about on the job and off the job activities.
 The group goals: can be the reasons for being attracted to the group.
 The economic reasons: people believe that they can derive greater
economic benefits from their jobs if they organize.
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The Tuckman’s stages for group development:
1. Forming: meeting each other and learning about the roles and
responsibilities, testing the positions, asking questions to other group
members. The group is establishing ground rules.
2. Storming: different ideas and perspectives on technical issues. The
conflict arises because members are arguing, debating, and
experimenting with different roles. The group’s hierarchy starts to take
shape.
3. Norming: people begin to work together adjusting their behavior to
support the collective effort. This is the beginning of cohesiveness and a
set of group-driven expectation is communicated within the group.
4. Performing: people function as a well-organized unit, addressing issues
smoothly, being focused on accomplishing goals. The group structure,
hierarchy, and norms are in place. The group is mature.
5. Adjourning: leaving the group after the goals have been accomplished.

Group characteristics
GROUP
CHARACTERISTICS
Structure Position Role Norms Leadership Cohesiveness Groupthink Social loafing
The The
The pattern of The status commitment to deterioration
The agreed- The tendency to
relationships assigned to a The expected The pattern of the group of mental
upon shirk
among particular behavior exerting determined by efficiency,
standards of responsibilities
different position as related to the influence over the reality testing,
individual or and not to carry
positions consequence position group commonness and moral
group a fair share of
within the of expertize, occupied members of attitude, judgment in
behavior the load
group seniority, age behavior, and the interest of
performance group solidarity

Causes of Conflicts
 Structure: members are differentiated based on expertise,
aggressiveness, power, leadership skills, and status.
 the position in the group and the pattern of relationships
among the position forms the group structure.
 the status differences among positions create a hierarchical
group structure.
 the set of expected behaviors associated with a position in
the structure constitutes the role of that position's occupant.
 Status/hierarchy: the status assigned to a particular position is
typically a consequence of certain characteristics that differentiate
one position from other positions.
 Roles: the set of expected behaviors of the person within one
particular position in a group. The conflict and frustration may result
from the difference between the expected role and the enacted role
of the
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 Norms: generally agreed standards of behavior shared by the
group’s members:
 norms are formed only with respect to things that have
significance to the group
 norms are accepted in various degrees by group members
 norms may apply to every group member or to only some
group members.Example:
 employees try to improve even when things are going

well
Positive norms
 employees defend the company when others criticize it
 our managers really care about their employees
 there is no point in trying to work harder, nobody else

does
Negative norms
 employees are always trying to take advantage of us
 it is best to hide your problems and avoid the supervisor
 Leadership: is a crucial characteristic because the leader plays a key role in
determining group success. The leader of :
 formal group can punish or reward members who do not comply with
directives, orders, or rules.
 informal group is a respected, high-status person who motivates and
inspires the members, facilitates group conflicts, initiates the group
actions, and maintains the function of the group.
The leaders are rare, but becoming an effective leader doesn’t necessarily require charm or
other scientific theories. It requires vision, creativity, clear goals, willingness to work
horizontally and vertically, and good communication skills.
 Cohesiveness: the desire to remain in the group and the commitment to the
group determined by the commonness of attitude, behavior, and performance.
 Sources of attraction to a group: Clearly specifies and compatible group
goals; Charismatic leader; Reputation of the group;The possibility to express
the opinions; Members are supporting each other in overcoming barriers to
personal growth and development.
As the cohesiveness of the group increases, the level of conformity to group
Yournorms
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increases.
 Groupthink: highly cohesiveness group creates negative impacts on decision-
making process, named group-thinking = the deterioration of mental efficiency,
reality testing, and moral judgment in the interest of group solidarity,
characterized by:
 Illusion of invulnerability
 Tendency to moralize: any opposition to group views is judge as weak
and unintelligent
 Feeling of unanimity: each member supports the leader’s decisions,
and avoids appearing weak by keeping views to themselves. This
indicates how pressure toward group solidarity can distort individual
member’s judgment.
 Pressure to conform: formal and informal attempts are made to
discourage discussion of divergent views.
 Opposing ideas dismissed: any individual who criticizes or opposes a
decision receive little attention from the group. Members tend to show
strong favoritism toward their own ideas.
Some level of cohesiveness is necessary for group to tackle problems,
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carefully attention to the risk of groupthink!
 Social loafing: holding back what a member contribute to the groups effort
and performance. The tendency to shirk responsibilities and not to carry a
fair share of the load creates a social loafing effect = slacking = free rider
problem.
 Why does social loafing occur?
 When members work together, their outputs are pooled so that the
evaluation of individual output is not possible. Thus, they can receive
neither credit not blame for their performance. So, they can hide within
the group.
 In this situation, manager has to reconfigure the work being done so
that individuals do receive credit or blame for their separate inputs, then
social loafing is less likely to occur.
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The TEAM
 a special type of task group, consisting of two or more individuals
responsible for the achievement of a goal or objective
 All team exists to solve a problem and have members with complementary
skills who have reached what is referred to as the mature or performing
stage.
Many groups never reach the stage of team!
Types of team:
 Problem solving teams: formed on a temporary basis to address a specific
problem that is confronting organization.
 Virtual teams: a team that relies on interactive technology to work together
when separated by physical distance  cut costs, decrease product cycle
times, increase customer responsiveness, and integrate more fully with
suppliers.
 Cross-functional teams: individuals form different departments or work
areas that come together on a task or project basis. The team monitor,
standardize, and improve work processes that cut across different parts of
the organization (eg. marketing, sales, research, engineering, and HR to
design and develop marketing plans for a new project.
The conflicts and resolution strategies
 Functional conflict: arises from the confrontation between groups that
enhances and benefits the organizations performance .
 Dysfunctional conflict: arises from the confrontation and interaction
between groups that harms the organization and hinder the achievement of
organizational goals. The hidden costs: time consuming, someone ends up
paying for the solution, employee health and well-being is hindered.
 Intragroup conflict: between the team members:
 task conflicts – members have differences in viewpoints pertaining to
what the group’s task is;
 relationship conflict – interpersonal incompatibilities between
members that lead to feelings of dislike, tension, irritation and
frustration;
 process conflict – controversies regarding how tasks will be
accomplished, and is related to the delegation of tasks and
responsibilities to different team members.
 Intergroup conflict: groups that interact due to: work interdependence,
differences in goals, and differences in perceptions.
Sources of
Factors fostering intergroup
intergroup Effects
conflict
conflict
 Low potential of conflict
 Pooled interdependence – no
 Standard rules and
interaction among groups, each
procedures developed
group perform separately
at the main office for
coordination
 High potential of conflict
 Sequential interdependence –
Work  Effective planning for
one group’s output serves as
interdependence coordinating sequential
another group’s input
interdependences
 High potential of conflict
 Reciprocal interdependence -  Effective coordination
each group’s output serves as for communication and
input to another groups decision-making
processes
Sources of intergroup
Factors fostering intergroup conflict Effects
conflict
 Group seeks to gain control
 Limited resources – increase
over critical resources
mutual dependences and
supplies to reduce the
differences in group goals become
uncertainty of gaining these
more apparent
supplies
Differences in goals
 Performance is viewed as an
 Reward structures – increase the
independent variable even
conflict if it is related to individual
the group’s performance is,
group performance rather than to
in reality, very
overall organizational performance
interdependent.
 Different goals for departments
Differences in  Different time horizons for  Different perceptions of
perceptions assigned activities realities lead to conflict
 Different status hierarchies
The Conflict as a process
 As specialists argued, managers spend more than 20% of their time

in conflict management.
 Because the causes of conflicts differ, the means of resolving
conflicts will also differ, depending on circumstances.
 The appropriate conflict resolution technique depends on many
factors, including reasons why the conflict occurred and the
specific relationship between the manager and the groups.
Triggers Resolution Strategy High

 Communication performance
Perceived conflict  Problem solving
pattern
 Forcing
 Organizational
 Avoiding Behavior
structure
 Smoothing
 Individual Experienced conflict
 Colaboration Low
variables
performance
Conflict resolution strategies
 Problem solving – take action to reduce tension thorough face-
to-face meetings of the conflicting groups to openly debate various
issues and bring together all relevant information until a decision is
reached. Resolve misunderstandings and reduce language barriers.
 Forcing – the use of authority and communicating the
management desires to the groups involved. It implies the focus on
the conflict results rather than the cause of conflicts.
 Avoidance – avoiding a conflict based on postponing the
necessary decision may be the best temporary alternative.
 Smoothing – emphasizes the common interests of the
conflicting groups and deemphasizes their differences or
stressing shared viewpoints on certain issues facilitates movement
toward a common goal.
 Collaboration – the parties cooperate to identify mutual
benefices with the intention to resolve the conflict based on
clarifying the differences. It assures a win-win strategy Your
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both
parties involved.
The power sources and interpersonal influence tactics
Every interaction and every social relationship in an organization

involves an exercise of power that means the ability to get others to
do what one wants them to do.
Power/influence involves a relationship between two or more
people: Person A has power over person B to the extent that he/she
can get B to do something B would not otherwise do  A
person/group cannot have power in isolation  the need to share
power over more people!
 Authority – the formal power that a person has because of the

position in the organization (directives and orders) and has the
following characteristics:
 It is vested in a persons position.
 It is accepted by subordinates.
 Is used vertically and flows top-down in the hierarchy to gain
compliance from subordinates
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The types of power sources
 Legitimate power – the persons ability to influence others by being
in a more powerful position. The subordinates play a key role in the
exercise of legitimate power. If subordinates view the use of power
as legitimate, they comply.
 Reward power – the ability to reward the behavior of others
(recognition, a good job assignment, a pay rise, a promotion). If
followers value the rewards they are more likely to respond to
orders, requests, and directions.
 Coercive power – the power to punish subordinates. They may
comply because they fear the individual who has power over them.
 Expert power – the persons ability to influence others by having
special expertise that is highly valued. The more difficult it is to
replace the expert, the greater the expert power he/she possesses.
 Referent power - the persons ability to influence others because of
the personality and behavioral style. The charisma of the person is
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the basis of this power..
The types of power sources
 The five types of power are interdependent and managers use these
power bases effectively in various combinations in different circumstances.
David McClelland defined the need for power as the desire the have an
effect on others. This effect may be shown in three ways:
 By strong action, by giving help and advice, by controlling someone
 By action that produces emotion in others
 By a concern for reputation.
 People with high need for power are competitive and aggressive, are
interested in prestige possessions (luxury goods), prefer action
situations, and join groups.
 The need for power is correlated with the success.
 The organizational structure creates formal power and authority by
specifying certain individuals to perform specific jobs and make certain
decisions  certain rights, responsibilities, and privilege accrue from a
persons position, determining the structural power because of resources,
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decision-making, and information.
The structural power sources
 Resources power – occurs when a person has open channels to

resources (money, workers, technology, materials, and customers).
 Top-level managers have power over low-level managers as
they allocate resources on the basis of performance and
compliance  this dependency relationship exists because of
limited resources and division of labours (position in
hierarchy) that grants upper management, by position, the
privilege of allocating limited resources.
 Decision-making power – the degree to which individuals can
affect decision-making process, what alternatives are considered,
and when a decision is made, determine the level of power.
 Information power – by having access to relevant and important
information gives power. Individuals who possess information
needed to make optimal decisions have power.
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Module 4. The Structure and Design of Organizations
Job Design & Organization Structure
• To understand the concepts

of job design
• To know the key elements
of organization structure
2
What is job design?
 Modern tendency: The Quality of Work Life (QWL) programs

are intended to increase employee trust, productivity,
involvement, retention, and problem solving so as to increase
both worker satisfaction and organizational effectiveness.
 The continuing challenge of management is to provide quality of
work life and to improve production, quality, and efficiency
through revitalization of business and industry.
 For maintaining overall productivity and motivation, employers try to
reduce work stress especially for those employees that attempts to
balance career and family priorities.
 In response to these challenges, the organizations are offering
flexible work arrangements to meet family life and career cycle
needs.
What are flexible work arrangements ?
 Job sharing – a work arrangement in which two or more

employees divide a job responsibilities, hours, salary and
benefits among themselves. This requires to identify those jobs that
can be shared, understanding employees individual sharing style,
and partners who have complementary scheduling needs and skills.
 Flextime - a work arrangement in which employees can choose
when to be at office (e.g. instead of working 5 days/8 hours per
day, we may prefer to work 4 days/10 hours per day. This work
arrangement has positive influence on employees’ performance, job
satisfaction, and absenteeism.
 Telecommuting - a work arrangement that allows employees to
work in their homes part time or full time, maintaining their
connection with the office through IT devices

Important concepts for job design
Inputs Job design Outcomes
· Human factors · Objectives

· Job content
· Tasks factors · Personal behavior
· Job requirements
· Technological · Intrinsic & extrinsic
· Job context
factors · Job satisfaction
Feedback loop
Environment

 INPUTS:
 Human factors related to individual characteristics such as personality, needs
and desires, attitudes and values, age, race, and gender, and also work-family
and career cycle needs. This factor recognizes that individual react differently
to jobs.
 Technological factors related to the work environment in which the individual
will perform his/her activities.
 Tasks factors related to work content which are clearly described in the
popular sources coming from US Department of Labor’s Occupational
Information Network: O*NET (http://www.onetonline.org/)
 JOB DESIGN:
 Job content – describes specific activities required in a job. O*NET provides
useful occupational descriptions. Example of the summary reports for:
Green Marketer occupation:
http://www.onetonline.org/link/summary/11-2011.01
Management analysts:
http://www.onetonline.org/link/summary/13-111.00 Your Logo
 JOB DESIGN:
 Job requirements – refers to education, experience, licenses, and
other personal characteristics that are expected of an individual to
possess. New developments in the field recommended to include
skills, abilities, knowledge, and other personal characteristics
required to performed the job content.
 Job context – describes the environment within the job is performed
and refers to physical demands and working conditions, the degree
of accountability and responsibility, the extent of supervision
required or exercised, and the consequences of error.
 OUTCOMES:
 Objective outcomes – are referring to the quantity and quality of
job outputs in terms of absenteeism, tardiness, and turnover. All of
these are defined based on the characteristics of the products, client,
or service for which job holder is responsible.
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 OUTCOMES:
 Personal behavior outcomes – the reaction of the person to the
work itself such as attending regularly or being absent, staying on the
job or quitting.
 Intrinsic and extrinsic outcomes:
 Intrinsic outcomes follow the persons work effort and do not
require the involvement of any other person: feelings of
responsibility, challenge, and recognition that results from job
characteristics such as variety, autonomy, identity, and
significance.
 Extrinsic outcomes follow the persons work effort in conjunction
with other factors or persons not directly involved in the job itself:
working conditions, pay, co-workers.
Extrinsic rewards reinforce intrinsic rewards in a positive direction when
the individual can attribute the source of the extrinsic reward to his own
effort.
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 OUTCOMES:
 Job satisfaction outcomes – depends on the level of intrinsic and
extrinsic outcomes and how the job holder view these outcomes.
People differ in the importance they attach to job outcomes. For some
people, responsibilities and challenges of the work may have negative
value depending on their education and prior experience.
Another difference include job involvement and commitment to the
organization in terms of the extent that:
1) work is a central life interest,
2) they actively participate in work,
3) they perceive work as central to self-esteem, and
4) they perceive work as consistent with self-concept.
These differences account for different level of job satisfaction.
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The elements of organization structure
 The organization structure is an abstract concept and relieves the pattern

of jobs and groups of jobs in an organization, and represents an
important cause of individual and group behavior.
 The organization structure consists of o blended of four managerial
decisions as follows:
 Decision on how to divide the overall task into smaller jobs of related
activities specialized activities and responsibilities (division of
labor).
 Decision on the bases by which to group the individual jobs 
groups containing jobs that relatively homogenous or heterogeneous
(departmentalization).
 Deciding on the appropriate size of the group reporting to each
superiorSpans of control are relatively narrow or wide (span of
control).
 Distributing the authority among the jobs meaning the right to make
decisions without approval by a higher manager and to accurately
define the obedience from designated other people (authority).
ORGANIC MECHANISTIC
MODEL MODEL
for Organization for Organization
Structure Structure
Division of labor
Low High
Departmentalization
Heterogeneous Homogeneous
Span of control
Wide Narrow
Authority
Descentralized Centralized
Elements for Organizational Structure
 Division of labor - the degree to which job are specialized. As societies

becomes increasingly industrialized and urbanized, the mass production
created the ability to obtain the economic benefits of specialized labor, and
the most effective means for obtaining specialized labor is through
organizations.
 horizontal specialization – work divided into different activities
according to the natural sequences (in manufacturing the work is
split in fabricating activities and assembly activities),
 Vertical specialization – the hierarchy of authority from the highest
level to the lowest level, and
 Personal specialties – work divided in the sense of occupational
and professional specialties.
 Departmentalization - necessity for coordinating the specialized jobs. The
jobs must be performed in a specific manner and sequence intended by
management when they were defined. The essential consideration for
creating
Your departments is determining the basis for grouping jobs: Your Logo
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Functional departmentalization Chief Executive
Characteristics:
 One superior Engineering Procurement Accounting
 Staff grouped by area of

specialization Staff Staff Staff
 High authority & clear accountability

Staff Staff Staff
 Low resource availability
 Organizational goals are sacrificed Staff Staff Staff
in favor of departmental goals

Product departmentalization
Characteristics:
 High degree of redundancy as each department performs its own research,
engineering, marketing etc.
 Staff grouped by area of specialization related to the product involved
 High expertise in researching, manufacturing, and distributing the product
line
 Authority, responsibility and accountability in product department that allows
management to coordinate actions
 High costs associated
Customer departmentalization: customers and clients are the basis for

grouping jobs: the organizational structures in hospitals are customer based:
emergency unit, intensive care unit, pediatric, operating units etc.
Matrix departmentalization – a balanced compromise between

functional and product departmentalization by overlaying a horizontal
structure of authority, influence, and communication on the vertical
structure.
The key characteristic is the dual authority system.
 Produce certain advantages for the organizations that:
a) require a fast response to the changes in at least two
environments such as technology and market,
b) face uncertainties that generate high information processing
requirements, and
c) must deal with financial and human resources constraints.
Characteristics:
 Facilitate the use of highly specialized staff and equipment
 Sharing the specialized resources with other units
 Allow a flexibility response to competitive conditions, technological
breakthroughs,
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Matrix departmentalization
Chief Executive
PMO Director Engineering Procurement Accounting
Project
Staff Staff Staff
Manager P1
Project
Staff Staff Staff
Manager P2
Project
Staff Staff Staff
Manager P3
 Span of control –how many people a manager can oversee depends of the
volume of interpersonal relationships a manager is able to handle. Three
factors appear to be important in determining the frequency and intensity of
relationships: required contact, degree of specialization, and ability to
communicate.
 Required contact – the work in research and development, medicine
and production require a frequent contact and a high degree of
coordination between superior and subordinates  narrow span of
control  the greater ambiguity is in an individual job, the
greater the need for supervision to avoid conflict.
 Degree of specialization – at the lower organizational level, the
manager can oversee more subordinates because work at the lower
level is more specialized and less complicated than at higher
levels of management.
 Ability to communicate - a clear and concise communication with
subordinates enable managing more people. Instruction, guidelines,
and policies must be communicated verbally to subordinates. The
need to discuss job-related factors influences the span of control.
 Authority – the right to make decisions without approval by higher level
downward in organization. Thus, the degree of delegated authority can be
relatively high or relatively low depends on the reasons behind.
 Decentralization of authority = High level of authority  encourages
a competitive climate, high autonomy, managerial creativity that
contribute to the adaptability and development of managers and
organizations.
 Centralization of authority = Low level of authority  involves losing
control over people  the necessity of reporting systems that inform of
the outcomes of decisions made at lower levels in the organizations.
Guidelines for delegating authority:
 The authority of routine decisions can be centralized.
 The competent individuals can have high autonomy in decision making
process
 Motivation and the commitment to the organization must accompany the
competency to create conditions for decentralization.
 The final decision on degree of authority must be made after a benefit cost
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analysis.
 Depending on the mixt of the fourth factors described: division of

labor, departmentalization, span of control, and delegation of
authority, there is two different types of models for organizational
structure: Organic model and Mechanistic model.
 Organic model – an organizational structure that provides

individuals with the sense of personal growth and motivation,
and facilitates satisfaction, flexibility, and development.
 Mechanistic model - an organizational structure that

assures high level of production and efficiency due to high
specialization of work, jobs grouped according to specialty,
centralized authority, and scalar chain principle (the route for
all vertical communication in organization).
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A comparative view of Organic and Mechanistic Models
Elements ORGANIC Model MECHANISTIC Model

· Low specialization and emphasis on · High specialization of
increased job range labor
· Decentralization due to delegation of · High authority and
Structural
authority and increased job depth accountability
characteristics
· Relatively informal – product and · Highly formalized –
customer as bases for hierarchical functions
departmentalization organization
· Motivation factors to
· Motivation factors to rise commitment induce fear and
Motivation and a favorable attitude toward the sanctions
organization and its goals · Unfavorable attitude
toward organization
· Information flows freely throughout · Information flows
Communication the organization: downward, upward, downward and tends to
and laterally. be inaccurate, distorted.
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A comparative view of Organic and Mechanistic Models
Elements ORGANIC Model MECHANISTIC Model

· Decentralized at all levels · Centralized, only at top
Decisions
through group process level
· Only top management is
· Employees involvement in
involved and group
Goals setting setting high and realistic
participation is
objectives
discouraged
· Dispersed throughout the
· Centralized
organization
Control · Emphasis on blaming for
· Emphasis on problem solving
mistakes
and self-control
· High and actively sought by · Low and passively
superiors sought by superiors
Performance · The recognized need for full · No commitment for
commitment for developing the developing the human
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human resources resources

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Organization Management

Assoc. Prof. Eng. Elena FLEACĂ, Ph.D., PMP

✓ I Module I. Understanding ORGANIZATION

✓ II Module II. Behavior within Organizations

✓ III Module III. The Structure and Design of Organizations

✓ IV Module IV. The Processes of Organizations

• What are organizations?

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 Organizational behavior follows the principles of human behavior:

 Organizations are social systems:

Every organization must respond, at least to:

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This is our journey during the

 To achieve organizational effectiveness, managers have to clearly

 Job Design – the process by which managers specify the contents,

 Organizational Design - the process by which managers create

 The processes give life to the organizations:

Inputs BEHAVIORAL Outputs

• Management processes assure the coherent functioning of the

• Behavioral processes assure the effective organizational

• Technical processes are in charge with transformation of raw

• Support processes help technical processes to fulfill their

The key challenges for managers - to create an working

 The necessity for managing arises whenever work is specialized and

• The Classical School of Management points out the 4 functions of

 Organizing Effective Performance

 The Henry Mintezberg managerial roles or organized sets of behavior.

INFORMATIONAL Roles Managerial Roles DECISIONAL Roles

Derived directly from the managers formal authority granted

1. The Figurehead role Representing the organization by showing the flag

Influencing or directing others by translating the authority into

Relates to decision-making requirements of the manager’s

2. The disturbance Acting as a problem – solver or conflict settler to keep small

Making accommodations with other units or other organizations

Conceptual Skills Technical Skills Interpersonal Skills

Managerial skills Description

· Cognitive ability such as logical reasoning, judgment,

The system theory approach enables managers to understand the

 Key aspects of system theory:

1. The survival of organization depends on its ability to adapt to the

Stakeholder Balancing stakeholders interests

INPUTS PROCESSES INPUTS

Various stakeholders Various stakeholders Various stakeholders

Management processes Sources of Effectiveness

Individuals Groups Organizations

Management of Digital Enterprise

 It is recognized that peoples behavior patterns do change, sometimes when

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Individual differences Descriptions

· A biological or learned trait that permits a person to do something

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Inductive reasoning • Forming and testing hypotheses directed at finding relationships

• Recalling perfectly for immediate reproduction a series of items

 the key differences consist of:

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 The Personality and behavior:

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· Being passive · Being assertive

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