LEADERSHIP AND ORGANISATIONAL

BEHAVIOUR (PBA4806)

Prof AA OKHAREDIA
B .sc (Hons) M.sc(Ibadan) MBA(North
West) Ph.D(Vienna) LLB (UZ) LLM
(Natal) LLD (UNISA) PhD (WITS)

Advocate of the High Court of South Africa

 THE CONCEPT OF
ORGANISATIONAL BEHAVIOUR

• It is the study of human behaviour in an

organisation.
• It deals with the interface between human
behaviour and the organisation.
• It deals with the organisation itself and the
environment.
 THE NATURE OF ORGANISATIONAL BEHAVIOUR
Environment

Human behaviour in organisational setting

The individual organisational interface

The organization

Environment
WHY STUDY ORGANISATIONS? (IMPORTANCE)

• Agent of socialization
• People are raised and educated in
organisation
• People acquire most of their material
possessions from the organisation
• Our activities are regulated by various
organisation
• We are born and buried within the
organisation
• Most adults spend the better part of their lives
 ORGANISATIONAL BEHAVIOUR AND THE
MANAGEMENT PROCESS
• Managers engage in the four basic functions of:
 Planning- Strategic issues
 Organising- Process of designing jobs into unit and
establishing pattern of authority between jobs and
units.
 Leading- Process of motivating members of the
organisation to work together
 Controlling- The process of monitoring and correcting
the actions of the people to achieve the goals of the
organisation
 BASIC MANAGERIAL ROLES IN ORGANISATIONS

CATEGORY ROLE EXAMPLE

Interpersonal Figurehead Attend employee

retirement
ceremony
Leader Encourage
productivity
Liason Negotiate price with
supplier

Informational Monitor Scan Business Week

for information
about competition
Disseminator Send out memos
showing new
policies
 CRITICAL MANAGEMNET SKILLS

• Technical Skills- required for a specific task

• Interpersonal Skills- required to motivate
employees
• Conceptual Skills- to think in abstract and
foresee the future market
• Diagnostic Skills- ability to understand cause-
and-effect relationship
 INTERDISCIPLINARY NATURE IN STUDYING
ORGANISATIONAL BEHAVIOUR
interdisciplinary
Psychology • Motivation
• Personality
• Individual behaviour
Sociology • Social system\social structure
• Conflict management
• cultural issues
Anthopology • Cultural enviroment
Political science • Political behaviour
• The use of power
• Decision-making
• Interest group
• Coalition formation
Industrial engineering • Productivity and efficiency in the
 ORGANISATIONAL BEHAVIOUR- Levels of
outcome

INDIVIDUAL-LEVEL GROUP-LEVEL OUTCOMES ORGANISATION-LEVEL

OUTCOMES OUTCOMES
PRODUCTIVITY ORGANISATINAL EFFECTIVENESS
PRODUCTIVITY
PERFORMANCE PRODUCTIVITY
PERFORMANCE
ABSENTEEISM ABSENTEEISM
NORMS
TURNOVER FINANCIAL PERFORMANCE
COHESIVENESS
ATTITUDES SURVIVAL
STAKEHOLDER
STRESS SATISFACTION
CONTEXTUAL PERSPECTIVE TO ORGANISATIONAL BEHAVIOUR
System vs Situational perspective

SYSTEMS SITUATIONAL
PERSPECTIVE

SYSTEM SITUATIONAL
PERSPECTIVE PERSPECTIVE

INPUT Contingent or situational

TRANSFORMATION ways of responding
OUTPUT

UNIVERSAL
APPROACH INTERACTIONISM
PARSPECTIVE
“One best way of
responding” How people select interpret and
choose various situations
Cause-and-effect
Analysis
Dynamic Enviroment

DIMENSIONS
OF DIVERSITY

Primary Secondary dimensions

dimensions to of diversity (education
diversity (age, background,
race, gender, geographical location,
ethnicity, religious beliefs,
disability, etc.) income, etc)
 THE NATURE OF LEADERSHIP
A set of
characteristics
attributed to
those who are
PROCESS able to influence
activities
successfully in the
LEADERSHI organisation
P The use of
noncoercive
influence to direct
PROPERTY and coordinate
activities to meet
organisational
goals
• Leadership involves neither force or coercion
• A leader should not rely solely on force and
formal authority to direct the behaviour of
subordinates
• A leader has the ability to influence
perceptions, beliefs and attitude of others
• Leadership and management are related but
distinct phenomena
 LEADERSHIP THEORIES- VARIOUS
APPROACHES
The trait approaches to leadership

• These are leaders with some unique set of qualities that

distinguished them from their peers.
• These unique qualities include intelligent dominance,
self-confidence, energy task-relevant knowledge, height
(talk), body shape etc.
• Due to the fact that the above qualities control not be
investigated the trait approach has been abandoned
several decades ago
 BEHAVIOURAL APPROACHES

• The purpose of the behavioural approach was to determine

what behaviour are associated with effective leadership.

• The University of Michigan investigated this problem and

identified two basic forms of leadership behaviour, namely;
job centered behaviour.

• The job- centered leadership behaviour focus on efficient

completion of the task with close attension to the work of the
subordinates.

• Employee- centered leader behaviour focus on effective work

groups with high performance goal (Human side)
 LEADERSHIP GRID:
• The purpose of this approach is to provide a means of
evaluating leadership styles and then training
managers to move towards an ideal style of
behaviour.

• This approach helps to train managers using

organisational development techniques that will
benefit the people and the production process.

• This approach will assist managers in achiving the

ideal style of behaviour.
 SITUATIONAL LEADERSHIP MODELS

• This model assumes that appropriate leadership behaviour

varies from one situation to another.

• The purpose of the situational theory is to identify key

situational factors and to specify how they interact to
determine appropriate leader behaviour.

• This theory is of the view that elements of any given situation

would affect the success of any given leadership style.
 THE LEAST PREFERRED COWORKER (LPC)
THEORY OF LEADERSHIP
• This theory attempts to explain and reconcile both the leaders
personality and the complexities of the situation.

• The theory contends that a leaders effectiveness depends on

the situation and as a result, some leaders may be effective in
one situation or organisation but not in another.

• The major criticism against this theory is that there are no

sufficient empirical research to support the above
assumption.
 THE PATH-GOAL THEORY OF
LEADERSHIP
• This theory as developed by Martin Evans and Robert House
focuses on the situation and leader behaviour rather than on
fixed traits of the leader.

• this argues that the subordinates are motivated by their leader

to the extent that leader influence their expectancies in terms
of their desired rewards.

• This theory identified four kinds of leader behaviour which is

illustrated below
 DYNAMIC ENVIROMENT
GLOBALISATION & DIVERSITY

GLODALISATION DIVERSITY
DIVERSITY (CULTURE) DIVERSITY (WORKFORCE)

• Individualism vs collectivism- • Steriotypes

USA/Japan
• Power disatance/ orientation to
authority- • Prejudice
• Uncertainty avoidance/
preference for stability
(Hofstede)
• Long term vs short term
orientation
DYNAMIC ENVIREMENT

ETHICS AND
CORPORATE
GOVERNANCE

NEW
TECHNOLOGY EMPLOYMENT
RELATIONS

CHANGING
WORLD OF
WORK
 VROOMS DECISION TREE APPROACH
• This approach attempts to prescribe how much participation
subordinates should be allowed in decision making
• This approach attempts to prescribe a leadership style appropriate
to a given situation
• It also assumes that the same leader may display different
leadership styles.
• The leader determines an appropriate decision style that specifies
the amount of subordinate participation
• The five styles are
 To decide
 To delegate
 To consult (individually)
 To consult(group)
 Facilitates group member discussions as members make the
decisions
THE LEADER-MEMBER EXCHANGE (LMX) MODEL

•This model suggests that leaders form unique

independent relationships
LEADER with each of their
subordinates and it is illustrated below.
Subordinates Subordinates subordinates

TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP

• this is a bureaucrat who applies the rules

• He or she relies heavily on policies and rules
• Lack of initiative
• Good at routine and regimented activities
 TRANSFORMATIONAL LEADERSHIP
•Focuses on the basic distinction between leading for change and leading for
stability
•The leader recognises the need for change , to create a vision to guide that change
•To execute the change effectively

CHARISMATIC LEADERSHIP

•Charasmatic leadership is a powerful force in the organisation

•It is a form of interpersonal attraction that inspires support andcharisma
acceptance
•It is based on personal charisma
•Highly charismatic supervision will be more successful influencing subordinate
behaviour then a supervisor who lacks
 RECENT THEORIES OF LEADERSHIP

• Ethical Leadership
• Strategic Leadership
• Cross cultural Leadership
• Virtual Leadership.
 NATURE OF CONFLICT IN ORGANISATIONS
COMMON FORMS AND CAUSES OF CONFLICT
• Conflict is a process resulting in perception of two parties that they are
working in opposition to each other in ways that result in feelings of
discomfort between the parties.
• Task conflict: this occurs when the parties agree on the goals and content
of the work but disagree on how to achieve the goals and actually do the
work.
• Relationships conflict: this occurs when the parties have interpersonal
issues and hold different opinions or values on the issue.
• Legal conflict: this may arise when there are differences in perceptions
between organisations. This can occur in contract terms between a
supplier of raw materials and the organisation that receives raw material.
There could be a breach of contract which leads to legal conflict.
 CAUSES OF CONFLICT

• Interpersonal conflict: this is a conflict between two or more individuals as a

result of different perception, attitude and goals
• Intergroup conflict: this occurs when there is a conflict between two or more
organisational groups within the same organisation, for example Department of
Human Resources and Finance department.
• Conflict between organisation and enviroment: this occurs between two
different organisations or public entities, for example when a manufacturer
claims some goods of quality of his product which the consumer did not find.
This can lead to conflict.
• Task Interdependance: this occurs when two different departments depend so
much on one another and this interdependence can result in conflict in terms
of managing the situation.
 TRANSFORMATION OF CONFLICT
Aggravator and
Moderator
Degree of transformation
Dispute

Grievance

Trigger

Tolerable conflict

TIME

• A grievance is a partly formalised expression of individual or collective conflict – usually dissatisfaction

in respect of workplace related matters.
• A dispute is a highly formalised manifestation of conflict in the in relation to workplace related matters
which may include the failure to address a grievanve.
• Later conflict + Power = Manifest conflict
 AGGRAVATING FACTORS
• Past unresolved disputes and/or grievances

• Failure to communicate

• Lack of legitimate procedure

• Poor interpersonal skills

• Lack of mutual trust and respect

 MODERATING FACTORS
• Commitment and good faith
• Cohesive constituencies
• Correct choice of process
• Correct choice of process
• Good dispute resolution skills
• Effective communication and exchange of
information
• Trust and tolerance
 MANAGING INTERPERSONAL CONFLICT
• Team Building: the team building activities are
intended to enhance the effectiveness and
satisfaction of individuals who also work in groups or
teams and to promote overall group effectiveness.
• Survey Feedback: this approach occurs when each
employee responds to a questionnaire intended to
measure perceptions and attitudes, (for example
satisfaction and supervisory style)
• Third-Party Peacemaking: this third party peace
making can be appropriate on the individual, group or
organisational level. The third party plays the role of a
conciliator or a mediator to resolve the conflict
 PART TWO

Leadership and organizational

Behaviour
Individual value, perceptions and Reactions
 Attitudes in organization

• Attitudes includes beliefs and feelings that an individual has about specific
situation
• Attitudes are the mechanism through which most people express their feelings
• Attitudes are formed by a variety of forces which include the following;
• Personal values
• Personal experiences
• Individual personalities
• Personality traits
• Agreeableness
• Conscientiousness
• Neuroticism
• Extrovert and Introvert
• Attitudes are not as stable as personality attributes
 Attitude Formation

Cognition
Affections
(Knowledge you have about (Feelings)
something )

Behavioural intention
(guiding your behavior)

• Cognitive Dissonance: this occurs as a result of incompatibility or

conflict between behavior and an attitude or between two different
attitudes
 Attitude Change

• Attitudes are not as stable as personality attributes

• Attitudes can change when the object of the attitude becomes
less important or less relevant to the person

• Deeply rooted attitudes often resist change

• In the workplace environment, as big salary increases, this often
change attitude to become more positive
 Values in Organizations

• Values and emotions are important elements of individual

behaviour in organisations

• Values are ways of behaving or end-states that are desirable to a

person or to a group

• Values can be conscious or unconscious

• Individual values can be reshaped by major life events

• Work value influence individual performance

 Types of Values

• Terminal values: This reflects long-term life goals which includes

happiness, a secure family and prosperity.
• Instrumental values: this is our preferred means of achieving our
terminal values.
• Intrinsic work value: Employees who want challenging job to be
able to learn new things
• Extrinsic work value: Employees who work hard to gain a
recognized status coupled with other benefits
 Conflicts among Values

• Intrapersonal value conflict: This occurs between the

instrumental value of ambition and the terminal value of
happiness.
• Interpersonal value conflict: this occurs when two different
people hold conflicting values and this often results in
personality clashes and other disagreement in organization.
• Individual organization value conflict: this is when as employee’s
values conflict with the values of the organization.
 Perception in Organisations

• Perception – The set of processes by which an individual becomes aware

of a situation and interprets information about the situation or
environment
• Stereotyping: This is the process of categorizing or labelling people on
the basis of a single attribute
• Selective Perception; This is the process of screening out information that
we are uncomfortable with or that contradicts our belief
• Attribution theory; This suggests that we attributes causes to behaviour
based on our observations of certain characteristics of that behaviour
The Nature of Motivation
• Motivation is the set of forces that causes people to engage in one
behaviour rather than some alternative behaviour
• Motivation + Ability + Environment = Performance
• A deficiency in any one of these areas hurts or affect performance
• Motivation is the most difficult of the three elements to manage
Early Perspectives on Motivation
• The traditional Approach;
– Fredrick Taylor developed the Scientific management approach.
– The basic aim of Taylorism is the increase of organizational productivity at workshop
level
– This could be done be examining performance in a scientific way
– Human activities are governed by definite regularities, laws which can be discovered by
observation and experiment
– The time and motion studies and job analysis are the main tools to be used.
– For the above to be activated there must be co –operation between the managers and the
workers
– This will eliminate class conflict and therefore trade unions become obsolete
– Rewards, especially better pay will motivate the workers
– This approach has been criticized on the grounds that Taylors is treating human beings
as machines
The Human Relations Approach
• This approach become very popular in 1930’s and it become very
famous with the Hawthorne experiment and the work of Elton Mayo.
• The approach assumed that employees want to feel useful and important,
that employees have strong social needs and that these needs are more
important than money in motivating employees.
• Employees must have self – direction and self – control in carrying out
routine activities.
• Management task is to encourage participation and to create a work
environment that makes full use of the human resources available.
 Abraham Maslow’s hierarchy of Needs Theory
General Example Organizational Example

Challenging Job
Achievement

Status Job Titles

Esteem Needs

Friendship Belongingness Needs Friends in Work Group

Stability Security Needs Pension Plan

Sustenance Physiological Needs Base Salary

The Existence (E), Relatedness ( R) and Growth (G) Theory of
Motivation
•This theory extend Maslow’s theory of motivation and used Maslow analysis
•It also has its own hierarchy of need which must be attended to after the satisfaction of one level.

•Existence- Physiological and security needs

•Relatedness– Belongingness and esteem needs
•Growth- Self-esteem and self –actualization

Both relatedness and growth needs may motivate a person at the same time and this is different from Maslow analysis.

Individual remains at the next level until the needs at that level are satisfied.
The Two – Factor Theory

• This theory identifies motivation factors which affect satisfaction, and

hygiene factors which determine dissatisfaction.

• It plays the role in managerial thinking about motivation and much

research is needed to be done in this area
The Equality Theory of Motivation

• This theory is based on the relatively simple premise that people in

organizations want to be treated fairly

• It considers the input that people put into organization and output which
include the pay people receives must be fair if they are to be motivated
Reinforcement Theory of Motivation

• Positive reinforcement involves the use of reward.

• The general nature of the stimulus

Managing and leading teams and groups

• Types of groups and teams

– Workgroups: These are formal groups established by the organization to do
its work
• Commend group: This is a relatively permanent formal group with
functional reporting relationships and is usually included in the
organizational chart or organogram
• Affinity Groups: These are collections of employees from the same
level in the organization who meet on a regular basis to share
information, capture emerging opportunities, and solve problems
• Informal Groups: They are formed by their members and consists of
friendship groups which are relatively permanent and interest groups
may be shorter-lived and are organized around a common activity or
interest.
• Group performance is usually influenced by group composition, group
size, group norms and group cohesiveness.
Managing and leading teams and groups

Types of groups and teams

Teams: Teams are interdependent collection of at least two individuals who share a common
goal and share accountability for the team as well as their own outcomes
• Functional teams: The members of functional teams come from the same
department or functional area. A team of marketing employees and a team of finance
employees are examples.
• Cross – Functional teams: These teams have members from different departments
or functional areas. For example top management teams working with different units
of the organization.
• Problem – solving teams: They are teams established to solve problems and make
improvements at work.
• Self-directed teams: This team sets their own goals and pursue them in ways
decided by the team.
• Venture – teams: They are teams that operate Semi-autonomously to create and
develop new products
• Virtual teams: Are teams of geographically and/or organizationally dispersed co-
workers who communicate using the internet and other information technology
• Team trust is very important for the team to succeed
Behaviour change at Organizational Level

– Forces for change

– People
• Work diversity
• Senior Citizens
• Different generation group demands for different things

– Technology
• Digital Revolution – (Kodak experience)
• The use of smart phones
• Internet
• New technology affect organization in many ways
Behaviour change at Organizational Level

– Forces for change

– Information processing and Communication
• The use of computers as a means of processing data
• Satellite systems for data transmission (Portable computer, pocket size
television, camera)
• Social networking through Facebook, skype and Twitter)

– Competition
• International trade agreements
• Unequal exchange
• Global market through internet create competition
 Processes for planned organization change:

The Lewin’s Process Model

Unfreeze Refreeze
Change (Assurance of
Old (Awareness of (Movement permanent
State need for from old to change)
New State
change) new state) Follow up with
by training

• Change is a systematic process of transition from an old way of doing things to a new way
The Continuous change process model

Recognize and Problem –

Forces for define solving
change problems process

Measure,
Implement Transition
Evaluate,
the change Management
Control

Process of planning,
organizing and
implementing change
THANKS