Course Content

100 Marks 60 marks written exam and 40 marks

internal assessment.
Introduction to OB
Personality
Perception Attitude and Values
Motivation Concepts
Group Behaviour and Group Dynamics
Organisational Design
Leadership
Organisational Development

Reference Books
Understanding Organisational Behaviour Udai

Pareekh
Organisational Behaviour - Stephen P. Robbins
Organisational Behaviour Fred Luthans

Organizational Behaviour- Newstrom

Organizational Behaviour- Uma Sekaran

Course Content
100 Marks 60 marks written exam and 40 marks

internal assessment.
Introduction to OB
Personality
Perception Attitude and Values
Motivation Concepts
Group Behaviour and Group Dynamics
Organisational Design
Leadership
Organisational Development

Introduction to OB Learning
Objectives
Define Organisational Behaviour
Describe what Managers do
Explain the value of the systematic study of OB
List the major challenges and opportunities for the

managers to use OB concepts

Identify the contributors made by major
behavioural science discipline to OB

Describe why mangers require a

knowledge of OB

What Managers DO???

Planning
Organising
Leading
Controlling
MINTZBERS MANGERIAL ROLES

Activity 1
Write down 10 roles which makes
manager effective and
successful???
Time 5 Min

Organisational Behaviour
Organisational Behaviour is a field of study that

investigates the impact that individuals, groups, and

structure have on behaviour within organisations for
the purpose of applying such knowledge towards
improving an organisations effectiveness.
OB is concerned with the study of what people do in

an organisation and how that behaviour affects the

performance of the organisation.
It emphasises behaviour as related to concerns such

as jobs, , work, absenteeism, employment turnover,

productivity, human performance and management.

Activity - 2
Write two different incidents when you
predicted someones behaviour and
your prediction was correct and when
your prediction was wrong.
Time 5 Min

Few Questions to Ponder???

How many of have attempted to interpret what

you see?
How many of you predict behaviour / actions of
others?
How many times it was correct and how many
times it was wrong?
How well did you know those people whose
behaviour you predicted correctly?
How well did you know those people whose
behaviour you predicted wrongly?
How many times you felt that behaviour
displayed by others is irrational?

Replacing Intuition with

Systematic
Study
You watch what others do and try to explain to
yourself why they have engaged in their behaviour.
Unfortunately our casual or commonsense

approach to reading others can often lead to

erroneous predictions.
You can improve your ability by replacing your

intuitive opinions with a more systematic approach.

Behaviour generally is predictable if we know how

the person perceived the situation and what is

important o him or her

Replacing Intuition with

Systematic Study

There are differences between individuals however

there are certain fundamental consistencies

underlying the behaviour of all individuals that can
be identified
These fundamental consistencies are very

important because they allow predictability.

Examples
Behaviour is generally predictable and the

systematic study of behaviour is a means to

making reasonably accurate predictions.

Bases of OB
Psychology: The science or study of individual

human behaviour
Sociology: The study of group human behaviour
Social Psychology: Studies influences of people on

one another
Anthropology:Study of the human race, and culture
Political Science:Behaviour of individuals in

political environment

Bases of OB

Challenges and
Opportunities
for
OB
Responding to globalisation
Managing workforce diversity
Improving quality and productivity
Responding to skilled labour shortage
Improving customer service
Improving people skills
Empowering people
Coping with Temporariness
Stimulating Innovation and Change
Helping employees balance work/life conflicts
Improving ethical behaviour

OB Model
Organisation
System Level

Group Level

Individual Level

OB Model Individual
Level
Values
Attitude
Personality Types and Emotions
Perception and Individual Decision Making
Motivation

OB Model Group Level

Foundation of Group behaviour
Understanding work teams
Communication
Power and Politics
Leadership
Conflict and Negotiation

OB Model Organisation
System Level
Organisation Structure
Organisation Design

Organisation Development

Activity - 3

Case Study

Course Content
100 Marks 60 marks written exam and 40 marks

internal assessment.
Introduction to OB
Values and Attitude
Personality
Perception
Motivation Concepts
Group Behaviour and Group Dynamics
Organisational Design
Leadership
Organisational Development

Value Corporate
Value
The Operating philosophies or
principles that guide an
organisations internal conduct as
well as its relationship with its
customers, partners, and
shareholders.

Attitude
Attitudes are evaluative statements either

favorable or unfavorable concerning objects,

people, or situation.
Attitudes reflect how one feels about something.
Components of Attitude
Cognitive Component - Belief
Affective Component Emotion or feeling
Behavioural Component
In organisation, Attitudes are important because

they affect Job behaviour

Types Of Attitude
Job Satisfaction
Job Involvement
Organisational Commitment

Personality
Dynamic concept describing growth and

development of a persons whole

psychological system .
Personality is the sum total of ways in

which an individual REACTS and

INTERACTS with others.

What Determines The

Personality?

Heredity Environment Situation

Myers-Briggs Type Indicator

Type of Social
Interaction

Extrovert (E)

Preference for
Gathering Data

Sensing (S)

Preference for
Decision Making
Style of
Decision Making

Introvert (I)

Intuitive (N)
Feeling (F)
Thinking (T)
Perceptive (P)
Judgmental (J)

Myers-Briggs Type Indicator

Extroversion

Introversion
Interest Orientation

Talkative,

Shy,

Sociable,

Reserved,

Friendly,

Quite,

Outspoken

Myers-Briggs Type Indicator

Sensing

iNtuition
Information

Organised,
Focus Detail
Require more
information

Prefer to
interpret from
less information,
Able to take
foresee

Myers-Briggs Type Indicator

Feeling

Thinking

Decision

Reliability of
logical order
cause and
effect,

Priorities based
on personal
importance and
values,

Logic and
consistency

First look at the

people and
special
circumstances

Myers-Briggs Type Indicator

Judgment

Perception
Environment Orientation

Prefer to get
things
decided
systematic
planning
Less Flexible

Spontaneity
Curious
Stay open to
new
information,
Flexible

Conscientiousness
Extroversion

Agreeableness

Emotional
stability

Openness to
Experience

The Big Five Personality

Dimensions

Extroversion: Outgoing, talkative, sociable,

assertive

Agreeableness: Trusting, good natured,

cooperative, soft hearted
Conscientiousness: Dependable, responsible,
achievement oriented, persistent
Emotional stability: Relaxed, secure, unworried
Openness to experience: Intellectual, imaginative,
curious, broad minded

Major Personality Attributes

Influencing OB
Locus
of Control

Machiavellian
Personality

Risk
Propensity

Self-Esteem

Other Key
Personality
Attributes

Self
Monitoring

Type A and Type B

Personality

Locus of Control
Internal locus of control: belief that one
controls key events and consequences in ones
life.
External locus of control:
control Ones life
outcomes attributed to environmental factors
such
as luck or fate.

As per 11th Edition

JOB SUITABILITY
INTERNALS

EXTERNALS

Professional

Structured jobs

jobs
Managerial

Routine jobs

jobs

As per 11th Edition

Machiavellianism
Characteristics:
Pragmatic
Maintains emotional distance
Believes that ends can justify the
means
Manipulate more
Win more
Persuaded less
Persuade others more

As 11th per Edition

Job Suitability
For High Machs
Job requiring bargaining skills
Or that offer substantial rewards for

winning

Self Esteem
The degree to which a person likes or dislikes

himself
They believe that they possess the ability they
need to succeed at work
And more likely to choose unconventional jobs
than people with low self esteem
It is directly related to expectations for success
Two types
1. High Self Esteem
2. Low self Esteem

High Self Esteem

They believe that they possess the ability they

need to succeed at work

And more likely to choose unconventional jobs
than people with low self esteem
They will not be susceptible to the external
influences
They are more satisfied with their job

High Self
Monitoring

Capable of presenting striking

contradictions between their public persona

& private self
Capable of putting different faces for

different audiences

A & B Types of
Personality
Type A
Suffer high level of
stress
Quantity over
quality
Time
pressure/deadlines
Rarely creative
Poor decision
makers
Behavior is easier
to predict

Type B
Difficult to predict
behavior
Good decision
makers
Quality of work
No compromise on
health
Wiser than hasty
Creative /
innovative solutions
to same problem

Perception
and
Individual Decision
Making
TWELFTH EDITION

Perception
A process by which
individuals organize
and interpret their
sensory impressions
in order to give
meaning to their
environment.

Peoples
Peoplesbehavior
behavior isis
based
based on
on their
their
perception
perception of
of what
what
reality
reality is,
is, not
not on
on
reality
reality itself.
itself.
The
The world
world as
as itit isis
perceived
perceived isis the
the world
world
that
that isis behaviorally
behaviorally
important.
important.

Attribution Theory
When individuals
observe behavior, they
attempt to determine
whether it is internally
or externally caused.
Distinctiveness:
Distinctiveness:shows
showsdifferent
differentbehaviors
behaviorsin
in
different
differentsituations.
situations.
Consensus:
Consensus:response
responseisisthe
thesame
sameas
asothers
othersto
tosame
same
situation.
situation.
Consistency:
Consistency:responds
respondsin
inthe
thesame
sameway
wayover
overtime.
time.

Fundamental Attribution
Error
The tendency to
underestimate the influence
of external factors and
overestimate the influence of
internal factors when making
judgments about the
behavior of others.

Self-Serving Bias
The tendency for
individuals to attribute
their own successes to
internal factors while
putting the blame for
failures on external
factors.

Selective
Perception
People selectively
interpret what they
see on the basis of
their interests,
background,
experience, and
attitudes.

Halo Effect
Drawing a general
impression about an
individual on the basis of
a single characteristic
Contrast Effects
Evaluation of a persons characteristics
that are affected by comparisons with
other people recently encountered who
rank higher or lower on the same
characteristics.

Projection

Stereotyping

Attributing ones
own characteristics
to other people.

Judging someone on the

basis of ones
perception of the group
to which that person
belongs.

Specific Applications in
Organizations
Employment Interview
Perceptual biases of raters affect the accuracy
of interviewers judgments of applicants.

Performance Expectations
Self-fulfilling prophecy: The lower or higher
performance of employees reflects
preconceived leader expectations about
employee capabilities.

Specific Applications in
Organizations (contd)
Performance Evaluations
Appraisals are often the subjective (judgmental)
perceptions of appraisers of another
employees job performance.
Employee Effort
Assessment of individual effort is a subjective
judgment subject to perceptual distortion and
bias.

Problem
A perceived discrepancy
between the current state
of affairs and a desired
state.
Decisions
Choices made from
among alternatives
developed from data
perceived as relevant.

Perception
Perceptionofof
the
thedecision
decision
maker
maker

Outcomes

Steps in the Rational

Decision-Making Model
1. Define the problem.
2. Identify the decision criteria.
3. Allocate weights to the criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.

Organizational
Constraints
on
Decision
Performance Evaluation
Makers
Evaluation criteria influence the choice of actions.
Reward Systems
Decision makers make action choices that are
favored by the organization.
Formal Regulations
Organizational rules and policies limit the alternative

choices of decision makers.

System-imposed Time Constraints

Organizations require decisions by specific deadlines.
Historical Precedents
Past decisions influence current decisions.
561

Basic Motivation
Concepts

Motivation
The processes that account for an individuals
intensity, direction, and persistence of effort
toward attaining a goal.

Key
KeyElements
Elements
1.
1. Intensity:
Intensity:how
howhard
hardaaperson
persontries
tries
2.
2. Direction:
Direction:toward
towardbeneficial
beneficialgoal
goal
3.
3. Persistence:
Persistence:how
howlong
longaaperson
persontries
tries

Hierarchy of Needs Theory

There is a hierarchy of five
needsphysiological, safety,
social, esteem, and selfactualization; as each need is
substantially satisfied, the
next need becomes
dominant.
Self-Actualization
The drive to become what one is capable of
becoming.

Theory X
Assumes that employees
dislike work, lack ambition,
avoid responsibility, and
must be directed and
coerced to perform.
Theory Y
Assumes that employees like
work, seek responsibility, are
capable of making decisions,
and exercise self-direction and
self-control when committed to
a goal.

ERG Theory
There are three groups of core needs:
existence, relatedness, and growth.
Core
CoreNeeds
Needs
Existence:
Existence:provision
provision
of
ofbasic
basicmaterial
material
requirements.
requirements.
Relatedness:
Relatedness:desire
desire
for
forrelationships.
relationships.
Growth:
Growth:desire
desirefor
for
personal
personal
development.
development.

Concepts:
Concepts:
More
Morethan
thanone
oneneed
need
can
canbe
beoperative
operativeat
at
the
thesame
sametime.
time.
IfIfaahigher-level
higher-levelneed
need
cannot
cannotbe
befulfilled,
fulfilled,the
the
desire
desireto
tosatisfy
satisfyaa
lower-level
lower-levelneed
need
increases.
increases.

Need for Achievement

Need for Affiliation

The drive to excel, to

achieve in relation to
a set of standards, to
strive to succeed.

The desire for

friendly and close
personal
relationships.

Need for Power

The need to make
others behave in a
way that they would
not have behaved
otherwise.

nPow

nAch

nAff

Two-Factor (Motivation-Hygiene)
Theory
Intrinsic factors are related to job
satisfaction, while extrinsic factors are
associated with dissatisfaction.
Hygiene Factors
Factorssuch as company
policy and administration,
supervision, and salarythat,
when adequate in a job,
placate workers. When factors
are adequate, people will not

 Person compares their outcome/input ratio with

others outcome/input ratio.

Inputs refers to the characteristics which individual

bring with them to the job

Outcomes refers to what person gets from job in

terms of pay, promotions benefits and so on.

Inequity is defined as the perception that persons

outcome/input ratio is not equal to others

outcome/input ratio
Negative Inequity Under rewarded

Distributive Justice
Perceived fairness of the
amount and allocation of
rewards among
individuals.
Procedural Justice
The perceived fairness
of the process to
determine the
distribution of
rewards.

Expectancy Theory (Victor Vroom)

The strength of a tendency to act in a certain
way depends on the strength of an expectation
that the act will be followed by a given
outcome and on the attractiveness of that
outcome to the individual.

Expectancy Theory
Relationships

EffortPerformance Relationship
The probability that exerting a given amount of

effort will lead to performance.

PerformanceReward Relationship
The belief that performing at a particular level will

lead to the attainment of a desired outcome.

RewardsPersonal Goals Relationship
The degree to which organizational rewards satisfy

an individuals goals or needs and the

attractiveness of potential rewards for the
individual.

Team
Dynamics

Group(s)
Two or more people who interact and influence
each other, are mutually accountable for
achieving common goals associated with
organisational objectives.
Formal Group

Informal Group

A designated work
group defined by the
organizations
structure.

A group that is neither

formally structured now
organizationally
determined; appears in
response to the need for
social contact.

 Departmental Teams Functional teams

Self-Directed Teams
Advisory teams
Task Force (Project) Teams multi-skilled,
temporary teams whose assignment is to solve a
problem, realize an opportunity or design a product
or service
Skunworks Teams Usually located away from the
organisation, relatively free of its hierarchy. E.g. R &
D Dept.
Virtual Teams Operates across space, time, and
organisational boundaries.

Challenges of Teams
Process Losses
Brooks Law E.g.. Apples Professional Photography

Software Program, Aperture

Performance

How to Minimize Social Loafing

Ex
pe
ct
ed

Social Loafing
f

Smaller Teams
oa
l
to
e
Specialize Task
u
d
(
l
a
Measure Individual Performance
tu
c
A
Selection of employees for a team
Form

)
g
in

Group Size

Team Effectiveness
Organisational and Team

Environment
Team Design
Team Processes

Organisational and Team

Environment
Reward
Communication
Organisational Structure
Organisational Leadership
Physical Space

Team Design Elements

Task Characteristics
Task Interdependence extent to which team
members must share information
Pooled Interdependence
Sequential Interdependence
Reciprocal Interdependence
Team Size
Team Composition
Co-operating Share resources
Coordinating Align work with others
Communicating Share information
Comforting Show empathy, Build confidence
Conflict Resolving
Team Diversity

Classes
Classesof
ofNorms:
Norms:

Team Processes
Performance
Performancenorms
norms
Team Development
Forming
Storming
Norming
Performing
Adjourning

Team Roles
Team Building
Team Norms
Team Cohesion
Team Trust

Appearance
Appearancenorms
norms
Social
Socialarrangement
arrangement
norms
norms
Allocation
Allocationof
ofresources
resources
norms
norms
Increasing
Increasinggroup
groupcohesiveness:
cohesiveness:
1.
1. Make
Makethe
thegroup
groupsmaller.
smaller.
2.
2. Encourage
Encourageagreement
agreementwith
with
group
goals.
group goals.
3.
3. Increase
Increasetime
timemembers
membersspend
spend
together.
together.
4.
4. Stimulate
Stimulatecompetition
competitionwith
withother
other
groups.
groups.
5.
5. Give
Giverewards
rewardsto
tothe
thegroup,
group,not
not
individuals.
individuals.

Team Decision Making Constraints

Time Constraints
Production Blocking Opportune time to speak
Evaluation Apprehension
Groupthink value consensus at the price of

decision quality
Group Polarization or Group Shift

Group / Team Decision

Making
Strengths

Weaknesses

More complete

More time

information
Increased diversity
of views
Higher quality of
decisions (more
accuracy)
Increased
acceptance of
solutions

consuming (slower)
Increased pressure
to conform
Domination by one
or a few members
Ambiguous
responsibility

Team Structure to
Improve Decision Making
Interacting
Constructive Conflicts
Brainstorming
Electronic Brainstorming
Nominal Group technique

Power and Politics

TWELFTH EDTION

Power
A capacity that A has to
influence the behavior of B so
that B acts in accordance with
As wishes.
Dependency
Bs relationship to A
when A possesses
something that B
requires.

Formal Power
Is established by an individuals position in an
organization; conveys the ability to coerce or
reward, from formal authority, or from control
of information.
Coercive Power
A power base dependent on
fear.
Reward Power
Compliance achieved based
on the ability to distribute
rewards that others view as
valuable

Legitimate Power
The power a person receives as a
result of his or her position in the
formal hierarchy of an
organization.
Information Power
Power that comes from
access to and control
over information.

Expert Power
Influence based on
special skills or
knowledge.
Referent Power
Influence based on
possession by an individual
of desirable resources or
personal traits.
Charismatic Power
An extension of referent power stemming
from an individuals personality and

Dependency: The Key

To
ThePower
General Dependency Postulate
The greater Bs dependency on A, the greater the

power A has over B.

Possession/control of scarce organizational

resources that others need makes a person

powerful.
Access to optional resources (e.g., multiple

suppliers) reduces the resource holders power.

What Creates Dependency

Importance of the resource to the organization
Scarcity of the resource
No substitutability of the resource

Power Tactics: Ways in which individuals translate power

bases into specific actions.

Ways of using power tactics
Reason: Use facts and data to make a logical

presentation of ideas
Friendliness: Being friendly before making a request
Coalition: Getting the support of other people to back

up the request
Bargaining: Use negotiations through exchange of

favours.
Assertiveness: Use direct and forceful approach
Higher Authority: Getting support of Higher levels
Sanctions: Preventing promising salary, promotions

Political Behavior
Activities that are not required as part
of ones formal role in the organization,
but that influence, or attempt to
influence, the distribution of
advantages or disadvantages within
the organization.

Factors That Influence Political

Behaviors
Organisational Factors:
Unclear performance

evaluation
Low trust
Role ambiguity
High performance

pressure
Win-lose approach to

reward allocation
Organisational

Culture

Individual Factors:
High personal need

of getting power
High Machiavellian

personality
Perceived Job

alternatives
Insecurity
Expectations of

success by doing
politics

Avoiding
AvoidingWork
Work: :

Avoiding
AvoidingBlame
Blame: :

Buck
Buckpassing:
passing:Transferring
Transferring
Responsibility
Responsibility

Playing
Playingsafe:
safe:Neutral
Neutralposition
position
ininconflict,
conflict,not
notshowing
showing
opinion
opinionand
andexpressions
expressions

Playing
Playingdumb:
dumb:Showing
Showing
ignorance
ignoranceand
andInability
Inability
Stretching:
Stretching:Prolonging
Prolongingaa
task
task
Stalling:
Stalling:More
Moresupportive
supportive
publicly
publiclywhile
whileactually
actually
doing
doinglittle
little

Justifying:
Justifying:Developing
Developing
explanations
explanations
Scapegoating:
Scapegoating:Placing
Placingthe
the
blame
blameon
onexternal
externalfactors
factors
Misrepresenting:
Misrepresenting:
Manipulations
Manipulationsofofinformation
information

Impression
Management
The process by
which individuals
attempt to control
the impression
others form of them.

IM
IM
Techniques
Techniques::
Conformity
Conformity
Excuses
Excuses
Apologies
Apologies
Self-Promotion
Self-Promotion
Flattery
Flattery
Favors
Favors

Foundation of
Organizational
Structure
TWELFTH EDITION

Organizational
Structure

Key
KeyElements:
Elements:
Work
Workspecialization
specialization

How job tasks are

formally divided,
grouped, and
coordinated.

Span
Spanof
ofcontrol
control
Centralization
Centralizationand
and
decentralization
decentralization

Departmentalization
Departmentalization
Chain
Chainof
ofcommand
command

Formalization
Formalization

Work Specialization
The degree to which tasks in the organization
are subdivided into separate jobs.
Division
Divisionof
oflabor:
labor:
Makes
Makesefficient
efficientuse
useof
ofemployee
employeeskills
skills
Increases
Increasesemployee
employeeskills
skillsthrough
throughrepetition
repetition
Less
Lessbetween-job
between-jobdowntime
downtimeincreases
increases
productivity
productivity
Specialized
Specializedtraining
trainingisismore
moreefficient.
efficient.
Allows
Allowsuse
useof
ofspecialized
specializedequipment.
equipment.

Departmentalization
The basis by which jobs
are grouped together.

Grouping
GroupingActivities
Activities
By:
By:
Function
Function
Product
Product
Geography
Geography
Process
Process
Customer
Customer

Authority
The rights inherent in a managerial position to
give orders and to expect the orders to be
obeyed.
Chain of Command
The unbroken line of authority that extends
from the top of the organization to the lowest
echelon and clarifies who reports to whom.
Unity of Command
A subordinate should have only one superior to
whom he or she is directly responsible.

Span of Control
The number of subordinates a manager can
efficiently and effectively direct.
Concept:
Concept:
Wider
Widerspans
spansof
ofmanagement
managementincrease
increase
organizational
organizationalefficiency.
efficiency.
Narrow
NarrowSpan
SpanDrawbacks:
Drawbacks:
Expense
Expenseof
ofadditional
additionallayers
layersof
ofmanagement.
management.
Increased
Increasedcomplexity
complexityof
ofvertical
verticalcommunication.
communication.
Encouragement
Encouragementof
ofoverly
overlytight
tightsupervision
supervisionand
and
discouragement
discouragementof
ofemployee
employeeautonomy.
autonomy.

Centralization
The degree to which decision making is
concentrated at a single point in the
organization.
Decentralization
The degree to which decision making
is spread throughout the organization.
Formalization
The degree to which jobs
within the organization are
standardized.

Simple Structure
A structure characterized by a low degree of
departmentalization, wide spans of control,
authority centralized in a single person, and
little formalization.
AASimple
SimpleStructure:
Structure:
Jack
JackGolds
GoldsMens
MensStore
Store

Bureaucracy
A structure of highly
operating routine tasks
achieved through
specialization, very
formalized rules and
regulations, tasks that are
grouped into functional
departments, centralized
authority, narrow spans of
control, and decision
making that follows the
chain of command.

Matrix Structure
A structure that creates dual lines of authority
and combines functional and product
departmentalization.
Key
KeyElements:
Elements:

+
Gainsthe
theadvantages
advantagesof
offunctional
functionaland
andproduct
product
+Gains
departmentalization
departmentalizationwhile
whileavoiding
avoidingtheir
their
weaknesses.
weaknesses.

+
Facilitatescoordination
coordinationof
ofcomplex
complexand
and
+Facilitates

interdependent
interdependentactivities.
activities.
Breaks
Breaksdown
downunity-of-command
unity-of-commandconcept.
concept.

(Director)

(Dean)

Employee

Mechanistic Model
A structure
characterized by
extensive
departmentalization,
high formalization, a
limited information
network, and
centralization.

Organic Model
A structure that is flat, uses cross-hierarchical
and cross-functional teams, has low
formalization, possesses a comprehensive
information network, and relies on participative
decision making.

Innovation Strategy
A strategy that emphasizes the introduction of
major new products and services.
Cost-minimization Strategy
A strategy that emphasizes tight cost
controls, avoidance of unnecessary innovation
or marketing expenses, and price cutting.
Imitation Strategy
A strategy that seeks to move into new
products or new markets only after their
viability has already been proven.

Strategy

Structural Option

Innovation

Organic: A loose structure; low

specialization, low formalization,
decentralized

Cost minimization
Mechanistic: Tight control;
extensive work specialization,
high formalization, high
centralization
Imitation

Mechanistic and organic: Mix of

loose with tight properties; tight
controls over current activities
and looser controls for new