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ORGANIZATIONAL
BEHAVIOUR
Dr. Pramod M
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What is mgmt
Management knowing exactly what u want to do
it is done in the cheapest and best way.
4 aspect-
economic performance-
Directing people-
Decision making-
Executive functions-
high operation efficiency
making people work
making decisions
POSDC
Art of
Seeing
that
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Nature and characteristics of
mgmt-
Nature and
characteristics
of mgmt-
It is an abstract phenomenon- cannot beseen or touched
Mgmt is a process- series of interrelated
activities in sequence-POSDC
Integrates activities
Goal oriented- achieves goals with givenresources and time
Working with and through people-leading and motivating people
Decision making- success depends onquality and timeliness of decisions
Universal and multi disciplinary
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Is mgmt an art or science?
ART
SCIENCE
practical knowhow
Needs experience
Needs creativity
Personal element knowledge developedsystematically
Fact based
Impersonal and unbiasedresults
Clarity of concepts
Empirical evidence
Universal
Cause and effectrelationship
ARTFUL
SCIENCE
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Levels in mgmt
Top level
BOD, CHAIRMAN,CEO’S:- Determine objectives, policies, rulesand procedures , Analyses and evaluate businessenvironment and responses , Finalize strategic decisions ,Decide structure , Deal with legal , financial and tech issues
Middle level
upper middle level and lower middle level:- Dept heads-efficient functioning of their respective dept, they planoperations, guide employees, coordinate efforts, manageresources, maintain relations , Deputy mgrs- they assist UML
Bottom level
Supervisor, sales officer :- more relevant to production/operation and marketing activities , Prepare and implementplans for day to day activities , Maintain discipline , Managematerials and facilities , Report performance and problems
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Classification of mgmt functions-Planning-
planning function,thinking process,
determines what to do,why to do, when to do,how to do, who to do,best solution amongalternatives, forecastingand DM
Organizing-
depends on the type ofplan, defines thestructure, people, task,responsibility, authorityof a particular plan.Determines theactivities, groups.prepares the
organization charts andmanualsStaffing-
filling the positionscreated by organizing,acquiring , maintainingand developing HR for
the smooth function ofvarious operations,manpower planning,selection andrecruitment, T and D,wage and salarydetermination,
promotion and transfer,performance apprise.
Directing-instructing, guiding,inspiring, supervisingpeople to make themwork, leadershipqualities, motivation,communication ,supervising arenecessar .
Controlling-
critical/ regulatoryfunction, ensures theplan has beenimplementedsuccessfully and the
objectivesaccomplished.Corrective actions aretaken. Planning ismeaningless without aproper control andcontrolling is notpossible without a good
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Mgmt objectives and roles
Mgmt objectives
Social,
national.
human
economic
Managerial roles views of MINTZBERG
10 rolesin 3 sets
Decisional
Informational
Interpersonal
entrepreneur,disturbance handler,resource allocator,
negotiator
monitor, disseminator,spokesperson
figurehead, leader,liaison
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Schools of mgmt thought
The different views on mgmt given by experts are known as
mgmt thought and the teams of persons who develop thesethoughts are known as schools of mgmt
Classification of
SMT
Modern school
Neo classical school
Classical school
scientific mgmt, administrativemgmt
behavioral and humanrelations school
system school, social systemand social tech system school,contingency school
Others
empirical, mgmt process,decision theory ,
mathematical, HR school9/2/2013 8
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Classical School
Contributors-
FW Taylor, Henri Feyol, Gilberth, Gantt
Scientific mgmt
Classical school-
FW Taylor considered as thefather of scientificmgmt
Gantt chart by Gantt- graphicalrepresentation of duration oftasks against time.
Work study and psychology ofwork by gilberth,
division of labor, time studytechniques, quality control bycharles baggage,
importance of productivity andway to improve it by FW tylor.
FW tylor was the first to definemanagerial problem in ascientific way.
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Elements of SMSeparation of planning anddoing-
Elements
of SM
Job analysis- best way ofdoing a job
Differential wage system-
Cooperation , not chaotic individualism
Harmony in group not discord
Standardization
Scientific selection andtraining
Mutual revolution-
Financial incentives
Economic perspective-
Replacing rule of thumb with science
functional foremanship
Time study, motion study,method study, rest andfatigue study
associate wages with
productivity
mutual cooperation betweenmgmt and workers
increase efficiency bydecreasing cost and wastage
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Administrative Mgmt
Administrative
mgmt
Henry fyol is consideredthe father ofadministrative mgmt
He classified adm. Mgmt into 4 groups-
Managerial qualities:-
elements of mgmt:-
classification of business activities:-
general principles of mgmt:-
:- technical, accounting, commercial, financial,managerial, security
physical, mental, moral, educational, technical,experience
division of labor, authority and responsibility,discipline, unity of command, unity of direction,subordination of individual to general interest,remuneration, centralization, scalar principle,
order, equity, stability, initiative, esprit de corps
planning, organizing, commanding, coordinatingand controlling
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Neoclassical school
Very similar tobehavioral school ofmgmt
Neoclassical school pioneered by Elton
mayo and team-hawthorn experiments
Highlights the importance of human factors in
organization, the complex nature of humans atwork, the balance between inducements andcontributions
Main areas ofneoclassical school
Learning,
perception, attitude ,personality elements
Interpersonalrelations and inter group behavior
Leadership, motivation, communication
and supervision elements (LMCS)
Work design and org climate
Group dynamics
Change and conflictmgmt
Transactional analysisand ego state
also known as human
relation school
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Main points
M a i n p o i n t s
Directing techniques- LMCS- are veryimportant
Informal groups are very powerful anduncontrollable- they affect performance andrelations, informal communications andinformal relations are very necessary.
Solve human problems; make workers happy-which increases productivity.
Authority if not accepted, cannot makepeople work- participation, decentralization,recognition, and acceptance.
Makes mgrs to treat humans as valuableassets
Proper work climate is essential.
Behavior can be generated, studied, shaped,modified, and controlled. Mgr shouldsincerely try these to increase productivity.
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Modern school
Modern school focuses on more contemporary situations- problems,environmental forces and opportunities.
contingency schoolsystem school social system andsocial technicalsystem school
What is a system?
set of interrelated, interconnected and interdependentelements interacting continually both internally andexternally to form a complex entity
combination of many subsystems, and viewsorganization s a unified and purposeful system ofinterrelated parts
Classical school failed because it had a narrow vision, inability for integrationand inability to view mgmt as a whole.
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Modern school
Main highlights
Systems and subsystems interactcontinuously.
System generates synergy- partsworking as a system contributemore than if each of them worksindependently
System needs to be open, dynamic,
multi dimensional, amultidisciplinary
System is highly probabilistic
Pioneer of system school is Chester
Bernard
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Social / Social tech. system school-
Social systems school
Social technical
system school-
considers mgmt as a social system
gives importance to sociological
studies rather than psychological
studies as in behavioral school
More emphasis to social and cultural
relations and cooperation based
mgmt system
Need for formal and informal
communication is highlighted importance to informal groups is duly
noted.
- here mgmt study and practice are
not limited to social issues
The technology and production methods
affect the social system thereby affecting
the attitudes, satisfaction and behavior of
the workers.
Chester Bernard and vilfredo pareto
are the pioneers
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Contingency school
Implies that mgmt practices arepurely situational.
understand the environment andmake required adjustments oncontinues basis to develop and excel
most relevant and modern thought
Mgr is to identify which technique isthe beat for a particular situation ata given time
Best fit approach in one situationmay not be valid for another situation.
Joan woodward, mintzberg are themain contributors
The main situational factors areenvironmental, organizational andindividual..
Contingency school-
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Organizing
a systematic attempt
to divide work into activities
to group these activities
to assign activities and delegateauthority
to define and establish relationshipamong groups
to harmonize and coordinateefforts of people to achieve desiredresults effectively
Organization
that provides a basis for the implementation of plansand achievement of desired goals.
Organizing is a processwhereas
organization is a structure
is a structure of complexinterrelatedinterconnected parts
Organizing v/s organization
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Organizing process:-
Specifying objectives
Grouping activities
Determining activities to beperformed
Delaying authority
Assigning responsibilities
Establishing interrelationships
Preparing organizational chartsand manuals
Organizing
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Significance of an organization
Significance
Tool for mgmt action
Provision for all activities
Achievement of objectivesefficiently
Delegation of authority /
effective work assignment
Specialization
Clarity and reduced conflicts
Promotion of healthy relationsand creativity
Optimum use of resources
Reputation and good will
Better coordinating, satisfactionand morale
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effective organization
M a i n f e a t u r e s
Simplicitystructure should be simple tounderstand and free from
complications
Flexibility
capable of coping with the ever changing business environment.Easily able to make the necessarychanges both internal and external
Stability basic structure must be permanent
Suitabilitystructure should be suitable to theoverall conditions of the business
unit
Provision for topmgmt
top mgmt should be present toguide, supervise coordinate andcontrol the efforts of all dept
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effective organization
M a i n f e a t u r e s
Human element
should be capable to meet humanneeds, motivate them and controltheir behavior to get things done in
an efficient manner
Specialization
similar types of activities performedunder one function which results inincreased efficiency
Scalar chain
clear and unbroken line of authorityfrom top to bottom which facilitatesspeedy action and better coordination
Unity of direction every subordinate should get
orders, direction and guidelinesfrom one superior and isresponsible to only that superior.Balance
there should be a balanced approachbetween responsibility andauthority.
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ff i i i
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effective organization
M a i n f e
a t u r e s
Absoluteness ultimate responsibility should befixed for the final outcome
Staff function proper use of staff members
Minimum levels
as far as possible there should beminimum levels which facilitatesmooth communication and lesscomplications
Span of control optimum span of control should be
maintained.
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O i ti t t
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It is an effective mechanism that helps coordinate employee’s efforts for
accomplishing goals
K e y e l e m e n t s -
Vision and goal, Objectivesand targets
Span of control, Organizationclimate
Decision making, Formalrelation
Communication, Delegatingand decentralization
Leadership styles, Physicalfacilities, Human resources
Organization structure
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O i ti t t T
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Types of organizationalstructures
Matrix
Entrepreneurial
Line
Line and staff
Functional
Project
Organization structure:- Types
Management by objectives
Management by exception
Management by participation
Management by situations Assignment
1
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O i ti l B h i
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O r g a n i z
a t i o n a l
b e h a
v i o r
organizational- relatedto organization
behavior- observable /measurable responseand reaction.
Consists of two words
Systematic study of human behavior in anorganization for improving managerial decisionmaking and productivity
Its multidisciplinary psychology, anthropology,sociology, politics, economics.
Organizational Behavior
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Obj ti f OB
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Objectives of OB
Objectives:-
To describe humanbehavior
To understand behavior
To predict behavior
To modify and control
behavior
OB is concerned with describing, understanding, predicting,shaping, modifying, identifying and controlling human behavior-individual or group- in an organization
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Ch t i ti f OB
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Characteristics of OB
Characteristics-It’s a major part of mgmt,
Studies the relationship betweenbehavioral causes and resultingoutcomes
Multidisciplinary and universal
Input to decision making and not adirect solution to any humanproblems
Can study, shape, describe, predict,modify, control human behavior
Performance oriented
Systematic and scientific study of
humans at work
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Wh t i h t ?
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What is human nature?
It refers to the distinguishing
characteristics which include
ways of thinking, feeling andcaring. It is always unpredictable
and difficult to comprehend.
Similarities and
dissimilarities in
individuals:-
Physical features-
Culture-
Psychologicalfactors
Sensation andinterpretation
Needs
Human virtues
Same type of organs
and systems
Different in looks and
strengths
Same culture
Different values
Same virtues
Different intensity and
meanings
Attitudes, motivation,
perception
Different according to
nature and situation
Same senses
Different interpretation
Same needs-
physiological, safety,
esteemIntensity and ways to
satisfy these needs vary
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I t f OB
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Importance of OB
Importance of OB
Contributing disciplines
Most organizational problems are humanproblems and can be brought to an end by
understanding humans.
Helps analyze complex nature of humansat work, understands workforce andcultural diversity to improve performance
Avoids assumptions about people andsuggest right approach to manage them
Prevents/minimizes unexpected events,improves productivity, reduces wastages
Easily exercises motivation, leadershipcommunication and supervision activities.
Anthropology, psychology, sociology,social psychology, political science,
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Diff t d l f t k
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Different models of men at work
D
i f f e r e n t m o d e l s
o f
m
e n a t w o r k
Economic man- works for money,evaluates his effort, contribution andcommitment against money
Social man-likes to built, improve andmaintain social relations for satisfyingsocial needs like affiliation,belongingness, acceptance etc
Organization man- prioritizesorganizational needs over personalneeds. Committed and loyal to org,extends cooperation, involves ininteractions with others and keepsassociation with organizational
members
Self actualizing man- attempts to dosomething better, something differentand something special to remain selfsatisfied. Achievement is a source ofsatisfaction
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Diff t d l f t k
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Different models of men at work
Man models at work—human behavior-----------------------------
group influence, mgmt influence, organization influence-----OB
Each successive model is an
extension of the previous onand not a replacement.
Emotional/ impulsive man- reacts immediately. Notcalculated or rational. Emotional or passionate
behavior
Compulsive man- exerts most desirable behavior,behaves deliberately and consciously to satisfyothers expectations. His behavior is regulated byoriginal policies, rules and personality aspects.
Behavior seems calculated t influence others
Complex man- difficult to understand or predict.Anytime a mix of above models. Behavior do not takeplace in a predetermined cause and effect manner.
D i f f e r e n
t m o d e l s o f
m e n a t w
o r k
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O i ti l lt
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Organizational culture
Org culture It is a pattern of beliefs and expectations
shared by the members of the org.
The beliefs and expectations produce normsthat powerfully shape thebehavior of individuals and groups in an org.
Org culture includes:- Routine behaviors when people interact(rituals , ceremonies and languages)
Philosophy that guides the org
Dominant values held by the org(profit/service/quality etc)
Norms that are shared by the teamsthroughout the org(guidelines)
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Le els of organi ational c lt re
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Levels of organizational culture
Exist in
different
levels,
which differ in visibility
and resistance tochange
Least visible or deepest level isshared assumptions:-
Next level is that of culturalvalues:-
Next level is that of shared
behavior:-
Most superficial level is that ofsymbols / artifacts :-
represents belief about the org
represents collective beliefs ,feelings and assumptions whichtend to persist over time
represents norms , easier to changeand visible
words, symbols, pic or gesturesthat have a particular meaning
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Developing Org culture
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Developing Org. culture
Formed inresponse totwo
challengesthatconfrontevery org
External adaptation andsurvival:-
Internal integration:-
how the org finds aupper hand in this ever changing competitivebusiness environmentMission and strategy, goals,
means and measurement
establishment andmaintenance of effectiveworking relationships
Language and concepts,group and team boundaries,power and status, rewardsand punishments
Members share knowledge and assumptions as they discover and develop way ofcoping with issues of external adaptation and internal integration.
Factors that shape org culture
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12 casual factors which shape a company’s culture
Influence of a dominant leader History and tradition Technology products and services Industry and competition
Customers Expectations Information and control system Legislation and company environment Procedures and policies Reward and measurement system Org and resources Goals values and beliefs
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Factors that shape org. culture
maintaining Org Culture
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Methods of maintaining org culture
What managers and teams pay attention to: - process andbehaviors, events that gets noticed and commented upon.
Reactions to incidents and crisis;-manner in which crisis aredealt with can either reinforce a culture or bring out a newone.
Role modeling, teaching and coaching:- incorporatingcultural aspects into training programs and day to daycoaching
Allocation of rewards and status:- what is rewarded andwhat is punished convey the priorities and values of theorg
Recruitment , selection, promotion and removal:-
Rites, ceremonies and stories:-
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maintaining Org. Culture
Changing Org Culture
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Changing org culture
Very difficult as assessing the existing culture is complex,difficult and time consuming
Some org have more than one culture.. These multiplecultures are called subcultures
Mainly 3 types----operating culture, engineering culture andexecutive culture
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Changing Org. Culture
How to change Org Culture
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How to change an org culture
Understand old culture thoroughly
Set realistic goals
Find the most effective subculture and use as an example
Make changes from top down
Include employees
Execute in small steps and not attacking head on
Resistance to cultural change = magnitudeof change * strength of prevailing culture
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How to change Org. Culture
Types of Org Culture
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Org culture have some common characteristics,
Vertical axis reflects the relative control orientation:- stableto flexible,
Horizontal axis reflects the relative focus of attention:-internal functioning to external functioning,
Within these there are 4 pure types of org culture:-
Bureaucratic
Clan
Entrepreneurial
Market
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Types of Org. Culture
Types of Org Culture
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Bureaucratic:-
org that values formality, rules, std operating proceduresand hierarchical coordination
Long term concerns like predictability, efficiency andstability
Formal behavioral norms Managers will be good coordinators, organizers and
enforcers of written rules and standards
Clearly defined tasks, responsibilities and authorities
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Types of Org. Culture
Types of Org Culture
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Clan:-
Org values tradition, loyalty, personal commitment,socialization, teamwork, self management,
Workers understand that contributions to the org exceedbeyond contractual agreement or salary
Hold themselves accountable to the org Members take pride in their clan membership , strong
sense of identification and interdependence
Depending on the type of norms , this may or may notfoster risk taking behavior or innovation
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Types of Org. Culture
Types of Org Culture
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Entrepreneurial:-
It values risk taking, dynamism, creativity Always committed to experimentation, innovation
Creates change and quickly adapts to it
Effectiveness is measured by new and improved
products/services and growth Individual initiative, flexibility and freedom create growth
and are well rewarded
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Types of Org. Culture
Types of Org Culture
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Market:-
Org values achievement of measurable and demandinggoals especially those which are financial and marketbased
High competition and profit orientations prevail
Relationship between individual and org is contractual
Here org does not promise security and the individual doesnot promise loyalty
Absence of long term commitment – weak socializing
Superiors interaction – highly negotiating Often tied to monthly, yearly performance goals based on
profit
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Types of Org. Culture
Performance & Org Culture
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Good culture can enhance org effectiveness, individualsatisfaction, and problem solving but if culture gets out ofhand effectiveness can be hindered.
Seen that culture and performance are directly related
Strong org culture
facilitates goal alignment:- few problems of coordination
and control, good communication, effective resourceallocation
High levels of employee motivation:-strong cultureencourages people to identify with it and incorporates
practices which make working for them rewarding. Helps effective problem solving:- due to strong norms ,
rituals ceremonies and stories, people can easily interpretissues and events and problems based on past experience
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Performance & Org. Culture
Managing Cultural Diversity
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Org becoming very divers in terms of gender, race, ethnicityand nationality
This diversity can lead to improved DM, creativity andinnovation
These also bring great costs and concerns ***
Main guidelines:-
People should understand that diversity will bring in differentperspective and approaches to work- value the variety ofopinion and insights
Leader should recognize both the learning opportunities andchallenges this diversity represent
Should create an expectation for high performance
Should stimulate personal development , openness,importance,
Org should have a non bureaucratic structure
Managing Cultural Diversity