Organization behavior explained

Description
This is a presentation explaining about what is organization behavior and gives the micro perspective of organization behavior.

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The understanding, prediction, and management of human behaviour in organizations. OB is involved with the study and application of the human side of management and organization.

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Academic field of OB has been around for just 25 – 30 years. Significant human-oriented problems continue to plague organizations. Of the companies which have downsized over the past 5 years, half of them reported increased profits, a third of them reported increase in productivity, while almost all (86%), reported experiencing greatly decreased morale.

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The first major environmental development is not just the workplace, nature, form and management of human resources, which has dramatically changed, but the surrounding environment, which has driven these changes. The second major environmental development is the second generation of the Information Age which has moved to automated decision making, more technology-based telecommunications and the information super highway.

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The global network of computers, telephones and TV has increased its info carrying capacity a million times over during the past two decades. Computing power doubling about every 18 months. A $2,000 laptop is many times more powerful than a $100 million mainframe computer was about 20 years ago. Only 50,000 computers existed about 25 years ago. Today there are as many as 150 million. In 1960, a transatlantic telephone cable could carry only 138 conversations simultaneously. Today, a fibre optic cable can carry 1.5 million conversations. A 3-minute telephone call between New York and London costs only $2 today; in 1930 it cost a hundred times more (in dollars).

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A third major development is the “quality service revolution” that is occurring around the world. Total Quality Management, has become the need of the hour.

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The final major development that has had significant environmental impact on organization and management is diversity and ethics. Diversity has taken on the ethical implications of how management can eliminate all forms of discrimination (age, sex, race, ethnic origin, religion, disability) and provides equal opportunity in all aspects of employment.

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This term is used to represent the wide array of changes made by organizations determined to improve their overall productivity and profit. A major technique of TQM to gain prominence is „reengineering?, or “starting all over on a clean piece of paper”. This actually means starting from scratch, totally redesigning the job and redoing the process.

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The Hawthorne Effects were a series of experiments conducted from 1924 to 1933, and famously analyzed by Professor Elton Mayo from 1927 to 1932. The term Hawthorne was coined, as the site for the experimental studies took place at Western Electric Hawthorne Work, Chicago. The Hawthorne experiments were a series of studies on the productivity of workers, wherein various conditions were manipulated (pay, light levels, humidity, rest breaks, etc.). Surprisingly, each change resulted in a productivity rising, including eventually a return to the original conditions. This was true of each of the individual workers as well as of the group mean.

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Illumination studies attempted to examine the relationship between the light intensity on the shop floor of manual work sites and employee production. A test group and control group were used. The test group initially showed no increase or decrease in output in proportion to the increase or decrease in illumination. The control group with unchanged illumination increased output by the same amount overall as the test group.

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Subsequent phases brought the level of light down to moonlight intensity; the workers could barely see what they were doing, but productivity increased. The results baffled the researchers. It appeared that some variables were not being held constant or under control. It was something besides the level of illumination, which was causing the change in productivity. This change was the complex human variable. The results of the ‘illumination’ experiments provided the impetus for further study of human behaviour at work.

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Managers who apply and draw from the field of Organizational Behaviour are called ‘Human Resource Managers’. They have a Human Resource Management role because they all manage people. All managers, regardless of their technical function, are Human Resource Managers, because they deal with human behaviour in orgs. All managers need to have an understanding and perspective of Organizational Behaviour. Organizational Behaviour is the behavioural approach to management – NOT the whole of management.

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Clearly the variables the experimenters manipulated were not the only nor dominant causes of productivity changes. One interpretation, mainly due to Professor Elton Mayo and associates F.J. Roethlisberger and William J. Dickson, was that essentially, it was the workers' feeling they were being closely attended to which was the cause of the improvements in performance. This is now referred to as "the Hawthorne effect". Thus these experiments were among the first indications that any productivity model must factor in intangible attributes such as human behavior.

BENEFITS ? The method allows clear identification of the concerns of the workers. ? It solves productivity issues in a sustainable and long term basis, if it is properly and accurately modeled. ? It brings forth consistency in the assessment of the working situation when management needs to carry out long term envisioning.

DISADVANTAGES ? Difficult to identify the critical working environment attributes as some are intrinsic like organization dynamics etc. ? Quantification of the parameters, a, b and c of the productivity model is also very subjective and depends on the discernment of the manager. ? Critical working attributes are dynamic and model needs to be updated constantly to reflect actual 'ground' situation. ? On the whole, the accuracy of the productivity model is highly correlated on the judgment and the acumen of the manager.

CONDITIONS
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Important working attributes can be captured sufficiently. No hidden or tacit informal knowledge is withheld.

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doc_711824692.pptx
 

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