Theoretical Framework of organization behavior

Description
Highlights on the theoretical framework of organization behavior and how this model is applied to different industries like IT.

Theoretical Framework
• Cognitive. • Behaviouristic. • Social Learning. • Cognitive – (From cognition, which means the act of knowing an item of information). Emphasizes the positive and free-aspects of human behaviour. Uses concepts like, expectancy, demand and incentive.

• Behaviouristic Framework - Most of the principles of learning, organizational reward systems and behavioural management approach, are based on this framework. Uses the stimulus-response (S-R) explanation of human behaviour. A stimulus elicits a response. Whenever an S-R connection is made, learning takes place. • Social Learning – Recognizes that behaviour is the appropriate unit of analysis. The approach suggests that people are self-aware and engage in purposeful behaviour. Being comprehensive and of an interactive nature, it serves as an appropriate theoretical framework for developing a model of OB.

The OB Model
• This is more of a Social Learning approach, which incorporates both, the cognitive and behaviouristic concepts, which has Stimulus, Organism, Behaviour and Consequence as its 4 pillars. • S – Environmental Situation; (Stimulus.) • O - Cognitive Mediating Processes of the Organizational Participants; (Organism.) • B - Organizational Behaviou; (Behaviour.) • C - Organizational and Behavioural Dynamics and Consequences; (Consequence).

Today?s Organizations IT, TQM and Organizational Learning

IT - Has had amazing impact on organizations Joseph Schumpeter?s 50-year model revealed: • 1780s – 1840s: First wave, brought steam power that drove the industrial revolution. • 1840s – 1890s: Second wave, brought the railroads. • 1890s – 1930s: Third wave, electric power. • 1930s – 1980s: Fourth wave, cheap oil and the automobile. • 1980s onwards: Fifth wave is now powered by Informational Technology

Flattening and Downsizing of Organizations
• IT has had a flattening and downsizing effect on today?s org. • Downsizing or “right sizing” is the process of reducing the number of people in the org. • In the current decade, downsizing has been at the middle level mgt, where IT has eliminated many jobs, which were handled by ML mgrs. • Human aspect of this has been devastating. It has had great impact on the employee stress. • E-mail and the Intranet have eliminated the need for levels of bureaucracy and a long chain of command. The org has become „flatter?. • Even while there may have been short run cost savings, the overall outcomes like increased resistance to change, decreased employee commitment and a loss of trust among the survivors, have had a significant negative long run impact on the org. •

TOTAL QUALITY MANAGEMENT (TQM)

• TQM is a subject much „cussed? and „discussed? by people. • TQM is an organizational strategy with accompanying techniques that deliver quality products and/or services to customers.

The “Total” perspective of TQM
• The “total” part of TQM differentiates the approach from the traditional inspection, quality control, or quality assurance approach. TQM is an overall organizational strategy that is formulated at the top mgt level and then diffused throughout the entire org. Everyone in an org, right from the CEO to the lowest-paid hourly worker and clerk, is involved in the TQM process. • The “total” part also encompasses not only the external end user and purchaser of the product, but also internal customers and outside suppliers and support personnel.

Core values of TQM
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Make it right for the customer at any cost. Internal customers are as important as external customers. Respond to every customer inquiry or complaint by the end of the day. Answer the phone within two rings. The customer is always right. Meet customer?s expectations and also delight customers in the process. Teamwork and cooperation are more important than individual action and gamesmanship. Everyone is involved in the quality effort; no exceptions or bench sitting is permitted. Respond to every employee suggestion for quality improvement within one week. Never be satisfied with the level of quality; always strive for continuous improvement.

What does “Quality” stand for in TQM?
• The term „quality? implies defect-free goods. In TQM, it implies much more than this. It is more concerned with quality service than quality products. It is defined as meeting or exceeding customer expectations. Quality, is therefore defined by the customer, not the org or the manager or the quality assurance dept. Customer expectations are highly individualized by age, gender, personality, occupation, location, socio economic class, past experience with the org and many other variables. What appears as „quality? to one customer may not be quality to another. TQM strives to deliver „quality? to ALL customers.

What is the “Management” dimension in TQM ?
• While the „Management? approach is what “M” implies in TQM, it is quite likely that this aspect will be headed by someone from the QC branch; TQM is of the view that somebody from another dept, someone who is respected, a good coordinator – a doer, should be the TQM project manager. This manager should not only thoroughly understand and be able to train others in TQM, but should also be a strong advocate and report directly to the Gen Mgr/CEO. TQM is a very people-oriented mgt approach and has many implications for the study and application of Organizational Behaviour. • Three popular TQM techniques relevant to OB are: re-engineering, benchmarking and empowerment.

Benchmarking
• It is the process of comparing work and service methods against the best practices and outcomes for the purpose of identifying changes that will result in higher-quality output. • Benchmark metrics can be used to set targets that are pursued, identified and then used as a basis for future action.

Benefits to the organization • Helps orgs compare themselves with successful companies for the purpose of identifying improvement strategies. • Enables orgs to learn from others. • Helps create a need for change by showing the org how procedures and work assignments should be altered and resources reallocated.

Empowerment
• It is the “recognizing and releasing into the org the power that people already have in their wealth of useful knowledge and internal motivation”. • It is the authority to make decisions within ones area of operations without having to get approval from anyone else. • It is the TQM in Action: Just Do It. • The basic conditions necessary for empowerment to become embedded in the organizational culture and become operational are : – Participation. – Innovation. – Access to information. – Accountability.



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