Description
Highlighting on organization behavior in detail, explains the key the elements of an organization.
Organizational Behavior
Organization
An organization is the rational co-ordination of the activities of a number of people working for the achievement of some common explicit goals. For example private firms like manufacturing and service firms and so are schools, churches, hospitals, military units, law governing bodies etc.
Key elements of organization
Technology External social system
Organization
People (Internal Social System)
Structure
Key elements of Organization
Structure
Role and functions played by employees
Technology
Physical and economic conditions within which people work
People
Internal social system, individual groups: formal and informal
External social system
Attitudes of customers, suppliers and competitors.
Organization as work settings
?The core purpose of an organization is the
creation of goods and services.
?Missions and mission statements focus
attention on the core purpose.
?Mission statements communicate:
A clear sense of the domain in which the organization‘s products and services fit. A vision and sense of future aspirations.
Organization as work settings
? Organizational strategy is a comprehensive
plan that guides organizations to operate in ways that allow them to outperform their competitors.
? Key managerial responsibilities include strategy
formulation and implementation.
? Knowledge of OB is essential to effectively
strategy implementation
.
Organization as work settings
? Stakeholders. – People, groups, and institutions having an interest in an
organization’s performance. – Customers, owners, employees, suppliers, regulators, and local communities are key stakeholders. – Interests of multiple stakeholders sometimes conflict. – Executive leadership often focuses on balancing multiple stakeholder expectations.
Organization as work
settings
? Organizational culture and diversity. – Organizational culture refers to the shared beliefs
and values that influence the behavior of organizational members. – Positive organizational cultures: • Have a high-performance orientation. • Emphasize teamwork. • Encourage risk taking. • Emphasize innovation.. • Respect people and workforce diversity. – Success in business world is tied to valuing diversity
Organization as work settings
Organization as work settings
Organizational effectiveness approaches:
Systems resource approach focuses on inputs.
Internal process approach focuses on the transformation process. Goal approach focuses on outputs. Strategic contingencies approach focuses on impact on key stakeholders.
S
Organization as work
settings
?Longitudinal views of organizational effectiveness.
Short-run emphasis on goal accomplishment, resource utilization, and stakeholder satisfaction—including customers, employees, owners and society at large. Intermediate-run emphasis on organization’s adaptability and development potential to meet new challenges gain importance. Long-run emphasis on survival under conditions of environmental uncertainty and quality of organizational management. .
What
managers do---
Managers (or administrators) Individuals who achieve goals through other people. 1.Managerial Activities
2.Make Decisions
3.Allocate Resources 4.Direct activities of others to attain goals
Management Functions
Management Functions (Cont‘d)
Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
Management functions ( cont‘d)
Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
Nature of managerial Work
Management Skills
Technical skills The ability to apply specialized knowledge or expertise
Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations.
Effective Versus Successful Managerial Activities
1. Traditional management
• Decision making, planning, and controlling
2. Communication
• Exchanging routine information and processing paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing, and training
4. Networking
• Socializing, politicking, and interacting with others
Managerial activities (Allocation by time)
Organizational Behavior
Organizational behavior (OB)
A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
Organizational
behaviour
Importance of organizational behavior
? Organization success depends
on:
– Respect for people. – Understanding of human behavior
in complex organizational systems.
– Individual commitment to
flexibility, creativity, and learning.
– Individual willingness to change.
Importance of organizational behaviour
Importance of Organizational behaviour
? Reasons for importance of scientific thinking.
? The process of data collection is controlled and
systematic.
? Proposed explanations are carefully tested. ? Only explanations that can be scientifically verified
are accepted.
26
Importance of Organizational behaviour
? Contingency approach.
? Tries to identify how different situations
can be best understood and handled. ? Important contingency variables include:
? Environment.
? Technology. ? Tasks. ? Structure.
? People.
OB in Modern workplace
? Modern workplace trends.
?
Commitment to ethical behavior. --- Importance of human capital. --- Demise of ?command and control.? ? Emphasis on teamwork. ? Pervasive influence of information technology. ? Respect for new workforce expectations. ? Changing definition of ?jobs? and ?career.?
Role of Organizational Behaviour
? OB offers several ideas to management as to how
human factor should be properly emphasized to achieve organizational objectives. The factors related to the OB—
? Understanding human behaviour----OB provides
ideas for understanding human behaviour in all the directions in which human beings interact.
? Individual level--- OB integrates social,
psychological and cultural factors to provide simplicity in understanding human behaviour.
Role of Organizational Behaviour
? Interpersonal Level--- OB provides means for
understanding personal relationships in the organization which focuses on the influence of one‘s peer and its effect in working relationship or examines the superior-subordinate relationship.
? Analysis of reciprocal relationship, role analysis
and transactional analysis are some of the common methods which provides such understanding.
Role of Organizational behaviour
? Group Level--- Research in group dynamics has
contributed vitally to OB and shows how a group behaves in its norms, cohesion, goals, procedures, communication pattern, and membership. Group behaviour studies are very important for organizational moral and productivity.
? Intergroup Level--- OB provides means to understand
and achieve cooperative group relationships for managers through interaction, rotation of members among groups, avoidance of win-lose relationship and focus on total group objectives.
Controlling and Directive Behaviour of OB
? OB helps managers to control and direct the behaviour at all levels of
individual interaction to confirm the standards required for achieving organizational objectives. OB helps managers in following areas--? Use of Power and Sanction—In organization Power is referred to as
capacity of an individual to take certain action and may be utilized in many ways. The use of Power is related with sanction in the organization. OB explains how various means of power and sanction can be utilized so that both organizational and individual objectives are activated simultaneously.
? Leadership--- OB defines various leadership styles available to a manager
and analyses which style is more appropriate to a given situation.
Controlling and Directive Behaviour of OB
? Communication--- In organization peoples,
particularly at higher level spend considerable time in communication. So, to achieve organizational effectiveness, communication must be effective .
? OB evaluated the communication process and
its work related to interpersonal dynamics.
Controlling and Directive Behaviour of OB
? Organizational Climate--- It refers to the total organizational situations affecting
human behaviour. OB suggests the approach to create organizational climate in totality rather than merely improving the physiological conditions or increasing employee satisfaction by changing isolated work process. OB reveals its importance in creation of an atmosphere for affective supervision, the opportunity for the realization of personal goals, congenial relations with others at the workplace and a sense of accomplishment.
? Organizational adaptation--- Organizations as dynamic entities are characterized
by pervasive change. The real job of a manager is to provide continuity in organizations because organizations have to adapt themselves to the environmental changes by making suitable internal arrangements which are mostly resisted by the internal people. Managers have to face dual problems, identifying need for change and than implementing changes without adversely affecting the need for satisfaction of organizational people. It is also the essence of managing change.
Toward an OB Discipline
Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
Contributing Disciplines to the OB Field (cont‘d)
Sociology
The study of people in relation to their fellow human beings.
Contributing Disciplines to the OB Field (cont‘d)
Social Psychology
An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
Contributing Disciplines to the OB Field (cont‘d)
Anthropology
The study of societies to learn about human beings and their activities.
Contributing Disciplines to the OB Field (cont‘d)
Political Science The study of the behavior of individuals and groups within a political environment.
Historical approaches to organizational behaviour
?
When I want to understand what is happening today or try to decide what will happen tomorrow , I will look back? Oliver Wendell Helves.
Oliver Wendell tells that OB history help us understand, for instance, how management come to impose rules and regulations on employees , why many employees do standardized and repetitive task on assembly lines and why a number of organizations replace their assembly lines with team based work units.
It is interesting to know, that many contemporary managers today have come to appreciate the value of Mahabharata and other great works.
e
Historical approaches to OB
? Kautilya‘s arthasastra states that there existed a
sound base form systematic management of human resources as early as the 4th century B.C. itself.
? Human resources in organizations received
managements attention as early as 1800 B.C. itself and ?minimum wage rate‘ and ?incentive wage plan‘ was included in the Babylonian code of Hammurabi.
? In 19th century Industrial Revolution took place
Historical approaches
? Prior to 19th century, the life of an average
employee, was miserable to say the least.
? Working conditions in the factories of average
employee were brutal and back breaking ,people worked from dawn to dusk under intolerance conditions of disease, filth, danger and scarcity of resources and no job satisfaction.
Industrial revolution
? Industrial revolution brought materialism,
discipline, monotony, boredom, job displacement , impersonality, work interdependence and related behavior phenomena . ? Industrial revolution was responsible for planting the seed for potential improvement. ? Industry created surplus of goods and knowledge that eventually gave workers increased wages , shorter hours and more work satisfaction. ? Robert Owen, a young welsh factory owner , about the year 1800, was one of the first who emphasize the human needs of employees.
Industrial revolution
He refused to employee young children and taught his workers cleanliness and temperance and improved their working conditions. Robert Owen methods entitled him to be called the ?father of Personnel Management‘. In 1835, Andrew Ure included the human factor as one of the factors of production, besides the mechanical and commercial parts.
Building the importance of human factor, Ure
Industrial revolution
? In India, around this time J.N. Tata took a special
interest in the welfare of his workers.
? He installed the first humidifiers and fire sprinklers
in his factories.
? In 1886, he installed a pension fund. ? In 1895, he began to pay accident compensation. ? He was decades ahead of his time and miles
ahead of his competitors.
Scientific management
? Scientific management brings Taylor to our
memory who is appropriately called the ?father of scientific management‘.
? Taylor advocated the selection of right people for
right jobs, training them adequately, placing them in jobs for which they were best suited and remunerating them handsomely.
? Taylor published his major work ?principles of
Scientific management? in 1911, when interest in human conditions was accelerated by
Criticism (scientific management)
? Scientific management was criticized by
employees and theorists for its over emphasis on task accomplishment and monetary incentives at the cost of respect for human beings.
? A new approach that treated workers as human
beings was desired.
Human relations movement
? Human relations movement which characterized
by heavy emphasis on employee cooperation and morale.
? Peoples were treated as human beings not as
machines, listening to their needs and problems and involving them in decision-making in matters relating to working conditions.
? Historically, three of most important contributing
factors would be the great depression, the labour movement and the results of famous Hawthorne
The Great Depression
? The stock exchange crash of 1929 in America
marked the beginning of Great Depression.
? The consequences of the Depression were wide
spread unemployment , decline of purchasing power, collapse of markets and lowering of the standard of living of people was world wide and not confined to America alone.
The Great Depression
? Positive outcome of the Depression make the
management realized that production alone could not be its major function, but marketing, finance and personnel were also required in order for a business to survive and grow.
? Most managers now began to develop a new,
awakened view of human aspect of work.
? Human relations took an increased significance
as an indirect, and in some cases, direct result of the Depression.
Labour movement
? Exploitation made workers realized that their
protection lay in their own hands.
? They formed strong unions and this had the
desired effect on management .
? Management began to place primary emphasis
on employee relations and secondary attention was given to wages hours of work and conditions of employment.
Labour movement
? Unfortunately, the human relations role also came
about for wrong reasons .
? In too many cases , it was forced on managers by
labour, threatening them with consequences of non-compliance.
? Ideally it would have been better, had human
relation developed because of intrinsic motivation of practisizing managers, to better understand and provide for the welfare of their employees.
Hawthorne studies
? Hawthorne studies dominate the academic discussion
on historical development and gave academic status to the study of organizational behaviour. The studies were carried out at the western electric company‘s Hawthorne works in Cicero, a suburb of Chicago, and are closely linked with the name of Elton Mayo.
? Elton Mayo, was professor of industrial research at
Harward School of Business Administration and was responsible for conducting the studies and publicizing their significance.
? Naturally he is called as the ?father of human relations
movement.?
Hawthorne Studies
? Hawthorne studies reflected the scientific
management tradition of seeking greater efficiency by improving the tools and methods of work in this case lighting.
? Studies on the relationship between lighting and
productivity that were to be conducted by National Research Council involved three sets of studies---
Illumination studies
? In 1924, the studies started at the huge Hawthorne works
of the western electric company outside of Chicago.
? The initial illumination studies attempted to examine the
relationship between light intensity on the shop floor of mannual work sites and employee productivity.
? An experimenter and control group were used and lighting
was decreased over successive periods for the experimental group(the group for whom lighting was altered),while it was kept at a constant level for the control group ( a comparison group working in another area).
? The researchers were surprised to discover that
productivity increased roughly at the same rate in both the groups.
Illumination studies
? It was only in the final experiment, where they
decreased light to 0.06 foot candle (roughly moonlight intensity), that performance in the test group declined as the workers in the group complained that they could hardly see anything.
Results of illumination experiment were a serendipitous discovery ,which , in research is an accidental discovery. ? Through the first round of experiments the term Hawthorne effect was coined, referring originally to the fact that people‘s knowledge that they are being studied leads them to modify their
Relay Room Study
The second set of experiment took place between 1927 and 1933. The most famous study involved five women who assembled electrical relays in the relay assembly test room, where they were away from other workers and the researchers could alter work conditions and evaluate the results. Before the study began, the researchers were concerned about the possible negative reactions from the workers who would be included in the
Relay room study
? To reduce potential resistance, the researchers
changed the usual supervisor arrangement ,so that there would be no official supervisor.
? Instead the workers would operate under general
direction of the researchers .
? The workers were also given special privileges,
such as being able to leave their work station without permission, free mid-morning lunch, a workday that was a half hour shorter , a five day work week and variations in the method of
Relay room study
? Generally, productivity increased over the period
of study, regardless of how the factors were manipulated .
? A Harward University research group who
assessed the result finally concluded that changes in supervisory arrangement was the major reason for increase in the productivity in Relay Assembly Test Room study.
? The researchers felt that the physical changes
such as rest pauses , free lunches and incentive
Bank wiring room study
? This study was conducted between 1931 and
1932 and constituted the third set of experiments.
? In this study a group of 14 men who wired
telephone banks was observed in a standard shop condition .
? An observer was stationed in the room with
instruction to take continuous notes on the workers actions.
Bank Wiring room Study
? The observer was not allowed to give orders or
get involved in conversation with the workers.
? Although, the workers were initially apprehensive
about the observer , they settled into more natural and relaxed behaviour about three weeks.
? Because the foreman of the work group also
supervised other workers in another room, and because the observer was deliberately unobtrusive, the workers were free from constant supervision.
Bank Wiring room study
? Though the workers were paid according to their
output, the observer soon noted that workers had established an informal daily norm of 6600 units per person.
? Typically, the men would pace their work so that
they reached the norm by the end of the day.
Bank wiring study (Conclusion-)
? The researchers concluded that the behavioural
norm set by the work group had a powerful influence over the productivity of the group.
? The higher the norms, the greater the productivity. ? The lower the norms, the lower the productivity. ? The power of peer group and the importance of
group influence on individual behaviour and productivity were confirmed in bank wiring room study.
Hawthorne studies (summary)
? Thus, Hawthorne studies laid a foundation for
understanding people‘s social and psychological behaviour in the workplace.
? Illumination experiments (1924-27): to find out the
effect of illumination on worker productivity.
? Relay assembly test room experiment: to find out
the effects of change in working hours and other working conditions on productivity.
? Bank wiring observation room experiment: to find
out social aspect of work organization.
Organizational behaviour (history)
? Organizational behaviour has made considerable
strides since 1960‘s, although there have been occasional steps backward as well.
? Managers increasingly recognize the value of
human resources and strive to better understand people and their role in complex organization and competitive business situation.
? This realization has come from the subject ,
organizational behaviour.
Milestones in History of OB
? Industrial Revolution---- Robert Owen, Andrew
Ure and J.N. Tata provided certain welfare facilities . The idea generated into paternalistic approach. ? Scientific management (early 20th century)--Taylor believed in rationalizing production. He believed that human behaviour was based on ?rabble hypothesis? ? Human relations movement (1920‘s to 1940‘s)— Great Depression, labour movement and Hawthorne studies lead to the movement, the movement subsequently become a fad. ? Organizational behaviour--- 1950‘s
Models of organizational behaviour
Autocratic Basis of model Managerial orientation Employee Orientation Power Authority Obedience Custodial Economic resources Money Security and benefits Supportive Leadership Support Job performance Collegial Partnership Team work Responsible Behaviour
Employee psychological result
employee needs met
Dependence on boss
Subsistence
Dependence on organization
Security
Participation
Self discipline
Self actualization
Status and recognition
Performance result
Minimum
Positive cooperation
Awakened drives
Moderate enthusiasm
Models of OB (Autocratic model)
? Managerial orientation is towards power .
? Managers see authority to get the things done .
? Employee are expected to follow orders .
The result is high dependence on boss and dependence is possible because employees live on the subsistence level. ? The management decides what is the best action for the employees. ? A very strict and close supervision is required to obtain desirable performance from the employees.
?
Autocratic model
? Autocratic model represents exploitative
authoritative theory in which motivation depends on physical security and some use of desire for status and better performance is ensured through fear, threats, punishment and occasional rewards ,one way communication and little interaction between managers and employees. ? Autocratic model of organizational behaviour may be quite useful way to accomplish performance where employees can be motivated by physiological needs which generally happens at lower strata of the organization
Models of OB (Custodial model)
? Custodial model: Managerial orientation is
towards the use of money to pay for employee benefits. ? Model depends on the economic resources of the organization and its ability to pay for the benefits . ? To obtain security employees became highly dependent on the organization which reduces personal dependence on boss but fail to provide strong motivation. ? Although employees working under this model feel happy but level of performance is not very high.
Custodial model
? Employees are not given any authority to decide
what benefits or rewards they should get.
? This approach is quite similar to patrimonial
approach which is still common in many business organizations in India
? The phenomena is more predominant in family –
managed business organizations where parents decide what is good and bad for children ;managers decide what is good for their employees, so this model is not suitable for
Models of OB (Supportive model)
? Supportive model: organizational behaviour
depends on managerial leadership rather than on the use of power or money. ? Aim of managers is to support employees in their achievement of results. ? The focus is primarily on participation and involvement of employees in managerial decision -making process. ? Various organizational processes -communication, leadership, decision-making, interaction, control and influence– are such that these help employees to fulfill their higher order needs such as esteem and self-actualization.
Supportive model (Contd)? Supportive model best suited in the condition where employees are self-
motivated.
? Emphasis is on the human aspect not on the economic resources of the
organization.
? Managers role is to help employees is to achieve their work rather than
supervising them closely.
? Organizations with sophisticated technology and employing professional
people can also apply this model for getting best out of their human resources.
? Davis observes that ?the supportive model‘ tends to be specially
effective in nations with affluence and complex technology ,because it appeals to higher order needs and provides intrinsic motivation factors.
? The tendency of the modern management is to move towards
supportive model, specially for their management groups.
Collegial model
? Collegial refers to a body of people having common purpose.
? Collegial model is based on the team concept in which each
employee develops higher degree of understanding towards others and share some common goals.
? Employee response to this situation is responsibility, need little
direction and control from management.
? Control is basically through self-discipline by the team members. ? Organizational climate is quite conducive to self-fulfillment and
self-actualization.
?
Collegial model tends to be more useful with unprogrammed work requiring behavioural flexibility ,an intellectual environment, and considerable job freedom.
Models of OB (Conclusion)
? These all above models are basically constructed
around need hierarchy. ? Need hierarchy changes with the level of a person in organization, level of his education, level of maturity, personality factors and the type of work environment. ? Organization theorists have argued that tendency to move towards the adoption of supportive model because in this case people may give their best because in other models they do not find conditions conducive to give their best performance. ? Now, today managers are taking a number of steps to humanize their organizations, such as participation, morale building and so on for effectiveness of the organization.
Challenges and Opportunities for OB
? Responding to Globalization
? Increased foreign assignments ? Working with people from different cultures ? Coping with anti-capitalism backlash ? Overseeing movement of jobs to countries with low-
cost labor
? Managing Workforce Diversity
? Embracing diversity ? Changing U.S. demographics ? Implications for managers ? Recognizing and responding to differences
Major Workforce Diversity Categories
Gender
Disability Age Non-Christian Race Domestic Partners
National Origin
Challenges and Opportunities for OB (cont‘d)
? Improving Quality and Productivity
? Quality management (QM) ? Process reengineering
? Responding to the Labor Shortage
? Changing work force demographics ? Fewer skilled laborers ? Early retirements and older workers
? Improving Customer Service
? Increased expectation of service quality
? Customer-responsive cultures
Management
1. Concern for continuous improvement.
2. Improvement in the quality of everything the
organization does.
3. Accurate measurement. 4. Empowerment of employees. 5. Intense focus on Customer
Improving quality and productivity
? Quality management (QM)
? The constant attainment of customer satisfaction
through the continuous improvement of all organizational processes. ? Requires employees to rethink what they do and become more involved in workplace decisions.
? Process reengineering
? Asks managers to reconsider how work would be
done and their organization structured if they were starting over. ? Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.
Challenges and Opportunity for OB (cont‘d)
? Improving People Skills
? Empowering People
? Stimulating Innovation and Change ? Coping with “Temporariness”
? Working in Networked Organizations
? Helping Employees Balance Work/Life Conflicts ? Improving Ethical Behavior
doc_972236768.pptx
Highlighting on organization behavior in detail, explains the key the elements of an organization.
Organizational Behavior
Organization
An organization is the rational co-ordination of the activities of a number of people working for the achievement of some common explicit goals. For example private firms like manufacturing and service firms and so are schools, churches, hospitals, military units, law governing bodies etc.
Key elements of organization
Technology External social system
Organization
People (Internal Social System)
Structure
Key elements of Organization
Structure
Role and functions played by employees
Technology
Physical and economic conditions within which people work
People
Internal social system, individual groups: formal and informal
External social system
Attitudes of customers, suppliers and competitors.
Organization as work settings
?The core purpose of an organization is the
creation of goods and services.
?Missions and mission statements focus
attention on the core purpose.
?Mission statements communicate:
A clear sense of the domain in which the organization‘s products and services fit. A vision and sense of future aspirations.
Organization as work settings
? Organizational strategy is a comprehensive
plan that guides organizations to operate in ways that allow them to outperform their competitors.
? Key managerial responsibilities include strategy
formulation and implementation.
? Knowledge of OB is essential to effectively
strategy implementation
.
Organization as work settings
? Stakeholders. – People, groups, and institutions having an interest in an
organization’s performance. – Customers, owners, employees, suppliers, regulators, and local communities are key stakeholders. – Interests of multiple stakeholders sometimes conflict. – Executive leadership often focuses on balancing multiple stakeholder expectations.
Organization as work
settings
? Organizational culture and diversity. – Organizational culture refers to the shared beliefs
and values that influence the behavior of organizational members. – Positive organizational cultures: • Have a high-performance orientation. • Emphasize teamwork. • Encourage risk taking. • Emphasize innovation.. • Respect people and workforce diversity. – Success in business world is tied to valuing diversity
Organization as work settings
Organization as work settings
Organizational effectiveness approaches:
Systems resource approach focuses on inputs.
Internal process approach focuses on the transformation process. Goal approach focuses on outputs. Strategic contingencies approach focuses on impact on key stakeholders.
S
Organization as work
settings
?Longitudinal views of organizational effectiveness.
Short-run emphasis on goal accomplishment, resource utilization, and stakeholder satisfaction—including customers, employees, owners and society at large. Intermediate-run emphasis on organization’s adaptability and development potential to meet new challenges gain importance. Long-run emphasis on survival under conditions of environmental uncertainty and quality of organizational management. .
What
managers do---
Managers (or administrators) Individuals who achieve goals through other people. 1.Managerial Activities
2.Make Decisions
3.Allocate Resources 4.Direct activities of others to attain goals
Management Functions
Management Functions (Cont‘d)
Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
Management functions ( cont‘d)
Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
Nature of managerial Work
Management Skills
Technical skills The ability to apply specialized knowledge or expertise
Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations.
Effective Versus Successful Managerial Activities
1. Traditional management
• Decision making, planning, and controlling
2. Communication
• Exchanging routine information and processing paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing, and training
4. Networking
• Socializing, politicking, and interacting with others
Managerial activities (Allocation by time)
Organizational Behavior
Organizational behavior (OB)
A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
Organizational
behaviour
Importance of organizational behavior
? Organization success depends
on:
– Respect for people. – Understanding of human behavior
in complex organizational systems.
– Individual commitment to
flexibility, creativity, and learning.
– Individual willingness to change.
Importance of organizational behaviour
Importance of Organizational behaviour
? Reasons for importance of scientific thinking.
? The process of data collection is controlled and
systematic.
? Proposed explanations are carefully tested. ? Only explanations that can be scientifically verified
are accepted.
26
Importance of Organizational behaviour
? Contingency approach.
? Tries to identify how different situations
can be best understood and handled. ? Important contingency variables include:
? Environment.
? Technology. ? Tasks. ? Structure.
? People.
OB in Modern workplace
? Modern workplace trends.
?
Commitment to ethical behavior. --- Importance of human capital. --- Demise of ?command and control.? ? Emphasis on teamwork. ? Pervasive influence of information technology. ? Respect for new workforce expectations. ? Changing definition of ?jobs? and ?career.?
Role of Organizational Behaviour
? OB offers several ideas to management as to how
human factor should be properly emphasized to achieve organizational objectives. The factors related to the OB—
? Understanding human behaviour----OB provides
ideas for understanding human behaviour in all the directions in which human beings interact.
? Individual level--- OB integrates social,
psychological and cultural factors to provide simplicity in understanding human behaviour.
Role of Organizational Behaviour
? Interpersonal Level--- OB provides means for
understanding personal relationships in the organization which focuses on the influence of one‘s peer and its effect in working relationship or examines the superior-subordinate relationship.
? Analysis of reciprocal relationship, role analysis
and transactional analysis are some of the common methods which provides such understanding.
Role of Organizational behaviour
? Group Level--- Research in group dynamics has
contributed vitally to OB and shows how a group behaves in its norms, cohesion, goals, procedures, communication pattern, and membership. Group behaviour studies are very important for organizational moral and productivity.
? Intergroup Level--- OB provides means to understand
and achieve cooperative group relationships for managers through interaction, rotation of members among groups, avoidance of win-lose relationship and focus on total group objectives.
Controlling and Directive Behaviour of OB
? OB helps managers to control and direct the behaviour at all levels of
individual interaction to confirm the standards required for achieving organizational objectives. OB helps managers in following areas--? Use of Power and Sanction—In organization Power is referred to as
capacity of an individual to take certain action and may be utilized in many ways. The use of Power is related with sanction in the organization. OB explains how various means of power and sanction can be utilized so that both organizational and individual objectives are activated simultaneously.
? Leadership--- OB defines various leadership styles available to a manager
and analyses which style is more appropriate to a given situation.
Controlling and Directive Behaviour of OB
? Communication--- In organization peoples,
particularly at higher level spend considerable time in communication. So, to achieve organizational effectiveness, communication must be effective .
? OB evaluated the communication process and
its work related to interpersonal dynamics.
Controlling and Directive Behaviour of OB
? Organizational Climate--- It refers to the total organizational situations affecting
human behaviour. OB suggests the approach to create organizational climate in totality rather than merely improving the physiological conditions or increasing employee satisfaction by changing isolated work process. OB reveals its importance in creation of an atmosphere for affective supervision, the opportunity for the realization of personal goals, congenial relations with others at the workplace and a sense of accomplishment.
? Organizational adaptation--- Organizations as dynamic entities are characterized
by pervasive change. The real job of a manager is to provide continuity in organizations because organizations have to adapt themselves to the environmental changes by making suitable internal arrangements which are mostly resisted by the internal people. Managers have to face dual problems, identifying need for change and than implementing changes without adversely affecting the need for satisfaction of organizational people. It is also the essence of managing change.
Toward an OB Discipline
Contributing Disciplines to the OB Field
Psychology
The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
Contributing Disciplines to the OB Field (cont‘d)
Sociology
The study of people in relation to their fellow human beings.
Contributing Disciplines to the OB Field (cont‘d)
Social Psychology
An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
Contributing Disciplines to the OB Field (cont‘d)
Anthropology
The study of societies to learn about human beings and their activities.
Contributing Disciplines to the OB Field (cont‘d)
Political Science The study of the behavior of individuals and groups within a political environment.
Historical approaches to organizational behaviour
?
When I want to understand what is happening today or try to decide what will happen tomorrow , I will look back? Oliver Wendell Helves.
Oliver Wendell tells that OB history help us understand, for instance, how management come to impose rules and regulations on employees , why many employees do standardized and repetitive task on assembly lines and why a number of organizations replace their assembly lines with team based work units.
It is interesting to know, that many contemporary managers today have come to appreciate the value of Mahabharata and other great works.
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Historical approaches to OB
? Kautilya‘s arthasastra states that there existed a
sound base form systematic management of human resources as early as the 4th century B.C. itself.
? Human resources in organizations received
managements attention as early as 1800 B.C. itself and ?minimum wage rate‘ and ?incentive wage plan‘ was included in the Babylonian code of Hammurabi.
? In 19th century Industrial Revolution took place
Historical approaches
? Prior to 19th century, the life of an average
employee, was miserable to say the least.
? Working conditions in the factories of average
employee were brutal and back breaking ,people worked from dawn to dusk under intolerance conditions of disease, filth, danger and scarcity of resources and no job satisfaction.
Industrial revolution
? Industrial revolution brought materialism,
discipline, monotony, boredom, job displacement , impersonality, work interdependence and related behavior phenomena . ? Industrial revolution was responsible for planting the seed for potential improvement. ? Industry created surplus of goods and knowledge that eventually gave workers increased wages , shorter hours and more work satisfaction. ? Robert Owen, a young welsh factory owner , about the year 1800, was one of the first who emphasize the human needs of employees.
Industrial revolution
He refused to employee young children and taught his workers cleanliness and temperance and improved their working conditions. Robert Owen methods entitled him to be called the ?father of Personnel Management‘. In 1835, Andrew Ure included the human factor as one of the factors of production, besides the mechanical and commercial parts.
Building the importance of human factor, Ure
Industrial revolution
? In India, around this time J.N. Tata took a special
interest in the welfare of his workers.
? He installed the first humidifiers and fire sprinklers
in his factories.
? In 1886, he installed a pension fund. ? In 1895, he began to pay accident compensation. ? He was decades ahead of his time and miles
ahead of his competitors.
Scientific management
? Scientific management brings Taylor to our
memory who is appropriately called the ?father of scientific management‘.
? Taylor advocated the selection of right people for
right jobs, training them adequately, placing them in jobs for which they were best suited and remunerating them handsomely.
? Taylor published his major work ?principles of
Scientific management? in 1911, when interest in human conditions was accelerated by
Criticism (scientific management)
? Scientific management was criticized by
employees and theorists for its over emphasis on task accomplishment and monetary incentives at the cost of respect for human beings.
? A new approach that treated workers as human
beings was desired.
Human relations movement
? Human relations movement which characterized
by heavy emphasis on employee cooperation and morale.
? Peoples were treated as human beings not as
machines, listening to their needs and problems and involving them in decision-making in matters relating to working conditions.
? Historically, three of most important contributing
factors would be the great depression, the labour movement and the results of famous Hawthorne
The Great Depression
? The stock exchange crash of 1929 in America
marked the beginning of Great Depression.
? The consequences of the Depression were wide
spread unemployment , decline of purchasing power, collapse of markets and lowering of the standard of living of people was world wide and not confined to America alone.
The Great Depression
? Positive outcome of the Depression make the
management realized that production alone could not be its major function, but marketing, finance and personnel were also required in order for a business to survive and grow.
? Most managers now began to develop a new,
awakened view of human aspect of work.
? Human relations took an increased significance
as an indirect, and in some cases, direct result of the Depression.
Labour movement
? Exploitation made workers realized that their
protection lay in their own hands.
? They formed strong unions and this had the
desired effect on management .
? Management began to place primary emphasis
on employee relations and secondary attention was given to wages hours of work and conditions of employment.
Labour movement
? Unfortunately, the human relations role also came
about for wrong reasons .
? In too many cases , it was forced on managers by
labour, threatening them with consequences of non-compliance.
? Ideally it would have been better, had human
relation developed because of intrinsic motivation of practisizing managers, to better understand and provide for the welfare of their employees.
Hawthorne studies
? Hawthorne studies dominate the academic discussion
on historical development and gave academic status to the study of organizational behaviour. The studies were carried out at the western electric company‘s Hawthorne works in Cicero, a suburb of Chicago, and are closely linked with the name of Elton Mayo.
? Elton Mayo, was professor of industrial research at
Harward School of Business Administration and was responsible for conducting the studies and publicizing their significance.
? Naturally he is called as the ?father of human relations
movement.?
Hawthorne Studies
? Hawthorne studies reflected the scientific
management tradition of seeking greater efficiency by improving the tools and methods of work in this case lighting.
? Studies on the relationship between lighting and
productivity that were to be conducted by National Research Council involved three sets of studies---
Illumination studies
? In 1924, the studies started at the huge Hawthorne works
of the western electric company outside of Chicago.
? The initial illumination studies attempted to examine the
relationship between light intensity on the shop floor of mannual work sites and employee productivity.
? An experimenter and control group were used and lighting
was decreased over successive periods for the experimental group(the group for whom lighting was altered),while it was kept at a constant level for the control group ( a comparison group working in another area).
? The researchers were surprised to discover that
productivity increased roughly at the same rate in both the groups.
Illumination studies
? It was only in the final experiment, where they
decreased light to 0.06 foot candle (roughly moonlight intensity), that performance in the test group declined as the workers in the group complained that they could hardly see anything.
Results of illumination experiment were a serendipitous discovery ,which , in research is an accidental discovery. ? Through the first round of experiments the term Hawthorne effect was coined, referring originally to the fact that people‘s knowledge that they are being studied leads them to modify their
Relay Room Study
The second set of experiment took place between 1927 and 1933. The most famous study involved five women who assembled electrical relays in the relay assembly test room, where they were away from other workers and the researchers could alter work conditions and evaluate the results. Before the study began, the researchers were concerned about the possible negative reactions from the workers who would be included in the
Relay room study
? To reduce potential resistance, the researchers
changed the usual supervisor arrangement ,so that there would be no official supervisor.
? Instead the workers would operate under general
direction of the researchers .
? The workers were also given special privileges,
such as being able to leave their work station without permission, free mid-morning lunch, a workday that was a half hour shorter , a five day work week and variations in the method of
Relay room study
? Generally, productivity increased over the period
of study, regardless of how the factors were manipulated .
? A Harward University research group who
assessed the result finally concluded that changes in supervisory arrangement was the major reason for increase in the productivity in Relay Assembly Test Room study.
? The researchers felt that the physical changes
such as rest pauses , free lunches and incentive
Bank wiring room study
? This study was conducted between 1931 and
1932 and constituted the third set of experiments.
? In this study a group of 14 men who wired
telephone banks was observed in a standard shop condition .
? An observer was stationed in the room with
instruction to take continuous notes on the workers actions.
Bank Wiring room Study
? The observer was not allowed to give orders or
get involved in conversation with the workers.
? Although, the workers were initially apprehensive
about the observer , they settled into more natural and relaxed behaviour about three weeks.
? Because the foreman of the work group also
supervised other workers in another room, and because the observer was deliberately unobtrusive, the workers were free from constant supervision.
Bank Wiring room study
? Though the workers were paid according to their
output, the observer soon noted that workers had established an informal daily norm of 6600 units per person.
? Typically, the men would pace their work so that
they reached the norm by the end of the day.
Bank wiring study (Conclusion-)
? The researchers concluded that the behavioural
norm set by the work group had a powerful influence over the productivity of the group.
? The higher the norms, the greater the productivity. ? The lower the norms, the lower the productivity. ? The power of peer group and the importance of
group influence on individual behaviour and productivity were confirmed in bank wiring room study.
Hawthorne studies (summary)
? Thus, Hawthorne studies laid a foundation for
understanding people‘s social and psychological behaviour in the workplace.
? Illumination experiments (1924-27): to find out the
effect of illumination on worker productivity.
? Relay assembly test room experiment: to find out
the effects of change in working hours and other working conditions on productivity.
? Bank wiring observation room experiment: to find
out social aspect of work organization.
Organizational behaviour (history)
? Organizational behaviour has made considerable
strides since 1960‘s, although there have been occasional steps backward as well.
? Managers increasingly recognize the value of
human resources and strive to better understand people and their role in complex organization and competitive business situation.
? This realization has come from the subject ,
organizational behaviour.
Milestones in History of OB
? Industrial Revolution---- Robert Owen, Andrew
Ure and J.N. Tata provided certain welfare facilities . The idea generated into paternalistic approach. ? Scientific management (early 20th century)--Taylor believed in rationalizing production. He believed that human behaviour was based on ?rabble hypothesis? ? Human relations movement (1920‘s to 1940‘s)— Great Depression, labour movement and Hawthorne studies lead to the movement, the movement subsequently become a fad. ? Organizational behaviour--- 1950‘s
Models of organizational behaviour
Autocratic Basis of model Managerial orientation Employee Orientation Power Authority Obedience Custodial Economic resources Money Security and benefits Supportive Leadership Support Job performance Collegial Partnership Team work Responsible Behaviour
Employee psychological result
employee needs met
Dependence on boss
Subsistence
Dependence on organization
Security
Participation
Self discipline
Self actualization
Status and recognition
Performance result
Minimum
Positive cooperation
Awakened drives
Moderate enthusiasm
Models of OB (Autocratic model)
? Managerial orientation is towards power .
? Managers see authority to get the things done .
? Employee are expected to follow orders .
The result is high dependence on boss and dependence is possible because employees live on the subsistence level. ? The management decides what is the best action for the employees. ? A very strict and close supervision is required to obtain desirable performance from the employees.
?
Autocratic model
? Autocratic model represents exploitative
authoritative theory in which motivation depends on physical security and some use of desire for status and better performance is ensured through fear, threats, punishment and occasional rewards ,one way communication and little interaction between managers and employees. ? Autocratic model of organizational behaviour may be quite useful way to accomplish performance where employees can be motivated by physiological needs which generally happens at lower strata of the organization
Models of OB (Custodial model)
? Custodial model: Managerial orientation is
towards the use of money to pay for employee benefits. ? Model depends on the economic resources of the organization and its ability to pay for the benefits . ? To obtain security employees became highly dependent on the organization which reduces personal dependence on boss but fail to provide strong motivation. ? Although employees working under this model feel happy but level of performance is not very high.
Custodial model
? Employees are not given any authority to decide
what benefits or rewards they should get.
? This approach is quite similar to patrimonial
approach which is still common in many business organizations in India
? The phenomena is more predominant in family –
managed business organizations where parents decide what is good and bad for children ;managers decide what is good for their employees, so this model is not suitable for
Models of OB (Supportive model)
? Supportive model: organizational behaviour
depends on managerial leadership rather than on the use of power or money. ? Aim of managers is to support employees in their achievement of results. ? The focus is primarily on participation and involvement of employees in managerial decision -making process. ? Various organizational processes -communication, leadership, decision-making, interaction, control and influence– are such that these help employees to fulfill their higher order needs such as esteem and self-actualization.
Supportive model (Contd)? Supportive model best suited in the condition where employees are self-
motivated.
? Emphasis is on the human aspect not on the economic resources of the
organization.
? Managers role is to help employees is to achieve their work rather than
supervising them closely.
? Organizations with sophisticated technology and employing professional
people can also apply this model for getting best out of their human resources.
? Davis observes that ?the supportive model‘ tends to be specially
effective in nations with affluence and complex technology ,because it appeals to higher order needs and provides intrinsic motivation factors.
? The tendency of the modern management is to move towards
supportive model, specially for their management groups.
Collegial model
? Collegial refers to a body of people having common purpose.
? Collegial model is based on the team concept in which each
employee develops higher degree of understanding towards others and share some common goals.
? Employee response to this situation is responsibility, need little
direction and control from management.
? Control is basically through self-discipline by the team members. ? Organizational climate is quite conducive to self-fulfillment and
self-actualization.
?
Collegial model tends to be more useful with unprogrammed work requiring behavioural flexibility ,an intellectual environment, and considerable job freedom.
Models of OB (Conclusion)
? These all above models are basically constructed
around need hierarchy. ? Need hierarchy changes with the level of a person in organization, level of his education, level of maturity, personality factors and the type of work environment. ? Organization theorists have argued that tendency to move towards the adoption of supportive model because in this case people may give their best because in other models they do not find conditions conducive to give their best performance. ? Now, today managers are taking a number of steps to humanize their organizations, such as participation, morale building and so on for effectiveness of the organization.
Challenges and Opportunities for OB
? Responding to Globalization
? Increased foreign assignments ? Working with people from different cultures ? Coping with anti-capitalism backlash ? Overseeing movement of jobs to countries with low-
cost labor
? Managing Workforce Diversity
? Embracing diversity ? Changing U.S. demographics ? Implications for managers ? Recognizing and responding to differences
Major Workforce Diversity Categories
Gender
Disability Age Non-Christian Race Domestic Partners
National Origin
Challenges and Opportunities for OB (cont‘d)
? Improving Quality and Productivity
? Quality management (QM) ? Process reengineering
? Responding to the Labor Shortage
? Changing work force demographics ? Fewer skilled laborers ? Early retirements and older workers
? Improving Customer Service
? Increased expectation of service quality
? Customer-responsive cultures
Management
1. Concern for continuous improvement.
2. Improvement in the quality of everything the
organization does.
3. Accurate measurement. 4. Empowerment of employees. 5. Intense focus on Customer
Improving quality and productivity
? Quality management (QM)
? The constant attainment of customer satisfaction
through the continuous improvement of all organizational processes. ? Requires employees to rethink what they do and become more involved in workplace decisions.
? Process reengineering
? Asks managers to reconsider how work would be
done and their organization structured if they were starting over. ? Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.
Challenges and Opportunity for OB (cont‘d)
? Improving People Skills
? Empowering People
? Stimulating Innovation and Change ? Coping with “Temporariness”
? Working in Networked Organizations
? Helping Employees Balance Work/Life Conflicts ? Improving Ethical Behavior
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