intoduction of organization behaviour

Introduction to

Organizational Behaviour

Module-1

OB-Concept and DefinitionAccording to Aldag and Brief OB is defined as:“Is a branch of the social sciences that seeks to build theories that can be applied to predicting, understanding and controlling behaviour in work organizations’.

According to Callahan, Fleenor and Kudson OB is:“Organizational Behaviour is a subset of management activities concerned with understanding, predicting and influencing individual behaviour in organizational settings”.

According to above definitions ingredients of OB are same, that is:Studying, understanding and controlling human behaviourThe study is about behaviour in organizations It studies human behaviour at individual level, group level and organizational

level. Knowledge about human behaviour would be useful in improving an

organization’s effectiveness.

Intuition and Systematic Study

Intuition

• Gut feelings• Individual observation•Common sense

Systematic Study

•Looks at relationships•Scientific evidence•Predicts behaviors

The two are complementary means of predicting behavior.

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An Outgrowth of Systematic Study…

Pose a managerial question

Search for best available evidence

Apply relevant information to case

Evidence-Based Management (EBM)

Basing managerial decisions on the best available scientific evidence

Must think like scientists:

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Managers Should Use All Three Approaches

The trick is to know when to go with your gut. – Jack Welsh

Intuition is often based on inaccurate information

Faddism is prevalent in managementSystematic study can be time consuming

Use evidence as much as possible to inform your intuition and experience. That is the

promise of OB.1-5

Contributing Disciplines

Psychology

Sociology

Social Psychol

ogy

Anthropology

See E X H I B I T 1–3 for details

Many behavioral sciences have contributed to the development ofOrganizationalBehavior

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PsychologyThe science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Unit of Analysis: Individual

Contributions to OB:Learning, motivation, personality, emotions, perceptionTraining, leadership effectiveness, job satisfaction Individual decision making, performance appraisal,

attitude measurementEmployee selection, work design, and work stress

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Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

Unit of Analysis:Group

Contributions to OB:Behavioral changeAttitude changeCommunicationGroup processesGroup decision making

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Sociology

Unit of Analysis:-- Organizational System

Contributions to OB:Group dynamicsWork teamsCommunicationPowerConflict Intergroup behavior

-- GroupFormal organization

theoryOrganizational

technologyOrganizational changeOrganizational culture

The study of people in relation to their fellow human beings.

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Anthropology

Unit of Analysis:-- Organizational System

Contributions to OB:Organizational cultureOrganizational

environment

-- GroupComparative valuesComparative attitudesCross-cultural analysis

The study of societies to learn about human beings and their activities.

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Nature of OBA field of Study and not a Discipline- OB can be treated as a distinct field of study and

not a discipline or even emerging discipline. OB, because of its broad base, recent emergence and interdisciplinary orientation,

is not accepted as science.2. Interdisciplinary Approach- OB is basically an interdisciplinary approach. An interdisciplinary approach integrates the relevant knowledge drawn from different

disciplines like psychology, sociology and anthropology.3. An Applied Science- The basic objective of OB is to make application of various

researches to solve the organizational problems particularly related to human behaviour aspect.

4. Humanistic and Optimistic- OB focuses the attention on people from humanistic point of view. It is based on the belief that needs and motivation of people are of high concern. 5. Oriented towards Organizational Objective- OB, being an applied science and emphasising human aspect of the organization, is

oriented towards organizational objectives.6. A total Systems Approach- The systems approach is an integrative approach which takes into account all the

variables affecting organizational functioning.

Importance of OBRoad map to our lives in organisationsHelps us understand and predict organisational

lifeInfluences events in organisationsHelps understand self and others betterHelps a manager get things done betterHelps maintain cordial relationsHighly useful in the field of marketingHelps in career planning and developmentHelps sustain the temp of economic growth

Limitations of OBKnowledge about OB does not help an individual

manage personal life betterDualities of OB are bafflingHas become a fad with managersIs selfish and exploitativeManagers expect quick-fix solutions-not possiblePrinciples and practices may not work in the

events of declining fortunesCannot eliminate totally conflict and frustration

Milestones in the History of Organisation Behaviour/Predecessors of OB

Industrial Revolution Robert Owen, Andrew Ure and J.N. Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach.

Scientific Management– Taylor believed in rationalising production. He believed

Early 20th Century that human behaviour was based on ‘rabble hypothesis.’

Human Relations Movement Great Depression, labour movement and during 1920s to 1940s Hawthorne studies led to the movement. The

movement subsequently became a fadOrganisational behaviour – 1950’s

The Industrial Revolution’s Influence

On Management Practices

Machine power began to substitute for human power Lead to mass production of economical goods

Improved and less costly transportation systems became available Created larger markets for goods.

Larger organizations developed to serve larger markets Created the need for formalized management practices.

Scientific ManagementFrederick W. Taylor Scientific Management

The Principles of Scientific Management (1911) Advocated the use of the scientific

method to define the “one best way” for a job to be done

Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way.

To motivate workers, he favored incentive wage plans.

Separated managerial work from operative work.

The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency. Taylor sought to reduce the

time a worker spent on each task by optimizing the way the task was done.

Definition of Hawthorne Studies

“Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity.”

Origins of Human Relations Theory

“The Hawthorne StudiesHawthorne Works of Western Electric

Company1924 - ChicagoResearch focus: Relation of quality and

quantity of illumination to efficiency in industry

Four Important Studies

“The Hawthorne Studies” Illumination Study (November 1924)

Designed to test the effect of lighting intensity on worker productivity

Heuristic value: influence of human relations on work behavior

Relay Assembly Test Room Study (1927-1932) Assembly of telephone relays (35 parts - 4 machine screws) Production and satisfaction increased regardless of IV

manipulation Workers’ increased production and satisfaction related to

supervisory practices Human interrelationships are important contributing factors to

worker productivity Bottom Line: Supervisory practices increase employee morale

AND productivity Interviewing Program (1928-1930)

Investigate connection between supervisory practices and employee morale

Employees expressed their ideas and feelings (e.g., likes and dislikes)

Process more important than actual results Bank Wiring Room Observation Study (November 1931

- May 1932) Social groups can influence production and individual work

behavior RQ: How is social control manifested on the shop floor? Informal organization constrains employee behavior within

formal organizational structure

CHALLENGES AND OPPORTUNITIES FOR OB1. Responding to economic pressures

Deep and prolonged recession in 2008 that spread worldwide

In difficult economic times, effective management is an asset. During these times, the difference between good and bad management can be the difference between profit and loss.

In good times, understanding how to reward, satisfy, and retain employees is at a premium. In bad times, issues like stress, decision making, and coping come to the fore.

CHALLENGES AND OPPORTUNITIES FOR OB2. Responding to globalization

Increased foreign assignments Organizations are no longer constrained by national

borders. Once you’re in another country, you’ll have to manage a

workforce very differently in needs, aspirations, and attitudes from those you are used to back home.

Working with people from different cultures Even in your own country, you’ll find yourself working

with bosses, peers, and other employees born and raised in different cultures.

Management practices need to be modified to reflect the values of the different countries in which an organization operates.

Overseeing movement of jobs to countries with low-cost labor Managers are under pressure to keep costs down to

maintain competitiveness. Moving jobs to low-labor cost places requires managers to

deal with difficulties in balancing the interests of their organization with responsibilities to the communities in which they operate.

CHALLENGES AND OPPORTUNITIES FOR OB

3. Managing workforce diversity Workforce diversity is one of the most important and

broad-based challenges currently facing organizations. While globalization focuses on differences between people

from different countries, workforce diversity addresses differences among people within given countries.

Workforce diversity acknowledges a workforce of women and men; many racial and ethnic groups; individuals with a variety of physical or psychological abilities; and people who differ in age and sexual orientation.

Managing this diversity is a global concern. Three demographic forces will shape India’s labor force in

this decade: more women in the workforce, urbanization, and an increase in the population of Indians in their thirties and forties.


4. Improving customer serviceToday the majority of employees in developed

countries work in service jobs. The service industry in India contributed 54.6 per

cent of the country’s GDP and employed 34 per cent of the labor force in 2009.

Examples of people in the service industry include technical support reps, fast food counter workers, waiters, nurses, financial planners, and flight attendants.

Employee attitudes and behavior are associated with customer satisfaction.


5. Improving people skillsPeople skills are essential to managerial

effectiveness. OB provides the concepts and theories that

allow managers to predict employee behavior in given situations.

6. Stimulating innovation and changeSuccessful organizations must foster

innovation and master the art of change. Employees can be the impetus for innovation

and change or a major stumbling block. Managers must stimulate employees’

creativity and tolerance for change.

CHALLENGES AND OPPORTUNITIES FOR OB7. Coping with “temporariness”

Organizations must be flexible and fast in order to survive. In such a scenario: Jobs must be continually redesigned. Tasks are being done by flexible work teams rather

than individuals. Companies rely more on temporary workers. Workers need to update knowledge and skills. Work groups and organizations are in a continuing

state of flux. Managers and employees must learn to cope with

temporariness. Learning to live with flexibility, spontaneity, and

unpredictability has become part of one’s job. OB provides help in understanding a work world of

continual change, overcoming resistance to change, and creating an organizational culture that thrives on change.

CHALLENGES AND OPPORTUNITIES FOR OB8. Working in networked organizations

Networked organizations are becoming more pronounced. Manager’s job is fundamentally different in networked

organizations. Challenges of motivating and leading “online” require different techniques.

9. Helping employees balance work-life conflicts The creation of the global workforce means work no longer

sleeps. Workers are on-call 24-hours a day or working nontraditional shifts.

Communication technology has provided a vehicle for working at any time or any place.

Employees are working longer hours per week— India ranks among the hardest working nations globally with an average workweek of 50 hours.

The lifestyles of families have changed—creating conflict: more dual-career couples and single parents find it hard to fulfill commitments to home, children, spouse, parents, and friends.

Balancing work and life demands now surpasses job security as an employee priority.

CHALLENGES AND OPPORTUNITIES FOR OB10. Creating a positive work environment

Organizations like the erstwhile Satyam Computer Services realized that creating a positive work environment could be a competitive advantage.

Positive organizational scholarship or behavior studies what is ‘good’ about organizations.

This field of study focuses on employees’ strengths versus their limitations as employees share situations in which they performed at their personal best.

11. Improving ethical behavior Ethical dilemmas are situations in which an individual is

required to define right and wrong conduct. Good ethical behavior is not so easily defined. Organizations are distributing codes of ethics to guide

employees through ethical dilemmas. Managers need to create an ethically healthy climate.

Group ActivityBusiness Game – Discuss the challenges for

managers in designing a new organization.

THANK -YOU