Unit i intro to ob


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  • OB and Planning: The study of OB reveals how decisions are made in organizations and how politics and conflict affect the planning process. It shows how group decision making and biases can affect planning.
    OB and Organizing: OB offers guidelines on how to organize employees to make the best use of their skills and capabilities.
    OB and Leading: The study of different leadership methods and of how to match leadership style to the characteristics of the organization and all its components is a major concern of OB.
    OB and Controlling: The theories and concepts of organizational behavior allow managers to understand and accurately diagnose work situations in order to pinpoint where corrective action may be needed.
  • A skill is an ability to act in a way that allows a person to perform well in his or her role.
    Managers need all three types of skills to perform their organizational functions and roles effectively.
    Conceptual Skills refer to the ability to analyze and diagnose a situation and distinguish between cause and effect.
    Human Skills refer to the ability to understand, work with, lead, and control the behavior of other people and groups.
    Technical Skills refer to job-specific knowledge and techniques.
  • Figure 1.1 illustrates how organizational behavior concepts and theories allow people to correctly understand, describe, and analyze the characteristics of individuals, groups, work situations, and the organization itself.
  • The material for this illustration is found on pages 15-17.
  • In an open system, an organization takes in resources from its external environment and converts or transforms them into goods and services that are sent back to that environment, where they are bought by customers.
    The activities of most organizations can be modeled using the open-systems view.
    Consider asking students to apply the open systems model to a company’s processes.
    The system is said to be open because the organization draws from and interacts with the external environment to secure resources, transform them, and then sell the products created to customers.
  • The material for this illustration is found on page 6.
  • Unit i intro to ob

    1. 1. Introduction to Organisational Behavior
    2. 2. Who is a Manager & What Managers Do ? Managerial Activities Make decisions Allocate resources Direct activities of others to attain goals
    3. 3. Where Managers Work
    4. 4. Four Functions of Management Planning Organizing Decide on organizational goals and allocate and use resources to achieve those goals Establish the rules and reporting relationships that allow people to achieve organizational goals Controlling Evaluate how well the organization is achieving goals and take action to maintain, improve, and correct performance Leading Encourage and coordinate individuals and groups so that they work toward organizational goals
    5. 5. Management Functions (cont’d)
    6. 6. Management Functions (cont’d)
    7. 7. Management Functions (cont’d)
    8. 8. Management Functions (cont’d)
    9. 9. Managerial Skills Conceptual Skills Technical Skills Human Skills
    10. 10. Managerial Skills
    11. 11. What is Organizational Behavior? Insert Figure 1.1 here
    12. 12. Complementing Intuition with Systematic Study Intuition “Gut” feelings about “why I do what I do” and “what makes others tick” Systematic Study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence Provides a means to predict behaviors
    13. 13. Organisational Behavior Defined : • Organisational Behavior is concerned with the understanding, prediction and control of human behavior in organisation/s.
    14. 14. Features of Organisational Behavior : • It is the study of human behavior in organisation. • Knowledge of human behavior helps in improving organisational effectiveness and efficiency.
    15. 15. Elements of Organisational Behavior : There are three basic elements of the organisation namely: • People • Structure • Technology
    16. 16. Relation between the three Elements :
    17. 17. Levels of Organizational Behavior :
    18. 18. Goals of Organisational Behavior at Different Levels : • Organisational Level : Culture, Change Management, Financial Performance, Customer Satisfaction & Retention. • Group Level : Group performance, Information Sharing, Cross-functional Partnerships, Conflict Management, Leadership, Power & Politics. • Individual Level : Perception,Performance, Personality,Attitude & Motivation.
    19. 19. Fundamental Concepts of Organisational Behavior : Basic Assumptions • Nature of People :  Individual Difference  A whole person  Caused Behavior  Value of the person • Nature of Organisation :  Social System  Mutual Interest
    20. 20. Contributing Disciplines to the OB Field
    21. 21. Contributing Disciplines to the OB Field (cont’d)
    22. 22. Contributing Disciplines to the OB Field (cont’d)
    23. 23. Contributing Disciplines to the OB Field (cont’d)
    24. 24. Contributing Disciplines to the OB Field (cont’d)
    25. 25. Towards an OB Discipline Behavioural science Psychology Sociology Contribution Learning Motivation Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Individual Group Behavioural change Attitude change Communication Group processes Group decision making Comparative values Comparative attitudes Cross-cultural analysis Anthropology Organizational culture Organizational environment Political science Output Group dynamics Work teams Communication Power Conflict Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture Social psychology Unit of analysis Conflict Intraorganizational politics Power Organization system Study of Organizational Behaviour
    26. 26. An Open Systems View of Organizational Behavior
    27. 27. A Social Learning Approach to OB
    28. 28. Models of OB Facets AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL Model depends Power on Economic Resources Leadership Partnership Managerial Orientation Authority Money Support Team Work Employee Orientation Obedience Security Job Performance Responsibility Employee Psychological Result Dependence on Boss Dependence on Organisation Participation Self Discipline Employee Needs Met Subsistence Maintenance Higher Order Self Actualisation Performance Result Minimum Passive Co-operation Awakened Drives Moderate Enthusiasm
    29. 29. Historical Development of OB The predecessors of OB are : • Industrial Psychology • Scientific Management Movement • Human Relations Movement
    30. 30. Historical Development of OB (cont.) • Industrial Psychology : It is simply the application or extension of psychological facts & principles concerning human beings operating within the context of business & industry. Group testing, trade testing, rating scales, personality inventories are all its contribution which came into existence with the formation of APA (American Psychological Association)
    31. 31. Historical Development of OB (cont.) • Scientific Management Movement : Fredrick Winslow Taylor advocated the concept of parity of wages, selection of right man for right job, maximum output with minimum wastage etc. he insisted upon supervisory training to make supervisor a strong link between management & non – management group/s.
    32. 32. Historical Development of OB (cont.) • Human Relations Movement : According to Fred Luthans, three events cumulatively ushered in the era of human relations movement. These are :  The Great Depression  Rise of Trade Unionism  The Hawthorne Experiments
    33. 33. Historical Development of OB (cont.)  The Hawthorne Experiments have been segmented into following broad categories :  Illumination Experiments (1924-1927)  Relay Room Experiments (1927-1932)  Bank Wiring Room Experiment (1931-1932)  Mass Interview Program (1928-1930)
    34. 34. Historical Development of OB (cont.) • The discipline of OB came to be recognised as a field of study around 1950. OB studies not only the human behavior within the parameters of the organisation but also the group dynamics. OB studies the external environment which influences the human behavior within the organisation. That is why OB takes cognizance of TQM, TPM, BPR or for that matter, any new concept originating in the external environment.
    35. 35. A Paradigm Shift The term ‘Paradigm’ is used to mean a broad model, a framework, a way of thinking or a scheme for understanding reality. Joel Barker defined Paradigm as : “A paradigm simply establishes the rules, defines the boundaries & tells one how to behave within the boundaries to be successful.”
    36. 36. A Paradigm Shift  Paradigms powerfully influences our perceptions of the world around us.  We like our current paradigms & therefore resist change.  Outsiders are more effective at introducing paradigms (new ones) to us.  Early adopters of new paradigms must often do so on faith & not on facts  New paradigms give us new ways of viewing the world & solving problems
    37. 37. Management Challenges • • • • • • • • Globalization Technical Innovation & Change Quality Revolution Workforce Diversity Employee Empowerment Facilitating Work Life Balance Maintenance of Work Ethics & Culture Corporate Reorganisation
    38. 38. Challenges Faced by Different Levels at Workplace Organizational Level • • • • Productivity Developing Effective Employees Global Competition Managing in the Global Village Group Level • • Working With Others Workforce Diversity Individual Level • • • Job Satisfaction Empowerment Behaving Ethically Workplace
    39. 39. Challenges and Opportunity for OB • • • • • Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service
    40. 40. Challenges and Opportunity for OB (cont’d) • • • • • Improving People Skills Empowering People Coping with “Temporariness” Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts • Improving Ethical Behavior
    41. 41. Emerging Trends/ Concerns in OB • Cultural Diversity & Team Work • Ethical Management & Corporate Social Responsibility (CSR)
    42. 42. Organisation & Environment • The environment of any organisation is “the aggregate of all conditions, events & influences” that surround and affect it.
    43. 43. Components of Organisational Environment Organisational Environment can be broadly classified into following categories : • Internal Environment • External Environment External General Environment External Operating Environment
    44. 44. Components of Internal Environment • Internal Environment : Organisational Aspect Personnel Aspect Production Aspect Marketing Aspect Financial Aspect
    45. 45. Components of External Environment • External Environment :  External Operating Environment : Supplier Component Customer Component Labor Component Competition Component International Component
    46. 46. Components of External Environment • External Environment:  External General Environment : Economic Component Demographic Component Technological Component Legal Component Political Component Social Component
    47. 47. Environmental Analysis
    48. 48. Role of Environmental Analysis in Organisation The role of environmental analysis vary drastically from organisation to organisation, however, the basic role played by it are as under: • Function Oriented Role: Its main purpose is to improve organisational performance by providing environmental information concerning effective performance of specific organisational functions.
    49. 49. Role of Environmental Analysis in Organisation • The Integrated Strategic Planning Role: Its main purpose is to improve organisational performance by making top managers & divisional managers aware of the issue that arises in organisation’s environment, by having a direct impact on planning & by linking corporate & divisional planning.
    50. 50. Role of Environmental Analysis in Organisation • The Policy Oriented Role : Its main purpose is to improve organisational performance by simply keeping top management informed about major trends emerging in the environment. It is basically unstructured, indirect & informal.
    51. 51. Strategies for Managing Environment • • • • • • • • • Proper recruitment & selection Organisational image building through advertising. Proper domain choice & domain change Contracting Smoothening Lobbying Vertical integration Buffering Strategic alliances/ mergers/ acquisitions
    52. 52. OB: Cognitive Framework The cognitive framework determines a person’s deliberate or conscious efforts towards acquiring knowledge. ‘Cognition’ the basic unit of cognitive framework can be defined as an act of knowing an item of information. It involves a person’s higher mental processes. Edward Toleman is being credited for the evolution of cognitive framework.
    53. 53. OB: Behavioristic Framework • The roots of behavioristic framework could be traced back to the research work of Ivan Pavlov & B.F Skinner
    54. 54. OB: Behavioristic Framework • Classical Conditioning/ Reflexive Conditioning: Ivan Pavlov emphasized the S-R (Stimulus- Response) approach. Learning is building up association between Unconditioned Stimulus (UCS) & Conditioned Stimulus (CS). The experiment is conducted in three stages:
    55. 55. OB: Behavioristic Framework • Stage I: Pre-conditioning: UCS – (Meat Powder) CS (Bell) – UCR (Salivation) No Response
    56. 56. OB: Behavioristic Framework • Stage II: During Conditioning : CS + UCS (Bell) (Meat Powder) UCR (Salivation) (The activity is done repeatedly over a period of time.)
    57. 57. OB: Behavioristic Framework • Stage III: Post Conditioning : CS CR (Bell) (Salivation) UCS: Unconditioned Stimulus (Meat Powder) UCR: Unconditioned Response (Salivation) CS: Conditioned Stimulus (Bell) CR: Conditioned Response (Salivation)
    58. 58. OB: Behavioristic Framework • Operant Conditioning/Instrumental Conditioning: B.F Skinner proposed the theory of operant conditioning emphasizing R-S (Response-Stimulus) approach. It is basically presumed that a person’s behavior is determined by environment & individual learns by producing alteration in their environment.
    59. 59. OB: Behavioristic Framework It presupposes that human beings explore their environment (out of curiosity) & thereafter act upon it. Reinforcement is given only when a correct response is made. (Most behavior in organisation are learnt controlled & are altered by the consequences, by manipulating reward system.)
    60. 60. OB: Social Cognitive Framework The social cognitive framework of organisational behavior discusses the two major concerns: • Knowledge Management • Emotional Intelligence
    61. 61. OB: Social Cognitive Framework • Knowledge Management: It’s the collection of processes that govern the creation, dissemination & utilization of knowledge. It requires :  Establishing a strategy.  Redesigning the organisational structure.  Reshaping the organisational culture.
    62. 62. Elements of Knowledge Management Knowledge Acquisition Knowledge Sharing  Individual learning  Training  Sense making  Environmental scanning  Communication  Knowledge awareness  Empowerment  Grafting  Experimentation  Rewards
    63. 63. OB: Social Cognitive Framework • Emotional Intelligence: It refers to the assortment of non-cognitive skills, capabilities, competencies that influences a person’s ability to succeed in coping with environmental demands & pressures. The concept has been devised by Daniel Goleman.
    64. 64. OB: Social Cognitive Framework • Emotional Intelligence: It is composed of five dimensions:  Self Awareness: awareness of one’s own feelings.  Self Management: ability to manage one’s emotions & impulses.  Self Motivation: ability to persist in the face of setbacks & failures.  Empathy: ability to sense how others are feeling.  Social Skills: ability to handle other’s emotions.
    65. 65. OB: Social Cognitive Framework The assessment and analysis of emotional intelligence is represented as a measure/ value of EQ (Emotional Quotient)
    66. 66. QUESTIONS
    67. 67. Review • Discuss the contribution of different disciplines in the study of OB? • Discuss the fundamental concepts of OB. • Why should a manager know about this domain of knowledge? • Contrast formal versus informal organization. • What are the three basic elements of an organization?
    68. 68. Review • Discuss Hawthorne Studies? • What is Scientific Management Movement? • Describe 3 challenges facing managers today; why are they considered as “challenges”? • What is Emotional Intelligence & how is it important in work organisation ? • Discuss the role of Knowledge Management in an organisation.
    69. 69. Review • “Organisations differ in their nature”. In the light of this statement discuss various models of OB. • Discuss the purpose & role of environmental analysis in an organisation. • “OB represents interaction among individual, group & the organisation”. Elucidate this statement.
    70. 70. Review •     •     The Hawthorne Experiment heralded the: Management approach Group Work approach Human Relations Approach Organisational Behavior Approach OB as a discipline now has a fairly strong presence in the study of management because: It borrows extensively from other behavioral sciences It has a strong emphasis on studying human behavior to harness it in enhancing organisational effectiveness It helps in changing organisations It leads to better people management
    71. 71. THANK YOU