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  • 1. Lecture 1(March 6th 2013) Chapter 1What is Organizational Behavior?Organizational Behavior is Blend of Sociology + Phycology + Societal Behaviors & Social EnvironmentOrganizational Behavior is a unique combination of different disciplines. The predominate areas arepsychology, sociology, social psychology, anthropology, political science, and economics.Organizational behavior is an applied behavioral science that is built upon contributions from a number ofbehavioral disciplines. The predominant areas are psychology, sociology, social psychology,anthropology, and political scienceLearning DomainsThree are three domains of learning C A Cognitive Effective P PhycomotorLearning DomainsC: Cognitive Domain = Mental UnderstandingA: Affective Domain = Creation of Interest in learning (Lowest Level) Emotional Attachment to learning (Highest Level)P: Psychomotor Domain = Relate Theory to Practice, Applied (Stimulitive Learning)
  • 2. How We LearnHumans are lifelong learners. From birth onward we learn and assimilate what we have just learned intowhat we already know. Learning in the Geosciences, like all learning, can be categorized into the domainsof concept knowledge, how we view ourselves as learners and the skills we need to engage in theactivities of geoscientists. As early as 1956 Educational Psychologist Benjamin Bloom divided what andhow we learn into three separate domains of learning.Cognitive DomainThis domain includes content knowledge and the development of intellectual skills. This includes therecall or recognition of specific facts and concepts that serve developing intellectual abilities and skills.There are six major categories, starting from the simplest behavior (recalling facts) to the most complex(Evaluation).The University of Washingtons Geography Department website Major Categories in the Taxonomy ofEducational Objectives has a detailed explanation of Blooms Six Levels of Cognitive Development(more info)
  • 3. Affective DomainHow does one approach learning? With confidence, a can do attitude. The Affective domain includesfeelings, values, appreciation, enthusiasms, motivations, and attitudes. The University of Dayton, Schoolof Law Affective Domain website describes each category in the domain and provides illustrativeexamples and keywords for the cognitive, affective, and psychomotor domains.Psychomotor DomainThe psychomotor domain includes physical movement, coordination, and use of the motor-skill areas.Development of these skills requires practice and is measured in terms of speed, precision, distance,procedures, or techniques in execution. For a more detailed treatment of this domain see the Penn StateTeaching and Learning with Technology website Psychomotor Domain Taxonomy (more info) =What is emotional Intelligence?Able to understand and identify emotions and moods of employees and staff and allow flexibilityaccording to the variables up to an acceptable level.Emotional intelligence (EI) is the ability to identify, assess, and control the emotions of oneself, of others,and of groups. It can be divided into ability EI and trait EI. Ability EI is usually measured usingmaximum performance tests and has stronger relationships with traditional intelligence, whereas trait EIis usually measured using self-report questionnaires and has stronger relationships with personality.What is Emotional Intelligence?Emotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions. Someresearchers suggest that emotional intelligence can be learned and strengthened, while others claim it is aninborn characteristic.Since 1990, Peter Salovey and John D. Mayer have been the leading researchers on emotionalintelligence. In their influential article "Emotional Intelligence," they defined emotional intelligence as,"the subset of social intelligence that involves the ability to monitor ones own and others feelings andemotions, to discriminate among them and to use this information to guide ones thinking and actions"(1990).The Four Branches of Emotional IntelligenceSalovey and Mayer proposed a model that identified four different factors of emotional intelligence: theperception of emotion, the ability reason using emotions, the ability to understand emotion and the abilityto manage emotions.Perceiving Emotions: The first step in understanding emotions is to accurately perceive them. In manycases, this might involve understanding nonverbal signals such as body language and facial expressions.Reasoning With Emotions: The next step involves using emotions to promote thinking and cognitiveactivity. Emotions help prioritize what we pay attention and react to; we respond emotionally to thingsthat garner our attention.Understanding Emotions: The emotions that we perceive can carry a wide variety of meanings. Ifsomeone is expressing angry emotions, the observer must interpret the cause of their anger and what it
  • 4. might mean. For example, if your boss is acting angry, it might mean that he is dissatisfied with yourwork; or it could be because he got a speeding ticket on his way to work that morning or that hes beenfighting with his wife.Managing Emotions: The ability to manage emotions effectively is a key part of emotional intelligence.Regulating emotions, responding appropriately and responding to the emotions of others are all importantaspect of emotional management.What is job sculpting?Employees are given tasks in which they are interested.Shaping job tasks and job processes to better fit an individual’s strengths and interests. It is aboutincreasing and aligning discretionary work practicesJob sculpting is a job system in which job profile is designed in accordance with the employee’s interestrather than expecting employee to fit in, as is done in traditional system.Six Learning Levels of Cognitive DomainIn 1950’s Bloom’s Taxonomy i.e.the theory was developed;Level Level Name Question Type Learning LevelNumber Grade1 K Knowledge Level Define, state, shat etc. Basic Level2 C Comprehension Level Explain, elaborate, conclude, Learning describe,3 A Application Level Solve, apply, compute, prove, Mid-Level4 A Analysis Level Compare, differentiate, match, Learning analyze,5 S Synthesis Level Develop, design, construct, create, Advance Level6 E Evaluation Level Evaluate, rate, justify, findings, Learning recommend,In 1956, Benjamin Bloom headed a group of educational psychologists who developed aclassification of levels of intellectual behavior important in learning. Bloom found that over 95% of the test questions students encounter require them to think only at the lowest possiblelevel...the recall of information.Bloom identified six levels within the cognitive domain, from the simple recall or recognition offacts, as the lowest level, through increasingly more complex and abstract mental levels, to thehighest order which is classified as evaluation. Verb examples that represent intellectual activityon each level are listed here. 1. Knowledge: arrange, define, duplicate, label, list, memorize, name, order, recognize, relate, recall, repeat, and reproduce state. 2. Comprehension: classify, describe, discuss, explain, express, identify, indicate, locate, recognize, report, restate, review, select, translate,
  • 5. 3. Application: apply, choose, demonstrate, dramatize, employ, illustrate, interpret, operate, practice, schedule, sketch, solve, use, write.4. Analysis: analyze, appraise, calculate, categorize, compare, contrast, criticize, differentiate, discriminate, distinguish, examine, experiment, question, and test.5. Synthesis: arrange, assemble, collect, compose, construct, create, design, develop, formulate, manage, organize, plan, prepare, propose, set up, and write.6. Evaluation: appraise, argue, assess, attach, choose compare, defend estimate, judge, predict, rate, core, select, support, value, evaluate.
  • 6. Lecture 2(March 12th 2013) Chapter 1Discipline Effectiveness EfficiencyTotal Quality Management Quality TimeOrganizational Behavior Achieving Goals Reducing CostVariableA variable is any general characteristic that can be measured and that changes in amplitude, intensity, orboth. Some examples of OB variables found in this textbook are job satisfaction, employee productivity,work stress, ability, personality, and group norms.Dependent VariablesIf response are depending / change due to other variables.A dependent variable is a response thatis affected by an independent variable. In terms of the hypothesis it is the variable that theresearcher is interested in explaining. In organizational behavior research, the most populardependent variables are productivity, absenteeism, turnover, job satisfaction and organizationalcommitment.Independent VariablesThe independent variables are the major determinants of productivity, absenteeism, Organizationalcitizenship behavior (OCB), turnover, and Job satisfaction. Consistent with our belief that organizationalbehavior can best be understood when viewed essentially as a set of increasingly complex buildingblocks, the base, or first level, of our model lies in understanding individual behavior. Individual Group OrganizationsModerating VariableA moderating variable abates the effect of the independent variable on the dependent variable. It mightalso be thought of as the contingency variable: If X (independent variable), then Y (dependent variable)will occur, but only under conditions Z (moderating variables). To translate this into a real-life example,we might say that if we increase the amount of direct supervision in the work area (X), then there will be
  • 7. a change in worker productivity (Y), but this effect will be moderated by the complexity of the tasksbeing performed.Dependent VariablesS# Name Type1 Production Behavior 5 = Behavior2 Absenteeism Behavior3 Turnover Behavior 1 = Attitude4 Job Satisfaction Attitude5 Deviate work place Behavior Advance Learning behavior Addition6 OCB (Organizational Behavior Citizenship Behavior)Behavior = Stimulus ResponseJob SatisfactionJob satisfaction or Employee Satisfaction (also referred to as morale) is one of the most widely usedvariables in organizational behavior. It is an employees attitudinal response to his or her organization. Asan attitude, job satisfaction is summarized in the evaluative component and comprised of cognitive,
  • 8. affective, behavioral components. As with all attitudes, the relationship between satisfaction andbehavior, most specifically job performance and membership, is complex. The following sectionssummarize the cognitive and affective components of job satisfaction; their relationship to organizationalinducements systems and their impact on performance and membership.Job satisfaction is a feeling, so it is attitude,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,―HR Heads have very important role in OB‖
  • 9. HR LADDERIV) Local Companies III) Local Companies(0%) (3%)Strategic Partners Change AgentsHighest Level of HR = SP (Strategic Partners) HR can act as a driver in change!In the matrix portion lowest level is policyimplementation.HR Head & HR Department involved inpreparing strategic planningInternationally (3%) organizations falls in the Internationally (40%) organizations falls in thecategory categoryI) Local Companies II) Local Companies(80%) (70%)Administrative Expert All functions of HR are effective & efficient in interest of organization’s employees.(Fire Fighting Role) 70% is rating in terms of performance. The rating is given by Outside Analysts Internal Employees Technique used is PAT (Point allocation technique)Internationally (10% - 20%) organizations falls Internationally (35% - 40%) organizations fallsin the category in the category
  • 10. Towards OB Discipline:Absolutes of OB Discipline are;PsychologyPsychology seeks to measure, explain, and sometimes change the behavior of humans and other animals.Those who have contributed and continue to add to the knowledge of OB are learning theorists,personality theorists, counseling psychologists, and, most important, industrial and organizationalpsychologists.Early industrial/organizational psychologists studied the problems of fatigue, boredom, and other workingconditions that could impede efficient work performance. More recently, their contributions haveexpanded to include learning, perception, personality, emotions, training, leadership effectiveness, needsand motivational forces, job satisfaction, decision-making processes, performance appraisals, attitudemeasurement, employee-selection techniques, work design, and job stress.Social PsychologySocial psychology, generally considered a branch of psychology, blends concepts from both psychologyand sociology to focus on peoples’ influence on one another. One major study area is change —how toimplement it and how to reduce barriers to its acceptance. Social psychologists also contribute tomeasuring, understanding, and changing attitudes; identifying communication patterns; and building trust.Finally, they have made important contributions to our study of group behavior, power, and conflict.SociologyWhile psychology focuses on the individual, sociology studies people in relation to their socialenvironment or culture. Sociologists have contributed to OB through their study of group behavior inorganizations, particularly formal and complex organizations. Perhaps most important, sociologists havestudied organizational culture, formal organization theory and structure, organizational technology,communications, power, and conflict.AnthropologyAnthropology is the study of societies to learn about human beings and their activities. Anthropologists’work on cultures and environments has helped us understand differences in fundamental values, attitudes,and behavior between people in different countries and within different organizations. Much of ourcurrent understanding of organizational culture, organizational environments, and differences amongnational cultures is a result of the work of anthropologists or those using their methods.There Are Few Absolutes in OBDemonstrate why fewabsolutes apply to OB.Laws in the physical sciences—chemistry, astronomy, physics—are consistent andapply in a wide rangeof situations. They allow scientists to generalize about the pull of gravity or to be confident about sendingastronauts into space to repairsatellites. But as a noted behavioral researcher observed, ―God gave all theeasy problems to the physicists.‖ Human beings are complex, and few, if any, simple and universal
  • 11. principles explain organizational behavior. Because we are not alike, our ability to make simple, accurate,and sweeping generalizations is limited.Two people often act very differently in the same situation, and the same person’s behavior changes indifferent situations. Not everyone is motivated by money, and people may behave differently at areligious service than they do at a party.That doesn’t mean, of course, that we can’t offer reasonably accurate explanations of human behavior ormake valid predictions. It does mean that OB concepts must reflect situational, or contingency,conditions. We can say x leads to y, but only under conditions specified in z —the contingency variables.The science of OB was developed by applying general concepts to a particular situation, person, or group.For example, OB scholars would avoid stating that everyone likes complex and challenging work (thegeneral concept). Why? Because not everyone wants a challenging job. Some people prefer routine overvaried or simple over complex. A job attractive to one person may not be to another; its appeal iscontingent on the person who holds it.
  • 12. Lecture 3(March 13th 2013) Chapter 1 Learning Matrix Gordon Training School Conscious – Competence Learning MatrixIV – Expert Stage III – Skilled Stage V – GURU Stage Unconscious Competence Conscious Competence ―I do not Know that I Know ―I Know that I Know how to Reflective how to perform a task‖ perform a task‖ Competence Play Role of Light houseI – Novice Stage II – Trainee Stage ―People says that he Unconscious Competence Conscious Incompetence Knows how to perform task‖ ―I do not Know that I do not ―I Know that I do not Know know how to perform a task‖ how to perform a task‖ Ignorance of Ignorance Ignorance of Ignorance Below Basic Level Basic LevelExample of Level – I, A person jumping in swimming pool do not know how to swim. Very Dangerousstage.
  • 13. PCN : Parent Country NationalIn an international firm, a PCN is a person whose nationality is the same as that of the firm, but differentfrom the country in which they are working: for example, a Japanese manager working for a UK-basedsubsidiary of a Japanese company.A parent-country national is a person working in a country other than their country of originHCN : Host Country NationalA host-country national (HCN) is an employee who is a citizen of a country in which an organizationsbranch or plant is located, but the organization is headquartered in another country.TCN : Third Country NationalA third country national (TCN) is an employee who is not a citizen of the home or host countries. Forexample, a French National working in the Hong Kong subsidiary of a US company would be considereda TCN employeeExampleLet us say John is a U.S. citizen. If John moves to France to live with no immediate intention of goingback to the US (but also no immediate intention of becoming a French citizen) John is an AmericanExpatriate. If John goes to France to study, from his standpoint other Americans are Home-countrynationals, French people are Host-country nationals and people from any country other than the US orFrance are Third-country nationals. Clear?More ExplanationParent country nationals (PCNs) are employees who are citizens of and are hired from the nation wherean organization has its original and current headquarters (the parent country). PCNs are distinct from hostcountry nationals (HCNs), who are staff hired from the country where the international subsidiary isoperating (the host country). Third country nationals (TCNs) are citizens of neither the parent nor the hostcountry. The role and function of a PCN depends on the organizations approach to international humanresource management and the needs of the overseas subsidiary where the PCN is assigned. PCNs usedifferent adaptation strategies to cope with their overseas assignments, and there are both advantages anddisadvantages in using PCNs to staff international subsidiaries. The term parent country national usuallyis used only to identify an employee who is posted to an overseas country as an expatriate (overseasassignment of more than one year), as a worker on a short-term assignment (less than one year), or as aflexpatriate (several short-term overseas postings, sometimes referred to as commuter assignments). Theterm became widespread in the business world in the 1960s and 1970s, when it became apparent that thetraditional employment dichotomy of expatriates and nationals could not accommodate employees whowere citizens of neither the host nor the parent country (TCNs). Researchers and organizations replacedthe dichotomy by distinguishing employees by parent, host, and third country citizenship.Globalbusinesses now categorize employees by using frameworks that include length of assignment (expatriate,short-term, and flexpatriate), direction of assignment (expatriate vs. inpatriate), and nature of assignment(expatriation vs. virtual assignment). Virtual assignments are job assignments focused on projects within
  • 14. a particular country that rely on electronic communications such as videoconferencing rather thanrequirethe assignee to travel to the country itself. Inpatriates are transfers of HCNs or TCNs to corporateheadquartersfor developmental purposes.The role of PCNs in an international organization depends on theorganizations approach to internationalhuman resource management. Those management approaches canbe categorized as (1) exportive/ethnocentric, (2) integrative/regiocentric and geocentric, and (3)adaptive/polycentric. In the export-ive/ethnocentric approach, PCN expatriates function in a controlposition, as this approach is characterized bya transfer of the parent company’s human resourcemanagement system to the host country. PCNs alsobenefit from international developmental experiencewhile they are on expatriate assignment. The integra-tiveapproach also allows for the employment ofPCN expatriates; however, human resource management policiesand managerial practices are transfusedand adapted from host country to parent country, and vice versa.PCNs are learners in the adaptiveapproach, in which organizations focus on adopting and localizing thepractices and policies of theinternational organization to the host country.PCNs are used for overseas assignments for several otherreasons, including filling an existing overseasposition, developing managers in terms of global awarenessand experience, fulfilling the role of organizationaldevelopment, and problem solving. Researchers havefound differences in the importance of the reasons for employing PCNs in subsidiaries, depending on theorganizations headquarters country, demonstrating thatnational culture can influence organizationalreasons for expatriation. Japanese and European companies aremore likely to use PCNs, whereas U.S.companies are more likely to use HCNs.PCNs tend to use different adaptation strategies when onoverseas assignment. Researchers have categorizedPCN expatriates according to their degree ofallegiance to the parent or host country as being outcomes of adaptation. The categories are (1) freeagents, who have low allegiance to both home and host countries; (2)³going native´ expatriates, who havehigh allegiance to the host country and little to the home country; (3)³hearts at the parent´ expatriates,who have high allegiance to the home country and little to the host country; and (4) dual citizens, whohave high allegiance to both countries. The choice of adaptation strategy appears to be linked to thepersonality of the PCN.Advantages and DisadvantagesSeveral advantages result from employing PCNs who have experience in the organization rather thanHCNs or TCNs. PCNs usually are considered by headquarters as being familiar with the organizationsgoals, products,services, technology, policies, and procedures. This familiarity may help facilitatecoordination, control, anddevelopment of organizational strategy.The use of PCNs also has severaldisadvantages. Among them: (1) PCNs may impose a culturallyinappropriate management style on thehost country subsidiary; (2) using PCNs may limit the promotionalopportunities of HCNs; and (3) thecompensation for PCNs usually is greater than that received by HCN staff,which may cause a degree ofresentment among HCN staff. PCNs also may take a long time to adapt to thehost country, which is likelyto affect their work performance.Some researchers have questioned whether HCNs, TCNs, and inpatriatesmaybe better equipped to deal withthe cultural challenges of international management than are PCNexpatriates. The use of PCNs in globalorganizations appears to continue to develop rather than diminish,however.Polycentric Approach:Polycentrism is the belief that managers and employees in a foreign operation should be from the hostcountry. The feeling is that people native to the host country will not have problems with culture shock,knowing the language, realizing and adhering to the local customs, values, and attitudes, and being
  • 15. effective immediately instead of after a learning process has taken place. Key positions in the foreignoperation are filled with host country nationals (HCNs). This saves money associated with recruiting,training, and transferring expatriates from other countries in which the company also has operations.There are, however, possible negative aspects of a polycentric approach to hiring. One of the biggestproblems relates to parent company control over the foreign subsidiary. The question arises: ―Will hostcountry managers be loyal to the parent or to the local operation?‖ A potential problem arises withcoordination of activities, goals, and objectives between parent and subsidiary. The fact remains, though,that polycentric staffing and operation of foreign subsidiaries is successfully being applied byorganizations. The parent company must be aware of potential problems and introduce control systems touncover these problems before they are allowed to get out of hand.Geocentric Approach:It is an approach where the global companies hire personnel from any part of the world according to theexperience and job description and not because he or she is from the home country or host country. Human resource planning having been done, the international human resource manager must proceed with the job of hiring the right number of people of the right type.The international human resource manager must not only select people with skills, but also employeeswho can jell with the organization’s culture. ; So it wants to hire employees whose styles, beliefs, andvalue systems are consistent with those of the firm.Approaches of StaffingInternational businesses are said to adopt three approaches to staffing:(1) Ethnocentric,(2) Polycentric, and(3) Geocentric.Ethnocentric ApproachIn this approach, all key management positions are held by parent-country nationals. This strategy may beappropriate during the early phases of international business, because firms at that stage are concernedwith transplanting a part of the business that has worked in their home country.This practice was widespread at one time. Firms such as P & G, Philips NY, and Matsushita originallyfollowed the ethnocentric approach.Reasons: Perceived lack of qualified host country nationals; Understanding that a united corporate culture can be maintained; and Need to maintain good communication, coordination, and control links with headquarters.
  • 16. Disadvantages: Denial of promotional opportunities to host-country nationals, leading to reduced productivity and increased turnover. The adaptation of expatriate managers to host countries takes a long time during which home- country nationals make poor decisions and commit mistakes. For many expatriates a key international posting means new status, authority, and increased standard of living. The changes may affect expatriates sensitivity to the needs and expectations of their host country subordinates.Polycentric ApproachThe polycentric staffing policy requires host-country nationals to be hired tomanage subsidiaries, whileparent-country nationals occupy key positions at corporate headquarters. Although top managementpositions are filled by home-country personnel, this is not always the case.For example, many US MNCs use home-country managers to get the operations started, then hand it overto the host-country managers. Hindustan Lever Ltd, (HLL), the Indian subsidiary of Unilever, has localsas its chiefs.Geocentric ApproachThis staffing philosophy seeks the best people for key jobs throughout the organization, regardless ofnationality. Seeking the best person for the job, irrespective of nationally is most consistent with theunderlying philosophy of a global corporation.Colgate Palmolive is an example of a company that follows the geocentric approach. It has been operatinginternationally for more than 50 years, and its products are household names in more than 170 countries.60 per cent of the companys expatriates are from countries other than the US. All the top executivesspeak at least two languages, and important meetings routinely take place all over the globe.