Organisational Behaviour


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Organisational Behaviour

  1. 1. Organizational Behavior
  2. 2. Organizational Behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organization for the purpose of applying such knowledge toward improving an organization's effectiveness. Definition…
  3. 3. OB is a field of study… Means a distinct area of expertise with a common body of knowledge Organizational Behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organization for the purpose of applying such knowledge toward improving an organization's effectiveness. What does it study? It studies three determinants of behavior in organization Individuals, Groups, structure Applying such knowledge… OB applies knowledge about individuals, groups and the effect of structure on behavior in order to make organization work more effectively.
  4. 4. Therefore … OB is concerned with the study of what people do in an organization and how the behavior affects the performance of the organization. It is concerned with employment related situations, and emphasizes behavior as related to concerns such as jobs, work, absenteeism, employment turnover, productivity, performance and management.
  5. 5. <ul><li>Psychology – The science that seeks to measure, explain, and sometimes change the behavior of human and other animals. </li></ul><ul><li>Sociology – The study of people in relation to their fellow human beings. </li></ul><ul><li>Social psychology – An area with psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. </li></ul><ul><li>Anthropology – The of societies to learn about human beings and their activities. </li></ul><ul><li>Political science – the study of the behaviour of individual and groups within a political environment </li></ul>
  7. 7. CONTRIBUTING DISCIPLINES TO THE FIELD OF OB Behavioral Science Contribution Unit of analysis Output Psychology Sociology Social psychology Anthropology Political science Learning Motivation Personality Emotions Perception Training Leadership Job satisfaction Decision making Performance appraisal Attitude Selection Work design Stress Group dynamics Work teams Communication Power Conflict Intergroup behavior Formal organisational theory Organisational technology Organisational change Organisational culture Behavioural change Attitude change Communication Group processes Group decision making Comparative values & attitudes Cross culture analysis Organisational culture &environment Conflict Intraorganisational politics Power Group Organisation system Study of O B Individual
  8. 8. CHALLENGES AND OPPORTUNITIES FOR OB <ul><li>Responding to Globalization </li></ul><ul><li>Managing Workforce Diversity </li></ul><ul><li>Improving Quality and Productivity </li></ul><ul><li>Responding to Labour Shortage </li></ul><ul><li>Improving Customer Service </li></ul><ul><li>Improving People Skill </li></ul><ul><li>Empowering People </li></ul><ul><li>Coping with Temporariness </li></ul><ul><li>Stimulating Innovation and Change </li></ul><ul><li>Helping Employees Balance Work/Life Conflicts </li></ul><ul><li>Improving Ethical Behavior </li></ul>
  9. 9. VALUES… Values – Basic convictions that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence. Value System – A hierarchy based on ranking of an individual’s values in terms of their intensity.
  10. 10. TYPES OF VALUES… Value typologies can be developed in two approaches as per survey conducted by Milton Rokeach, the survey is popularly known as Rokeach Value Survey (RVS). RVS consists of two sets of values – Terminal values and Instrumental values
  11. 11. Terminal values – Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. TYPES OF VALUES… Instrumental values – Preferable modes of behavior or means of achieving one’s terminal values.
  12. 12. Terminal and Instrumental Values in Rokeach Value Survey Terminal Values A comfortable life (a prosperous life) An exciting life ( a stimulating, active life) A sense of accomplishment ( lasting contribution) A world of peace ( free of war and conflict) A world of beauty (beauty of nature and the arts) Equality (brotherhood, equal opportunity for all) Family security (taking care of loved ones) Freedom (independence, free choice) Happiness (contentedness) Inner harmony (freedom from inner conflict) Mature love (sexual and spiritual intimacy) National security (protection from attack) Pleasure (an enjoyable, leisurely life) Salvation (saved, eternal life) Self respect (self-esteem) Social recognition 9respect, admiration) True friendship (close companionship) Wisdom (a mature understanding of life) Instrumental Values Ambitious (hardworking, aspiring) Broad minded (open minded) Capable (competent) Cheerful (lighthearted, joyful) Clean (neat, tidy) Courageous (standing up for your beliefs) Forgiving (willing to pardon others) Helpful (working for the welfare of others) Honest (sincere, truthful) Imaginative (daring, creative) Independent (self-reliant, self-sufficient) Intellectual (intelligent, reflective) Logical (consistent, rational) Loving (affectionate, tender) Obedient (dutiful, respectful) Polite (courteous, well-mannered) Responsible (dependable, reliable) Self-controlled (restrained, self-discipline)
  13. 13. ATTITUDES… Attitudes – Evaluative statements or judgments concerning objects, people or events. Attitude may be favorable or unfavorable – concerning objects or events. Attitudes are not the same as values, but the two are interrelated.
  14. 14. COMPONENTS OF AN ATTITUDE… <ul><li>Attitude has three components and they are – </li></ul><ul><li>Cognitive Component </li></ul><ul><li>Affective Component </li></ul><ul><li>Behavioral Component </li></ul>
  15. 15. COMPONENTS OF AN ATTITUDE… Cognitive component of an attitude It is the opinion or belief segment of an attitude Affective component of an attitude It is the emotional or feeling segment of an attitude Behavioral component of an attitude An intention to behave in a certain way toward someone or something
  16. 16. TYPES OF ATTITUDES… There may be thousands of attitudes in a person, OB focuses attention on a very limited number of work related attitudes. These work related attitudes are positive or negative and shows how employee feel about their job. Most of the research in OB has been concerned with three attitudes namely: 1. Job Satisfaction 2. Job Involvement 3. Organizational Commitment
  17. 17. JOB SATISFACTION… The term job satisfaction refers to an individual’s general attitude toward his or her job. An individual with high level of job satisfaction holds positive attitudes about the job, while a dissatisfied individual may hold negative attitudes about the job. Low job satisfaction can result in high attrition rate, absenteeism, and poor mental health.
  18. 18. JOB INVOLVEMENT… Job involvement measures the degree to which a person identifies psychologically with his or her job and considers his or her perceived performance level important to self worth. High level of job involvement reduces attrition and absenteeism.
  19. 19. ORGANISATIONAL COMMITMENT… Organization commitment is defined as degree to which an employee identifies with a particular organization and its objectives and wishes to maintain membership in the organization. An employee may be dissatisfied with his or her present job and consider it a temporary condition, yet not be dissatisfied with the organization as a whole. But when dissatisfaction spreads to the organization itself, individuals are more likely to resign.
  20. 20. EFFECTS OF JOB SATISFACTION… The job satisfaction has an effect on the performance of an individual however in the organization it tends to center on its effect on productivity, absenteeism and turnover.
  21. 21. Satisfaction and productivity… “ Happy workers are productive workers” is a myth, the concept “productive workers are likely to be happy workers” may hold good. Satisfaction and absenteeism… There is a negative relationship between satisfaction and absenteeism. Absenteeism increases with decrease in job satisfaction Satisfaction and turnover… Satisfaction is also negatively related to turnover , factors like alternative job opportunities, length of tenure, labour market condition will also effect the turnover.
  22. 22. EXPRESSION OF DISSATISFACTION… <ul><li>Employee dissatisfaction can be expressed in various ways, however the following four responses shall indicate different responses to employee dissatisfaction. </li></ul><ul><li>Exit : Dissatisfaction expressed through behavior directed toward leaving the organization. </li></ul><ul><li>Voice : Dissatisfaction expressed through active and constructive attempts to improve conditions, may include union activity. </li></ul><ul><li>Loyalty : Passively but optimistically waiting for the condition to improve. It is trusting organization and management ‘to do the right thing’. </li></ul><ul><li>Neglect : Dissatisfaction expressed through allowing condition to worsen, it includes chronic absenteeism, reduced effort and increased error rate. </li></ul>
  23. 23. * JOB SATISFACTION AND CUSTOMER SATISFACTION Satisfied employees increase customer satisfaction and loyalty. Satisfied employee are more likely friendly and responsive – which customers appreciate. Satisfied employees are less prone to turnover, customers are more likely to encounter familiar faces and receive experienced service.
  24. 24. PERSONALITY…
  25. 25. Definitions… ‘ Personality is the dynamic organization within an individual of those psychological systems that determine his unique adjustments to his environment.’ -Gordon Allport Personality is the sum total ways in which an individual reacts to and interacts with others. - Stephen Robins
  26. 26. PERSONALITY DETERMINANTS… Individual Personality is the result of heredity and environment and the third factor is recognized to be situation.
  27. 27. HEREDITY… Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are generally considered to be either completely or substantially who the parents are; that is, by their biological, physiological, and inherent makeup. The heredity approach argues that the ultimate explanation of an individual’s personality is the molecular structure of the genes.
  28. 28. ENVIRONMENT… Environment factor like culture in which one is raised, early conditioning; norms among family, friends, social group and other influences that one experiences, exert pressure on personality of an individual.
  29. 29. SITUTATION… Situation influences the effect of heredity and environment on personality. A individual’s personality, although generally stable and consistent, does change in different situations. The different demands of different situations call for different aspects one’s personality.
  30. 30. LOCUS OF CONTROL… Locus of control is the degree to which people believe they are masters of their own fate Some people believe that they are masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance.
  31. 31. INTERNALS… Individual who believes that they control what happens to them. EXTERNALS… Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.
  33. 33. TYPE A PERSONALITY… A person with a Type A personality is aggressively involved in chronic, incessant struggle to achieve more and more in less and less time, and if required to do so, against the opposing efforts of other things or other persons.
  34. 34. Type A’s… <ul><li>Are always moving, walking, and eating rapidly </li></ul><ul><li>Feels impatient with the rate at which most event take place </li></ul><ul><li>Strive to think or to do two or more things at once </li></ul><ul><li>Cannot cope with leisure time </li></ul><ul><li>Are obsessed with numbers, measuring their success </li></ul>
  35. 35. TYPE B PERSONALITY… Type B is exactly opposite to type A are rarely harried by the desire to obtain a wildly increasing number of things or participate in an endless growing series of events in an ever decreasing amount of time.
  36. 36. Type B’s… <ul><li>Never suffer from a sense of time urgency with the accompanying impatience. </li></ul><ul><li>Feel no need to display or discuss their achievements. </li></ul><ul><li>Play for fun and relaxation and not exhibit superiority. </li></ul><ul><li>Can relax without guilt. </li></ul>
  37. 37. PERCEPTION…
  38. 38. Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. - Stephen Robins
  39. 39. F actors Influencing Perception <ul><li>Factors in the situation </li></ul><ul><li>Time </li></ul><ul><li>Work Setting </li></ul><ul><li>Social Setting </li></ul><ul><li>Factors in the Perceiver </li></ul><ul><li>Attitudes </li></ul><ul><li>Motives </li></ul><ul><li>Interests </li></ul><ul><li>Experience </li></ul><ul><li>Expectations </li></ul><ul><li>Factors in the target </li></ul><ul><li>Novelty </li></ul><ul><li>Motion </li></ul><ul><li>Sounds </li></ul><ul><li>Size </li></ul><ul><li>Background </li></ul><ul><li>Proximity </li></ul><ul><li>Similarity </li></ul>PERCEPTION
  40. 40. What do you see?
  41. 41. There's a face... and the word liar
  42. 42. Is the left center circle bigger?
  43. 43. No, they're both the same size…
  44. 44. It's a spiral, right?
  45. 45. No, these are a bunch of independent circles
  46. 46. What do you see ?
  47. 47. A couple or a skull?
  48. 48. Count the black dots!
  49. 49. 0 (ZERO)
  50. 50. What do you see?
  51. 51. Do you see the three faces?
  52. 52. Process of Perception…
  53. 53. MOTIVATION
  54. 54. It is the need or drive within an individual that drives him or her toward goal oriented action. The extent of drive depends on the prescribed level of satisfaction that can be achieved by the goal.
  55. 55. Definition…
  56. 56. “ Motivation is a predisposition to act in a specified goal directed manner” -Hellriegel and slocum
  57. 57. “ Motivation refers to goal directed behavior” -Chung
  58. 58. “ A process of stimulating the self or subordinates to get into the desired course of action” -Michael Julius
  59. 59. Difference between motivation and satisfaction… Motivation refers to the drive and effort to satisfy a want or goal. Satisfaction refers to the contentment experienced when want is satisfied. In other words, motivation implies a drive toward an outcome, and satisfaction is the outcome already experienced.
  60. 60. Employees' performance is, of course, partially determined by the opportunities given them to demonstrate their abilities. If employees are never given opportunities to utilize all of their skills, then the employer may never have the benefit of their total performance. Work performance is also contingent upon employee abilities. If employees lack the learned skills or innate talents to do a particular job, then performance will be less than optimal. A third dimension of performance is motivation.
  61. 61. Dimension of performance… motivation Performance Opportunity Ability
  62. 62. Mechanism of Motivation…
  63. 63. What are motives? Inherited drives Felt needs Behavior attempt to reduce tension Need unfulfilled Tension: physical or psychological Need fulfilled
  64. 64. NEEDS… An internal state of disequilibrium or deficiency which has the capacity to energies or trigger a behavioral response
  65. 65. Motivation and Frustration… A person get frustrated because of unfulfilled need. Whenever a person is frustrated, the defence mechanism gets triggered into action. Frustration can be manifested into one or more of following behavior: <ul><li>Aggression: A reaction to a situation where one’s motive is blocked, causing oneself to turn against the barrier in terms of verbal or physical injury. </li></ul><ul><li>Withdrawal: Leaving the field physically and psychologically. </li></ul><ul><li>Fixation: An unreasonable stubbornness, repeated behavior, non adjusting. </li></ul><ul><li>Compromise: Adjusting with the situation leading to ‘give and take’ attitude. </li></ul>
  66. 66. Motivation theories…
  67. 67. Maslow’s hierarchy of needs… Achievement Challenging job Status Job title Friendship Friends in Work Group Stability Pension Plan Sustenance Base Salary Self-Actuali-zation Needs Esteem Needs Belongingness Needs Physiological Needs Security Needs
  68. 68. Douglas McGregor's Theory… Douglas McGregor, a professor of industrial Administration at MIT (USA) theorized that every person has certain basic assumptions about other people’s attitude towards work and organization the assumption is labeled as Theory X and Theory Y.
  69. 69. Theory X Assumptions… It is the traditional assumptions about the nature of people and states that :- <ul><li>Average human being have an inherent dislike of work and will avoid it if they can. </li></ul><ul><li>Because of this human characteristic of disliking work, most people must be coerced, controlled, directed and threatened with punishment to get them to put forth adequate effort toward the achievement of organisational objectives. </li></ul><ul><li>Average human beings prefer to be directed, wish to avoid responsibility, have relatively little ambition, and want security above all. </li></ul>
  70. 70. Theory Y Assumptions… The assumption under this are :- <ul><li>The expenditure of physical effort and mental effort in work is as natural as play or rest. </li></ul><ul><li>External control and threat of punishment are not the only means for producing effort toward organisational objectives. People will exercise self direction and self control in the service of objectives to which they are committed. </li></ul><ul><li>The degree of commitment to objectives is in proportion to the size of the rewards associated with their achievement. </li></ul><ul><li>Average human beings learn, under proper conditions, not only to accept responsibility but also to seek it. </li></ul>
  71. 71. Herzberg’s 2-factor Theory… Fredrick Herzberg (1959) extended the work of Maslow and developed a specific content theory of work motivation. He conducted a widely reported study of about 200 accountants and engineers from eleven industries in the Pittsburgh area. He used the critical incident method of obtaining data for analysis. He asked them two questions: a) When did you feel particularly good about your job and what turned you on? b) When did you feel exceptionally bad about your job and what turned you off?
  72. 72. CONTARSTING VIEW OF SATISFACTION AND DISSATISFACTION… TRADITIONAL VIEW Satisfaction Dissatisfaction Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction HERZBERG’s VIEW Motivators Hygiene Factor
  73. 73. Herzberg’s theory was based on a two-factor hypothesis that is factors leading to job satisfaction And factors leading to no job dissatisfaction. They were classified in two categories: <ul><li>Motivational factors </li></ul><ul><li>Hygiene or maintenance factors </li></ul>
  74. 74. <ul><li>Motivational factors… </li></ul><ul><li>Recognition </li></ul><ul><li>Advancement </li></ul><ul><li>Responsibility </li></ul><ul><li>Possibility of growth </li></ul><ul><li>Achievement </li></ul><ul><li>Work itself </li></ul>
  75. 75. Motivational factors are directly related to the job itself. Present of such factor create a highly motivating situation, but their absence does not cause job dissatisfaction. These factors are ‘content oriented’.
  76. 76. <ul><li>Hygiene or Maintenance factors… </li></ul><ul><li>Company policy and administration </li></ul><ul><li>Technical supervision </li></ul><ul><li>Interpersonal relations with subordinates </li></ul><ul><li>Salary </li></ul><ul><li>Job security </li></ul><ul><li>Personal life </li></ul><ul><li>Working conditions </li></ul><ul><li>Status </li></ul><ul><li>Interpersonal relations with supervisors </li></ul><ul><li>Interpersonal relations with peers/colleagues </li></ul>
  77. 77. Maintenance factors are ‘context oriented’ their presence does not significantly motivate the person. The presence of such factors prevents dissatisfaction and maintains a certain level of motivation but any reduction in the availabilities of these factors is likely to affect motivation and bring down the level of performance. According to Herzberg, Hygiene factors can dissatisfy by their absence but they cannot satisfy by their presence.
  78. 78. Motivational vs. Hygiene Factors… Status goes down with Hygiene factors; Recognition goes up with Motivators Motivational Factors Hygiene factors When present lead to satisfaction and motivation. When present, help in preventing dissatisfaction but do not increase satisfaction or motivation. When absent prevents both satisfaction and motivation. When absent increase dissatisfaction with the job.
  79. 79. McClelland’s theory of Needs… Developed by David McClelland and his associates. The theory focuses on three needs: <ul><li>Achievement </li></ul><ul><li>Power </li></ul><ul><li>Affiliation </li></ul>
  80. 80. Need for Achievement (nAch): The drive to excel, to achieve in relation to a set of standards. Need for Power (nPow): The need to make others behave in a way that they would not have behaved otherwise. Need for Affiliation (nAff): The desire for friendly and close interpersonal relationship
  81. 81. E R G Theory… Clayton Alderfer of Yale University has reworked Maslow’s need hierarchy. He devised three groups of core needs: <ul><li>Existence </li></ul><ul><li>Relatedness </li></ul><ul><li>Growth </li></ul>
  82. 82. Maslow’s Need Hierarchy and Alderfer’s ERG Theory… Maslow’s theory follows a rigid, step like progression. ERG theory does not assume that there exists a rigid hierarchy. It demonstrates that (i) more than one need may be operative at the same time, and (ii) if the gratification of a higher level need is suppressed, the desire to satisfy lower level need increases. In ERG all the need categories could be operating at the same time. Physiological Security Social Esteem Self Actu- alisation Existence Relatedness Growth Maslow ERG
  83. 83. Vroom’s Expectancy Theory… <ul><li>The theory essentially emphasizes that motivation is increased if </li></ul><ul><li>the individual perceives that – </li></ul><ul><li>His effort will result in successful performance </li></ul><ul><li>2. Successful performance leads to desired rewards </li></ul>The theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
  84. 84. <ul><li>Effort-performance relationship: Probability perceived by the individual that exerting a given amount of effort will lead to performance. </li></ul><ul><li>Performance-reward relationship: The degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. </li></ul><ul><li>Rewards-personal goal relationship: The degree to which organizational reward satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for individual. </li></ul>Vroom’s Expectancy Theory… Individual Effort Individual Performance Organizational Rewards Personal Goals 1 2 3
  85. 85. Vroom’s Expectancy Theory… Vroom explains that motivation is a product of how much one wants something and one’s estimate of the probability that a certain action will lead to it. This relationship is given in the formula:- V X E = M V = Valence is strength of desire for something E = Expectancy is probability getting it with a certain action M = Motivation is strength of drive towards an action
  86. 86. Vroom’s Expectancy Theory… Range of Valence and Expectancy Valance -1 0 +1 Expectancy 0 +1
  87. 87. EQUITY THEORY… James Stacy Adams (1965) proposed the equity theory which was based on his belief that an individual’s motivation is influenced by his perception of how equitably he is treated at work.
  88. 88. EQUITY THEORY… To express his ideas, Adam used following formula: Person’s Outcomes Equity exists when- Person’s Inputs Other’s outcomes Other’s inputs Negative Inequity exists when- Person’s Outcomes Person’s Inputs Other’s outcomes Other’s inputs < Positive Inequity exists when- Person’s Outcomes Person’s Inputs Other’s outcomes Other’s inputs >
  89. 89. EQUITY THEORY… <ul><li>In order to restore equity, individuals can make one of the six choices: </li></ul><ul><li>Change their inputs (reduce efforts) </li></ul><ul><li>Change their outcomes (earning more on a piece rate basis producing higher quantity) </li></ul><ul><li>Distort perception of self (changing self perception) </li></ul><ul><li>Distort perception of others (changing thoughts about others) </li></ul><ul><li>Choose a different referent (changing person with whom comparison is made) </li></ul><ul><li>Leave the field (quit the job) </li></ul>