The study and application of how employees behave within organizations
Known as people skills
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.
O.B. is a field of study that investigates the impact that individuals , groups and structures have on behaviour within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness.
O.B. can be defined as the systematic study of the actions and reactions of individuals, groups and sub-systems.
O.B. is the study and understanding of individual and group behaviour, patterns of structure in order to to help improve organizational performance and effectiveness.
O.B. is one of the most complex and perhaps least understood academic elements of modern general management, but since it concerns the behaviour of people within organizations it is also one of the most central- its concern with individual and group patterns of behaviour makes it an essential element in dealing with the complex behavioural issues thrown up in the modern business world.
O.B. is an inter-disciplinary behaviour science studying phenomena and dynamics(processes) of organizations and their various units.
Some definitions of OB
Definition: The study of human behavior, attitudes, and performance in organizations.
Value of OB: Helps people attain the competencies needed to become effective employees, team leaders/members, or managers
Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge needed by an individual to be effective in most professional and managerial positions
Chart the evolution of management thought on the nature of the organization
Understanding of the organizational factors that influence work
Understanding of how the work environment shapes organizational performance
consideration of the interaction among the formal structure (organisational context in which the process of management takes place)
the tasks to be undertaken
the technology employed and the methods of carrying out work
the behaviour of people
the process of management
the external environment
Interrelated dimensions influencing behaviour:
The Individual - working environment should satisfy individual needs as well as attainment of organisational goals.
The Group - formal and informal. Understanding of groups complements a knowledge of individual behaviour.
The Organisation - impact of organisation structure and design, and patterns of management, on behaviour.
The Environment - technological and scientific development, economic activity, governmental actions.
e.g., Selection Systems e.g., Groupthink e.g., Personality Group Level Individual Level Organizational Level
Understanding organizational behavior requires studying Individuals in Organizations Group and Team Processes Organizational Processes
Note that organizations are “ open systems , ” such that their long term effectiveness is determined by their ability to anticipate, manage, and respond to changes in their environment, with such changes resulting from external forces and/or stakeholders
External forces include the labor force, the natural environment, the economy, and different cultures, while stakeholders include shareholders, customers, competitors, suppliers, creditors, governmental agencies and their regulations
Note the impact of these environmental influences on individual, interpersonal, team, and organizational processes; organizations that do not effectively adapt to environmental change will fail
Organisations as Open systems
Consciously coordinated social unit
Composed of two or more people
Functions on a continuous basis to achieve a common goal
Characterized by formal roles that define the behavior of its members
Organization : An organization has four essential elements
(a) Group of people
(b) Interacting with each other
(c )In a structured manner
(d) Towards a common objective
Management: Implies getting things done through and with people
Manager: He is the dynamic, life-giving element in every organization. And it is the quality and performance of its managers which is the only effective advantage an enterprise in a competitive economy can have and particularly in a business enterprise.
Basic Definitions related to OB
To provide an understanding of what goes on at the workplace. Four aspects need to be explained viz.
Definition, goals, forces and O. B. ’s major characteristics
O.B. is the systematic study and careful application of knowledge about how people- as individuals and as members of groups –act within organizations. It strives to identify ways in which people can act more effectively.
O.B. provides managers with the tools to:
(a) to understand the behavior of individuals
(b) to understand the complexities of inter-personal relations
(c )to examine the dynamics of relationships within small groups –both formal teams and informal groups
(d) organizations can be viewed as whole systems that have inter-organizational relationships
What is organisational Behaviour?
Most sciences share four goals-to describe, understand, predict and control some phenomena.
The field of OB seeks to replace intuitive explanations with systematic study O.B. has the following goals,
1. Describe , systematically, how people behave under a variety of circumstances
2. Understand why people behave as they do.
3. Predicting future employee behavior.
4. Control at least partially, and develop some human activity at work
Managers can utilize the tool of O.B.to influence human behavior , skill development, team effort and productivity.
There are a wide array of issues and trends that affect the nature of organizations today.
The organization's base rests on management's philosophy, values, vision and goals.
This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment.
The culture determines the type of leadership, communication, and group dynamics within the organization.
The workers perceive this as the quality of work life which directs their degree of motivation.
The final outcome are performance, individual satisfaction, and personal growth and development.
All these elements combine to build the model or framework that the organization operates from.
The Elements of Organizational Behavior
Division of labor
Psychology : The science or study of individual human behaviour
Sociology : The study of group human behaviour
Social Psychology : Studies influences of people on one another
Anthropology : Study of the human race, and culture
Political Science :Behavior of individuals in political environment.
Psychology seeks to measure,explain, and change behavior Sociology studies people in relation to their fellow human beings Social psychology focuses on the influence of people on one another Anthropology is the study of societies to learn about human beings and their activities Political science is the study of the behavior of individuals and groups within a political environment
Organizational Behavior Human Relations Hawthorne Studies Scientific Management 1900’s 1940’s 1970’s Classical Organization Theory
Three elements stand out in a manager-
Who is a manager? The CEO or the middle manager or the supervisor?
A manager’s decision-making, action and behavior are all geared towards ‘ Economic Performance’ .
The objective of a business enterprise could be Survival, Profit and /or Growth ?
Peter Drucker feels otherwise-’creating a customer’.
Who is a manager ?
Managing Worker and Work
Managing a Business
A Manager has to manage Resources- 5 Ms- Money, Materials, Machines, Methods and Man. One of these resources is different from the others. Which one and why?
What about Time as a resource?
A manager also performs the following functions:
Planning, Organizing. Staffing, Directing and Controlling or
Leading, Planning, Organizing and Controlling
Planning –determines what results the organization will achieve
Organizing- specifies how it will achieve the results
Controlling –determines whether the results will be achieved
Leading- through planning, organizing and controlling managers exercise leadership
The three vital determinants of team work are the l eader ” subordinates and the environment .
These factors are interdependent. It is the leader’s responsibility to make the environment conducive to work.
He studies the employees individually and insists interest in them. By encouraging the inquisitive employees and by prohibiting insidious elements, he creates hygienic environment.
He inculcates the sense of collectivism in employees to work as a team. The resultant output will then be efficiency.
A person who manages, conducts, trains, manipulates, directs, deals, supervises, organizes and controls resources, expenditures, an organization, an institution, a team, a household, etc.
Roles and Responsibilities of a manager
Supervise and manage the overall performance of staff in his department.
Analyzing , reporting, giving recommendations and developing strategies on how to improve quality and quantity.
Achieve business and organization goals , visions and objectives .
Involved in employee selection , career development, succession planning and periodic training .
Working out compensations and rewards .
Responsible for the growth and increase in the organizations' finances and earnings.
Identifying problems, creating choices and providing alternatives courses of actions.
What are the roles and responsibilities of managerial positions?
Interpersonal relationship skill.
A good planner.
Become an exemplary role model.
A good Listener
A representative of subordinates
An appropriate counselor
Uses power properly
Manages time well
Strives for effectiveness
Manages and leads
Source of influence
Knowledge x Skill = Ability
Attitude x Situation = Motivation
Ability x Motivation =Potential Performance
Human Performance x Resources = Organizational Performance
Thusa manager’s knowledge of human relations and OB can help improve organizational performance.
There are four major models or frameworks that organizations operate out of:
Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.
Models of organizational behaviour
Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.
Supportive - The basis of this model is leadership with a managerial orientation of support . The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives.
Collegial - The basis of this model is partnership with a managerial orientation of teamwork . The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.
Although there are four separate models, almost no organization operates exclusively in one.
There will usually be a predominate one, with one or more areas over-lapping in the other models.
The first model, autocratic, has its roots in the industrial revolution.
The managers of this type of organization operate out of McGregor's Theory X.
The next three models begin to build on McGregor's Theory Y.
They have each evolved over a period of time and there is no one "best" model.
The collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm.
Theory Y Theory X Work is Natural Self- Direction Seek Responsibility Good Decisions Widely Dispersed Avoid Work Must be Controlled Avoid Responsibility Seek Security
Changing nature of competition
Demographic changes and diversity
Lack of interpersonal (people) skills
Changing nature of competitive advantage, including innovation
Changes in the employee – employer relationship, including declining loyalty
Increase in the number and severity of work/life conflicts
Importance of ethics
Four types of organization designs have emerged in response to certain deficiencies in conventional designs and to rapid advances in technology. They are
Only Learning Organizations will survive in present competitive market
It ability is to learn ,create, codify and utilize knowledge faster.
It has the capacity to adapt and change.
Learning Organizations like individuals constantly learn.
Old shibboleth is demolished and a new order created
Teaches managers to look at the world afresh
Leader in this field is Senge –’The Fifth Discipline’, He says
Old methods of TQM, learning from mistakes etc are insufficient
He put forward 5 compact technologies
Building shared visions
" The essence of organisational learning is the organisation's ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own" Nancy Dixon, 1994
"Organisations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to learn together"
“ A learning organization is an organization skilled at
Modifying its behavior to reflect new knowledge and insights”
New ideas are essential if learning is to occur
Ideas cannot change an organization, it can only trigger organizational improvement
Requires both generation and distribution
Learning Organization Open Information Empowered Employees Team-Based Structure
Learning organizations are skilled at five main activities
Systematic problem solving
Experimentation with new approaches
Learning from their own experience
Transferring knowledge quickly & efficiently throughout the organization
Each is accompanied by its own distinctiveness
Function Traditional Organization Learning Organization Determination of overall Direction Vision is provided by top management Shared vision ,emerges from many places but top management to ensure that it is followed Formulation and implementation of ideas It is the prerogative of the top management Ideas take place at all level of the organization Nature of organizational thinking Each one is responsible for his or her job responsibilities and focus on individual competence Personnel understanding their own jobs as well as the way in which their own work interrelates with and influences that of other personnel Conflict Resolution Through the use of power and hierarchical influence Use of collaborative learning and the integration of diverse viewpoints of personnel in the organization Leadership and Motivation Role of leader is to establish the organization’s vision, provide rewards and punishment as appropriate and maintain overall control of employee activities Role of leader is to build a shared vision ,empower personnel ,inspire commitment and encourage effective decision making
Product Brand Brand Equity Organizational Learning Intellectual Capital Intellectual Equity
Learning is distributed & self-directed
Large investment in learning
Internal learning objects may have value to partners & customers