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Organisational Behaviour

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  • 1. A. ANANDA KUMAR Assistant Professor – Senior Grade Christ College of Engg & Tech Puducherry Mobile: +91 99443 42433 E-Mail: searchanandu@gmail.com ORGANISATIONAL BEHAVIOUR
  • 2. Unit 1 Organisational Behaviour: Introduction, Definition, Nature & Scope; Basic Concepts of OB. including, Behaviour – Individual & organizational, and Self Image [includes discussion on self esteem & self efficacy]; Introduction to the theoretical constructs and models of Organisational Behaviour.
  • 3. Organisational Behaviour “OB is directly concerned with the understanding, prediction, and control of human behaviour in organisations.” - Luthans “OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.” - Stephen P. Robbins
  • 4. Objectives of OB OBJECTIVES OF ORGANISATIONAL BEHAVIOUR To Describe Behaviour To Influence Behaviour To Predict Behaviour To Understand Behaviour
  • 5. Key Elements of OB Key Elements Of OB People Environment Structure Technology
  • 6. Nature of OB 1. It focuses on the behaviour of individuals 2. It is inter-disciplinary 3. It is an applied science 4. It is an art as well 5. It adopts a humanistic approach 6. Its ultimate aim is to attain the organisational objective
  • 7. Scope of OB OB
  • 8. Organisational Behaviour Models Models of Organisational Behaviour Custodial Autocratic Supportive Collegial
  • 9. The Autocratic Model Under the autocratic model, the manager uses his authority and directs the subordinates to do the work as per his specifications. The subordinates are not given the freedom to act. They have to carry out the task faithfully as per their boss’s instructions. Thus under the autocratic model, the employees are made to work like machines. The use of such an approach may not always give the manager the desired results. In the long run, the employees may develop frustration and may be prone to stress conditions. Their physical or mental health may get affected. The organisation may also begin to face such behavioural problems as a high rate of absenteeism, low morale, high rate of labour turnover and so on.
  • 10. Custodial Model If under the autocratic model the employee has to depend on his boss all the time, under the custodial model he has to depend on the organisation. The organisation takes care of all the needs of the employees. This is done by the introduction of a number of welfare measures like rent free accommodation, subsidised food, free education for the children of employees and so on. Such welfare measures make the employees dependent on the organisation that becomes their custodian. Under the custodial approach the employee is happy as the organisation satisfies his needs. But there is no guarantee that his performance level will be high. ‘A happy and satisfied employee need not be a productive employee’.
  • 11. Supportive Model In this case the manager supports his subordinates in the performance of their tasks. The focus here is on managerial leadership rather than on the exercise of authority or fulfillment of subordinates’ needs. The manager does not make unilateral decisions but involves his subordinates in the decision-making process. The supportive model is suitable in those workplaces where the employees are self-motivated. It has greater relevance for managerial personnel rather than the operative level workers.
  • 12. Collegial Model In the collegial model the manager participates in the process of task performance by the subordinates. In other words, the manager and the subordinates work as a team. There is better interaction among the team members. Such an approach is suitable where every subordinate is able to be self-disciplined. The basic foundation of the collegial model lies on management’s building a feeling of partnership with employees. Under collegial approach, employees feel needed and useful. They consider managers as joint contributors to organisational success rather than as bosses.
  • 13. Autocratic Custodial Supportive Collegial Basis of model Power Economic Sources Leadership Partnership Managerial Orientation Authority Money Support Teamwork Employee Orientation Obedience Security & Benefits Job Performance Responsible behaviour Employee psychological result Dependence on boss Dependence on organisation Participation Self-discipline Employee needs met Subsistence Security Status and recognition Self-actualization Performance result Minimum Passive cooperation Awakened drives Moderate enthusiasm
  • 14. ORGANISING Organising is the process of identifying and grouping of activities required to attain the objectives, delegating authority, creating responsibility and establishing relationships for the people to work effectively.
  • 15. NATURE OF ORGANIZATION 1. Common Objectives 2. Specialization or Division of Labour 3. Authority of Structure 4. Group of Persons 5. Co-ordination 6. Communication 7. Environment 8. Rule and Regulations
  • 16. SPAN OF CONTROL or SPAN OF MANAGEMENT  Span of management means the number of people managed effectively by a single superior in an organization.  The term “Span of management” is also known as “Span of supervision”, “Span of authority” and “Span of responsibility”.  If the number of members is too large, it will be very difficult to manage the persons and perform the work effectively.
  • 17. FORMAL ORGANISATION A formal organisation typically consists of a classical hierarchical structure in which positions, responsibility, authority, accountability and the line of command are clearly defined and established. Each and every person is assigned the duties and given the required amount of authority and responsibility to carryout the job. The inter relationship of staff members can be shown in the organisation chart and manuals
  • 18. INFORMAL ORANISATION Informal organisation is an organisation which establishes the relationship on the basis of member’s interaction, communication, personal likings and disliking, and social contacts within as well as outside the organisation. It arises naturally on the basis of friendship or some common interest which may or may not be related with work.
  • 19. ORGANISATIONAL CHARTS Organisational charts are prepared for the purpose of describing the organisational structure clearly. An organisation chart is a graphical portrayal of the various positions in the enterprise and the formal relationships among them. It shows the organisational relationships and activities within an organisation.
  • 20. KINDS OF ORGANISATION CHARTS 1. Vertical Chart 2. Horizontal Chart or Left to Right Chart 3. Circular Chart or Concentric Chart
  • 21. 1. Vertical Chart Chairmen Marketing ManagerProduction Manager Managing Director Supervisor for Operation B Supervisor for Operation A Personnel Manager Supervisor for Operation C Workman IIIWorkman IIWorkman I
  • 22. 2. Horizontal chart or Left to right chart President Salesman II Branch Manager II Managing Director Managing Director Managing Director Managing Director Salesman I Salesman III Branch Manager I Branch Manager III
  • 23. 3. Circular Chart or Concentric Chart Supervisor III Supervisor II Supervisor I Production Marketing Manager Manager Personnel Finance Manager Manager Chair man
  • 24. STEPS IN ORGANISING PROCESS 1. Determination of Activities 2. Grouping of Activities 3. Assignment of Duties 4. Delegation of Authority 5. Establishment of Structural Relationship 6. Co-ordination of Activities
  • 25. DEPARTMENTATION / FUNCTIONAL DEPARTMENTATION Departmentation means the process of grouping of similar activities of the business into department, division or other homogeneous units. It is used for the purpose of facilitating smooth administration at all levels. Departmentation involves grouping of people or activities with similar characteristics into a single department or unit.
  • 26. DEPARTMENTATION BY DIFFERENT STRATEGIES 1. Departmentation by Numbers 2. Departmentation by Time 3. Departmentation by Enterprise Function 4. Departmentation by Territory or Geography 5. Departmentation by Customers 6. Departmentation by Process or Equipment
  • 27. 1. Departmentation by Numbers In this case, departments are created on the basis of number of persons forming the department. Similar types of activities are performed by small groups. In such case, the each group is controlled by a supervisor or an executive. For example, in the army soldiers are grouped into squads on the basis of the number prescribed for each unit.
  • 28. 2. Departmentation by Time: Under this base, the business activities are grouped together on the basis of the time of performance. For example, a manufacturing unit working in three shifts of eight hours each per day may group the activities shift wise and thus having separate department for each shift. The basic idea is to get the advantages of people specialized to work in a particular shift.
  • 29. 3. Departmentation by Enterprise Function Finance DeptPersonnel DeptProduction Dept Production Planning Repairs Tooling Purchasing Production Engineering Recruitment & Selection Financial Planning Labour Training Cost Accounting General Accounting Budgets President Vice-president MD Marketing Dept Market Research Advertising Sales Administration Market Planning
  • 30. 4. Departmentation by Territory or Geography President Northern Region Managing Director Central Region Western Region Southern Region Eastern Region
  • 31. 5. Departmentation by Customers Manager Personal Loans Manager Agricultural Loans Branch Manager Manager Housing Loans Manager Business Loans Manager Cooperative Loan
  • 32. 6. Departmentation by Process or Equipment President Ginning General Director WeavingSpinning Packing & Sale Dying & Printing
  • 33. 7. Departmentation by Product or Service General Manager Automobile Heavy Engg Division Finance Personne l Producti on Sales Finance Personne l Producti on Sales Earth Moving Equipment Division Finance Personne l Producti on Sales Power Products Division Finance Personne l Producti on Sales
  • 34. AUTHORITY According to Hendry Fayol, “Authority is the right to give orders and the power to exact obedience”. Koontz and O’Donnell have defined authority as, “Authority is the power to command other to act or not to act in a manner deemed by the possessor of the authority to further enterprise or departmental purposes”.
  • 35. LINE AUTHORITY or LINE ORGANISATION Line authority exists between superior and his subordinate. Line authority is the direct authority which a superior exercises over a number of subordinates to carry out orders and instructions. In organisation process, authority is delegated to the individuals to perform the activities.
  • 36. Manager Superintendent 1 Superintendent 2 Foreman 1 Foreman 1Foreman 2 Foreman 2 W WWWWWW WWWWW
  • 37. STAFF AUTHORITY Staff authority is exercised by a man over line personnel. The relationship between a staff manager and the line manager with whom he works depends in part on the staff duties. In a management, staff refers to those elements of the organisation which help the line to work most effectively in accomplishing the primary objectives of the enterprise, the nature of the staff relationship is advisory.
  • 38. DECENTRALISATION OF AUTHORITY  Centralization and decentralization refer to the location of decision-making authority in an organisation.  “Centralization” means that the authority for most decisions is concentrated at the top of the managerial hierarchy whereas ‘decentralisation’ requires such authority to be dispersed by extension and delegation through all levels of management.
  • 39. DELEGATION OF AUTHORITY  Delegation of authority is a process which enables a person to assign works to others and delegate them with adequate authority to do it.  Delegation consists of granting authority or the right to decision-making in certain defined areas and charging the subordinate with responsibility for carrying through an assigned task
  • 40. MANAGING BY OBJECTIVES (MBO) “MBO is a process whereby the superior and the subordinate managers of an enterprise jointly identify its common goals; define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members”. - George Odiorne
  • 41. Conti…. MBO is a process whereby superiors and subordinates sit together to identify the common objectives and set the results which are to be achieved by the subordinates.
  • 42. THE PROCESS OF MBO 1. Setting Preliminary objectives 2. Fixing Key result areas 3. Setting subordinate’s objectives 4. Recycling objectives 5. Matching resources with objectives 6. Periodic performance reviews 7. Appraisal
  • 43. WEAKNESS OF MBO 1. Failure to teach the philosophy of MBO 2. Failure to give guidelines to goals setters 3. Difficulty of setting goals 4. Emphasis on short-term goals 5. Danger of Inflexibility 6. Time consuming 7. Increased paper work
  • 44. REASONS WHY MBO FAIL Lack of top management involvement and support. Lack of understanding of the philosophy behind MBO. Difficultly insetting realistic and meaningful objectives. Increased time pressure. Lack of relevant skills. Lack of individual motivation. Poor integration with other systems
  • 45. Case Study: As a part of the company’s management development programme, a group of managers from various functional areas have devoted several class sessions to a study of motivation theory and the relevance of such knowledge to the manager’s responsibility for directing and controlling the operations of his organizational units. One of the participants in the programme is Ashok Seth, who has been a Supervisor in the Production department for about a year. During the discussion session, Ashok seth, made the observation:
  • 46. Case Study: ‘Motivation theory makes sense in general, but there is really no opportunity for me to apply these concepts in my job situation. After all, our shop employees are unionized and have job security and wage scales that are negotiated and are not under my control. The study of motivation concepts has given me some ideas about how to get my sons to do their home work, but it has not given me anything I can use on the job. Further more, in a working situation, we are all dealing with adults, and it seems to me this reward and punishment thing smacks of personal manipulation that just won’t go over with people.
  • 47. Case Study: Questions: a) What is the problem in this case? b) In what respects Ashok Seth is correct in his comment about not having any opportunity to apply motivational concepts in his job situations? c) Offer practical suggestions to apply motivational concepts in job situations.
  • 48. Unit 2 Perception and Learning; Personality and Individual Differences; Motivation – Content & Process Theories of Work Motivation - and Job Performance; Personal Values, Attitudes and Beliefs; Conflicts & Stress – Concept, why and how & Management
  • 49. Perception Perception is the process of receiving information about and making sense of the world around us. It involves deciding which information to notice, how to categories that information, and how to interpret it within the framework of our existing knowledge – shape opinions, decisions and actions.
  • 50. Perception Perception can be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.  People’s behaviour is based on their perception of what reality is, not on reality itself.  The world as it is perceived is the world that is behaviourally important.
  • 51. The mind forms shapes that don't exist
  • 52. Man/Woman
  • 53. Sensation and Perception Sensation is the response of a physical sensory organ: Eyes see Ears hear Hands touch Nose smell Tongue taste  Sensation, thus, is essentially a physical process.  Perception, on the other hand, is essentially a psychological activity. It correlates, integrates and comprehends diverse sensations to arrive at a meaningful conclusion. Sensation, thus, provides the basis for perception.
  • 54. Process of Perception RECEIVING SELECTING ORGANISING INTERPRETING CHECKING REACTING
  • 55. Process of Perception Stage I Receiving Stimuli Stage II Selecting Stimuli Stage III Organising Stimuli Stage IV Interpreting Stimuli Stage V Checking Stimuli Stage VI Reacting to Stimuli
  • 56. Learning Modification of behaviour taking place through observation, training or practice is what is called learning. “Learning is the process of having one’s behaviour modified, more or less permanently, by what he does and the consequences of his action, or by what he observes” - Munn and others “Relatively permanent change in behaviour potentiality that results from reinforced practice or experience” - Steers and Lyman
  • 57. Nature or Characteristics of Learning 1. Learning results in change in behaviour. 2. The change may be good or bad. It must be remembered here that a person acquires certain bad habits like smoking or drinking only through learning. 3. The change must be relatively permanent. Behavioural change caused by fatigue is only temporary and it involves no learning. 4. A mere change in one’s thought process or attitude is not learning. It must be accompained by a change in behaviour as well.
  • 58. Cont……… 5. Any change in behaviour due to ageing, illness or injury is not the result of learning. A change in behaviour is deemed to be the outcome of learning only it arises out of observation, training or practice. 6. Any positive change has to be permanent. To achieve permanency, the practice needs to be reinforced, supported or strengthened. In the absence of reinforcement, the expected behaviour will gradually disappear. 7. Learning is a continuous process. It is not something that occurs only during a particular stage in one’s life.
  • 59. Factors determining Learning Motivation Reinforcement Feedback Qualities of the Trainer & Trainee Environment Time Schedule Meaningfulness of The subject Practice Determinants of Learning
  • 60. Theories on Learning 1. Classical Conditioning Theory 2. Operant Conditioning Theory 3. Cognitive Theory 4. Social Learning Theory
  • 61. Classical Conditioning The credit for developing the classical conditioning theory is given to Ivan Pavlov, a Russian psychologist. Learning is the process by which experience or practice results in a relatively permanent change in behavior or potential behavior. Ivan Pavlov
  • 62. Cont…. Classical conditioning is modifying behaviour so that a conditioned stimulus is paired with an unconditioned stimulus and elicits an unconditioned behaviour. The classical conditioning theory is based on Pavlov’s experiments to teach a dog to salivate in response to the ringing of a bell. Pavlov offered the dog meat and noticed that the dog was salivating. Afterwards, without offering meat, be merely rang a bell. The dog had no salivation.
  • 63. Cont…. As the next step he rang the bell before giving the dog meat. This went on for sometime. Thereafter, Pavlov merely rang the bell without offering meat and noticed that the dog was salivating. The dog, thus, learnt to relate the ringing of the bell to the presentation of meat. The classical conditioning theory has some relevance in understanding human behaviour in workplaces. For example, the employees can link their pay hike to the better financial position of their employer. In other words, they expect a hike in their pay when they know that the financial position of the organisation is very sound.
  • 64. Cont…. The classical conditioning theory, however, has certain limitations. For example, it does not explain all aspects of human learning. The environment in the organisation also makes understanding of human learning difficult.
  • 65. Theories on Learning kjals
  • 66. Operant Conditioning Theory  B.F. Skinner (1904-1990)  developed behavioral technology  the relationship between behavior and its consequences
  • 67. Cont….. B. F. Skinner made the law of effect the cornerstone for his influential theory of learning, called operant conditioning. According to Skinner, the organism’s behavior is “operating” on the environment to achieve some desired goal. Operant Chamber (“Skinner Box”) soundproof chamber with a bar or key that an animal can manipulate to obtain a food or water reinforcer contains a device to record responses The fundamental principle of behaviorism is that rewarded behavior is likely to be repeated.
  • 68. Cont….
  • 69. Cont… Operant conditioning is voluntary behaviour and it is determined, maintained and controlled by its consequences. The tendency to repeat a specific behaviour is influenced by reinforcement (i.e., strengthening a behaviour by rewards), or the lack of reinforcement, resulting from the consequences of the behaviour. Positive reinforcement increases the chance of the behaviour being repeated. Thus rewards (eg. Pay rise, greater freedom, appreciation etc.) are used by organisations to improve productivity (i.e., desired
  • 70. Cont… It has also been observed that when a behaviour is not rewarded or is punished (negative reinforcement) it is seldom repeated. Operant conditioning is a useful technique with which organisations can induce desired behaviour. Operant conditioning is an effective tool for managing people in organisations. Most of the individual behaviours in organisations are learned, controlled and altered by the consequences. The operant conditioning is used by the management as a process successfully to control and influence the behaviour of employees by manipulating its reward system.
  • 71. Cont… It one expects to influence behaviours, he must be able to manipulate the consequences. In general, it can be concluded that the behavioural consequences that are rewarding increase the rate of response, while the aversive consequences decrease the rate of a response.
  • 72. Personality “Personality may be understood as the characteristic patterns of behaviour and modes of thinking that determine a person’s adjustment to the environment” - E.R. Hilgard and other “Personality can be described as how a person affects others, how he understands and views himself and his pattern of inner and outer measurable traits” - Floyd L.Ruch
  • 73. Determinants of Personality 1. Biological a. Heredity b. Managerial Thinking c. Bio-feedback d. Physical Characteristics 2. Cultural 3. Familial 4. Social 5. Situational
  • 74. People are similar, yet they are different Similarities among individual 1. Intelligence 2. Self-awareness 3. Communication 4. Innovative skills 5. Accumulated gains 6. Miscellaneous
  • 75. Difference among Individuals 1. People differ in their approach to the job 2. The style of supervision differs 3. Different types of compensation plans 4. Different types of tolerance 5. People differ in their work load
  • 76. Motivation Motivation means a process of stimulating people to action to accomplish desired goals – W.G. Scott. Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward. - Edwin B. Flippo
  • 77. Motivation The important task before every manager is to secure optimum performance from each of his subordinates. The performance of the subordinate, in turn, is determined by his ability to work and the extent to which he is motivated. Motivation is the process of inducing and instigating the subordinates to put in their best. Motivation is influenced significantly by the needs of a person and the extent to which these have been fulfilled. To motivate the subordinates, the manager must, therefore, understand their needs.
  • 78. Motivation The important task before every manager is to secure optimum performance from each of his subordinates. The performance of the subordinate, in turn, is determined by his ability to work and the extent to which he is motivated. Motivation is the process of inducing and instigating the subordinates to put in their best. Motivation is influenced significantly by the needs of a person and the extent to which these have been fulfilled. To motivate the subordinates, the manager must, therefore, understand their needs.
  • 79. Importance of Motivation 1. Inducement of employees 2. Higher efficiency 3. Optimum use of resources 4. Avoidance of loss due to mishandling and breakage 5. No complaints and grievances 6. Better human relations 7. Avoidance of strikes and lock-outs 8. Reduction in labour turnover
  • 80. Nature & Characteristics of Motivation 1. Motivation is a psychological concept 2. Motivation is always total and not piece-meal 3. Motivation may be financial or non-financial 4. Method of Motivation may be positive as well as negative 5. Motivation is a continuous process
  • 81. Motivation Content Theories 1. Abraham Maslow’s Need Hierarchical Theory 2. Herzberg’s Two Factor Theory 3. Douglas McGregor’s Theory X and Theory Y 4. Alderfer’s ERG Theory 5. David C. McClelland’s Three-Need Theory
  • 82. Motivation Process Theories 1. Vroom’s Expectancy Theory 2. Porter and Lawler’s Expectancy Theory 3. Adam’s Equity Theory
  • 83. Abraham Maslow (1908-1970)
  • 84. Maslow’s Need Hierarchy Theory Abraham H. Maslow, a psychologist, developed a theory called the ‘Need Hierarchy Theory’. It is one of the oldest theories on motivation. Maslow was of the view that human behaviour is directed towards the satisfaction of certain needs. He classified all human needs into a hierarchical manner from the lower to the higher order. In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man.
  • 85. Maslow’s Need Hierarchy Theory PHYSIOLOGICAL OR SURVIVAL NEEDS SAFETY NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS ESTEEM NEEDS SELF- ACTUALIZATION
  • 86. Maslow’s Need Hierarchy Theory Esteem Self-Actualization Safety Belonging Physiological
  • 87. 1. Physiological Needs These are the primary or the basic needs of a person that must be fulfilled. These include, among others, food, clothing and shelter that are vital for the survival of mankind. A person cannot think of recognition or status when he is not able to earn adequately to satisfy his basic needs.
  • 88. 2. Safety Needs The safety or security needs emerge once the basic or physiological needs of a person are fulfilled. Job security is one such need. People, generally, prefer secured jobs. Similarly, every employee wants to contribute to provident fund, insurance and such other schemes that protect his interest particularly in his old age when he cannot work and earn.
  • 89. 3. Social Needs At this stage, a person wants friendship, companionship, association, love and affection of particularly those with whom he mingles often. In the work place he may long for the association of the fellow employees. In fact, it is for this reason that informal groups are formed within a formal organisation. In the living place he may desire to have the friendship of his neighbours.
  • 90. 4. Esteem Needs These needs arise in view of a person’s desire to have his ego satisfied. The satisfaction of these needs gives a person the feeling that he is above others. It gives a person self-respect, self- confidence, independence, status, recognition and reputation. Some people show preference for luxury cars, expensive jewels and so on not just because they can afford it but also due to the fact that possession of such goods satisfies their ego.
  • 91. 5. Self-Actualisation needs According to Maslow, a person, who reaches this stage, wants to achieve all that one is capable of achieving. In other words, a person wants to perform to his potentials. A professor may, for example, author books. A singer may compose music and so on. The desire to excel need not necessarily be in the filed one is attached to. It can be in some other sphere also. For example, an actor or actress may excel in politics.
  • 92. McGregor’s ‘X’ and ‘Y’ Theories McGregor developed a philosophical view of humankind with his Theory X and Theory Y in 1960. He developed two theories on motivation that explain the positive and negative qualities of individuals. He gave the theories the names ‘X’ theory and ‘Y’ theory. His work is based upon Maslow’s Hierarchy of needs, where he grouped the hierarchy into lower – order needs (Theory X) and higher – order needs (Theory Y). He suggested that management could use either set of needs to motivate employees, but better results would be gained by the use of Theory Y, rather than Theory X. These two views theorized how people view human behaviour at work and organizational life.
  • 93. (THEORY X) McGregor looked at the way in which employers and employees traditionally viewed work – The employer paid the money and gave instructions, and the worker did the job without asking questions 1. People, in general, dislike work. They shirk their duties and are basically lazy. 2. Most people are unambitious. They do not voluntarily accept any responsibility. 3. Most people lack creativity. They show no preference for learning anything new.
  • 94. (THEORY X) 4. Satisfaction of physiological and safety needs along is important for most people. Workers in general are only bothered about their salary, job security and such other extrinsic factors. 5. While at work, an employee needs to be closely supervised and watched.
  • 95. (THEORY Y) Theory Y shows a participation style of management that is de-centralized. It assumes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. Theory Y workers:  Enjoy their work  Will work hard to get rewards  Want to see new things happening  Will work independently  Can be trusted to make decisions  Are motivated by things other than money  Can work unsupervised
  • 96. Workers attitudes Good worker = Theory Y Lazy worker = Theory X Skilled = Theory Y Unskilled = Theory X
  • 97. Evaluation of ‘X’ and ‘Y’ Theories The two theories ‘X’ and ‘Y’ bring out the two extreme qualities of a person. Theory ‘X’ talks about the negative qualities along and theory ‘Y’ talks only about the positive aspects. Practically speaking, no person is either too good or too bad. Every person has his or her own strong and weak points. By providing the right kind of environment and with proper motivation any individual can be made to perform well.
  • 98. Herzberg’s Two Factor Theory Two factor theory states that there are certain factors in the work place that cause job satisfaction, while a separate set of factors cause dissatisfaction.
  • 99. Hygiene Factors According to Herzberg, hygiene factors do not actually motivate a person but their absence will lead to dissatisfaction. These factors are also known as ‘extrinsic factors’ or ‘maintenance factors’. They help to maintain a reasonable level of job satisfaction among the employees. These are: 1. Company policies and Administration 2. Type of supervision 3. Inter-personal relationships 4. Working conditions 5. Salary 6. Job Security and 7. Status
  • 100. Motivational Factors The motivation factors are also known as intrinsic factors. According to Herzberg, the presence of the intrinsic factors will motivate the employees but their absence will not lead to dissatisfaction. These are: 1. Work itself 2. Achievement 3. Recognition 4. Advancement 5. Growth and 6. Responsibility
  • 101. Hygiene Factors The maintenance factors are known as hygiene factors as they influence the mental framework of the employees. Motivational factors Herzberg calls upon managers to use motivational factors to induce the employees to perform well. Vroom’s Expectancy Theory
  • 102. Vroom’s Expectancy Theory Vroom’s developed a theory on motivation called the ‘expectancy theory’. One of the most widely accepted explanations of motivation is offered by Victor Vroom in his Expectancy Theory. It is a cognitive process theory of motivation. The theory is founded on the basic notions that people will be motivated to exert a high level of effort when they believe there are relationships between the effort they put forth, the performance they achieve, and the outcomes/rewards they receive.
  • 103. Vroom’s Expectancy Theory Effort Reward Perfor mance Will my effort improve my performance? Will performance lead to rewards? Will rewards satisfy my individual goals?
  • 104. Vroom’s Expectancy Theory He tried to explain motivation through the following concepts: 1. Valence 2. Expectancy and 3. Instrumentality According to Vroom’s theory, motivation is the sum of the product of valence, expectancy and instrumentality. That is, Motivation= Valence x Expectancy x Instrumentality
  • 105. Vroom’s Expectancy Theory 8645981773
  • 106. Vroom’s Expectancy Theory 1. Valence: Valence, according to Vroom, means the value or strength one places on a particular outcome or reward. 2. Expectancy: It relates efforts to performance 3. Instrumentality: By instrumentality, Vroom means, the belief that performance is related to rewards.
  • 107. VALUES A ‘value’ is commonly formed by a particular belief that is related to the worth of an idea or type of behaviour. Values are one of the sources of individual differences. Values are general beliefs tinged with moral flavour containing an individual’s judgemental ideas about what is good, right or desirable. “Value is a concept of the desirable, an internalised criterion or standard of evaluation a person possesses. Such concepts and standards are relatively few and determine or guide an individual’s evaluations of many objects encountered in everyday life.”
  • 108. ATTITUDES The word ‘attitude’ can refer to a lasting group of feelings, beliefs and behaviour tendencies directed towards specific people, groups, ideas or objects. Attitudes are the expression of our values. They are expressed through what we say or do, while values make us agree to certain things and discard others. How we act and what we say brings out our attitudes.
  • 109. Beliefs The mental act, condition, or habit of placing trust or confidence in another: My belief in you is as strong as ever. Mental acceptance of and conviction in the truth, actuality, or validity of something: His explanation of what happened defies belief. Something believed or accepted as true, especially a particular tenet or a body of tenets accepted by a group of persons.
  • 110. Conflicts Conflict means disagreement between the persons employed in an organisation. It may also mean clash of interests. It is the result of differences in the opinion of employees of an organisation over any issue. Conflict is any situation in which two or more parties feel themselves in opposition. It is an interpersonal process that arises from disagreement over the goals or the methods to accomplish those goals”
  • 111. Why do Conflicts Arise? 1. Changes in work patterns 2. Differences in perceptions 3. Differences in values 4. Availability of options 5. Allocation of limited resources 6. Inter-dependence 7. Unequal work-load 8. Biased assessment of subordinates 9. Unattainable targets 10. Lack of trust and confidence
  • 112. Stress Stress is defined in terms of its physical and physiological effects on a person, and can be a mental, physical, or emotional strain.
  • 113. Managing Stress Stress Relief Strategies 1. Body relaxation excercises - breathing techniques - guided imagery 2. Physical exercise -yoga -work out routine 3. Meditation 4. Counseling -talk therapy -life coaching
  • 114. Sources of stress 1. Environmental factors 2. Organizational factors 3. Individual factors
  • 115. 1. Environmental factors • Environmental uncertainties • Changes in business cycles • Political uncertainties • Technical uncertainties
  • 116. 2. Organizational factors • Pressure to avoid errors or complete task in limited time period • Task demands are factors related to a persons job • Role of individuals to play in an organization
  • 117. 3. Individual factors • Employees personal life like family issues, economic problems and personality characteristics • Broken families, wrecked marriages and other family issues • Economic problems created by individuals • A persons basic dispositional nature • Stressors are additive – stress builds up
  • 118. Behaviorally at Work with Stress  Absenteeism  Accidents  Poor morale  Impaired cognitive functioning  Poor decision making  Lower creativity  Burnout  Workplace violence  Poor job performance
  • 119. UNIT - 3 Group Behaviour
  • 120. Group A group is a collection of two or more individuals, interacting and interdependent, who have come together to achieve particular common objectives. A group is, thus, an aggregation of people who interact with each other, are aware of one another, have a common objective, and perceive themselves to be a group. Now a group may be defined as a collection of people who have a common purpose or objective, interact with each other to accomplish the group objectives.
  • 121. Classification of Group 1. Psychological Group: It may be defined as one in which the two or more persons who are interdependent as each members nature influences every other person, members share an ideology and have common tasks. (e.g., Families, Friendship circles) 2. Social Group: It may be defined as integrated system of inter related psychological groups formed to accomplish a defined function or objective. (Political party)
  • 122. Classification of Group 3. Formal Group: It refers to those which are established under the legal or formal authority with the view to achieve a particular end result (e.g. people making up the airline fight crew) 4. Informal Group: It refers to the aggregate of the proposal contracts and the interaction and the network of relationships among the individuals obtained in the formal groups.
  • 123. Classification of Group 5. Primary Group: The primary groups are characterized by small size, face to face interactions and intimacy among the members. The examples are family groups. 6. Secondary Group: The secondary group are characterized by large size and individuals identification with the values and beliefs prevailing in them rather than actual interactions . ( e.g., occupational association and ethnic groups)
  • 124. Classification of Group 7. Membership Group: The membership group is those where the individual actually belongs. 8. Reference Group: The reference is one which they would like to belong.
  • 125. Classification of Group 9. Command Group: The command group are formed by subordinates reporting directly to the particular manager and are determined by the formal organizational chart. (e.g., an assistant regional transport officer and his two transport supervisors form a command group . 10. Task Group: The task group are composed of people who work together to perform a task but involve a cross command relationship.
  • 126. Classification of Group 11. Interest Group: The interest group involves people who come together to accomplish a particular goal with which they are concerned. (e.g., office employees) 12. Friendship Group: The friendship group are formed by people having one or more common features.
  • 127. Reasons for Formation of Groups 1. Companionship 2. Sense of identification 3. Source of Information 4. Job satisfaction 5. Protection of members 6. Outlet for frustration
  • 128. Importance of Small Groups to the Organisation 1. Filling in gaps in manager’s abilities 2. Better coordination 3. Channel communication 4. Restrain managers 5. Better relations 6. Norms of behavior
  • 129. Group Decision-Making Decision-making is the process whereby a final but best choice is made among the alternatives available. When a groups makes decision, it can be either through the consensus mode or through majority vote. When all members of the group agree to the decision arrived at, it is called ‘consensus”. If majority of the group members agree to the decision arrived at, it is called majority vote.
  • 130. Group Decision-Making Process Diagnose the Problem Implementa tion & Monitoring the Decision Evaluating the Alternative Developing Alternatives 1 2 3 4
  • 131. Advantages of Group Decision-Making 1. Compared to an individual, the groups usually have a greater knowledge, expertise, and skill base to make better decisions. 2. Larger number of members provide more perspectives of the problem. As such, the narrow vision of a single perspective is avoided in making decisions. 3. With larger number of group members, the participation also increases that help reach at a quality decision. 4. Following increased group participation, comprehension of final decision arrived at is usually high.
  • 132. Disadvantages of Group Decision-Making 1. Group decision-making is a time consuming process. 2. Influence groups usually manipulate the group decision in a direction of their liking and interest. 3. Sometimes decisions made by the group members are simply a compromise between the various views and options offered by the group members.
  • 133. How to improve Group Decision-Making? 1. Brainstorming (alex osborn 1938)(6-8people) 2. Nominal Group Technique (NGT) 3. Delphi Technique 4. Consensus Mapping
  • 134. TEAM A collection of individuals in one place may be only a crowd. A group of individuals working in a face-to-face relationship for a common goal, having collective accountability for the outcome of its efforts is called team. A team is a group whose members have complementary skills and are committed to a common purpose or set of performance goals for which they hold themselves mutually accountable.
  • 135. Team Building Process Giving & Receiving Feedback Examining Perceptual Differences Problem Sensing Follow Up Actions Developing Interactive Skills
  • 136. Team Building Process 1. Problem Sensing and Identification 2. Examination of Differences 3. Feedback 4. Developing Argumentative skills 5. Constructive Behaviour 6. Negative Behaviour 7. Follow-up Action
  • 137. Leadership “Leadership is the activity of influencing people to strive willingly for group objectives” - George K. Terry “Leadership is the ability of a superior to influence the behaviour of his subordinates and persuade them to follow a particular course of action” - Chester Barnard “Leadership is the quality of behaviour of individuals whereby they guide people or their activities in organising efforts” - Chester Barnard
  • 138. 146 Leadership Formal Leadership occurs when an organisation officially bestows upon a leader the power and authority to guide and direct others in the organisations. Informal Leadership occurs when others in the organisation unofficially accord a person the power and influence to guide and direct their behaviour.
  • 139. Leadership & Management Leadership Management 1. Leader leads people. 2. Leader can use his/her informal influence. 3. Leaders create a vision and inspire others to achieve this vision. 4. Leader possesses non- sanctioned influencing ability. 5. Leader inspires enthusiasm. 1. Manager manages things. 2. Managers hold formal positions. 3. Manager achieve results by direction the activities of others. 4. Manager enjoys formal designated authority. 5. Manager engenders fear.
  • 140. 148 Nature & Characteristics of Leadership 1. It is the personal quality of a person 2. It is a process of influencing others 3. It requires the confidence of followers/subordinates 4. It requires motivation of subordinates 5. Varying leadership styles 6. Leadership is a continuous process
  • 141. 149 Qualities of Leader 1. Ability to analyze 2. Self-confidence 3. Foresight 4. Sense of judgement 5. Understanding 6. Mental courage 7. Capacity to motivate 8. Ability to guide 9. Communication skills 10. Sound physical health 11. Positive thinking
  • 142. Kinds of Leadership Styles 1. Autocratic or Authoritative Style 2. Democratic or participative Style 3. Laissez-Faire or Free-Rein Style
  • 143. 25/04/2014 Template from www.brainybetty.com 151 1. Autocratic or Authoritative Style In autocratic style, the leader centralises power and decision- making in himself / herself. The leader commands complete control over the subordinates who are compelled to obey the orders. The subordinates have no opportunity to make suggestions or take part in decision-making function. The autocratic leader has little concern for the well-being of employees. In turn, employees have a tendency to avoid responsibility and try to work as little as possible. They also suffer from frustration and low morale.
  • 144. 25/04/2014 Template from www.brainybetty.com 152 2. Democratic or Participative Style In democratic style of leadership, the leader takes decision in consultation with the subordinates. In other words, the subordinates participate in decision-making function. Hence, the style is also known as participative style. Participation in decision-making enables subordinates to satisfy their social and ego needs. It also makes them more committed to their organisations. Frequent interaction between the manager-leader and subordinates also helps build up mutual faith and confidence.
  • 145. 25/04/2014 Template from www.brainybetty.com 153 3. Laissez Faire Style Laissez faire style is just the opposite of autocratic style. In laissez faire style, the manager-leader leaves decision-making to the subordinates. The leader completely gives up his/her leadership role. The subordinates enjoy full freedom to decide as and what they like. The biggest limitation of this style is that, due to full freedom to subordinates, it creates chaos and mismanagement in decision-making.
  • 146. Power A B
  • 147. Power Power is the capacity of a person, team or organization to influence others. Power is not the act of changing others’ attitudes or behaviour its only the potential to do so. The most basic prerequisites of power is that one party believes he or she is dependent on the other for something of value.
  • 148. 25/04/2014 Template from www.brainybetty.com 156 Distinction Between Power, Authority & Influence • Power: is the ability to get an individual or group to do something – to get the person or group to change in some way. The person who possesses power has ability to manipulate or change others. • Authority: is the right to manipulate or change others. Power need not to be lawful. • Influence: It involves ability to alter other people in general ways, such as by changing their satisfaction and performance. Influence is more closely associated with leadership than power is, but both obviously are involved in the leadership process.
  • 149. 25/04/2014 Template from www.brainybetty.com 157 Bases or Sources of Power 1. Reward Power: It refers to the leader’s ability to control the payment of salaries, wages, commission, fringe benefits etc. It is based on the belief that ‘wealth is power’. 2. Coercive Power: It is the capacity of the leader to award punishment to subordinates in the form of suspension, transfer, demotion and so on.
  • 150. 25/04/2014 Template from www.brainybetty.com 158 Bases or Sources of Power 3. Legitimate Power: It is available to a person by reason of his position. It may be formal or informal. Legitimate power is formal in an organisation where the superior delegates his authority to the subordinates. 4. Referent Power: It refers to certain unique qualities of a leader that induce his followers to emulate him. In our society many film personalities and sportsmen are able to influence their fans. The latter take the former as their role models.
  • 151. 25/04/2014 159 Bases or Sources of Power 5. Expert Power: It accrues to the individual by virtue of his knowledge and skill. It is based on the belief that ‘knowledge is power’. Such a power arises owing to the fact that the expert is indispensable for the organisation.
  • 152. Politics When a person having ‘power’ or ‘authority’ uses the same to favour some in the organisation, much against the interests of others, there is ‘Politics’. A manager, for example, by reason of his authority, may give promotion to an employee, owing to personal reasons, and the same may be detrimental to the interests of another deserving employee. It is an instance like this that is referred to as organisational politics.
  • 153. 25/04/2014 Template from www.brainybetty.com 161 Reasons for Organisational Politics 1. Unclear Goals 2. Autocratic Decisions 3. Discretionary Authority 4. Power Politics 5. Biased Performance Appraisal 6. Saturation in Promotion
  • 154. UNIT 4 Organizational Dimensions THE CAIN PROJECT
  • 155. Organisational Structure Organisational structure indicates the organisation‟s hierarchy and authority structure, and shows its reporting relationships. It provides the stability and continuity that allow the organisation to survive the comings and goings of individual and co-ordinate its dealings with the environment.
  • 156. Why Organisational Structure? 1. It facilitates management 2. It encourages growth and diversification 3. It facilitates the optimum use of technological improvement 4. It encourages proper use of human resources 5. It stimulates creativity THE CAIN PROJECT
  • 157. DEPARTMENTATION / FUNCTIONAL DEPARTMENTATION Departmentation means the process of grouping of similar activities of the business into department, division or other homogeneous units. It is used for the purpose of facilitating smooth administration at all levels. Departmentation involves grouping of people or activities with similar characteristics into a single department or unit. THE CAIN PROJECT
  • 158. DEPARTMENTATION BY DIFFERENT STRATEGIES 1. Departmentation by Numbers 2. Departmentation by Time 3. Departmentation by Enterprise Function 4. Departmentation by Territory or Geography 5. Departmentation by Customers 6. Departmentation by Process or Equipment THE CAIN PROJECT
  • 159. 1. Departmentation by Numbers In this case, departments are created on the basis of number of persons forming the department. Similar types of activities are performed by small groups. In such case, the each group is controlled by a supervisor or an executive. THE CAIN PROJECT
  • 160. 2. Departmentation by Time Under this base, the business activities are grouped together on the basis of the time of performance. For example, a manufacturing unit working in three shifts of eight hours each per day may group the activities shift wise and thus having separate department for each shift. The basic idea is to get the advantages of people specialized to work in a particular shift. THE CAIN PROJECT
  • 161. 3. Departmentation by Enterprise Function Finance DeptPersonnel DeptProduction Dept Production Planning Repairs Tooling Purchasing Production Engineering Recruitment & Selection Financial Planning Labour Training Cost Accounting General Accounting Budgets President Vice-president MD Marketing Dept Market Research Advertising Sales Administration Market Planning
  • 162. 4. Departmentation by Territory or Geography THE CAIN PROJECT President Northern Region Managing Director Central Region Western Region Southern Region Eastern Region
  • 163. 5. Departmentation by Customers THE CAIN PROJECT Manager Personal Loans Manager Agricultural Loans Branch Manager Manager Housing Loans Manager Business Loans Manager Cooperative Loan
  • 164. 6. Departmentation by Process or Equipment THE CAIN PROJECT President Ginning General Director WeavingSpinning Packing & Sale Dying & Printing
  • 165. 7. Departmentation by Product or Service THE CAIN PROJECT General Manager AutomobileHeavy Engg Division Finance Personnel Productio n Sales Finance Personnel Productio n Sales Earth Moving Equipment Division Finance Personnel Productio n Sales Power Products Division Finance Personnel Productio n Sales
  • 166. SPAN OF CONTROL or SPAN OF MANAGEMENT  Span of management means the number of people managed effectively by a single superior in an organization.  The term “Span of management” is also known as “Span of supervision”, “Span of authority” and “Span of responsibility”.  If the number of members is too large, it will be very difficult to manage the persons and perform the work effectively. THE CAIN PROJECT
  • 167. DETERMINATION OF SPAN OF MANAGEMENT 1. Direct single relationship 2. Direct group relationships 3. Cross relationship THE CAIN PROJECT
  • 168. 1. Direct single relationship It is one in which a supervisor has direct relationship with his subordinates individually. If X supervises Y and Z who are subordinates, there are two direct single relationships. X ZY Supervisor Subordinates
  • 169. 2. Direct group relationships In direct group relationship, a supervisor has direct relationship with his subordinates jointly. X ZY Consultation Subordinates Supervisor Consultation
  • 170. 3. Cross relationship In cross relationship, a subordinate has relationship with another subordinate mutually. THE CAIN PROJECT X ZY Subordinates Supervisor Relationship
  • 171. ORGANISATIONAL CHARTS Organisational charts are prepared for the purpose of describing the organisational structure clearly. An organisation chart is a graphical portrayal of the various positions in the enterprise and the formal relationships among them. It shows the organisational relationships and activities within an organisation.
  • 172. KINDS OF ORGANISATIONAL CHARTS 1. Vertical Chart 2. Horizontal Chart or Left to Right Chart 3. Circular Chart or Concentric Chart THE CAIN PROJECT
  • 173. 1. Vertical Chart THE CAIN PROJECT Chairmen Marketing ManagerProduction Manager Managing Director Supervisor for Operation B Supervisor for Operation A Personnel Manager Supervisor for Operation C Workman IIIWorkman IIWorkman I
  • 174. 2. Horizontal chart or Left to right chart President Salesman II Branch Manager II Managing Director Managing Director Managing Director Managing Director Salesman I Salesman III Branch Manager I Branch Manager III
  • 175. 3. Circular Chart or Concentric Chart Chairma n Marketing Manager Production Manager Personnel Manager Finance Manager Supervisor 3 Supervisor 2 Supervisor 1
  • 176. DELEGATION OF AUTHORITY  Delegation of authority is a process which enables a person to assign works to others and delegate them with adequate authority to do it.  Delegation consists of granting authority or the right to decision-making in certain defined areas and charging the subordinate with responsibility for carrying through an assigned task
  • 177. DECENTRALISATION OF AUTHORITY  Centralization and decentralization refer to the location of decision-making authority in an organisation.  “Centralisation” means that the authority for most decisions is concentrated at the top of the managerial hierarchy whereas „decentralisation‟ requires such authority to be dispersed by extension and delegation through all levels of management.
  • 178. Comparison Between Delegation and Decentralization THE CAIN PROJECT Sl. No Delegation Decentralization 1. It is the process of devolution of authority. It is the end result achieved by the delegation. 2. It implies the relationship between a superior and a subordinate. It implies the relationship between top management and various departments and sections. 3. The delegation control rests entirely with the superior. Here, the top management exercises only control and delegates the authority for control to the departmental heads. 4. It is must for management. It is optional 5. It is a technique of management to get things done. It is both technique and philosophy of management. 6. It can take place without decentralization. There cannot be decentralization without delegation.
  • 179. Organisational Structure & Employee Behaviour 1. Work specialization 2. Span of Control 3. Centralization
  • 180. Organisational Climate A process of quantifying the „culture‟ of an organisation. It is a set of properties of the work environment, perceived directly or indirectly by the employees, that is assumed to be a major force in influencing employee behaviour. THE CAIN PROJECT
  • 181. Organisational Climate - Definition „Organisational climate refers to a set of characteristics that describe an organisation, distinguish it from other organisations, endure over a longer period of time and influence the behaviour of the people in it. – Forehand and Gilmer “A set of attributes specific to a particular organisation that may be induced from the way that organisation deals with its members and its environment” – Campbell and others
  • 182. Dimensions of Organisational Climate 1. Individual Autonomy 2. Position Structure 3. Reward System 4. Support System 5. Progress and Development 6. Conflict 7. Control 8. Risk Taking
  • 183. Determinants Organisational Climate 1. Economic Health 2. Organisational Policies and Procedures 3. Organisational Size 4. Organisational Structure 5. Leadership Styles 6. Managerial Values and Ethos
  • 184. Organisational Culture The term „Culture‟ signifies values, beliefs, morals, customs, habits and knowledge acquired by the people living in a society. The basic pattern of shared values and assumptions governing the way employees within an organization think about and act on problems and opportunities.
  • 185. Organisational Culture - Definition „Organisational Culture‟ is defined as the philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms that knit an organisation together and are shared by its employees – Ralph Kilmann. “It is a general constellation of beliefs, morals, value systems, behavioural norms and ways of doing business that are unique to each corporation” - Turnstall
  • 186. Organisational Culture Dell‟s “winning” culture, which emphasized cost efficiency and competitiveness has become more of a liability as the market moves toward a preference for style and innovation.
  • 187. Difference between Organisational Culture & Climate Organisational culture is an organisation‟s values, beliefs, principles, practices and behaviours. It can be traced in the printed documents such as brochures that describe the organisation‟s vision, values and mission and the policy and procedures manual. Organisational culture changes very slowly. Organisational climate is an integral and yet only a part of an organisation‟s culture. It can be traced in the conversations about work among the staff members during interval breaks. It is easier to change an organisation‟s climate than its culture.
  • 188. Difference between Organisational Culture & Climate Culture (White Background) Climate (Stars)
  • 189. Determinants of Organisational Culture 1. The extent of responsibility and freedom given to employees. 2. The extent to which the employees are encouraged to be creative and aggressive. 3. The degree of co-ordination between different departments. 4. Top management support. 5. Rules and regulations of the organisation. 6. The way the employees identify themselves with the organisation 7. The reward system
  • 190. Characteristics of Organisational Culture 1. Common Language and Terminology 2. Work Norms 3. Priorities 4. Expectations 5. Guidelines for new recruits
  • 191. Creating Organisational Culture – Process 1. A single person (founder) has an idea or vision for an enterprise. 2. The founder brings in some people and creates a core group that shares a common vision with the founder. All in the core group accept the idea or vision and work for it. 3. The founding core group begins to act in concert to create an organisation by raising funds, obtaining patents, incorporating, locating
  • 192. Change – Meaning Change, with reference to work environment, means any alternation that requires the people doing work to make certain adjustments. For example, if an organisation, where the office work is manually done, decides to introduce computers the employees will have to learn to handle computers. Similarly, if the management decides to change the working hours the employees will have to accordingly adjust their household routine.
  • 193. Organizational Change Organizational change is the process by which organization move from their present state to some desired future state to increase effectiveness. Organizational Change refers to a modification or transformation of the organization’s structure, processes or goods. When an organization system is disturbed by some internal or external forces change frequently occur or any alteration which occur in the overall work environment of an organization.
  • 194. Factors influencing Organizational Change INTETRNAL FORCES External ForcesChange forces
  • 195. 1. Internal Factors a. Policy decisions b. Attitudes of employees c. Availability of funds d. Escalating costs e. Level of efficiency f. Trade union demands
  • 196. 2. External Factors a. Government Regulations b. Technological advancement c. Economic conditions d. Changes in Law e. Competitive pressure f. Trade association influence g. Changes in buyer preference
  • 197. Resistance to Change Although change is inevitable, people tend to resist it in a rational response based on self-interest. Resistance to change is not always bad or harmful. In some cases, resistance is positive also. Resistance to change can also be a source of functional conflict. For example, resistance to a change in product line can stimulate a healthy debate over the merits of the idea and, thus, result in a better decision.
  • 198. Reasons of Resistance to Change Driving Forces for Change Forces Resisting Change Internal Force Individual Resistance 1. New technology 1. Fear of the unknown 2. Changing work values 2. New learning 3. Creation of new knowledge 3. Disruptions of stable friendships 4. Product obsolescence 4. Distrust of management 5. Desire for leisure and alternative work schedules Environmental Forces Organisational Resistance 1. Competition 1. Threat to the power structure 2. Changes in consumer demands 2.Inertia of organizational structure 3. Resource availability 3. System relationships 4. Social and political change 4. Sunk costs and vested interests 5. International changes
  • 199. Organisational Development Organizational Development or O.D. is a planned effort initiated by process specialists to help an organization develop its diagnostic skills, coping capabilities, linkage strategies (in the form of temporary and semi- permanent systems) and a culture of mutuality. •Diagnostic skills - data collection-overtime •Coping capabilities - problem-solving, confront and cope •Linking strategies - Indl.& Organl. Goals •Culture of Mutuality - fostering of certain values and open and proactive systems
  • 200. Objectives of Organisational Development 1. Improve organisational performance as measured by profitability, market share, innovativeness, etc. 2. Make organisation better adaptive to its environment. 3. Make the members willing face organisational problems and contribute creative solutions to the organisational problems. 4. Improve internal behaviour patters such as interpersonal relations, intergroup relations, level of trust and support among the
  • 201. Steps involved in Organisational Development 1. Diagnosis (or) Identification of Problem 2. Data Gathering 3. Planned Strategy for change 4. Planning and Implementing the Change 5. Evaluation and feedback
  • 202. UNIT 5 Trends & Research in OB
  • 203. Why is globalization significant to organizational behavior? Globalization involves complex economic networks of competition, resource supplies, and product markets transcending national boundaries and circling the globe. Most organizations must achieve high performance within a complex and competitive global environment.
  • 204. Why is globalization significant to organizational behavior? A global economy:  Information technology and electronic communications have:  Promoted a global economy.  Created Internet business opportunities.  Transnational movement of products, trends, values, and innovations.  Multicultural workforces.
  • 205. Why is globalization significant to organizational behavior? Global quality standards. ISO designation for quality standards. ISO framework for quality assurance worldwide. ISO certification is important for doing business and developing a reputation as a “world-class” manufacturer.
  • 206. Why is globalization significant to organizational behavior? Global managers  A global manager is someone who knows how to conduct business across borders.  The global manager:  Is often multilingual.  Thinks with a world view.  Appreciates diverse beliefs, values, behaviors, and practices.  Is able to map strategy in light of the above.
  • 207. What is culture? Culture is the learned, shared way of doing things in a particular society. Culture helps to define the boundaries between different groups and affect how their members relate to one another.
  • 208. What is culture? Popular dimensions of culture include:  Language.  Time orientation.  Use of space.  Religion.
  • 209. How does globalization affect people at work? Multinational employers.  Multinational corporation (MNC). A business firm that has extensive international operations in more than one country.  MNC characteristics. Missions and strategies are worldwide in scope. Has a total world view without allegiance to any one national home. Has enormous economic power and impact.
  • 210. EMERGING TRENDS IN ORGANIZATIONAL BEHAVIOUR The pace of change is accelerating, and most of the transformation is occurring in the workplace. Let‟s take a brief tour through a few of the emerging organizational behaviour issues discussed following: globalization, the changing workforce, emerging employment relationships, information technology, work teams, and business ethics.
  • 211. EMERGING TRENDS IN ORGANIZATIONAL BEHAVIOUR  Globalization  The changing workforce  Emerging employment relationships  Information technology  Work teams, and  Business ethics.
  • 212. ICT Information and communications technology (ICT) is often used as an extended synonym for information technology (IT), but is a more specific term that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and audio-visual systems, which enable users to access, store, transmit, and manipulate information.