A. ANANDA KUMAR
Assistant Professor – Senior Grade
Christ College of Engg & Tech
Puducherry
Mobile: +91 99443 42433
E-Mail...
Unit 1
Organisational Behaviour:
Introduction, Definition, Nature & Scope; Basic
Concepts of OB. including, Behaviour – In...
Organisational Behaviour
“OB is directly concerned with the
understanding, prediction, and control of human
behaviour in o...
Objectives of OB
OBJECTIVES OF ORGANISATIONAL BEHAVIOUR
To Describe Behaviour To Influence Behaviour
To Predict Behaviour
...
Key Elements of OB
Key Elements
Of OB
People
Environment
Structure
Technology
Nature of OB
1. It focuses on the behaviour of individuals
2. It is inter-disciplinary
3. It is an applied science
4. It i...
Scope of OB
OB
Organisational Behaviour Models
Models of
Organisational
Behaviour
Custodial
Autocratic Supportive
Collegial
The Autocratic Model
Under the autocratic model, the manager uses his
authority and directs the subordinates to do the wor...
Custodial Model
If under the autocratic model the employee has to
depend on his boss all the time, under the custodial
mod...
Supportive Model
In this case the manager supports his subordinates in
the performance of their tasks. The focus here is o...
Collegial Model
In the collegial model the manager participates in the
process of task performance by the subordinates. In...
Autocratic Custodial Supportive Collegial
Basis of model Power Economic
Sources
Leadership Partnership
Managerial
Orientat...
ORGANISING
Organising is the process of identifying and grouping
of activities required to attain the
objectives, delegati...
NATURE OF ORGANIZATION
1. Common Objectives
2. Specialization or Division of Labour
3. Authority of Structure
4. Group of ...
SPAN OF CONTROL or SPAN OF MANAGEMENT
 Span of management means the number of people
managed effectively by a single supe...
FORMAL ORGANISATION
A formal organisation typically consists of a
classical hierarchical structure in which
positions, res...
INFORMAL ORANISATION
Informal organisation is an organisation which
establishes the relationship on the basis of
member’s ...
ORGANISATIONAL CHARTS
Organisational charts are prepared for the purpose
of describing the organisational structure clearl...
KINDS OF ORGANISATION CHARTS
1. Vertical Chart
2. Horizontal Chart or Left to Right Chart
3. Circular Chart or Concentric ...
1. Vertical Chart
Chairmen
Marketing ManagerProduction Manager
Managing Director
Supervisor for Operation
B
Supervisor for...
2. Horizontal chart or Left to right chart
President Salesman II
Branch
Manager II
Managing
Director
Managing
Director
Man...
3. Circular Chart or Concentric Chart
Supervisor III
Supervisor II
Supervisor I
Production Marketing
Manager Manager
Perso...
STEPS IN ORGANISING PROCESS
1. Determination of Activities
2. Grouping of Activities
3. Assignment of Duties
4. Delegation...
DEPARTMENTATION / FUNCTIONAL DEPARTMENTATION
Departmentation means the process of grouping
of similar activities of the bu...
DEPARTMENTATION BY DIFFERENT STRATEGIES
1. Departmentation by Numbers
2. Departmentation by Time
3. Departmentation by Ent...
1. Departmentation by Numbers
In this case, departments are created on the basis
of number of persons forming the departme...
2. Departmentation by Time:
Under this base, the business activities are
grouped together on the basis of the time of
perf...
3. Departmentation by Enterprise Function
Finance DeptPersonnel DeptProduction Dept
Production
Planning
Repairs
Tooling
Pu...
4. Departmentation by Territory or Geography
President
Northern
Region
Managing
Director
Central Region
Western
Region
Sou...
5. Departmentation by Customers
Manager
Personal Loans
Manager
Agricultural Loans
Branch Manager
Manager
Housing Loans
Man...
6. Departmentation by Process or Equipment
President
Ginning
General Director
WeavingSpinning Packing & Sale
Dying &
Print...
7. Departmentation by Product or Service
General Manager
Automobile
Heavy Engg
Division
Finance
Personne
l
Producti
on
Sal...
AUTHORITY
According to Hendry Fayol, “Authority is the right
to give orders and the power to exact obedience”.
Koontz and ...
LINE AUTHORITY or LINE ORGANISATION
Line authority exists between superior and his
subordinate.
Line authority is the dire...
Manager
Superintendent 1 Superintendent 2
Foreman 1 Foreman 1Foreman 2 Foreman 2
W WWWWWW WWWWW
STAFF AUTHORITY
Staff authority is exercised by a man over line
personnel.
The relationship between a staff manager and th...
DECENTRALISATION OF AUTHORITY
 Centralization and decentralization refer to the
location of decision-making authority in ...
DELEGATION OF AUTHORITY
 Delegation of authority is a process which enables
a person to assign works to others and delega...
MANAGING BY OBJECTIVES (MBO)
“MBO is a process whereby the superior and the
subordinate managers of an enterprise jointly ...
Conti….
MBO is a process whereby superiors and
subordinates sit together to identify the common
objectives and set the res...
THE PROCESS OF MBO
1. Setting Preliminary objectives
2. Fixing Key result areas
3. Setting subordinate’s objectives
4. Rec...
WEAKNESS OF MBO
1. Failure to teach the philosophy of MBO
2. Failure to give guidelines to goals setters
3. Difficulty of ...
REASONS WHY MBO FAIL
Lack of top management involvement and support.
Lack of understanding of the philosophy behind
MBO.
D...
Case Study:
As a part of the company’s management development
programme, a group of managers from various
functional areas...
Case Study:
‘Motivation theory makes sense in general, but there
is really no opportunity for me to apply these
concepts i...
Case Study:
Questions:
a) What is the problem in this case?
b) In what respects Ashok Seth is correct in his
comment about...
Unit 2
Perception and Learning; Personality and Individual
Differences; Motivation – Content & Process Theories
of Work Mo...
Perception
Perception is the process of receiving information
about and making sense of the world around us. It
involves d...
Perception
Perception can be defined as
a process by which individuals
organize and interpret their
sensory impressions in...
The mind forms shapes that don't exist
Man/Woman
Sensation and Perception
Sensation is the response of a physical sensory organ:
Eyes see
Ears hear
Hands touch
Nose smell
...
Process of Perception
RECEIVING
SELECTING
ORGANISING
INTERPRETING
CHECKING
REACTING
Process of Perception
Stage I Receiving Stimuli
Stage II Selecting Stimuli
Stage III Organising Stimuli
Stage IV Interpret...
Learning
Modification of behaviour taking place through
observation, training or practice is what is called
learning.
“Lea...
Nature or Characteristics of Learning
1. Learning results in change in behaviour.
2. The change may be good or bad. It mus...
Cont………
5. Any change in behaviour due to ageing, illness or
injury is not the result of learning. A change in
behaviour i...
Factors determining Learning
Motivation
Reinforcement
Feedback
Qualities of the
Trainer &
Trainee
Environment
Time Schedul...
Theories on Learning
1. Classical Conditioning Theory
2. Operant Conditioning Theory
3. Cognitive Theory
4. Social Learnin...
Classical Conditioning
The credit for developing the
classical conditioning theory is
given to Ivan Pavlov, a Russian
psyc...
Cont….
Classical conditioning is modifying behaviour so that a
conditioned stimulus is paired with an unconditioned
stimul...
Cont….
As the next step he rang the bell before giving the dog
meat. This went on for sometime. Thereafter, Pavlov
merely ...
Cont….
The classical conditioning theory, however, has certain
limitations. For example, it does not explain all
aspects o...
Theories on Learning
kjals
Operant Conditioning Theory
 B.F. Skinner (1904-1990)
 developed behavioral
technology
 the relationship between
behavi...
Cont…..
B. F. Skinner made the law of effect the cornerstone
for his influential theory of learning, called operant
condit...
Cont….
Cont…
Operant conditioning is voluntary behaviour and it is
determined, maintained and controlled by its
consequences.
The...
Cont…
It has also been observed that when a behaviour is
not rewarded or is punished (negative reinforcement)
it is seldom...
Cont…
It one expects to influence behaviours, he must be
able to manipulate the consequences. In general, it
can be conclu...
Personality
“Personality may be understood as the characteristic
patterns of behaviour and modes of thinking that
determin...
Determinants of Personality
1. Biological
a. Heredity
b. Managerial Thinking
c. Bio-feedback
d. Physical Characteristics
2...
People are similar, yet they are different
Similarities among individual
1. Intelligence
2. Self-awareness
3. Communicatio...
Difference among Individuals
1. People differ in their approach to the job
2. The style of supervision differs
3. Differen...
Motivation
Motivation means a process of stimulating people to
action to accomplish desired goals – W.G. Scott.
Motivation...
Motivation
The important task before every manager is to secure
optimum performance from each of his subordinates.
The per...
Motivation
The important task before every manager is to secure
optimum performance from each of his subordinates.
The per...
Importance of Motivation
1. Inducement of employees
2. Higher efficiency
3. Optimum use of resources
4. Avoidance of loss ...
Nature & Characteristics of Motivation
1. Motivation is a psychological concept
2. Motivation is always total and not piec...
Motivation Content Theories
1. Abraham Maslow’s Need Hierarchical Theory
2. Herzberg’s Two Factor Theory
3. Douglas McGreg...
Motivation Process Theories
1. Vroom’s Expectancy Theory
2. Porter and Lawler’s Expectancy Theory
3. Adam’s Equity Theory
Abraham Maslow (1908-1970)
Maslow’s Need Hierarchy Theory
Abraham H. Maslow, a psychologist, developed a
theory called the ‘Need Hierarchy Theory’. I...
Maslow’s Need Hierarchy Theory
PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION, AND
BELONGINGNESS NEEDS
ESTEE...
Maslow’s Need Hierarchy Theory
Esteem
Self-Actualization
Safety
Belonging
Physiological
1. Physiological Needs
These are the primary or the basic needs of a person
that must be fulfilled. These include, among
o...
2. Safety Needs
The safety or security needs emerge once the basic or
physiological needs of a person are fulfilled. Job
s...
3. Social Needs
At this stage, a person wants
friendship, companionship, association, love and
affection of particularly t...
4. Esteem Needs
These needs arise in view of a person’s desire to have
his ego satisfied. The satisfaction of these needs ...
5. Self-Actualisation needs
According to Maslow, a person, who reaches this
stage, wants to achieve all that one is capabl...
McGregor’s ‘X’ and ‘Y’ Theories
McGregor developed a philosophical view of humankind
with his Theory X and Theory Y in 196...
(THEORY X)
McGregor looked at the way in which employers and
employees traditionally viewed work – The employer
paid the m...
(THEORY X)
4. Satisfaction of physiological and safety needs along
is important for most people. Workers in general are
on...
(THEORY Y)
Theory Y shows a participation style of management
that is de-centralized. It assumes that employees are
happy ...
Workers attitudes
Good worker = Theory Y
Lazy worker = Theory X
Skilled = Theory Y
Unskilled = Theory X
Evaluation of ‘X’ and ‘Y’ Theories
The two theories ‘X’ and ‘Y’ bring out the two
extreme qualities of a person. Theory ‘X...
Herzberg’s Two Factor Theory
Two factor theory states that there are certain factors
in the work place that cause job sati...
Hygiene Factors
According to Herzberg, hygiene factors do not actually
motivate a person but their absence will lead to
di...
Motivational Factors
The motivation factors are also known as intrinsic
factors. According to Herzberg, the presence of th...
Hygiene Factors
The maintenance factors are known as hygiene factors
as they influence the mental framework of the
employe...
Vroom’s Expectancy Theory
Vroom’s developed a theory on motivation called the
‘expectancy theory’. One of the most widely ...
Vroom’s Expectancy Theory
Effort Reward
Perfor
mance
Will my effort
improve my
performance?
Will performance
lead to rewar...
Vroom’s Expectancy Theory
He tried to explain motivation through the following
concepts:
1. Valence
2. Expectancy and
3. I...
Vroom’s Expectancy Theory
8645981773
Vroom’s Expectancy Theory
1. Valence: Valence, according to Vroom, means
the value or strength one places on a particular
...
VALUES
A ‘value’ is commonly formed by a particular belief
that is related to the worth of an idea or type of
behaviour. V...
ATTITUDES
The word ‘attitude’ can refer to a lasting group of
feelings, beliefs and behaviour tendencies directed
towards ...
Beliefs
The mental act, condition, or habit of placing trust or
confidence in another: My belief in you is as strong as
ev...
Conflicts
Conflict means disagreement between the persons
employed in an organisation. It may also mean clash
of interests...
Why do Conflicts Arise?
1. Changes in work patterns
2. Differences in perceptions
3. Differences in values
4. Availability...
Stress
Stress is defined in terms of its physical and
physiological effects on a person, and can be a
mental, physical, or...
Managing Stress
Stress Relief Strategies
1. Body relaxation excercises
- breathing techniques
- guided imagery
2. Physical...
Sources of stress
1. Environmental factors
2. Organizational factors
3. Individual factors
1. Environmental factors
• Environmental uncertainties
• Changes in business cycles
• Political uncertainties
• Technical ...
2. Organizational factors
• Pressure to avoid errors or complete task in limited
time period
• Task demands are factors re...
3. Individual factors
• Employees personal life like family
issues, economic problems and personality
characteristics
• Br...
Behaviorally at Work with Stress
 Absenteeism
 Accidents
 Poor morale
 Impaired cognitive functioning
 Poor decision ...
UNIT - 3
Group Behaviour
Group
A group is a collection of two or more individuals, interacting
and interdependent, who have come together to achiev...
Classification of Group
1. Psychological Group:
It may be defined as one in which the two or more
persons who are interdep...
Classification of Group
3. Formal Group:
It refers to those which are established under the legal
or formal authority with...
Classification of Group
5. Primary Group:
The primary groups are characterized by small size, face
to face interactions an...
Classification of Group
7. Membership Group:
The membership group is those where the individual
actually belongs.
8. Refer...
Classification of Group
9. Command Group:
The command group are formed by subordinates
reporting directly to the particula...
Classification of Group
11. Interest Group:
The interest group involves people who come together
to accomplish a particula...
Reasons for Formation of Groups
1. Companionship
2. Sense of identification
3. Source of Information
4. Job satisfaction
5...
Importance of Small Groups to the
Organisation
1. Filling in gaps in manager’s abilities
2. Better coordination
3. Channel...
Group Decision-Making
Decision-making is the process whereby a final but best
choice is made among the alternatives availa...
Group Decision-Making Process
Diagnose
the
Problem
Implementa
tion &
Monitoring
the Decision
Evaluating
the
Alternative
De...
Advantages of Group Decision-Making
1. Compared to an individual, the groups usually have a greater
knowledge, expertise, ...
Disadvantages of Group Decision-Making
1. Group decision-making is a time consuming process.
2. Influence groups usually m...
How to improve Group Decision-Making?
1. Brainstorming (alex osborn 1938)(6-8people)
2. Nominal Group Technique (NGT)
3. D...
TEAM
A collection of individuals in one place may be only a crowd.
A group of individuals working in a face-to-face relati...
Team Building Process
Giving &
Receiving
Feedback
Examining
Perceptual
Differences
Problem Sensing
Follow Up
Actions
Devel...
Team Building Process
1. Problem Sensing and Identification
2. Examination of Differences
3. Feedback
4. Developing Argume...
Leadership
“Leadership is the activity of influencing people to strive willingly
for group objectives” - George K. Terry
“...
146
Leadership
Formal Leadership occurs when an organisation officially
bestows upon a leader the power and authority to g...
Leadership & Management
Leadership Management
1. Leader leads people.
2. Leader can use his/her informal
influence.
3. Lea...
148
Nature & Characteristics of Leadership
1. It is the personal quality of a person
2. It is a process of influencing oth...
149
Qualities of Leader
1. Ability to analyze
2. Self-confidence
3. Foresight
4. Sense of judgement
5. Understanding
6. Me...
Kinds of Leadership Styles
1. Autocratic or Authoritative Style
2. Democratic or participative Style
3. Laissez-Faire or F...
25/04/2014 Template from www.brainybetty.com 151
1. Autocratic or Authoritative Style
In autocratic style, the leader cent...
25/04/2014 Template from www.brainybetty.com 152
2. Democratic or Participative Style
In democratic style of leadership, t...
25/04/2014 Template from www.brainybetty.com 153
3. Laissez Faire Style
Laissez faire style is just the opposite of autocr...
Power
A
B
Power
Power is the capacity of a person, team or organization to
influence others. Power is not the act of changing others...
25/04/2014 Template from www.brainybetty.com 156
Distinction Between Power, Authority &
Influence
• Power: is the ability ...
25/04/2014 Template from www.brainybetty.com 157
Bases or Sources of Power
1. Reward Power: It refers to the leader’s abil...
25/04/2014 Template from www.brainybetty.com 158
Bases or Sources of Power
3. Legitimate Power: It is available to a perso...
25/04/2014 159
Bases or Sources of Power
5. Expert Power: It accrues to the individual by virtue of his
knowledge and skil...
Politics
When a person having ‘power’ or ‘authority’ uses the same to
favour some in the organisation, much against the in...
25/04/2014 Template from www.brainybetty.com 161
Reasons for Organisational Politics
1. Unclear Goals
2. Autocratic Decisi...
UNIT 4
Organizational
Dimensions
THE CAIN PROJECT
Organisational Structure
Organisational structure indicates the
organisation‟s hierarchy and authority
structure, and show...
Why Organisational Structure?
1. It facilitates management
2. It encourages growth and
diversification
3. It facilitates t...
DEPARTMENTATION / FUNCTIONAL DEPARTMENTATION
Departmentation means the process of
grouping of similar activities of the
bu...
DEPARTMENTATION BY DIFFERENT STRATEGIES
1. Departmentation by Numbers
2. Departmentation by Time
3. Departmentation by Ent...
1. Departmentation by Numbers
In this case, departments are created on the
basis of number of persons forming the
departme...
2. Departmentation by Time
Under this base, the business activities are
grouped together on the basis of the time of
perfo...
3. Departmentation by Enterprise
Function
Finance DeptPersonnel DeptProduction Dept
Production
Planning
Repairs
Tooling
Pu...
4. Departmentation by Territory or
Geography
THE CAIN PROJECT
President
Northern
Region
Managing
Director
Central
Region
W...
5. Departmentation by Customers
THE CAIN PROJECT
Manager
Personal Loans
Manager
Agricultural Loans
Branch Manager
Manager
...
6. Departmentation by Process or
Equipment
THE CAIN PROJECT
President
Ginning
General
Director
WeavingSpinning
Packing &
S...
7. Departmentation by Product or
Service
THE CAIN PROJECT
General Manager
AutomobileHeavy Engg Division
Finance
Personnel
...
SPAN OF CONTROL or SPAN OF MANAGEMENT
 Span of management means the number of
people managed effectively by a single
supe...
DETERMINATION OF SPAN OF MANAGEMENT
1. Direct single relationship
2. Direct group relationships
3. Cross relationship
THE ...
1. Direct single relationship
It is one in which a supervisor has direct
relationship with his subordinates
individually....
2. Direct group relationships
In direct group relationship, a supervisor
has direct relationship with his subordinates
jo...
3. Cross relationship
In cross relationship, a subordinate has
relationship with another subordinate
mutually.
THE CAIN P...
ORGANISATIONAL CHARTS
Organisational charts are prepared for the
purpose of describing the organisational
structure clearl...
KINDS OF ORGANISATIONAL CHARTS
1. Vertical Chart
2. Horizontal Chart or Left to Right
Chart
3. Circular Chart or Concentri...
1. Vertical Chart
THE CAIN PROJECT
Chairmen
Marketing ManagerProduction Manager
Managing Director
Supervisor for Operation...
2. Horizontal chart or Left to right chart
President Salesman II
Branch
Manager II
Managing
Director
Managing
Director
Man...
3. Circular Chart or Concentric Chart
Chairma
n
Marketing
Manager
Production
Manager
Personnel
Manager
Finance
Manager
Sup...
DELEGATION OF AUTHORITY
 Delegation of authority is a process which
enables a person to assign works to others
and delega...
DECENTRALISATION OF AUTHORITY
 Centralization and decentralization refer to
the location of decision-making authority
in ...
Comparison Between Delegation and
Decentralization
THE CAIN PROJECT
Sl.
No
Delegation Decentralization
1. It is the proces...
Organisational Structure & Employee
Behaviour
1. Work specialization
2. Span of Control
3. Centralization
Organisational Climate
A process of quantifying the „culture‟ of an
organisation. It is a set of properties of the
work en...
Organisational Climate - Definition
„Organisational climate refers to a set of
characteristics that describe an
organisati...
Dimensions of Organisational Climate
1. Individual Autonomy
2. Position Structure
3. Reward System
4. Support System
5. Pr...
Determinants Organisational Climate
1. Economic Health
2. Organisational Policies and Procedures
3. Organisational Size
4....
Organisational Culture
The term „Culture‟ signifies
values, beliefs, morals, customs, habits and
knowledge acquired by the...
Organisational Culture - Definition
„Organisational Culture‟ is defined as the
philosophies, ideologies, values, assumptio...
Organisational Culture
Dell‟s “winning”
culture, which emphasized
cost efficiency and
competitiveness has
become more of a...
Difference between Organisational Culture &
Climate
Organisational culture is an organisation‟s
values, beliefs, principle...
Difference between Organisational Culture
& Climate
Culture (White Background)
Climate (Stars)
Determinants of Organisational Culture
1. The extent of responsibility and freedom
given to employees.
2. The extent to wh...
Characteristics of Organisational Culture
1. Common Language and Terminology
2. Work Norms
3. Priorities
4. Expectations
5...
Creating Organisational Culture – Process
1. A single person (founder) has an idea or
vision for an enterprise.
2. The fou...
Change – Meaning
Change, with reference to work
environment, means any alternation that requires
the people doing work to ...
Organizational Change
Organizational change is the process by which
organization move from their present state to
some des...
Factors influencing Organizational
Change
INTETRNAL FORCES External ForcesChange
forces
1. Internal Factors
a. Policy decisions
b. Attitudes of employees
c. Availability of funds
d. Escalating costs
e. Level of...
2. External Factors
a. Government Regulations
b. Technological advancement
c. Economic conditions
d. Changes in Law
e. Com...
Resistance to Change
Although change is inevitable, people tend to resist
it in a rational response based on self-interest...
Reasons of Resistance to Change
Driving Forces for Change Forces Resisting Change
Internal Force Individual Resistance
1. ...
Organisational Development
Organizational Development or O.D. is a planned effort
initiated by process specialists to help...
Objectives of Organisational
Development
1. Improve organisational performance as
measured by profitability, market
share,...
Steps involved in Organisational
Development
1. Diagnosis (or) Identification of Problem
2. Data Gathering
3. Planned Stra...
UNIT 5
Trends &
Research in OB
Why is globalization significant to organizational
behavior?
Globalization involves complex economic
networks of competiti...
Why is globalization significant to organizational
behavior?
A global economy:
 Information technology and electronic
com...
Why is globalization significant to organizational
behavior?
Global quality standards.
ISO designation for quality standa...
Why is globalization significant to organizational
behavior?
Global managers
 A global manager is someone who knows how
t...
What is culture?
Culture is the learned, shared way of doing
things in a particular society.
Culture helps to define the b...
What is culture?
Popular dimensions of culture include:
 Language.
 Time orientation.
 Use of space.
 Religion.
How does globalization affect people at
work?
Multinational employers.
 Multinational corporation (MNC).
A business firm ...
EMERGING TRENDS IN ORGANIZATIONAL
BEHAVIOUR
The pace of change is accelerating, and most of the
transformation is occurrin...
EMERGING TRENDS IN ORGANIZATIONAL
BEHAVIOUR
 Globalization
 The changing workforce
 Emerging employment relationships
...
ICT
Information and communications technology
(ICT) is often used as an extended synonym for
information technology (IT), ...
Organisational Behaviour
Organisational Behaviour
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Organisational Behaviour

  1. 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. 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. 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. 4. Objectives of OB OBJECTIVES OF ORGANISATIONAL BEHAVIOUR To Describe Behaviour To Influence Behaviour To Predict Behaviour To Understand Behaviour
  5. 5. Key Elements of OB Key Elements Of OB People Environment Structure Technology
  6. 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. 7. Scope of OB OB
  8. 8. Organisational Behaviour Models Models of Organisational Behaviour Custodial Autocratic Supportive Collegial
  9. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 20. KINDS OF ORGANISATION CHARTS 1. Vertical Chart 2. Horizontal Chart or Left to Right Chart 3. Circular Chart or Concentric Chart
  21. 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. 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. 23. 3. Circular Chart or Concentric Chart Supervisor III Supervisor II Supervisor I Production Marketing Manager Manager Personnel Finance Manager Manager Chair man
  24. 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. 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. 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. 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. 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. 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. 30. 4. Departmentation by Territory or Geography President Northern Region Managing Director Central Region Western Region Southern Region Eastern Region
  31. 31. 5. Departmentation by Customers Manager Personal Loans Manager Agricultural Loans Branch Manager Manager Housing Loans Manager Business Loans Manager Cooperative Loan
  32. 32. 6. Departmentation by Process or Equipment President Ginning General Director WeavingSpinning Packing & Sale Dying & Printing
  33. 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. 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. 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. 36. Manager Superintendent 1 Superintendent 2 Foreman 1 Foreman 1Foreman 2 Foreman 2 W WWWWWW WWWWW
  37. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 51. The mind forms shapes that don't exist
  52. 52. Man/Woman
  53. 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. 54. Process of Perception RECEIVING SELECTING ORGANISING INTERPRETING CHECKING REACTING
  55. 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. 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. 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. 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. 59. Factors determining Learning Motivation Reinforcement Feedback Qualities of the Trainer & Trainee Environment Time Schedule Meaningfulness of The subject Practice Determinants of Learning
  60. 60. Theories on Learning 1. Classical Conditioning Theory 2. Operant Conditioning Theory 3. Cognitive Theory 4. Social Learning Theory
  61. 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. 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. 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. 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. 65. Theories on Learning kjals
  66. 66. Operant Conditioning Theory  B.F. Skinner (1904-1990)  developed behavioral technology  the relationship between behavior and its consequences
  67. 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. 68. Cont….
  69. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 82. Motivation Process Theories 1. Vroom’s Expectancy Theory 2. Porter and Lawler’s Expectancy Theory 3. Adam’s Equity Theory
  83. 83. Abraham Maslow (1908-1970)
  84. 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. 85. Maslow’s Need Hierarchy Theory PHYSIOLOGICAL OR SURVIVAL NEEDS SAFETY NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS ESTEEM NEEDS SELF- ACTUALIZATION
  86. 86. Maslow’s Need Hierarchy Theory Esteem Self-Actualization Safety Belonging Physiological
  87. 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. 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. 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. 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. 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. 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. 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. 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. 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. 96. Workers attitudes Good worker = Theory Y Lazy worker = Theory X Skilled = Theory Y Unskilled = Theory X
  97. 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. 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. 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. 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. 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. 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. 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. 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. 105. Vroom’s Expectancy Theory 8645981773
  106. 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. 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. 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. 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. 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. 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. 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. 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. 114. Sources of stress 1. Environmental factors 2. Organizational factors 3. Individual factors
  115. 115. 1. Environmental factors • Environmental uncertainties • Changes in business cycles • Political uncertainties • Technical uncertainties
  116. 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. 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. 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. 119. UNIT - 3 Group Behaviour
  120. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 130. Group Decision-Making Process Diagnose the Problem Implementa tion & Monitoring the Decision Evaluating the Alternative Developing Alternatives 1 2 3 4
  131. 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. 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. 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. 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. 135. Team Building Process Giving & Receiving Feedback Examining Perceptual Differences Problem Sensing Follow Up Actions Developing Interactive Skills
  136. 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. 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. 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. 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. 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. 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. 142. Kinds of Leadership Styles 1. Autocratic or Authoritative Style 2. Democratic or participative Style 3. Laissez-Faire or Free-Rein Style
  143. 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. 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. 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. 146. Power A B
  147. 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. 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. 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. 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. 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. 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. 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. 154. UNIT 4 Organizational Dimensions THE CAIN PROJECT
  155. 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. 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. 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. 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. 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. 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. 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. 162. 4. Departmentation by Territory or Geography THE CAIN PROJECT President Northern Region Managing Director Central Region Western Region Southern Region Eastern Region
  163. 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. 164. 6. Departmentation by Process or Equipment THE CAIN PROJECT President Ginning General Director WeavingSpinning Packing & Sale Dying & Printing
  165. 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. 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. 167. DETERMINATION OF SPAN OF MANAGEMENT 1. Direct single relationship 2. Direct group relationships 3. Cross relationship THE CAIN PROJECT
  168. 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. 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. 170. 3. Cross relationship In cross relationship, a subordinate has relationship with another subordinate mutually. THE CAIN PROJECT X ZY Subordinates Supervisor Relationship
  171. 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. 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. 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. 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. 175. 3. Circular Chart or Concentric Chart Chairma n Marketing Manager Production Manager Personnel Manager Finance Manager Supervisor 3 Supervisor 2 Supervisor 1
  176. 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. 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. 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. 179. Organisational Structure & Employee Behaviour 1. Work specialization 2. Span of Control 3. Centralization
  180. 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. 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. 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. 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. 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. 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. 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. 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. 188. Difference between Organisational Culture & Climate Culture (White Background) Climate (Stars)
  189. 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. 190. Characteristics of Organisational Culture 1. Common Language and Terminology 2. Work Norms 3. Priorities 4. Expectations 5. Guidelines for new recruits
  191. 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. 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. 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. 194. Factors influencing Organizational Change INTETRNAL FORCES External ForcesChange forces
  195. 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. 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. 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. 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. 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. 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. 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. 202. UNIT 5 Trends & Research in OB
  203. 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. 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. 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. 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. 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. 208. What is culture? Popular dimensions of culture include:  Language.  Time orientation.  Use of space.  Religion.
  209. 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. 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. 211. EMERGING TRENDS IN ORGANIZATIONAL BEHAVIOUR  Globalization  The changing workforce  Emerging employment relationships  Information technology  Work teams, and  Business ethics.
  212. 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.

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