Organizational behavior book 2 nd sem mba @ bec doms


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Organizational behavior book 2 nd sem mba @ bec doms

  1. 1. ORGANISATIONAL BEHAVIOUR SYLLABUSUNIT 1 Introduction to Organisational Behaviour, Meaning; Elements; Need; Approaches; Models; Global scenario.UNIT 2 Individual Behaviour; Personality; Learning; Attitudes; Perception; Motivation; Ability; Their relevant organizational behaviour.UNIT 3 Group dynamics; Group norms; Group cohesiveness; Group Behance to organizational behaviour.UNIT 4 Leadership Styles; Qualities; Organisational communication; Meaning importance, process, barriers; Methods to reduce barriers; Principle of effective communication.UNIT 5 Stress; Meaning; Types; Sources; Consequences; Management of stress. Power and Politics; Definition; Types of Powers; Sources; Characteristics; Effective use of Power.UNIT 6 Organisational Dynamics; Organisational design; Organisational effectiveness; Meaning, approaches; Organisational culture; Meaning, significance; Organisational Climate; Implications on organizational behaviour. Organisational Change; Meaning; Nature; Causes of change; Resistance of change; Management of change; Organisational development; Meaning; OD Interventions. BSPATIL 1
  3. 3. LESSON – 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOURLearning ObjectivesAfter reading this lesson, you should be able to understand: The major environmental challenges and the paradigm shift that the management faces today The management perspective of organizational behaviour The historical background of modern organizational behaviour The modern approach to organizational behaviourThe knowledge and information explosion, global competition, total quality and diversity are some of thebitter realities that the managers are facing today. There are many solutions being offered to deal with thesecomplex challenges. Yet the simple but most profound solution may be found in the words of Sam Walton,the richest person in the world and the founder of Wal-Mart. Sam was once asked the key to successfulorganizations and management. Sam quickly replied, "People are the key". The term paradigm comes from the Greek word paradigma, which means model, pattern orexample". First introduced over thirty years ago, by the philosophy and science historian Thomas Khun, theterm "paradigm" is now used as, a broad model, a framework, a way of thinking, and a scheme forunderstanding reality. The impact of information technology, total quality and diversity mentioned earlierhas led to a paradigm shift.NEW PARADIGMThe organizational behaviour has a goal lo help the managers make a transition to the new paradigm. Someof the new paradigm characteristics include coverage of second-generation information technology andtotal quality management such as empowerment, reengineering and benchmarking, and learningorganization for managing diversity of work. The new paradigm sets the stage for the study, understanding,and application of the time-tested micro-variables, dynamics and macro-variables. One must know whymanagement needs a new perspective to meet the environmental challenges and to shift to a new paradigm.A NEW PERSPECTIVE FOR MANAGEMENTManagement is generally considered to have three major dimensions—technical, conceptual and human.The technical dimension consists of the managers expertise in particular functional areas. They know therequirements of the jobs and have the functional knowledge to get the job done. But the practicingmanagers ignore the conceptual and human dimensions of their jobs. Most managers think that their employees are lazy, and are interested only in money, and that if youcould make them happy in terms of money, they would be productive. If such assumptions are accepted, thehuman problems that the management is facing are relatively easy to solve. But human behaviour at work is much more complicated and diverse. The new perspective assumesthat employees are extremely complex and that there is a need for theoretical understanding given byempirical research before applications can be made for managing people effectively.MODERN APPROACH TO ORGANIZATIONAL BEHAVIOURThe modern approach to organizational behaviour is the search for the truth of why people behave the waythey do. The organizational behaviour is a delicate and complex process. If one aims to manage anorganization, it is necessary to understand its operation. Organization is the combination of science andpeople. While science and technology is predictable, the human behaviour in organization is ratherunpredictable. This is because it arises from deep needs and value systems of people.HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOURScientific Management ApproachScientific management approach was developed by F.W. Taylor at the beginning of the 20th century. Thistheory supported the use of certain steps in scientifically studying each element of a job, selecting andtraining the best workers for the job arid making sure that the workers follow the prescribed method ofdoing the job. It provided a scientific rationale for job specialization and mass production. His assumption BSPATIL 3
  4. 4. was that employees are motivated largely by money. To increase the output, Taylor advised managers to paymonetary incentives to efficient workers. Yet, his theory was criticized by many employers and workers. Workers objected to the pressure ofwork as being harder and faster. Critics worried that the methods took the humanity out of labor, reducingworkers to machines responding to management incentives. Therefore, Taylors view is now consideredinadequate and narrow due to the points given by the critics.Bureaucratic ApproachWhile scientific management was focusing on the interaction between workers and the task, me researcherswere studying how to structure the organization more effectively. Instead of trying to make each workermore efficient, classical organization theory sought the most effective overall organizational structure forworkers and managers. The theorys most prominent advocate, Max Weber, proposed a bureaucratic form of structure,which he thought would work for all organizations. Webers idea! bureaucracy was , logical, rational andefficient. He made the naive assumption that one structure would work best for all organizations. Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized thebehavioral side of management. However, they did not emphasize the human dimensions. Although therewere varied and complex reasons for the emerging importance of behavioral approach to management, it isgenerally recognized that the Hawthorne studies mark the historical roots for the field of organizationalbehaviour.Hawthorne StudiesEven, as Taylor and Weber brought attention with their rational, logical approaches to more efficientproductivity, their views were criticized on the ground that both approaches ignored workers humanity. The real beginning of applied research in the area of organizational behaviour started withHawthorne Experiments. In 1924, a group of professors began an enquiry into the human aspects of workand working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of thesestudies were given a new name human relations the studies brought out a number of findings relevant tounderstanding human behaviour at work. The Human element in the workplace was considerably moreimportant. The workers are influenced by social factors and the behaviour of the individual worker isdetermined by the group. Hawthorne studies have been criticized for their research methods and conclusions drawn. But theirimpact on the emerging field of organizational behaviour was dramatic. They helped usher in a morehumanity centered approach to work.APPROACHES TO ORGANIZATIONAL BEHAVIOURThere are mainly four approaches to organizational behaviour. They are:• Human resources approach • Contingency approach• Productivity approach• Systems approachHuman Resources ApproachThe human resources approach is concerned with the growth and development of people towards higherlevels of competency, creativity and fulfillment, because people are the central resource in any organization.This approach help employees become better in terms of work and responsibility and then it tries to create aclimate in which they can contribute to the best of their improved abilities. This approach is also known assupportive approach because the managers primary role changes from control of employees to providingan active support for their growth and performance.A Contingency ApproachA contingency approach to organizational behaviour implies that different situations require differentbehavioral practices for effectiveness instead of following a traditional approach for all situations. Eachsituation must be analyzed carefully to determine the significant variables that exist in order to establish themore effective practices. The strength of this approach is that it encourages analysis of each situation priorto action. Thus, it helps to use all the current knowledge about people in the organization in the mostappropriate manner. BSPATIL 4
  5. 5. Productivity ApproachProductivity is a ratio that compares units of output with units of input. It is often measured in terms ofeconomic inputs and outputs. Productivity is considered to be improved, if more outputs can be producedfrom the same amount of inputs. But besides economic inputs and outputs, human and social inputs andoutputs also arc important.Systems ApproachA system is an interrelated part of an organization or a society that interacts with everyone related to thatorganization or society and functions as a whole. Within the organization people employ technology inperforming the task that they are responsible for, while the structure of the organization serves as a basisfor co-ordinating all their different activities. The systems view emphasizes the interdependence of each ofthese elements within the organization, if the organization as a whole is to function effectively. The otherkey aspect of the systems view of organization is its emphasis on the interaction between the organizationand its broader environment,, which consists of social, economic, cultural and political environment withinwhich they operate. Organizations arc dependent upon their surrounding environment in two main ways: First, theorganization requires inputs from the environment in the form of raw material, people, money, ideas andso on. The organization itself can be thought of as performing certain transformation processes, on itsinputs in order to create outputs in the form of products or services. Secondly, the organization depends onenvironment such as, public to accept its output. The systems view of organization thus emphasizes on thekey interdependencies that organizations must manage. Within themselves the organizations must trade offthe interdependencies among people, tasks, technology and structure in order to perform theirtransformation processes effectively and efficiently. Organizations must also recognize theirinterdependence with the broader environments within which they exist.CONTEMPORARY ORGANIZATIONAL BEHAVIOURA Separate Field of StudyOrganizational behaviour can be treated as a distinct field of study. It is yet to become a science. Nowefforts are being made to synthesize principles, concepts and processes in this field of study.Interdisciplinary ApproachOrganizational behaviour is basically an interdisciplinary approach. It draws heavily from other disciplineslike psychology, sociology and anthropology. Besides, it also takes relevant things from economics, politicalscience, law and history. Organizational behaviour integrates the relevant contents of these disciplines tomake them applicable for organizational analysis. e.g. it addresses issues, which may be relevant to the case,such as the following: What facilitates accurate perception and attribution? What influences individual, group and organizational learning and the development of individual attitudes toward .work? How do individual differences in personality, personal development, and career development affect individuals behaviours and attitudes? What motivates people to work, and how. does the organizational reward system influence workers behaviour and attitudes? How do managers build effective teams? What contributes to effective decision-making? What are the constituents of effective communication? What are the characteristics of effective communication? How can power be secured and used productively? What factors contribute to effective negotiations? How can conflict (between groups or between a manager and subordinates) be resolved or managed? How can jobs and organizations be effectively designed? How can managers help workers deal effectively with change?An Applied ScienceThe basic objective of organizational behaviour is to make application of various researches to solve theorganizational problems, particularly related to the human behavioral aspect.Normative and Value Centered BSPATIL 5
  6. 6. Organizational behaviour is a normative science. A normative science prescribes how the various findings ofresearches can be applied to get organizational results, which are acceptable to the society. Thus, what isacceptable by the society or individuals engaged in an organization is a matter of values of the society andpeople concerned.Humanistic and OptimisticOrganizational behaviour focuses the attention on people from humanistic point of view. It is based on thebelief that needs and motivation of people are of high concern. Further, there is optimism about the innatepotential of man to be independent, creative, predictive and capable of contributing positively to theobjectives of the organization.Oriented towards Organizational ObjectivesOrganizational behaviour is oriented towards organizational objectives. In fact, organizational behaviourtries to integrate both individual and organizational objectives so that both are achieved simultaneously.A Total System ApproachAn individuals behaviour can be analyzed keeping in view his psychological framework,interpersonal-orientation, group influence and social and cultural factors; Thus, individuals nature is quitecomplex and organizational behaviour by applying systems approach tries to find solutions for thiscomplexity. LESSON –2 FOUNDATION OF ORGANISATIONAL BEHAVIOURLearning ObjectivesAfter reading this lesson, you should be able to: Define and explain the meaning of organizational behaviour Understand the nature and importance of organizational behaviour Relate the organizational behaviour to manager’s jobDEFINITION OF MANAGEMENTManagement is commonly defined as "Getting work done through other people". This simple definitionexplains the significance of the role of people. The work will not be done unless "people" want to do thework and if the work is not done then there will be no organisation. Hence, the cooperation of the workers iscrucial to the success or failure of the organisation.DEFINITION OF ORGANISATIONAccording to Gary Johns, "Organisations are social inventions for accomplishing goals through groupefforts". This definition covers wide variety-of groups such as businesses, schools, hospitals, fraternalgroups, religious bodies, government agencies and so on. There are three significant aspects in the abovedefinition, which require further analysis. They are as follows: Social Inventions: The word "social" as a derivative of society basically means gathering of people. It is the people that primarily make up an organisation. Accomplishing Goals: All organisations have reasons for their existence. These reasons are the goals towards which all organisational efforts are directed. While the primary goal .of any commercial organisation is to make money for its owners, this goal is inter-related with many other goals. Accordingly, any organisational goal must integrate in itself the personal goals of all individuals associated with the organisation. Group Effort: People, both as members of the society at large and as a part of an organisation interact with each other and are inter-dependent. Individuals in themselves have physical and intellectual limitations and these limitations can only be overcome by group efforts.MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR BSPATIL 6
  7. 7. Organisational behaviour is concerned with peoples thoughts, feelings, emotions and actions in setting up awork. Understanding an individual behaviour is in itself a challenge, but understanding group behaviour inan organisational environment is a monumental managerial task. As Nadler and Tushman put it, "Understanding one individuals behaviour is challenging in and ofitself; understanding a group that is made up of different individuals and comprehending the manyrelationships among those individuals is even more complex. Ultimately, the organisations work gets donethrough people, individually or collectively, on their, own or in collaboration with technology. Therefore, themanagement of organisational behaviour is central to the management task—a task that involves thecapacity to "understand" the behaviour patterns of individuals, groups and organisations, to predict" whatbehavioural responses will be elicited by various managerial actions and finally to use this understandingand these predictions to achieve "control". Organisational behaviour can then be defined as: "The study of human behaviour in organisationalsettings, the interface between human behaviour and the organisational context, and the organisationitself." The above definition has three parts—the individual behaviour, the organisation and the (interfacebetween the two. Each individual brings to an organisation a unique set of beliefs, values, attitudes andother personal characteristics and these characteristics of all individuals must interact with each other inorder to create organisational settings. The organisational behaviour is specifically concerned withwork-related behaviour, which takes place in organisations. In addition to understanding; the on-going behavioural processes involved, in their own jobs,managers must understand the basic human element of their work. Organisational behaviour offers threemajor ways of understanding this context; people as organisations, people as resources and people aspeople. Above all, organisations are people; and without people there would be no organisations. Thus, ifmanagers are to understand the organisations in which they work, they must first understand the peoplewho make up the organisations. As resources, people are one of the organisations most valuable assets. People create theorganisation, guide and direct its course, and vitalise and revitalise it. People make the decisions, solve theproblems, and answer the questions. As managers increasingly recognise the value of potentialcontributions by their employees, it will become more and more important for managers and employees tograsp the complexities of organisational behaviour. Finally, there is people as people - an argument derived from the simple notion of humanisticmanagement. People spend a large part of their lives in; organisational settings, mostly as employees. Theyhave a right to expect something in return beyond wages and benefits. They have a right to expectsatisfaction and to learn new skills. An understanding of organisational behaviour can help the managerbetter appreciate the variety of individual needs and expectations. Organisational behaviour is concerned with the characteristics and behaviours of employees inisolation; the characteristics and processes that are part of the organisation itself; and the characteristicsand behaviours directly resulting from people with their individual needs and motivations working within thestructure of the organisation. One cannot understand an individual’s behaviour completely without learningsomething about that individuals organisation. Similarly, he cannot understand how the organisationoperates without; studying the people who-make it up. Thus, the organisation influences and is influencedby individuals.ELEMENTS OF ORGANISATIONAL BEHAVIOURThe key elements in the organisational behaviour are people,, structure, technology and the environment inwhich the organisation operates. People: People make up the internal and social system of the organisation. They consist of individuals and groups. The groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organisation to achieve their objectives. BSPATIL 7
  8. 8. Structure: Structure defines the formal relationships of the people in organisations. Different people in the organisation are performing different type of jobs and they need to be (elated in some structural way so that their work can be effectively co-ordinated. Technology: Technology such as machines and work processes provide the resources with which people work and affects the tasks that they perform. The technology used has a significant influence on working relationships. It allows people to do more and work better but it also restricts people in various ways. Environment: All organisations operate within an external environment. It is the part of a larger system that contains many other elements such as government, family and other organisations. All of these mutually influence each other in a complex system that creates a context for a group of people.NATURE OF ORGANISATIONAL BEHAVIOUREach individual brings to an organisation a unique set of personal characteristics, experiences from otherorganisation, the environment surrounding the organisation and1 they also posses a personal background.In considering the people working in an organisation, organisational behaviour must look at the uniqueperspective that each individual brings to the work setting. But individuals do not work in isolation. They come in contact with other individuals and theorganisation in a variety of ways. Points of contact include managers, co-workers, formal policies andprocedures of the organisation, and various changes implemented by the organisation. Over time, theindividual, too, changes, as a function of both the personal experiences and the organisation. Theorganisation is also affected by the presence and eventual absence of the individual. Clearly, the study oforganisational behaviour must consider the ways in which the individual and the organisation interact. An organisation, characteristically, exists before a particular person joins it and continues to existafter he leaves it. Thus, the organisation itself represents a crucial third perspective from which to vieworganisational behaviour.NEED FOR STUDYING ORGANISATIONAL BEHAVIOURThe rules of work are different from the rules of play. The uniqueness of rules and the environment oforganisations forces managers to study organisational behaviour in order to learn about normal andabnormal ranges of behaviour.More specifically, organisational behaviour serves three purposes: What causes behaviour? Why particular antecedents cause behaviour? Which antecedents of behaviour can be controlled directly and which are beyond control? A more specific and formal course in organisational behaviour helps an individual to develop morerefined and workable sets of assumption that is directly relevant to his work interactions. Organisationalbehaviour helps in predicting human behaviour in the organisational setting by drawing a clear distinctionbetween individual behaviour and group behaviour. Organisational behaviour does not provide solutions to all complex and different behaviour puzzles oforganisations. It is only the intelligent judgement of the manager in dealing with a specific issue that can tryto solve the problem. Organisational behaviour only assists in making judgements that are derived fromtenable assumptions; judgement that takes into account the important variables underlying the situation;judgement that are assigned due recognition to the complexity of individual or group behaviour; judgementthat explicitly takes into account the managers own goals, motives, hang-ups, blind spots and weaknesses.IMPORTANCE OF ORGANISATIONAL BEHAVIOUROrganisational behaviour offers several ideas to management as to how human factor should be properlyemphasised to achieve organisational objectives. Barnard has observed that an organisation is a consciousinteraction of two or more people. This suggests that since an organisation is Ihe interaction of persons,they should be given adequate importance in managing the organisation. Organisational behaviour providesopportunity to management to analyse human behaviour and prescribe means for shaping it to a particulardirection. BSPATIL 8
  9. 9. Understanding Human Behaviour Organisational behaviour provides under¬standing the humanbehaviour in all directions in which the human beings interact. Thus, organisational behaviour can beunderstood at the individual level, interpersonal level, group level and inter-group level. Organisational behaviour helps to analyse why and how an individual behaves in a particular way.Human behaviour is a complex phenomenon and is affected by a large number of factors including thepsychological, social and cultural implications. Organisational behaviour integrates these factors to provide*simplicity in understanding the human behaviour. Interpersonal Level: Human behaviour can be understood at the level of interpersonal interaction. Organisational behaviour provides • means for understanding the interpersonal relationships in an organisation. Analysis of reciprocal relationships, role analysis and transactional analysis are some of the common methods, which provide such understanding. Group Level: Though people interpret anything at their individual level, they are often modified by group pressures, which then become a force in shaping human behaviour, Thus, individuals should be studied in groups also.. Research in group dynamics has contributed vitally to organisational behaviour and shows how a group behaves in its norms, cohesion, goals, procedures, communication pattern and leadership. These research results are advancing managerial knowledge of understanding group behaviour, which is very important for organisational morale and productivity. Inter-group Level: The organisation is made up of many groups that develop complex relationships to build their process and substance. Understanding the effect of group relationships is important for managers in todays organisation. Inter-group relationship may be in the form of co-operation or competition.The co-operative relationships help the organisation in achieving its objectives. Organisational behaviourprovides means to understand and achieve co-operative group relationships through interaction, rotation ofmembers among groups, avoidance of win-lose situation and focussing on total group objectives. Controlling and Directing Behaviour: After understanding the mechanism of human behaviour, managers are required to control and direct the behaviour so that it conforms to the standards required for achieving the organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of individual interaction. Therefore, organisational behaviour helps managers in controlling and directing in different areas such as use of power and sanction, leadership, communication and building organisational climate favourable for better interaction. Use of Power and Sanction: The behaviours can be controlled and directed by the use of power and sanction, which are formally defined by the organisation. Power is referred to as the capacity of an individual to take certain action and may be utilised in many ways. Organisational behaviour explains how various means of power and sanction can ,be utilised so that both organisational and individual objectives are achieved simultaneously. Leadership: Organisational behaviour brings new insights and understanding to the practice and theory of leadership. It identifies various leadership styles available to a manager and analyses which style is more appropriate in a given situation. Thus, managers can adopt styles keeping in view the various dimensions of organisations, individuals and situations. Communication: Communication helps people to come in contact with each other. To achieve organisational objectives, the communication must be effective. The communication process and its work in inter-personal dynamics have been evaluated by organisational behaviour. Organisational Climate: Organisational climate refers to the total organisational situations affecting human behaviour. Organisational climate takes a system perspective that affect human behaviour. Besides improving the satisfactory working conditions and adequate compensation, organisational climate includes creation of an atmosphere of effective supervision; the opportunity for the realisation of personal goals, congenial relations with others at the work place and a sense of accomplishment. Organisational Adaptation: Organisations, as dynamic entities are characterised by pervasive changes. Organisations have to adapt themselves to the environmental changes by making suitable, internal arrangements such as convincing employees who normally have the tendency of resisting any changes.LEVELS OF ANALYSIS BSPATIL 9
  10. 10. Organisational behaviour can be viewed from different perspectives or levels of analysis. At one level, theorganisation can be viewed as consisting of individuals working on tasks in the pursuit of the organisationalgoals. A second level of analysis focuses upon the interaction among organisational members as they workin teams, groups and departments. Finally, organisational behaviour can be analysed from the perspectiveof the organisation as a whole. Organisation at the Individual Level: Organisational behaviour can be studied in the perspective of individual members of the organisation. This approach to organisational behaviour draws heavily on the discipline of psychology and explains why individuals behave and react the way they do to different organisational policies, practices and procedures. Within this perspective, psychologically based theories of learning, motivation, satisfaction and leadership are brought to bear upon the behaviour and performance of individual members of an organisation. Factors such as attitudes, beliefs, perceptions and personalities are taken into account and their impact upon individuals’ behaviour and performance on the job is studied. Organisation at the Group Level: People rarely work independently in organisations; they have to necessarily work in coordination to meet the organisational goals. This frequently results in people working together in teams, committees and groups. How do people work together in groups? What factors determine whether group will be cohesive and productive? What types of tasks could be assigned to groups? These are some of the questions that can be asked about the effective functioning of groups in organisations. An important component of organisational behaviour involves the application of knowledge and theories from social psychology to the study of groups in organisations. Organisation at the Organisational Level: Some organisational behaviour researchers take the organisation as a whole as their object of study. This j macro perspective on organisational behaviour draws heavily on theories and concepts from the discipline of sociology. Researchers seek to understand the implications of the relationship between the organisation and its environment for the effectiveness of the organisation. Emphasis is placed upon understanding how organisational structure and design influences the effectiveness of an organisation. Other factors such as the technology employed by the organisation, the size of the organisation and the organisations age are also examined and their implications for effective organisational functioning are explored.These different perspectives on the study of organisational behaviour are not in conflict with one another.Instead they are complementary. A full and complete understanding of the nature of organisations and thedeterminants of their effectiveness requires a blending of knowledge derived from each perspective.FUNDAMENTAL CONCEPTS OF ORGANISATIONAL BEHAVIOUROrganisational behaviour starts with the following six fundamental concepts revolving around the nature ofpeople and organisations:The nature of people: Individual differences A whole person Motivated behaviour Value of the personThe nature of organisation: Social system Mutual interest Individual Differences: Individuals are different in their physical and mental traits. They are different not only in the physical appearance such as sex, age, height, weight, complexion and so on but also different in their psychological trait such as intelligence, attitude, motivation and perception. This belief that each person is different from all others is typically called the Law of Individual Differences. Individual differences mean that the management has to treat them differently to get the best out of them. A Whole Person: Though the organisation may feel that they are employing only the individuals skill or intelligence, in fact, they employ the whole person. This means that individual does not have only the skill and intelligence but he has a personal life, needs and desires as well. In other words, his personal life cannot be separated from his work life since people function as total human beings. When management practices organisational behaviour, it is not only trying to develop a better employee but it also wants to develop a better person in terms of all round growth and development. The benefit will extend beyond the firm into the larger society in which each employee lives. Motivated behaviour: It is the urge of the individual to satisfy a particular need that motivates him to do an act. The motivation could be positive or negative. BSPATIL 10
  11. 11. Motivation is essential for the proper functioning of organisations. The organisation can show to its employees how certain actions will increase their need fulfilment. Value of the Person: It is more an ethical philosophy. It stresses that people are to be treated with respect and dignity. Every job, however simple, entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. Since organisational behaviour involves people, ethical philosophy is involved in one way or the other.The nature of an organisation can be understood with the help of tjie description of following two points: Social System: A system is a group of independent and interrelated elements comprising a unified whole. In context with an organisation, the individuals of a society are considered as a system organised by a characteristic pattern of relationships having a distinctive culture and values. It is also called social organisation or social structure. It can be further divided into following categories: o Feudal system: This is a social system, which is developed in Europe in the 8th Century. A political and economic system based on the holding of. land and relation of lord to vassal and characterized by homage, legal and military service of tenants, and forfeiture. o Patriarchate: This is social system, in which a male is considered to be the family head and title or surname is traced through his chain. In other words, power lies in his hands. o Matriarchate: This is social system, in which a female is considered to be the family head and title or surname is traced through her chain. In other words, power lies in her hands. o Meritocracy: This is a social system, in which power vests in the hands of the person with superior intellects. o Class Structure: This is a social system of different classes with in a society. o Segregation: This is a social system, which provides separate facilities for minority groups of a society. Mutual Interest: Organisational relationships are most likely to be strong if different groups can negotiate strategies. This can be defined as the interests that are common to both the parties and are related to the accomplishment of their respective goals. This space for sharing ideas builds trust. Individuals who have shared mutual interests are likely to make their organisation the strongest, because even though the views are different they have a shared concern for similar objectives. It is important for the individuals to think about their issues openly, and to incorporate the perspectives of their colleagues. This helps to build sustainable and harmonious activities that can operate in the mutual direct interests of the organisation.Holistic Organisational Behaviour: When the above six concepts of organi¬sational behaviour areconsidered together, they provide a holistic concept of the subject. Holistic organisational behaviourinterprets people-organisation relation¬ships in terms of the whole person, whole group, wholeorganisation and whole social system. Thus, the blending of nature of people and organisation results in an holistic organisationalbehaviour. BSPATIL 11
  12. 12. LESSON –3 Models of organizational behaviourLearning ObjectivesAfter reading this lesson, you should be able to understand: The concept of organizational behaviour system The different models of organizational behaviour The importance of organizational behaviour to managers The future of organizational behaviourOrganizations have undergone tremendous change in the behaviour of their employees. Earlier employershad no systematic program for managing their employees instead their simple rules served as a powerfulinfluence on employees. However, today increasing many organizations are experimenting with new ways toattract and motivate their employees.CONCEPT OF ORGANIZATIONAL BEHAVIOUR SYSTEMOrganizations achieve their goals by creating, communicating and operating an organizational behavioursystem. Organizational behaviour system defines organizational structure and culture and explains theirimpact on employees. The figure 3.1 shows the major elements of a good organizational behaviour system:These systems exist in every organization, but sometimes in varying forms. They have a greater chance ofbeing successful, though, if they have been consciously created, regularly examined and updated to meetnew and emerging conditions. The primary advantage of organizational behaviour system is to identify themajor human and organizational variables that affect organizational outcomes. For some variablesmanagers can only be aware of them and acknowledge their impact whereas for other variables, managerscan exert some control over them. The outcomes are measured in terms of quantity and quality of productsand services, level of customer service, employee satisfaction and personal growth and development. These systems exist in every organization, but sometimes in varying forms. They have a greaterchance of being successful, though, if they have been consciously created, regularly examined and updatedto meet new and emerging conditions. The primary advantage of organizational behaviour system is toidentify the major human and organizational variables that affect organizational outcomes. For somevariables managers can only be aware of them and acknowledge their impact whereas for other variables,managers can exert some control over them. The outcomes arc measured in terms of quantity and quality of BSPATIL 12
  13. 13. products and services, level of customer service, employee satisfaction and personal growth anddevelopment.ELEMENTS OF THE SYSTEMThe systems base rests in the fundamental beliefs and intentions of those who join together to create itsuch as owners and managers who currently administer it. The philosophy of organizational behaviour heldby management consists of an integrated set of assumptions and beliefs about the way things are, thepurpose for these activities, and the way they should be. These philosophies are sometimes explicit andoccasionally implicit, in the minds managers. Organizations differ in the quality of organizational behaviour that they develop. These differencesare substantially caused by different models of organizational behaviour that dominant managementsthought in each organization. The model that a manager holds usually begins with certain assumptionsabout people and thereby leads to certain interpretations of organizational events.The following four models of organizational behaviour are as follows: A. Autocratic modelB. Custodial modelC. Supportive modelD. Collegial modelAutocratic ModelIn an autocratic model, the manager has the power to command his subordinates to do a specific job.Management believes that it knows what is best for an organization and therefore, employees are requiredto follow their orders. The psychological result of this model on employees is their increasing dependenceon their boss. Its main weakness is its high human cost.Custodial ModelThis model focuses better employee satisfaction and security. Under this model organizations satisfy thesecurity and welfare needs of employees. Hence, it is known as custodian model. This model leads toemployee dependence on an organization rather than on boss. As a result of economic rewards and benefits,employees are happy and contented but they are not strongly motivated.Supportive ModelThe supportive model depends on leadership instead of power or money. Through leadership, managementprovides a climate to help employees grow and accomplish in the interest of an organization. This modelassumes that employees will take responsibility, develop a drive to contribute and improve them ifmanagement will give them a chance. Therefore, managements direction is to Support the employees jobperformance rather than to support employee benefit payments, as in the custodial approach. Sincemanagement supports employees in their work, the psychological result is a feeling of participation and taskinvolvement in an, organization.Collegial ModelThe term collegial relates to a body of persons having a common purpose. It is a team concept.Management is the coach that builds a better team. The management is seen as joint contributor rather thanas a boss. The employee response to this situation is responsibility. The psychological result of the collegialapproach for the employee is self-discipline. In this kind of environment employees normally feel somedegree of fulfillment and worthwhile contribution towards their work. This results in enthusiasm inemployees performance.FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR Autocratic Custodial Supportive CollegialBasis of Model Power Economic Leadership Partnership resourcesManagerial- Authority Money Support TeamworkorientationEmployee Dependence on Dependence Participation Self-disciplinepsychological boss onresult organizationEmployee needs Subsistence Security Status and Self-actualizationmet recognitionPerformance Minimum Passive Awakened Moderateresult cooperation drives enthusiasm BSPATIL 13
  14. 14. It is wrong to assume that a particular model is the best model. This is because a model depends onthe knowledge about human behaviour in a particular environment, which is unpredictable. The primarychallenge for management is to identify the model it is actually using and then assess its currenteffectiveness. The selection of model by a manager is determined by a number of factors such as, the existingphilosophy, vision and goals of manager. In addition, environmental conditions help in determining whichmodel will be the most effective model.IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR TO MANAGERSManagers perform four major functions such as planning, organizing, directing and controlling. In additionto these functions there are ten managerial roles, which can be defined as organized set of behaviorsidentified with the position. These roles are developed by Henry Mintzberg in 1960s after a careful study ofexecutives at work. All these roles, in one form or other deal with people and their behaviour. These tenmanagerial roles are divided into three categories. The first category called the interpersonal roles arisesdirectly from the managers position and the formal authority given to him. The second category, theinformational role arises as a direct result of the interpersonal roles and these two categories give rise to thethird category called decisional roles. Figure 3.2 shows the categories of managerial roles.The roles, in the context of organizational behaviour, are as follows:Interpersonal RolesIn every organization managers spend a considerable amount of time in interacting with other people bothwithin their own organizations as well as outside. These people include peers, subordinates, superiors,suppliers, customers, government officials and community leaders. All these interactions require anunderstanding of interpersonal behaviour. Studies show that interacting with people takes up nearly 80% ofa managers time. These interactions involve the following three major interpersonal roles: Figure/lead Role: Managers act as symbolic figureheads performing social or legal obligations. These duties include greeting visitors, signing legal documents, taking important customers to lunch, attending a subordinates wedding and speaking at functions in schools and churches. All these, primarily, are duties of a ceremonial nature but are important for the smooth functioning of an organization. Leadership Role: The influence of the manager is most clearly seen in the leadership role as a leader of a unit or an organization. Since he is responsible for the activities of his subordinates therefore he BSPATIL 14
  15. 15. must lead and coordinate their activities in meeting task-related goals and motivate them to perform better. He must be an ideal leader so that his subordinates follow his directions and guidelines with respect and dedication. Liaison Role: The managers must maintain a network of outside contacts. In addition, they need to have a constant contact with their own subordinates, peers and superiors in order to assess the external environment of competition, social changes or changes in governmental rules and regulations. In this role, the managers build up their own external information system. This can be achieved by attending meetings and professional conferences, personal phone calls, trade journals and informal personal contacts with outside agencies.Information RolesA manager, by virtue of his interpersonal contacts, emerges as a source of information about a variety ofissues concerning an organization. In this capacity of information processing, a manager executes thefollowing three roles. Monitor Role: The managers are constantly monitoring and scanning their internal and external environment, collecting and studying information regarding their organization. This can be done by reading reports and periodicals, interrogating their liaison contacts and through gossip, hearsay and speculation. Information Disseminator Role: The managers must transmit the information regarding changes in policies or other matters to their subordinates, their peers and to other members of an organization. This can be done through memos, phone calls, individual meetings and group meetings. Spokesman Role: A manager has to be a spokesman for his unit and represent his unit in either sending relevant information to people outside his unit or making some demands on behalf of his unit.Decision RolesA manager must make decisions and solve organizational problems on the basis of the environmentalinformation received. In that respect, a manager plays four important roles. Entrepreneur Role: Managers, as entrepreneurs are constantly involved in improving their units and facing the dynamic technological challenges. They are constantly on the lookout for new ideas for product improvement or product addition. They initiate feasibility studies, arrange capital for new products and ask for suggestions from the employees to improve organization. This can be achieved through suggestion boxes, holding strategy meetings with project managers and R&D personnel. Conflict Handling Role: The managers are constantly involved as judge in solving conflicts among the employees and between employees and management. Mangers must anticipate such problems and take preventive action and take corrective action once the problem arises. These problems may involve labor disputes, customer complaints, employee grievances, machine breakdowns, cash flow shortages and interpersonal conflicts. Resource Allocation Role: The managers establish priorities among various projects or programs and make budgetary allocations to different activities of an organization based on these priorities. Negotiator Role: The managers in their negotiator role represent their organization in negotiating deals and agreements within and outside of an organization. They negotiate contracts with the unions. Sales managers may negotiate prices with prime customers. Purchasing managers may negotiate prices with vendors.All these ten roles are important in a managers job and are interrelated, even though some roles may bemore influential than others depending upon the managerial position. For example, sales manager givesmore importance to interpersonal roles, while the production manager may give more importance todecisional roles.LIMITATIONS OF ORGANIZATIONAL BEHAVIOUR Organizational behaviour cannot abolish conflict and frustration but can only reduce them. It is a way to improve but not an absolute answer to problems. It is only one of the many systems operating within a large social system. People who lack system understanding may develop a behavioral basis, which gives them a narrow view point, i.e., a tunnel vision that emphasizes on satisfying employee experiences while overlooking the broader system of an organization in relation to all its public. BSPATIL 15
  16. 16. The law of diminishing returns also operates in the case of organizational behaviour. It states, that at some point increase of a desirable practice produce declining returns and sometimes, negative returns. The concept implies that for any situation there is an optimum amount of a desirable practice. When that point is exceeded, there is a decline in returns. For example, too much security may lead to less employee initiative and growth. This relationship shows that organizational effectiveness is achieved not by maximizing one human variable but by working all system variables together in a balanced way. A significant concern about organizational behaviour is that its knowledge and techniques could be used to manipulate people without regard for human welfare. People who lack ethical values could use people in unethical ways.FUTURE OF ORGANIZATIONAL BEHAVIOURThe growing interest in organizational behaviour stems from both a philosophical desire by many people tocreate more humanistic work places and a practical need to design more productive work environments. Asa result of these forces, organizational behaviour is now a part of the curriculum of almost all coursesincluding engineering and medical. The field of organizational behaviour has grown in depth and breadth. The keys to its past andfuture success revolve around the related processes of theory development, research and managerialpractice. Although organizational behaviour has certain limitations, it has a tremendous potential tocontribute to the advancement of civilisation. It has provided and will provide much improvement in thehuman environment. By building a better climate for people, organizational behaviour will release theircreative potential to solve major social problems. In this way organizational behaviour will contribute tosocial improvements. Improved organizational behaviour is not easy to apply but opportunities are there. Itshould produce a higher quality of life in which there is improved harmony within each individual, amongpeople and among the organizations of future. LESSON – 4 GLOBAL SCENARIO OF ORGANIZATIONAL BEHAVIOURLearning ObjectivesAfter reading this lesson, you should be able to understand: The global scenario of organizational behaviour The barriers to cultural adaptation and measures to overcome those barriersDue to globalization of economy, many organizations now operate in more than one country. Thesemultinational operations add new dimensions to organizational behaviour. It is a step into different social,political and economic environ¬ments. Therefore, communication and control becomes difficult. The social,political and economic differences among countries" influence international organizational behaviour.SOCIAL CONDITIONSIn many countries due to poorly developed resources, there is shortage of managerial personnel, scientistsand technicians. Hence the required skills must be temporarily imported from other countries, and trainingprograms need to be developed to train the local workers. Trained locals become the nucleus for developingothers, thereby spreading the training through masses. Another significant social condition in many countries is that the local culture is not familiar withadvanced technology. A few countries arc agriculture dominated and a few other manufacturing industriesdominated. Naturally, the nature of their culture and work life will be different.POLITICAL CONDITIONSPolitical conditions that have a significant effect on organizational behaviour include instability of thegovernment, restricting industries to a particular area and nationalistic drives such as self-sufficiency inlatest technologies. When the government is unstable, organizations become cautious about furtherinvestments. This organizational instability leaves workers insecure and causes them to be passive and lowin taking any initiatives. In spite of instability, a nationalistic drive is strong for locals to run their country and theirorganizations by themselves without any interference by foreign nationals. BSPATIL 16
  17. 17. In some nations, organized labor is mostly an arm of the authoritarian state and in some othernations labor is somewhat independent. In some nations, State tends to be involved in collective bargainingand other practices that affect workers. For example, workers participation in management are restricted bylaw while in other countries they are permitted.ECONOMIC CONDITIONSThe most significant economic conditions in less developed nations are low per capita income and rapidinflation. Inflation makes the economic life of workers insecure when compared to developed countries. The different socio-economic and political conditions existing in countries influence the introductionof advanced technology and sophisticated organizational systems. A developed country can easily adoptadvanced technology when compared to a less developed country. These limiting conditions cannot bechanged rapidly because they arc too well established and woven into the whole social fabric of a nation.MANAGING AN INTERNATIONAL WORKFORCEWhenever an organization expands its operations to other countries, it tends to become multicultural andwill then face the challenge of blending various cultures together. The managerial personnel enteringanother nation need to adjust their leadership styles, communication patterns and other practices to fit theirhost country. Their role is to provide fusion of cultures in which employees from both countries adjust tothe new situation seeking a greater productivity for the benefit of both the organization and the people ofthe country in which it operates.Barriers to Cultural Adaptation Managers and other employees who come into a host country tend to exhibit different behaviors and somewhat, see situation around them from their own perspectives. They may fail to recognize the key differences between their own and other cultures. These people are called, parochial. Another category of managers called individualistic place greatest emphasis on their personal needs and welfare. They are more concerned about themselves than the host country. Another potential barrier to easy adaptation of another culture occurs, when-people are predisposed to believe that their homeland conditions are the-best. This predisposition is known as the self-reference criterion or ethnocentrism. This feeling interferes with understanding human: behaviour in other cultures and obtaining productivity from local employees.Cultural DistanceTo decide the amount of adaptation that may be required when personnel moves to another country, it ishelpful to understand the cultural distance between the two countries. Cultural distance is the amount ofdistance between any two social systems. Whatever may be the amount of cultural distance, it does affectthe responses of all individuals to business. The managers job is to make the employees adapt to the otherculture and integrate the interests of the various cultures involved.Cultural ShockWhen employees enter another nation they tend to suffer cultural shock, which is the insecurity anddisorientation caused by encountering a different culture. They may not know how to act. may fear losingface and self-confidence or may become emotionally upset. Cultural shock is virtually universal. Some of themore frequent reasons for cultural shock are as follows: Different management philosophies New language Alternative food, dress, availability of goods Attitude towards work and productivity Separation from family, friends and colleagues Unique currency system Many expatriates report difficulty in adjusting to different human resource management philosophies,the language, the different currency and work attitudes in another culture.Overcoming Barriers to Cultural Adaptation Careful selection; of employees, who can withstand/adjust cultural shocks for international assignments* is important. Pre-departure training in geography, customs, culture and political environment in which the employee will be living will help for cultural adaptation. BSPATIL 17
  18. 18. Incentives and guarantees for better position will motivate employees for cultural adaptation in the new country. Employees who return to their home country after working in another nation for sometime tend to suffer cultural shock in their own homeland. After adjusting to the culture of another nation and enjoying its uniqueness, it is difficult for expatriates to re-adjust to the surroundings of their home country. Hence, organizations need repatriation policies and programs to help returning employees obtain suitable assignments and adjust to the new environments.Cultural ContingenciesProductive business practices from one country cannot be transferred directly to another country. Thisreflects the idea of cultural contingency that the most productive practices for a particular nation willdepend heavily on the culture, social system, economic development and employees values in the hostcountry. Hence, the expatriate managers must learn to operate effectively in a new environment with certainamount of flexibility. Labor policy, personnel practices and production methods need to be adapted to adifferent labor force. Organization structures and communication patterns need to be suitable for localoperations.MANAGEMENTS INTEGRATING ROLEOnce managers are in a host country, their attention needs to be directed toward integrating thetechnological approaches with the local cultures involved.Motivating and Leading Local EmployeesSame motivational tools may not suit the employees of all the nations. Hence, appropriate motivationaltechniques need to be implemented depending on the requirement of employees of that particular nation. Similarly, communication problems may also arise between the expatriate manager and theemployees of the host country. Hence, managers need to make adjustments in their communication suitedto< local cultures. If local culture is ignored, the resulting imbalance in the social system interferes with theproductivity. Eventually, a cadre of employees with cross-cultural adaptability can be developed in organizationswith large international operations. These employees are trans-cultural’ employees because they operateeffectively in several cultures. They are low in ethnocentrism and adapt readily to different cultures withoutmajor cultural shock. They usually can communicate fluently in more than one language. Trans-cultural employees are especially needed in large, multinational firms that operate in a-varietyof national cultures. For a firm to be truly multi-national in character, it should have ownership, operations,markets and managers truly diversified. Its leaders look to the world as an economic and social unit; butthey recognize each local culture, respect its integrity, acknowledge its benefits and use its differenceseffectively in their organization. LESSON – 5 FOUNDATION OF INDIVIDUAL BEHAVIORLearning ObjectivesAfter reading this lesson, you should be able to: Understand the nature of individual differences in organizations Identify the individual factors affecting organizational behaviorINDIVIDUAL BEHAVIORHuman behavior, which is; considered a complex phenomenon, is very difficult to define in absolute terms.It is primarily a combination of responses to external and internal stimuli. These responses would reflectpsychological structure of the person and may be results of the combination of biological and psychologicalprocesses, which interpret them, respond to them in an appropriate manner and learn from the result ofthese responses. Psychologist Kurt Levin has conducted; considerable research into the human behavior and itscauses. He believes that people are influenced by a number of diversified factors, which can be both geneticand environmental. The influence of these factors determines the pattern of human behavior. Whenever people buy something, for example, a car, both the buyer and the seller sign a contractthat specifies the terms of the sales agreement. Similarly, most people, when they begin a workingrelationship with an organization formulate a psychological contract with their employer. A psychological BSPATIL 18
  19. 19. contract is the overall set of expectations that an individual holds with respect to his or her contributions tothe. organization and the organizations response to those contributions. A psychological contract is notwritten down like a legal contract. An individual makes a variety of contributions to an organization in the form of—efforts, skills,ability, time, loyalty and so forth. These contributions presumably satisfy various needs and requirements ofthe organization. In return for contributions, the organization provides incentives such as pay, promotion,and job security to the employee. Just as the contributions available from the individual must satisfy theorganizations needs, the incentives must serve the employees needs in return. If both the individual and the organization consider the psychological contract fair and equitable,they will be satisfied with the relationship and are likely to continue it. If either party perceives an imbalanceor iniquity in the contract, it may initiate a change. A major challenge faced by an organization, thus, is tomanage the psychological contracts. One specific aspect of managing psychological contracts is managing the person-job fit. Theperson-job fit is the extent to which the contributions made by the individual match the incentives offeredby the organization. In theory, each employee has a specific set of needs to fulfill and a set of job relatedbehaviors and abilities to contribute. If the organization can take complete advantage of those behaviorsand abilities and exactly fulfill the employees needs, it will achieve a perfect person-job fit. Of course, sucha precise, level of person-job fit is seldom achieved due to various reasons such as imperfect selectionprocedures, differences in individual skills, constant change in the needs and requirements of people andorganization. Thus, the behavior of individuals in organization is the primary concern of management and itis essential that the managers should have an understanding of the factors influencing the behavior of theemployees they manage. The figure 5.1 identifies five sets of factors that have an impact upon individualbehavior in organizations.NATURE OF INDIVIDUAL DIFFERENCESIndividual differences are personal attributes that vary from one person to another. Individual differencesmay be physical and psychological. The figure 5.2 shows the attributes of physical and psychologicaldifferences. Physical Differences Psychological Differences Height Personality Weight Attitudes Body Shape Perception Appearance Motivation Complexion Learning figure 5.2 Whenever an organization attempts to assess the individual differences among its employees, itmust consider the situation in which that particular behavior occurs. Individuals who are satisfied in onecontext may prove to be dissatisfied in another context. Assessing both individual differences andcontributions in relation to incentives and contexts, then, is a major challenge for organizations as theyattempt to establish effective psychological contracts with their employees and achieve optimal fits betweenpeople and jobs. Individual differences make the managers job extremely challenging. In fact, according to a recentresearch, "variability among workers is substantial at all levels but increases dramatically with job BSPATIL 19
  20. 20. complexity. Due to these reasons, growing work force diversity compel managers to view individualdifferences in a fresh way. Leaders now talk frequently about "valuing differences" and learn to "managediversity". So rather than limiting diversity, as in the past, todays managers need to better understand andaccommodate employee diversity and individual differences.IMPORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES Self-concept Personality dimensions Abilities, and Personal values and ethics.Self-conceptSelf is the core of ones conscious existence. Awareness of self is referred to as ones self-concept.Sociologists Viktor Gecas defines self-concept as "the concept the individual has of himself as a physical,social and spiritual or moral being". In other words, every individual recognizes himself as a distinctindividual. A self-concept would be impossible without the capacity to think. This brings us to the role ofcognitions. Cognitions represent, "any knowledge, opinion, or belief about the environment about oneself,or about ones behavior". Among many different types of cognitions, those involving expectation, planning,goal setting, evaluating and setting personal standards are particularly relevant to organizational, behavior.Self-esteemSelf-esteem is a belief over ones own worth based on an overall self-evaluation. Those with lowself-esteem tend to view themselves in negative terms. They do not feel good about themselves, tend tohave trouble in dealing effectively with others, and are hampered by self-doubts. High self-esteemindividuals, in contrast, see themselves as worthwhile, capable and acceptable. Although, high self-esteemis generally considered a positive trait because it is associated with better performance and greatersatisfaction, recent research uncovered flaws among those having high self-esteem. Specifically, highself-esteem subjects tended to become self-centered and boastful when faced with situations underpressure Hence moderate self-esteem is desirable. Managers can build employee self-esteem in four ways: 1. Be supportive by showing concern for personal problems, interests, status and contribution. 2. Offer work involving variety, autonomy and challenges that suit the individuals values, skills and abilities. 3. Strive for management-employee cohesiveness and trust building. 4. Have faith in each employees self-management ability, reward successes.Self-efficacySelf-efficacy is a persons belief about his or her chances of successfully accomplishing a specific task.According to one organizational behavior writer, "Self-efficacy arises from the gradual acquisition ofcomplex, cognitive, social, linguistic, and/or physical skills through experience", There is strong linkage between high self-efficacy expectations and success in terms of physical andmental tasks, anxiety reduction, addiction control, pain tolerance and illness recovery. Oppositely, thosewith low self-efficacy expectations tend to have low success rates.Self-efficacy Implications for ManagersManagers need to nurture self-efficacy in them and in their employees. Self-efficacy requires constructiveaction in each of the following managerial areas: To design recruitment selection procedure. To design interview questions to probe applicants general self-efficacy for determining orientation and training needs. For designing job. For systematic self-management training. For goal-setting and quality improvement. To evolve suitable leadership. To design suitable regards.Personality Dimensions BSPATIL 20
  21. 21. The big, five personality dimensions are: extroversion, agreeableness, thorough¬ness, emotional stabilityand openness to experience. Ideally, these personality dimensions that correlate positively and strongly withjob performance would be helpful in the selection, training and appraisal of employees. The individuals whoexhibit; traits associated with a strong sense of responsibility and determination generally perform betterthan those who do not.PHYSICAL AND INTELLECTUAL QUALITIESPhysical differences among individuals are the most visible of all differences. They are also relatively easy toassess. Intellectual differences are somewhat more difficult to discern, but they too can be assessed by fairlyobjective means. The abilities/skills and competencies of employees are both physical and intellectualqualities. Ability refers to an individuals skill to perform effectively in one or more areas of activity, such as physical, mental or interpersonal work. Individuals with numerical ability, for example, can be trained to apply their ability in the field of engineering, accounting and computer science. Abilities develop from an individuals natural aptitudes and subsequent learning opportunities. Aptitudes are relatively stable capacities for performing some activity effectively. Learning opportunities translate aptitude into abilities through practice, experience and formal training. Organizations have to ensure that people possess the necessary abilities to engage in the behaviors required for effective performance. This can 6e accomplished either by careful selection of people or by a combination of selection and training. Skills are generally thought of as being more task-specific capabilities than abilities. For example, an individual with numerical ability who goes to school to learn accounting develops a numerical skill specific to that field. Thus, when a particular ability is applied to a specialized area, (for example accounting), it becomes a skill. Competencies are skills associated with specialization. Competencies are skills that have been refined by practice and experience and that enable, the-individual to specialize in some field. For example, an accountant with numerical "ability and accounting skill takes a position in the Taxation Department and as time passes, he develops more competency as a tax expert.Physical abilities such as strength, flexibility, endurance and stamina can be developed with exercise andtraining. Mental abilities such as reasoning, memory visualization, comprehension and inter-personalabilities can also be developed through practice and education. Even in the absence of such formalprograms, many individuals manage their own careers in such a way as to continually upgrade their abilities,skills and competencies in order to remain valuable to their organizations.PERSONAL VALUES AND ETHICS According to Milton Rokeach, a value is "an enduring belief that a specific mode of conduct orend-stated of existence is personally or socially preferable to an opposite or converse mode of conduct areend-state of existence". Ethics involve the study of moral issues and choices. It is concerned with right versus wrong andgood versus bad. Relative to the workplace, the terms business ethics and management ethics are oftenheard.Moral Principles for Managers Judge actions by their consequences; achieve the greatest good for the greatest number of people. Basic human rights should be respected. Rules and rewards should be administered impartially, fairly and equitably.Improving Organizations Ethical Climate Managers are powerful role models whose habits and actual behavior send clear signals about the importance of ethical conduct. Ethical behavior is a 1 top to bottom proposition. Screen potential employees by checking references, credentials, and other information for ascertaining their ethical behavior. BSPATIL 21
  22. 22. LESSON - 6 PERSONALITYLearning ObjectivesAfter reading this lesson, you should be able to: Understand perceptual clarity about personality Discuss main determinants of personality Explain nature and dimensions of personality Describe personality attributes that are relevant to organizational behaviorPersonality is a complex, multi-dimensional construct and there is no simple definition of what personalityis. Maddi defines personality as, “A stable set of characteristics and tendencies that determine thosecommonalities and differences in the psychological behavior and that may not be easily understood as thesole result of the social and biological pressures of the moment". From the above definition we can infer that all individuals have some universally commoncharacteristics. Yet they differ in some other specific attributes. This makes it difficult for the managers toassume that they can apply same reward types or motivation techniques to modify different individualbehaviors. The definition, however, does not mean that people never change. In simple terms, it asserts thatindividuals do not change all at once. Their thoughts, feelings, values and actions remain relatively stableover time. Changes in individuals personality can, however, occur gradually over a period of time. Themanagers should, therefore, attempt to understand certain dimensions of personality. This can enable themto predict the behavior of their employees on a daily basis. Some personality theorists stress the need 6f identifying person-situation as interaction. This isequivalent to recognizing thd social learning aspects related to personality. Such a social learning analysis isone of the most comprehensive and meaningful ways included in the overall study of organizationalbehavior. From this perspective, personality means the way people affect others. It also involves peoplesunderstanding themselves, as well as their pattern of inner and outer measurable traits, and the person andsituation interaction. People affect others depending primarily upon their external appearance such asheight, weight, facial features, color and other physical aspects and traits. Personality traits are very important in organizational behavior. In particular, five personality traitsespecially related to job performance have recently emerged from research. Characteristics of these traitscan be summarized as follows: 1. Extroversion: Sociable, talkative and assertive. 2. Agreeableness: Good-natured, cooperative and trusting. 3. Conscientiousness: Responsible, dependable, persistent and achievement-oriented. 4. Emotional Stability: Viewed from a negative standpoint such as tense, insecure and nervous. 5. Openness to Experience: Imaginative, artistically sensitive and intellectual. Identifying the above "big five" traits related to performance reveals that personality plays an importantrole in organizational behavior. Besides physical appearance and personality traits, the aspects ofpersonality concerned with the self-concept such as self-esteem and self-efficacy and the person-situationinteraction also play important roles.PERSONALITY FORMATIONThe personality formation of an individual starts at birth and continues throughout his life. Three majortypes of factors play important roles in personality formation, which are as follows: Determinants: The most widely studied determinants of personality are biological, social and cultural. People grow up in the presence of certain hereditary characteristics (body shape and height), the social context (family and friends) and the cultural context (religion and values). These three parts interact with • each other to shape personality. As people grow into adulthood, their personalities become very clearly defined and generally stable. Stages: According to Sigmund Freud human personality progresses through four stages: dependent, compulsive, oedipal and mature. This concept of stages of growth provides a valuable perspective to organizational behavior. Experienced managers become aware of the stages that their employees often go through. This helps them 19 deal with these stages effectively and promote maximum growth for the individual and for the organization. BSPATIL 22
  23. 23. Traits: Traits to personality are also based on psychology. According to some trait theories, all people share common traits, like social, (political, religious and aesthetic preferences but each individuals nature differen¬tiates that person from all others.PERSONALITY FACTORS IN ORGANISATIQN5Some of the important personality factors that determine what kind of behaviors are exhibited at workinclude the following:Need PatternSteers and Braunstein in 1976 ^developed a scale for the four needs of personality that became apparent inthe work environment. They are as follows: The need for achievement: Those with a high achievement need engage themselves proactively in work behaviors in order to feel proud of their achievements and successes. The need for affiliation: Those in greater need for affiliation like to work cooperatively with others. The need for autonomy: Those in need for autonomy function in the best way when not closely supervised. The need for dominance: Those high in need for dominance are very effective while operating in environments where they can actively enforce their legitimate authority.Locus of ControlLocus of control is the degree to which an individual believes that his or her behavior has direct impact onthe consequences of that behavior. Some people, for example, believe that if they work hard they willcertainly succeed. They, strongly believe that each individual is in control of his or her life. They are said tohave an internal locus of control. By contrast, some people think that what happens to them is a result offate, chance, luck or the behavior of other people, rather than the lack of skills or poor performance on theirpart. Because- these individuals think that forces beyond their control dictate the happenings around them,they are said to have an external locus of control. As a personality attribute, locus of control has clear implications for organizations. For example,certain individuals have an internal locus of control, which means they have a relatively strong desire toparticipate in the management of their organizations and have a freedom to do their jobs. Thus, they mayprefer a decentralized organization where they have a right of decision-making and work with a leader whoprovides them freedom and autonomy. They may like a reward system that recognizes individualperformance and contributions. Conversely, people with an external locus of control, are likely to prefer a more centralizedorganization where they need not take any decisions. They may incline to structured jobs where standardprocedures are defined for them. They may prefer a leader who makes most of the decisions and a rewardsystem that considers seniority rather than merit.Introversion and ExtroversionIntroversion is the tendency of individuals, which directs them to be inward and process feelings, thoughtsand ideas within themselves. Extroversion, on the contrary, refers to the tendency in individuals to lookoutside themselves, searching for external stimuli with which they can interact. While there is some elementof introversion as well as extroversion in all of us, people tend to be dominant as either extroverts orintroverts. Extroverts are sociable, lively and gregarious and seek outward stimuli or external exchanges.Such individuals are likely to be most successful while working in the sales department, publicity office,personal relations unit, and so on, where they can interact face to face with others. Introverts, on the otherHand, are quiet, reflective, introspective, and intellectual people, preferring to interact with a small intimatecircle of friends. Introverts are more likely to be successful when they can work on highly abstract ideassuch as R&D work, in a relatively quiet atmosphere. Since managers have to constantly interact withindividuals both in and out of the organization and influence people to achieve the organizations goals, it isbelieved that extroverts are likely to be more successful as managers.Tolerance for AmbiguityThis personality characteristic indicates the level of uncertainty that people can tolerate to work efficientlywithout experiencing undue stress. Managers have to work well under conditions of extreme uncertaintyand insufficient information, especially when things are rapidly changing in the organizations externalenvironment. Managers who have a high tolerance for ambiguity can cope up well under these conditions. BSPATIL 23
  24. 24. Managers, who have a low tolerance for ambiguity may be effective in structured work settings but find italmost impossible to operate effectively when things are rapidly changing and much information about thefuture events is not available. Thus, tolerance for ambiguity is a personality dimension necessary formanagerial success.Self-Esteem and Self-ConceptSelf-esteem denotes the extent to which individuals consistently regard themselves as capable, successful,important and worthy individuals. Self-esteem is an important personality factor that determines howmanagers perceive themselves and their role in the organization. Self-esteem is important to self-concept,i.e., the way individuals, define themselves as to who they are and derive their sense of identity. Highself-esteem provides a high sense of self-concept, which, in turn, reinforces high self-esteem. Thus, thetwo are mutually reinforcing. Individuals with a high self-esteem will try to take on more challengingassignments and be successful. Thus, they will be enhancing their self-concept i.e., they would tend todefine themselves as highly valued individuals in the organizational system. The higher the self-concept andself-esteem, the greater will be their contributions to the goals of the organization, especially when thesystem rewards them for their contributions.Authoritarianism and DogmatismAuthoritarianism is the extent to which an individual believes that power and status differences areimportant within hierarchical social systems like organizations. For example, an employee who is highlyauthoritarian may accept directives or orders from his superior without much questioning. A person who isnot highly authoritarian might agree to carry out appropriate and reasonable directives from his boss. Buthe may also raise questions, express disagreement and even refuse to carry out requests if they arc forsome reason objectionable. Dogmatism is the rigidity of a persons beliefs and his or her openness to other viewpoints. Thepopular terms close-minded and open-minded describe people who are more and less .dogmatic in theirbeliefs respectively. For example, a manager may be unwilling to listen to a new idea related to doingsomething more efficiently. He is said to be a person who is close-minded or highly dogmatic. A managerwho is very receptive to hearing about and trying out new ideas in the same circumstances might be seen asmore open-minded or less dogmatic. Dogmatism can be either beneficial or detrimental to organizations,but given the degree of change in the nature of organizations and their environments, individuals who are,not dogmatic are most likely to be useful and productive organizational members.Risk PropensityRisk-propensity is the decree to which an individual is willing to take chances and make risky decisions. Amanager with a high-risk propensity might be expected to experiment with new ideas and to lead theorganization in new directions. In contrast, a manager with low risk propensity might lead to a stagnant andoverly conservative organization.MachiavellianismMachiavellianism is manipulating or influencing other people as a primary way of achieving ones goal. Anindividual tends to be Machiavellian, if he tends to be logical in assessing the system around, willing to twistand turn facts to influence others, and try to gain control of people, events and situations by manipulatingthe system to his advantage.Type A and B PersonalitiesType A persons feel a chronic sense of time urgency, are highly achievement-oriented, exhibit a competitivedrive, and are impatient when their work is slowed down for any reason. Type B persons are easy-goingindividuals who do not feel the time urgency, and who do not experience the competitive drive. Type Aindividuals are significantly more prone to heart attacks than Type B individuals. While Type A persons helpthe organization to move ahead in a relatively short period of time they may also suffer health problems,which might be detrimental to both themselves and the organization in the long run.Work-Ethic OrientationSome individuals are highly work-oriented while others try to do the minimum Work that is necessary to getby without being fired on-the-job. The extremely work oriented person gets greatly involved in the job.Extreme work ethic values could lead to traits of "workahollism" where work is considered as the onlyprimary motive for living with very little outside interests. For a workaholic turning to work can sometimesbecome a viable alternative to facing non-work related problems. A high level of work ethic orientation ofmembers is good for the organization to achieve its goals. Too much "workahollism", however, might lead BSPATIL 24
  25. 25. to premature physical and mental exhaustion and health problems, which is dysfunctional for bothorganization and the workaholic members. The above ten different personality predispositions are important for individual, managerialand organizational effectiveness.DESIRED PERSONALITY CHARACTERISTICS FOR EFFECTIVE MANAGERSObviously, there arc some personality ^predispositions, which are favourable "to managerial effectivenessand to the success of managers. Apart from possessing the necessary skills and abilities, managers need todevelop a high tolerance for ambiguity. There are many changes taking place in the internal and theexternal environment of an organization.. Naturally, several unpredictable factors are involved in anycomplex situation, which are beyond the managers’ control. Therefore, they should be able to, handlesituations as they come, without experiencing undue stress. Thus, a high tolerance for ambiguity is adesired managerial trait. Managers with a good mix of achievements, affiliations and power will besuccessful in most situations. This is because they will have the drive to achieve the goals and theinterpersonal orientation to get the job done through others. In sales and other people-oriented roles,extrovert managers will fit better in their jobs. Similarly, managers with internal locus of control will bemore efficient as intellectual and skilled performers. Managers with good work ethic values, will get moreinvolved in their jobs and make things happen. They are likely to be more successful in their jobs. Managerswith Type A personalities may suit very well for some jobs, which have inbuilt performance pressures anddeadlines, but they need to know how to relax through exercises and self-monitor their stress levels. Personality is a relatively stable factor, but our predispositions can be changed through consciouschoice. For instance, our tolerance for ambiguity and ability to handle stress can be considerably enhanced;the attributions we make for success such as internal versus external-locus of control can be changed. Also,our latent needs can be activated and our skills in decision-making can be increased through trainingprograms and by deliberately making the necessary changes. Recognizing the essential ingredients formanagerial success is the first step towards making the changes. THE SELF-CONCEPT: SELF-ESTEEM AND SELF-EFFICACYPeoples attempt to understand themselves is called the self-concept in personality theory. The human selfis made of many interacting parts and may be thought of as the personality viewed from within. This self isparticularly relevant to the concepts of self-esteem and self-efficacy in the field of organizational behavior. Peoples self-esteem has to do with their self-perceived competence and self-image. Considerableresearch has been done on the role played by self-esteem outcomes in the organizational behavior. Mostrecently done studies indicate that self-esteem plays an important moderating role in the areas of emotionaland behavioral responses and stress of organizational members. It was recently noted that, "both researchand everyday experience confirm that employees with high self-esteem feel unique, competent, secure,empowered and connected, to the people around them" Self-efficacy is concerned with self-perceptions of how well a person can cope with situations asthey arise. Those with high self-efficacy feel capable and confident of performing well in a situation. In thefield of organizational behavior, self-efficacy is conceptually close to self-esteem. Miner points out thedifferences by noting that self-esteem tends to be a generalized trait (it will be present in any situation),while self-efficacy tends to be situation specific. Self-efficacy; has been shown to have an empiricalrelationship with organizational performance and other dynamics of organizational behavior. In summary, personality is a very diverse and complex cognitive process. It incorporates almosteverything. As defined above, personality means the whole person. It is concerned with external appearanceand traits, self and situational interactions. Probably the best statement on personality was made manyyears ago by Kluckhohn and Murray, "to some extent, a persons personality is like all other peoples, likesome other peoples, and like no other peoples." BSPATIL 25