This presentation will help you to get to know about challenges for organizational behavior and the evolution of organizational behavior.

1. CHALLENGES FOR
ORGANIZATION BEHAVIOUR
By: Bharti Sharma
(20001001902)

2. Challenges for organizational behaviour are massive and rapidly
changing for improving productivity and business meeting goals.
Various challenges of organizational behaviour are:
1. Improving People’s Skills

3. Skills of people need to improved & upgraded as per the
requirements from time to time. In the business area, there are
always lots of changes which occur at a faster rate in terms of
technology, environment & structure.
These changes need to be addressed in order to achieve efficiency &
increase productivity. Employees & other executives of the
organization should possess the required skills in order to easily
adapt to these changes.
Failure to adopt these changes will make it difficult to achieve
targeted goals timely. There are basically 2 sets of employee skills
that are technical & managerial skills. Managers should, therefore,
focus on designing a proper performance appraisal program
consisting of various training & development programmes for their
employees. This will help them in improving their skills.

4. 2. Improving Quality and Productivity
Maintaining the quality of its products is a challenging task
for every organization. It is the driving force through which
companies are able to attract more & more customers &
hold them for the long term.

5. Quality is simply the degree to which products are able to satisfy the
customer’s needs & wants. It is the main factor which affects the
customer satisfaction level. Better quality products more easily satisfy
customer needs & wants.
The key dimensions of quality as follows.
Performance: Primary rating characteristics of a product such as
signal coverage, audio quality, display quality, etc.
Features: Secondary characteristics, added features, such as
calculators, and alarm clock features in handphone.
Conformance: Meeting specifications or industry standards, the
workmanship of the degree to which a product’s design or operating
characteristics match pre-established standards.

6. Reliability: The probability of a product’s falling within a specified
period.
Durability: It is a measure of a product’s life having both economic
and technical dimension.
Services: Resolution of problem and complaints, ease of repair.
Response: Human to human interfaces, such as the courtesy of the
dealer Aesthetics: Sensory characteristics such exterior finish.
Reputations: Past performance and other intangibles, such as being
ranked first.
Managers are focusing more & more to meet the quality expectations
of customers. In order to improve quality & productivity, they are even
engaging programs like Total Quality Management (TQM) &
Reengineering.

7. The components of TQM are;
(a) An intense focus on the customer,
(b) Concern for continual improvement,
(c) Improvement in the quality of everything the organization does,
(d) Accurate measurement and,
(e) Empowerment of employees.
3. Managing Workforce Diversity

8. Every organization has employees who differ from each other in
terms of race, culture, religion, gender, and ethnicity. Employing
person with distinct cultures help organizations in getting fresh &
new talents and potentialities. Maintaining peace & cooperation
among its different employees is a challenging task for every
organization.
Every employee working in an organization wants to retain their
own values & cultures although they are working in the same
company where they need to follow some rules & regulations.
Same decision of organization may be welcomed & accepted by
people of one culture & opposed by people from another culture.
Therefore managers need to treat every employee differently as
per their individual differences in order to ensure cooperation &
increase productivity.

9. 4. Responding to Globalization
Today globalization of business is something that is
increasing worldwide at a great pace. Now the operations of
the business are not limited to one particular location or
nation, but they are performed internationally.

10. Business nowadays are conducted beyond the national boundary
of one country & have their presence in different countries of the
world.
Products of companies are selling more by various online portals
over the internet rather than by their physical outlets. Faster
transportation & communication network have an efficient role in
providing services to customers via online portals.
Online presence of companies becomes the most emerging
requirement of every business.
For example, Amazon conducts the majority of its business
operations worldwide via its internet portals rather its physical
outlets.

11. 5. Empowering People
Empowerment of employees is another challenging task for
every organization. Productivity of employees generally
gets reduced when kept under stringent rules & regulations
as compared when they are allotted some freedom.

12. Delegating appropriate responsibility & power to employees at
different level is important & challenging task for managers.
Employees should be allowed & encouraged to participate in
various work-related decisions. This will improve employer-
employee relations in the organization & also the commitment of
employees to work.
6. Stimulating Innovation And Change

13. Today every business needs to focus on innovative ideas in order
to bring changes to beat the tough competition in the market.
Business should always focus to differentiate their product from
their competitor’s product. It will help them in getting more & more
customers.
Business will fail & eventually forced to shut down if unable to
keep flexibility as per market demand. It should always bring
innovative products & services to market with minimum cost. For
example, MI is presently beating the tough competition in the
market by presenting a wide range of innovative products at a
minimized cost.

14. 7. Improving Ethical Behaviour
Better ethical behaviour in working culture is a must for an
organisation to increase its productivity. It should always be
ensured that employees behave positively & abide by all
rules & regulations of the organisation. Healthy working
environment for employees with minimal ambiguity should
be created.

15. This will help in increasing their productivity & reducing conflicts.
Clear cut instruction should be given regarding what is right
behaviour & what is wrong. All unethical practices like the use of
insider information for personal gains should be avoided.
Managers should organise various workshops, seminars &
training programmes in order to improve ethical behaviour of
employees.
8. Improving Customer Service

16. Business is unsuccessful if it fails to treat its customer well &
provide them with better service. If businesses have a large
number of satisfied customers it will help it in enjoying large
profits in the long run.
They need to develop a better understanding with their customers
to easily recognize their needs & wants. Employees should meet
with customers in the most friendly manner & try to address their
problem properly.
It will help the management in creating the customer-responsive
environment in business. Organizational behavior has a key role
in establishing a better understanding of employees & ultimately
with customers.

17. EVOLUTION OF OB
Adam Smith
 He was a Scottish philosopher
 Wrote ‘Causes of Wealth of Nations’
 He proposed ‘Division of Labour’
Charles Babbage
 British Mathematics professor
 Wrote ‘On the Economy of
 Machinery and Manufactures’
 Proposed advantages of Division of labour:
 Reduces the time needed for learning a job
 Reduces waste of material
 Attainment of high skill levels
 Matching skills and abilities with jobs

18. Robert Owen
oWelsh entrepreneur
oRecognised how factory work was demeaning to employees
Max Weber
oProposed Structural Theory
oDescribed bureaucratic structure
oDivision of labour, clearly defined hierarchy, detailed rules and
regulations and impersonal relationships
Mary Parker Follett
oEmphasised on group ethics
oManager must coordinate group efforts
Chester Bernard
oSocial Systems Theory
oOrganisations made up of people who have interacting social
relationship
oSuccess depends on maintaining good relations

19. Herbert Simon
oDescribed organisations as a complex network of decisional
process
oDecision process comprises
i) intelligent activity
ii) design activity
iii) choice activity
Hugo Munsterberg
oPublished ‘psychology and Industrial efficiency’
oSaw a link between scientific management and industrial
psychology
oSuggested use of psychological tests
Wagner Act
After great depression of 1929, Wagner Act was passed which
recognised union as the authorised representatives of workers. It
also known as National Labor Relation Act.

20. THE CLASSICAL ERA
Scientific Management
Classical Administration
The Human Relations Approach
The Systems Approach
The Contingency Approach

21. Scientific Management Frederick Taylor (1865-1915)
Frederick Taylor (1865-1915) was among the first to argue that
management should be based on the following principle instead
of depending on more or less hazy ideas: Well-matched
• Clearly defined
• Fixed principles
The man who is fit to work at any particular' trade is unable to
understand the science of that trade without the kind help and co-
operation of men of a totally different type of education.
It is one of the principles of scientific management to ask men to
do things in the right way, to learn something new, to change their
ways in accordance with the science and in return to receive an
increase of from 30% to 100% in pay.
Classical Administration
Many organizations continued to be managed on the rational
lines of classical theory. But such organizations have certain
drawbacks.

22. An organization structured on classical lines is often identified
as a "bureaucracy." While its formality, rationality and
impersonality make it very stable and efficient in some respects, it
has proved dysfunctional in other areas. A bureaucracy is stable
partly because of its rigid adherence to its rules and procedures
and the chain of command, but this rigidity also makes it:
• Very slow to respond to customer/consumer demands
• Very slow to respond to change in its business environment in
terms of technology, competitors, new market trends.
• Very slow to learn from its mistakes Human Relations
Movement
The Human Relations Approach
• It focuses on the human side of the organization and certainly
ignored other critical factors.
• At times some hard decisions have to be taken in an
organization and it is impractical to try to please every one all the
time.

23. • Though it is true that individuals do have other than economic
motives, the importance of financial incentives cannot be ignored.
• There is hardly any empirical support for the view 'happy
workers are more productive', which seems to be the focal theme
of this school. This approach often puts an unrealistic demand on
the managers and supervisors.
The Systems Approach
The Systems Approach to OB views the organization as a united,
purposeful system composed of interrelated parts.
This approach gives managers a way of looking at the
organization as a whole, person, whole group, and the whole
social system.
A systems view should be the concern of every person in an
organization.

24. The Contigency Approach
It is of great important that managerial "style" or procedure for
arriving at decisions, or one kind of organizational
structure, is suitable for all organizations. Managers in each
organization have to find that method which best meet the
particular circumstances of size, technology, competitive situation
and so on.
Awareness of the contingency approach will be of value in:
1. Encouraging managers to identify and define the particular
circumstances of the situation they need to manage, and to
devise and evaluate appropriate ways of handling them.
2. Encouraging responsiveness and flexibility to change.