4. Four Functions of Management
Planning
Organizing
Decide on organizational goals
and allocate and use
resources to
achieve those goals
Establish the rules and
reporting relationships that
allow people to
achieve organizational goals
Controlling
Evaluate how well the
organization is achieving goals
and take action to
maintain, improve, and correct
performance
Leading
Encourage and coordinate
individuals and groups
so that they work
toward organizational goals
12. Complementing Intuition with
Systematic Study
Intuition
“Gut” feelings about “why I do what I do” and “what makes
others tick”
Systematic Study
Looking at relationships, attempting to attribute causes
and effects, and drawing conclusions based on scientific
evidence
Provides a means to predict behaviors
13. Organisational Behavior Defined :
• Organisational Behavior is concerned with the
understanding, prediction and control of
human behavior in organisation/s.
14. Features of Organisational Behavior :
• It is the study of human behavior in
organisation.
• Knowledge of human behavior helps in
improving organisational effectiveness and
efficiency.
15. Elements of Organisational Behavior :
There are three basic elements of the
organisation namely:
• People
• Structure
• Technology
18. Goals of Organisational Behavior at
Different Levels :
• Organisational Level : Culture, Change
Management, Financial Performance, Customer
Satisfaction & Retention.
• Group Level : Group performance, Information
Sharing, Cross-functional Partnerships, Conflict
Management, Leadership, Power & Politics.
• Individual Level : Perception,Performance,
Personality,Attitude & Motivation.
19. Fundamental Concepts of Organisational
Behavior : Basic Assumptions
• Nature of People :
Individual Difference
A whole person
Caused Behavior
Value of the person
• Nature of Organisation :
Social System
Mutual Interest
25. Towards an OB Discipline
Behavioural
science
Psychology
Sociology
Contribution
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual
Group
Behavioural change
Attitude change
Communication
Group processes
Group decision making
Comparative values
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment
Political science
Output
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Formal organization theory
Organizational technology
Organizational change
Organizational culture
Social psychology
Unit of
analysis
Conflict
Intraorganizational politics
Power
Organization
system
Study of
Organizational
Behaviour
28. Models of OB
Facets
AUTOCRATIC
CUSTODIAL
SUPPORTIVE
COLLEGIAL
Model depends Power
on
Economic
Resources
Leadership
Partnership
Managerial
Orientation
Authority
Money
Support
Team Work
Employee
Orientation
Obedience
Security
Job
Performance
Responsibility
Employee
Psychological
Result
Dependence
on Boss
Dependence
on
Organisation
Participation
Self Discipline
Employee
Needs Met
Subsistence
Maintenance
Higher Order
Self
Actualisation
Performance
Result
Minimum
Passive
Co-operation
Awakened
Drives
Moderate
Enthusiasm
29. Historical Development of OB
The predecessors of OB are :
• Industrial Psychology
• Scientific Management Movement
• Human Relations Movement
30. Historical Development of OB (cont.)
• Industrial Psychology : It is simply the
application or extension of psychological facts
& principles concerning human beings
operating within the context of business &
industry. Group testing, trade testing, rating
scales, personality inventories are all its
contribution which came into existence with
the formation of APA (American Psychological
Association)
31. Historical Development of OB (cont.)
• Scientific Management Movement : Fredrick
Winslow Taylor advocated the concept of
parity of wages, selection of right man for
right job, maximum output with minimum
wastage etc. he insisted upon supervisory
training to make supervisor a strong link
between management & non – management
group/s.
32. Historical Development of OB (cont.)
• Human Relations Movement : According to
Fred Luthans, three events cumulatively
ushered in the era of human relations
movement. These are :
The Great Depression
Rise of Trade Unionism
The Hawthorne Experiments
33. Historical Development of OB (cont.)
The Hawthorne Experiments have been
segmented into following broad categories :
Illumination Experiments (1924-1927)
Relay Room Experiments (1927-1932)
Bank Wiring Room Experiment (1931-1932)
Mass Interview Program (1928-1930)
34. Historical Development of OB (cont.)
• The discipline of OB came to be recognised as
a field of study around 1950. OB studies not
only the human behavior within the
parameters of the organisation but also the
group dynamics. OB studies the external
environment which influences the human
behavior within the organisation. That is why
OB takes cognizance of TQM, TPM, BPR or for
that matter, any new concept originating in
the external environment.
35. A Paradigm Shift
The term ‘Paradigm’ is used to mean a broad
model, a framework, a way of thinking or a
scheme for understanding reality.
Joel Barker defined Paradigm as :
“A paradigm simply establishes the rules,
defines the boundaries & tells one how to
behave within the boundaries to be
successful.”
36. A Paradigm Shift
Paradigms powerfully influences our
perceptions of the world around us.
We like our current paradigms & therefore
resist change.
Outsiders are more effective at introducing
paradigms (new ones) to us.
Early adopters of new paradigms must often
do so on faith & not on facts
New paradigms give us new ways of viewing
the world & solving problems
38. Challenges Faced by Different Levels at
Workplace
Organizational Level
•
•
•
•
Productivity
Developing Effective Employees
Global Competition
Managing in the Global Village
Group Level
•
•
Working With Others
Workforce Diversity
Individual Level
•
•
•
Job Satisfaction
Empowerment
Behaving Ethically
Workplace
39. Challenges and Opportunity for OB
•
•
•
•
•
Responding to Globalization
Managing Workforce Diversity
Improving Quality and Productivity
Responding to the Labor Shortage
Improving Customer Service
40. Challenges and Opportunity for OB
(cont’d)
•
•
•
•
•
Improving People Skills
Empowering People
Coping with “Temporariness”
Stimulation Innovation and Change
Helping Employees Balance Work/Life
Conflicts
• Improving Ethical Behavior
41. Emerging Trends/ Concerns in OB
• Cultural Diversity & Team Work
• Ethical Management & Corporate Social
Responsibility (CSR)
42. Organisation & Environment
• The environment of any organisation is “the
aggregate of all conditions, events &
influences” that surround and affect it.
43. Components of Organisational
Environment
Organisational Environment can be broadly
classified into following categories :
• Internal Environment
• External Environment
External General Environment
External Operating Environment
48. Role of Environmental Analysis in
Organisation
The role of environmental analysis vary
drastically from organisation to organisation,
however, the basic role played by it are as
under:
• Function Oriented Role: Its main purpose is to
improve organisational performance by
providing environmental information
concerning effective performance of specific
organisational functions.
49. Role of Environmental Analysis in
Organisation
• The Integrated Strategic Planning Role: Its
main purpose is to improve organisational
performance by making top managers &
divisional managers aware of the issue that
arises in organisation’s environment, by
having a direct impact on planning & by
linking corporate & divisional planning.
50. Role of Environmental Analysis in
Organisation
• The Policy Oriented Role : Its main purpose is
to improve organisational performance by
simply keeping top management informed
about major trends emerging in the
environment. It is basically unstructured,
indirect & informal.
52. OB: Cognitive Framework
The cognitive framework determines a
person’s deliberate or conscious efforts
towards acquiring knowledge.
‘Cognition’ the basic unit of cognitive
framework can be defined as an act of
knowing an item of information. It involves a
person’s higher mental processes. Edward
Toleman is being credited for the evolution of
cognitive framework.
53. OB: Behavioristic Framework
• The roots of behavioristic framework could be
traced back to the research work of Ivan
Pavlov & B.F Skinner
54. OB: Behavioristic Framework
• Classical Conditioning/ Reflexive
Conditioning: Ivan Pavlov emphasized the S-R
(Stimulus- Response) approach. Learning is
building up association between
Unconditioned Stimulus (UCS) & Conditioned
Stimulus (CS). The experiment is conducted in
three stages:
56. OB: Behavioristic Framework
• Stage II: During Conditioning :
CS + UCS
(Bell)
(Meat Powder)
UCR
(Salivation)
(The activity is done repeatedly over a period
of time.)
58. OB: Behavioristic Framework
• Operant Conditioning/Instrumental
Conditioning: B.F Skinner proposed the theory
of operant conditioning emphasizing R-S
(Response-Stimulus) approach. It is basically
presumed that a person’s behavior is
determined by environment & individual
learns by producing alteration in their
environment.
59. OB: Behavioristic Framework
It presupposes that human beings explore
their environment (out of curiosity) &
thereafter act upon it. Reinforcement is given
only when a correct response is made.
(Most behavior in organisation are learnt
controlled & are altered by the
consequences, by manipulating
reward system.)
60. OB: Social Cognitive Framework
The social cognitive framework of
organisational behavior discusses the two
major concerns:
• Knowledge Management
• Emotional Intelligence
61. OB: Social Cognitive Framework
• Knowledge Management: It’s the collection
of processes that govern the creation,
dissemination & utilization of knowledge. It
requires :
Establishing a strategy.
Redesigning the organisational structure.
Reshaping the organisational culture.
62. Elements of Knowledge Management
Knowledge
Acquisition
Knowledge
Sharing
Individual learning
Training
Sense making
Environmental
scanning
Communication
Knowledge
awareness
Empowerment
Grafting
Experimentation
Rewards
63. OB: Social Cognitive Framework
• Emotional Intelligence: It refers to the
assortment of non-cognitive skills, capabilities,
competencies that influences a person’s
ability to succeed in coping with
environmental demands & pressures. The
concept has been devised by Daniel Goleman.
64. OB: Social Cognitive Framework
• Emotional Intelligence: It is composed of five
dimensions:
Self Awareness: awareness of one’s own feelings.
Self Management: ability to manage one’s emotions &
impulses.
Self Motivation: ability to persist in the face of
setbacks & failures.
Empathy: ability to sense how others are feeling.
Social Skills: ability to handle other’s emotions.
65. OB: Social Cognitive Framework
The assessment and analysis of emotional
intelligence is represented as a measure/
value of EQ (Emotional Quotient)
67. Review
• Discuss the contribution of different
disciplines in the study of OB?
• Discuss the fundamental concepts of OB.
• Why should a manager know about this
domain of knowledge?
• Contrast formal versus informal organization.
• What are the three basic elements of an
organization?
68. Review
• Discuss Hawthorne Studies?
• What is Scientific Management Movement?
• Describe 3 challenges facing managers today;
why are they considered as “challenges”?
• What is Emotional Intelligence & how is it
important in work organisation ?
• Discuss the role of Knowledge Management in
an organisation.
69. Review
• “Organisations differ in their nature”. In the
light of this statement discuss various models
of OB.
• Discuss the purpose & role of environmental
analysis in an organisation.
• “OB represents interaction among individual,
group & the organisation”. Elucidate this
statement.
70. Review
•
•
The Hawthorne Experiment heralded the:
Management approach
Group Work approach
Human Relations Approach
Organisational Behavior Approach
OB as a discipline now has a fairly strong presence in the
study of management because:
It borrows extensively from other behavioral sciences
It has a strong emphasis on studying human behavior to
harness it in enhancing organisational effectiveness
It helps in changing organisations
It leads to better people management
OB and Planning: The study of OB reveals how decisions are made in organizations and how politics and conflict affect the planning process. It shows how group decision making and biases can affect planning.
OB and Organizing: OB offers guidelines on how to organize employees to make the best use of their skills and capabilities.
OB and Leading: The study of different leadership methods and of how to match leadership style to the characteristics of the organization and all its components is a major concern of OB.
OB and Controlling: The theories and concepts of organizational behavior allow managers to understand and accurately diagnose work situations in order to pinpoint where corrective action may be needed.
A skill is an ability to act in a way that allows a person to perform well in his or her role.
Managers need all three types of skills to perform their organizational functions and roles effectively.
Conceptual Skills refer to the ability to analyze and diagnose a situation and distinguish between cause and effect.
Human Skills refer to the ability to understand, work with, lead, and control the behavior of other people and groups.
Technical Skills refer to job-specific knowledge and techniques.
Figure 1.1 illustrates how organizational behavior concepts and theories allow people to correctly understand, describe, and analyze the characteristics of individuals, groups, work situations, and the organization itself.
The material for this illustration is found on pages 15-17.
In an open system, an organization takes in resources from its external environment and converts or transforms them into goods and services that are sent back to that environment, where they are bought by customers.
The activities of most organizations can be modeled using the open-systems view.
Consider asking students to apply the open systems model to a company’s processes.
The system is said to be open because the organization draws from and interacts with the external environment to secure resources, transform them, and then sell the products created to customers.
The material for this illustration is found on page 6.