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Dr . SABIYA . MUFTI
                      ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS & FINANCIAL STUDIES
                   UNIVERSITY OF KASHMIR
What is an Organization?

 An organization is
 a collection of
 people who work
 together to achieve
 individual and
 organizational
 goals.
What is an Organization

A      consciously      coordinated   social
    unit, composed of        two or more
    people, that functions on a relatively
    continuous basis to achieve a common
    goal or set of goals.
What is Organizational Behavior?

                    Organizational     behavior
                    (OB) is the study of factors
                    that affect how individuals
                    and    groups     act    in
                    organizations    and    how
                    organizations manage their
                    environments.
Levels of Analysis
    Organizational Level


       Group Level

         Individual
           Level
Components of Organizational Behavior

      Understanding
  organizational behavior
     requires studying


                      Individuals in Organizations


                      Group and Team Processes


                       Organizational Processes
What is Management?

Management       is     the process        of
planning, organizing, leading, and
controlling      an           organization’s
human,     financial,        material,    and
other    resources      to     increase    its
effectiveness.
The Functions Of Management
                              Management
        process of working with people and resources to

        accomplish organizational goals
            effective - achieve organizational goals

            efficient - achieve goals with minimum waste of resources




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Planning
Organizing
              Managers’ Job
Leading
Controlling
Managers’ Job
Management                      Organizing
Functions
Henry Fayol a French              Determines what tasks are to
Industrialist wrote that all
managers perform four
management functions
                                   be done;
                                  Who is to do them;
Planning
Organizing                        How the tasks are to be
Leading
Controlling
                                   grouped;
                                  Who reports to whom; and
                      Planning    Where decisions are to be
             Organizing            made.
                Leading
             controlling
Managers’ Job
Management Functions                  Leading
Henry Fayol a French Industrialist
wrote that all managers perform
four management functions
                                         Motivating employees;
                                         Direct their activities;
Planning
Organizing                               Select the most effective
Leading
Controlling
                                          communication channels; or
                                         Resolve conflicts among
                      Planning            members.
                     Organizing

                    Leading
                     controlling
Managers’ Job
Management Functions                  Controlling
Henry Fayol a French Industrialist
wrote that all managers perform
four management functions
                                         Monitoring performance;
                                         Comparing performance with
Planning
Organizing                                the set standard;
Leading                                  Making corrections, if
Controlling
                                          necessary.
                      Planning
                     Organizing
                        Leading
               Controlling
Management Levels
                Top-level
                managers




                 Middle
                managers




             Frontline managers


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Management Levels
  Management level
        Top-level managers
  senior executives responsible for overall management
       of an organization
            focus on long-term issues
            emphasize the survival, growth, and effectiveness of the firm
            concerned with the interaction between the organization and
             its external environment




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Management Levels
  Management level (cont.)
    Middle-level managers (tactical managers)
          located between top-level and frontline managers in the
           organizational hierarchy
          responsible for translating strategic goals and plans into more
           specific objectives and activities
          traditional role was that of an administrative controller who
           bridged the gap between higher and lower levels
          growing role is that of a developmental coach to the people
           who report to them



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Management Levels
  Management level (cont.)
    Frontline managers (operational managers)
            lower-level managers who supervise the operational activities
             of the organization
            directly involved with non management employees
            increasingly being called on to be innovative and
             entrepreneurial
        Working leaders with broad responsibilities
          in leading small companies, managers have
           strategic, tactical, and operational responsibilities
          have a knowledge of all business functions, are accountable
           for results, and focus on internal and external customers

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Managerial Roles
 Manager: Any person who supervises one or
  more subordinates.
 Role: A set of behaviors or tasks a person is
  expected to perform because of the position he or
  she holds in a group or organization.
 Managerial roles identified by Mintzberg.
     Figurehead              Leader
     Liaison                 Monitor
     Disseminator            Spokesperson
     Entrepreneur            Disturbance handler
     Resource allocator      Negotiator
Management Roles
 In 1960s, Mintzberg after studying 5 executives to
 determine what those managers did on their jobs.

 Mintzberg   concluded that mangers perform 10
 different, highly interrelated roles – or set of behaviors
 – attributable to their jobs.
Mintzberg’s Managerial Roles

Role                           Description
Interpersonal

Figurehead           Symbolic head, required to perform a
                     number of routine duties of a legal or social
                     nature

Leader               Responsible for the motivation & direction of
                     employees

Liaison              Maintains a network of outside contacts who
                     provide favors & information
Mintzberg’s Managerial Roles

Role                         Description
Informational

Monitor            Receives a wide variety of information; serves as
                   nerve centre of internal & external information
                   of the organization

Disseminator       Transmits information received from outsiders or
                   from other employees to members of the
                   organization

Spokesperson       Transmits information to outsiders on
                   organization's plans, policies, actions, & results;
                   serves as an expert on organization’s industry
Mintzberg’s Managerial Roles
Role                            Description
Decisional

Entrepreneur          Searches organization & its environment for
                      opportunities & initiatives projects to bring
                      about change

Disturbance handler   Responsible for corrective action when
                      organization faces important, unexpected
                      disturbances

Resource allocator    Makes or approves significant organizational
                      decisions

Negotiator            Responsible for representing the organization at
                      major negotiation
Managerial Skills
 Conceptual Skills:
  The ability to analyze and
  diagnose a situation and
  distinguish between cause
  and effect.
 Human Skills:
  The ability to
  understand, work
  with, lead, and control the
  behavior of other people
  and groups.
 Technical Skills:
  Job-specific knowledge
  and techniques.
Luthans’ Study of Managerial Activities
 Four types of managerial activity:
     Traditional Management
       Decision-making, planning, and controlling.
     Communication
       Exchanging routine information and processing paperwork
     Human Resource Management
       Motivating, disciplining, managing conflict, staffing and
        training.
     Networking
       Socializing, politicking, and interacting with others.


 Managers who promoted faster (were successful) did
  different things than did effective managers (those who
  did their jobs well)
Wilson Managerial Skills Research
Statistically         Dealing effectively with people is
validated profile      what management is all about;
of      managerial      The 11 skills constitute a goal
skills:   over  20       creation/communication/feedb
years’ research by       ack/reward/accomplishment
Clark Wilson et al       cycle with human interaction at
                         every turn.
(2003)
                      Managers with high skills’
                       mastery tend to have better
                       subunit performance &
                       employee morale than managers
                       with low skills’ mastery
Wilson Managerial Skills Research (cont.)

Statistically            Effective female & male managers
validated profile of      do not have significantly different
managerial skills:        skill profiles, contrary to claims in
over     20    years’     the popular business press in
research by Clark         recent years.
Wilson et al (2003)      At all career stages, derailed
                          managers (those who failed to
                          achieve their potential) tended to
                          be the ones who overestimated
                          their skill mastery ( rated
                          themselves higher than their
                          employees did).
Research evidence
 Concluding remarks of researcher:



 “when    selecting   individuals   for   promotion    to
 managerial      positions,     those       who       are
 arrogant, aloof, insensitive, and defensive should
 be avoided”
Skills exhibited by Effective Manager
 Clarifies goals & objectives for everyone involved;
 Encourages participation, upward communication, &
  suggestions;
 Plans & organizes for an orderly work flow;
 Has technical & administrative expertise to answer
  organization-related questions;
 Facilitates work through team
  building, training, coaching, & support;
Skills exhibited by Effective Manager (Cont.)
  Provides feedback honestly & constructively;

  Keeps things moving by relying on schedules, deadlines, & helpful
   reminders;

  Controls details without being arrogant;

  Applies reasonable pressure   for goal accomplishment;
  Empowers & delegates key duties to others while maintaining goal
   transparency & commitment;

  Recognizes good performance with rewards & positive
   corroboration.
Managing For Competitive Advantage

            Cost
                                        Innovation
        Competitiveness


                          Competitive
                           Advantage



            Quality                       Speed


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Managing For Competitive Advantage
  Cost competitiveness
        costs are kept low enough so that you can realize profits and price your products
         at levels that are attractive to consumers
        key is efficiency - accomplishing goals by using resources wisely and
         minimizing waste
  Quality
        excellence of a product, including its attractiveness, lack of
         defects, reliability, and long-term durability
        importance of quality has increased dramatically

        must identify specific elements of quality to correct problems, target needs, and
         deliver world-class value


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Managing For Competitive Advantage (cont.)

  Speed
        often separates winners from losers in world competition

        speed became a vital requirement in the 1990s
            requirement has increased exponentially

  Innovation
        the introduction of new goods and services

        important to adapt to changes in consumer demands and to new
         sources of competition
             Best managers and companies delivering all four

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Organizational Behavior

A field of study that investigates the impact that
individuals, groups, and structure have on behavior within
organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness.


                                    “Gregory Moorhead :2007”
Organizational Behavior
 The field of OB deals with human behavior in
 organizations

 OB is the multidisciplinary field that seeks
 knowledge of behavior in organizational settings
 by systematically studying individual, groups, and
 organizational processes.
                             “Jerald Greenberg:2008”
Organizational Behavior
 This knowledge is used both by scientists
 interested in understanding human behaviour
 & by practitioners interested in enhancing
 organisational effectiveness & individuals well
 being.

                          “Robert A .Baron:2008”
Organizational Behavior
Organisation Behaviour is concerned with the
 study of what people do in an organisation
 and   how    that   behaviour      affects     the
 performance of the organisation.
                                    “Robbins: 1998,9”
Organizational Behavior
OB highlights four central characteristics of
 the field.
 It is firmly grounded in the scientific method.

 It studies individuals, groups & organisations.

 It is interdisciplinary in nature.

 It is used as the basis for enhancing organisational

  effectiveness & individual well-being.
Organizational Behavior
The study of Organisational Behaviour involves:
 consideration of the interaction among the formal structure
  (organisational context in which the process of management
  takes place)
 the technology employed and the methods of carrying out work

 the behaviour of people

 the process of management

 the external environment
Organizational Behavior
Interrelated dimensions influencing behaviour:
 The Individual - working environment should satisfy individual
  needs as well as attainment of organisational goals.
 The Group - formal and informal. Understanding of groups
  complements a knowledge of individual behaviour.
 The Organisation - impact of organisation structure and
  design, and patterns of management, on behaviour.
 The Environment - technological and scientific
  development, economic activity, governmental actions.
Intuition and Systematic Study
 Intuition
   Gut feelings
   Individual observation
   Common sense
 Systematic Study
   Looks at relationships
   Scientific evidence
   Predicts behaviors
 The two are complementary means of
  predicting behavior.
An Outgrowth of Systematic Study…
  Evidence-Based Management (EBM)
    Basing managerial decisions on the best available
      scientific evidence.
     Must think like scientists:
          Pose a managerial question
          Search for best available evidence
          Apply relevant information to case
Intuition and Systematic Study
  The trick is to know when to go with your gut.
                                     “Jack Welch”
 Intuition is often based on inaccurate
  information
 Faddism is prevalent in management
 Systematic study can be time-consuming
  Use evidence as much as possible to inform your
 intuition and experience. That is the promise of OB.
       Managers Should Use All Approaches
Behavioral           Contributions        Unit of            Output
    science     Learning
                                             analysis
                Motivation
                Personality
                Emotions
                Perception
                Training
                Leadership effectiveness
 Psychology     Job satisfaction
                Individual decision making
                Performance appraisal
                Attitude measurement
                Employee selection
                Wok design                     Individual
                Work stress

                Behavioral change
                Attitude change
 Social
                Communication
 psychology
                Group processes
                Group decision making

                Communication                                     Study of
                                                 Group
                Power                                          organizational
                Conflict                                          behavior
                Intergroup behavior
  Sociology     Formal organization theory
                Organizational technology
                Organizational change
                Organizational culture
                                              Organizational
                Comparative values               system
                Comparative attitudes
                Cross-cultural analysis

Anthropology    Organizational environment
                power
                Organizational culture
Four Contributing Disciplines
 Psychology
 The science that seeks to
 measure, explain, and sometimes change
 the behavior of humans and other animals.
   Unit of Analysis:
    Individual
   Contributions to OB:
     Learning, motivation, personality, emotions, percepti
      on
     Training, leadership effectiveness, job satisfaction
     Individual decision making, performance
      appraisal, attitude measurement
     Employee selection, work design, and work stress
Four Contributing Disciplines
 Social Psychology
 An area within psychology that blends concepts from
 psychology and sociology and that focuses on the
 influence of people on one another.
   Unit of Analysis:
    Group
   Contributions to OB:
     Behavioral change
     Attitude change
     Communication
     Group processes
     Group decision making
Four Contributing Disciplines
     • Sociology
     The study of people in relation to their fellow human beings.
       – Unit of Analysis:
Organizational System
 –Group
Contributions to OB:
      Group dynamics
                                      Formal organization theory
      Work teams
                                      Organizational technology
      Communication
                                      Organizational change
      Power
                                      Organizational culture
      Conflict
      Intergroup behavior

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Four Contributing Disciplines
 Anthropology
The study of societies to learn about human beings and
their activities.
Unit of Analysis:
  Organizational System
    --   Group

Contributions to OB:           •Comparative values
   Organizational culture
   Organizational
                               •Comparative attitudes
    environment                •Cross-cultural analysis
SIGNIFICANCE OF OB
 Road map to our lives in organizations

 Helps us understand and predict organizational life

 Influences events in organizations

 Helps understand self and others better

 Helps a manager get things done better

 Helps maintain cordial relations

 Highly useful in the field of marketing

 Helps in career planning and development
Limitations of OB
 Knowledge about OB does not help an individual manage personal
  life better
 Qualities of OB are mysterious

 Has become a fad with managers

 Is selfish and exploitative

 Managers expect quick-fix solutions-not possible

 Principles and practices may not work in the events of declining
  fortunes
 Cannot eliminate totally conflict and frustration
Challenges & Opportunities for
OB
 Responding to Globalization

 Managing Workforce Diversity

 Improving Quality and Productivity

 Improving Customer Service

 Improving People Skills

 Stimulating Innovation and Change

 Coping with “Temporariness”

 Working in Networked Organizations

 Helping Employees Balance Work-Life Conflicts

 Creating a Positive Work Environment

 Improving Ethical Behavior
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OB Challenges
Globalization
 Refers to the economic, social and cultural
  connectivity within people in other parts of the
  world.
 It is all about the ongoing process of increasing
  interdependence with each other around the
  planet, whether through trading goods &
  services, sharing knowledge or interacting with
  people from different cultures & locations in the
  world.
Challenges and Opportunities for OB

 Responding to Globalization
    Increased foreign assignments
    Working with people from different cultures
    Overseeing movement of jobs to countries with low-
     cost labor
    Managing people during the war on terror




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Why Globalization?
 Access to additional resources (including skilled
    workforce)
   Low cost
   Economies of scale
   Favorable regulations & tax systems
   Direct access to new and growing markets
   Ability to customize products to local tastes &
    styles
Workforce Diversity
 Workforce diversity means that organisations are
 becoming a more heterogeneous mix of people in
 terms of gender , age , race , physical ability etc .
 A diversity workforce e.g. may include ,
 Women
 Color of people
 The physically disabled
 Senior citizens etc.
Workforce Diversity in India
 Indian organisations have accommodate a very
  diverse social group of employees based on socio-
  economic, cultural and linguistic composition.
 Scheduled castes & Scheduled tribes
 Other Backward castes
 Bonafide members of the state
    Ex-defense & paramilitary personnel
    Disabled persons
    Gender issues
Diversity
Diversity enhances creativity and innovation
 (Adler, 1997;Jackson et al., 1992), and
produces competitive advantages(Coleman, 2002;
 Jackson et al., 1992).
Diverse teams make it possible to enhance
 flexibility (Fleury, 1999) and
Rapid response and adaptation to change
 (Adler, 1997; Jackson et al., 1992.
The Four Layers of Diversity
                                  Functional Level/
                                    Classification


                                  Geographic Location

                    Marital                                                Work
     Mgmt.                                                Income
                    Status                                                Content/
     Status                              Age
                                                                            Field

              Parental                                           Personal
               Status    Race                                     Habits
                                   Personality
                                                                 Recreational   Division/
           Appearance                                              Habits
                                                     Sexual                      Dept./
    Union                Ethnicity                 Orientation
                                                                                  Unit/
  Affiliation                                                                    Group
                                       Physical
                       Work             Ability
                                                         Religion
                     Experience
                                     Educational
                                     Background
                   Work
                  Location                              Seniority
Test Your Knowledge
 Sam is a 55 year-old, male Sales
  Manager for XYZ corporation. He likes
  to drive fast cars and is Native
  American. Which layer of diversity has
  not been mentioned about Sam?
    A.   Personality
    B.   Internal
    C.   External
    D.   Organizational
Challenges and Opportunities for OB
 Managing Workforce Diversity

   The people in organizations are becoming more
    heterogeneous demographically
    (disability, gender, age, national origin, non-
    Christian, race, and domestic partners)
   Embracing diversity
   Changing demographics etc.
Primary and Secondary Dimensions of Diversity
Impact of Diversity
 Organizational culture

 Calls for diverse approaches to managing people
 including training the staff in desired skills
   For example, “people with adequate programming skills

    are not available in US & UK markets” (HR
    Head, Infosys, Economic Times, 2009)
Prominent world level companies
 McDonald
   Founded in 1967 in Canada

   Operating income 50% earned from outside US

   operations (2005)

   Every three hrs. a new McDonald opens somewhere

   on earth

   2/3rd of its workforce non-US
Prominent world level companies
  Coca-Cola
    Operates in more than 200 countries

    80% of its workforce are non- US citizens

    Has 500 trained personnel to go anywhere in the
    world to offer advice and expertise concerning
    operational and customer service problems
    70% of its operating income comes from operations
    out side of US
Prominent world level companies
Nokia
 the cell phone giant from Finland employs over 1000
  foreign workers in Finland & over 60% of its 53000
  employees are non-fins
Philips
 an electronic giant employs 83% of its workforce
  outside of its headquarters in the Netherlands
IBM
 employ almost 80000 people in India (Eco.
  Times, April, 2010)
Prominent world level companies
TCS
 an Indian IT giant is planning to increase its non-
  Indian workforce to 20000 from present 10000 over the
  next 5 years

Infosys & Wipro
 could see non-Indians account for 10-15% of their total
  employee base in next 3-5 years, from around 5%
  presently
                      (Economic Times, 27th April, 2009)
Increased Workforce Diversity -
            Women
 Glass Ceiling
   Invisible barrier blocking women and
    minorities from top management
    positions
 Women CEO’s (as of 2/2007):
   10 of Fortune 500
   23 of Fortune 1000
 What helps break the ceiling?
Increased Workforce Diversity - Race

 Racial
  minorities are
  growing
   2006 – 1,016
    race-based
    charges of
    discrimination
    to EEOC
Education and Personal Income
Increased Workforce Diversity - Age
Benefits from Managing Diversity
Xerox
 plants using diverse work teams are now 30 per cent
  more productive than conventional plants.
Procter & Gamble
 achieves 30-40 per cent higher productivity at its 18
  diverse team-based plants than at its non-diverse plants.

Motorola
 beat its competition by producing the world’s most
  efficient and high-quality cellular phones which are
  produced almost exclusively by diverse work teams.

Research has shown that organizations that
  proactively recruit, develop, and leverage
  multinational leaders are in better positions in the
  global marketplace.
Benefits from Managing Diversity
   GE Power Systems achieved 13 per cent productivity gains from
    cross-functional and multicultural teams versus homogeneous
    teams.

   Numerous empirical studies of work teams demonstrate that when
    tasks are complex and not clearly defined, heterogeneous teams
    outperform homogeneous teams. ‘Super teams’, those that were
    diverse in numerous respects and selected because of their
    differences, outperformed those that were homogeneous.
Benefits from Managing Diversity

    ‘Unlike other MNCs, diversity for us is a business imperative and
     not an issue of legal compliance. We want HLL’s management to be
     representative of our diverse customer base so that they
     understand the needs of the customer better. If a manager
     understands the brand she is handling, the learning curve is that
     much shorter. For instance, in marketing, if the target audience is
     women, it is an advantage if a woman is incharge of the brand’.
     Says Prem Kawath, HR Manager, HLL.4
Leaders in Diversity
 Pepsi’s CEO & direct
  reports are each assigned
  different employee group
  (e.g., GLT, Asian, women of
  color)
 Responsible for:
    Understanding the issues
      these employees face
    Facilitating their growth
      and development
 Hold themselves
  accountable
Evolution of Organizational Behaviour

Three significant Eras:


   The Classical Era (1880-1930)

          Administrative theory
         Scientific Management


   The Behavioural Era (1930-1960)
         The Hawthorne Legacy


   The Modern Era (1960 onwards)
         Contingency Approach
A Brief History of OB


 Classical approach to management (scientific
 management and administrative management)
 Hawthorne studies (workers respond to attention)

 Human relations movement (treat workers well to
 boost productivity)
                       contd.
A Brief History of OB
                      Contd.

 The contingency approach (examine individual
 and situational differences before taking action)

 Positive organizational behavior (focus on
 measurable strengths of workers to improve
 performance)
The classical approach
 The focus of scientific management was the
  application of scientific methods to increase
  individual worker’s productivity.

    According to the principles of scientific
    management, there is a division of work
    between managers and workers.
The classical approach
TAYLOR’S PRINCIPLES
 the development of a true science for each person’s
  work
 the scientific selection, training and development
  of the workers
 co-operation with the workers to ensure work is
  carried out in the prescribed way
 the division of work and responsibility between
  management and the workers.
The classical approach
 Administrative management was concerned
  primarily with how organizations should be
  managed and structured.

     The core of management knowledge lies
    within the classical school, including the
    framework of planning, organizing, and
    controlling.
The classical approach
 Henry Fayol classified all the business activities
  into six functions:
 Technical activities
 Commercial activities
 Financial activities
 Security activities
 Accounting activities
 Managerial activities
The Hawthorne Studies
 During the 1920s, attention began to focus on social factors at
  work, groups, leadership, the informal organisation and
  behaviour of people.
 ‘Behavioural’ and ‘informal’ are alternative headings sometimes
  given to this approach.
 Turning point came with the famous Hawthorne experiments at
  the Western Electric Company in America (1924-32)
 One of the researchers (leader) was ELTON MAYO (1880-1949)
The Hawthorne Studies
Four Main Phases to the Hawthorne Experiments
 The Illumination Experiments - level of production
 was influenced by factors other than changes in
 physical conditions of work.

 The Relay Assembly Test Room - attention and
 interest by management reason for higher
 productivity.
The Hawthorne Studies

 The Interviewing Programme -20,000 interviews. Gave
 impetus to present-day personnel management and use of
 counselling interviews. Highlighted the need for
 management to listen to workers.
 The Bank Wiring Observation Room - Piecework
 Incentive Scheme. Group pressures stronger than financial
 incentives offered by management
The Hawthorne Studies
    A major conclusion from these studies was the
    workers reacted positively because management
    cared about them (the Hawthorne effect).

 The Hawthorne effect is the tendency of people to
    behave differently when they receive attention
    because they respond to the demands of the
    situation.
                               contd.
The Hawthorne Studies
                  contd.



    The Hawthorne studies also led to many other
    conclusions, such as the fact that effective
    communication with workers is critical to
    managerial success
The Human Relations Movement
 The human relations movement was based on the
 belief that an important link exists among
 managerial practices, morale, and productivity.

 Key points of the movement are that satisfied
 workers are more productive and that, given the
 proper working environment, virtually all workers
 would be highly productive.
Contingency Approach
 Writers in the 1950s and 1960s who adopted a more
  psychological orientation.



 Major focus was the personal adjustment of the individual
  within the work organisation and the effects of group
  relationships and leadership styles.



 Main contributors: MASLOW, HERZBERG AND McGREGOR.
Contingency Approach


      MASLOW’S HIERARCHY OF HUMAN NEEDS

General Examples       NEEDS         Organisational
  Examples
Achievement     SELF-ACTUALISATION   Challenging Job
Status               ESTEEM          Job Title
Friendship         social            Friends in the Work
                                             Group
Stability        SECURITY            Pension Plan
Sustenance     PHYSIOLOGICAL         Base Salary
Contingency Approach


HERZBERG isolated two different sets of factors affecting
motivation and satisfaction at work.

1. Hygiene or Maintenance Factors - concerned basically with job
   environment. Extrinsic to the work itself.
2. Motivators or Growth Factors - concerned with job content.
   Intrinsic to the work itself.

Goal of managers is to achieve a state of no dissatisfaction by
addressing Hygiene Factors. Task of improving motivation is
then by addressing the Motivators.
Contingency Approach


McGREGOR argued that the style of Management adopted is a

function of the manager’s attitudes towards human nature and

behaviour at work.



He put forward two suppositions called Theory X and Theory Y
  which are based on popular assumptions about work and
  people.
Contingency Approach


                   THEORY X ASSUMPTIONS


 People do not like work and try to avoid it.

 People do not like work, so managers have to
  control, direct, compel, and threaten employees to get them to
  work toward organisational goals.

 People prefer to be directed, to avoid responsibility, to want
  security, and have little ambition.
Contingency Approach
                       THEORY Y ASSUMPTIONS
 People do not naturally dislike work; work is a natural part of their
  lives.

 People are internally motivated to reach goals to which they are
  committed.

 People are committed to goals to the degree that they receive personal
  rewards when they reach their objectives.

 People will seek and accept responsibility under favourable
  conditions.

 People have the capacity to be innovative in solving organisational
  problems.

 People are bright, but generally their potentials are under-utilised.
Contingency Approach
 A cornerstone of the human relations movement is
 Theory X and Theory Y of Douglas McGregor.

 Theory X is the somewhat stern and pessimistic
 traditional assumptions about worker capabilities.

 Theory Y is an alternative, and optimistic, set of
 assumptions
The Contingency Approach
 The  contingency approach to management
 emphasizes there is no one best way to manage
 people or work.

 The contingency approach is derived from the
 study of leadership styles.

 The strength of the contingency approach is that
 it encourages managers and professionals to
 examine individual and situational differences
 before deciding on a course of action.
Milestones in the History of Organization Behaviour
Industrial Revolution      Robert Owen, Andrew Ure and J.N. Tata
                           provided certain welfare facilities. The ideas
                           degenerated into paternalistic approach.


                           Taylor believed in rationalizing production. He
Scientific Management–     believed Early 20th Century that human
                           behaviour was based on ‘rabble hypothesis.’


Human Relations Movement   Great Depression, labour movement and
                           during 1920s to 1940s Hawthorne led to the
                           movement. The movement subsequently
                           became a fad Organisational behaviour – 1950’s


                           The contingency approach is that it encourages
Contingency Approach       managers and professionals to examine
                           individual and situational differences before
                           deciding on a course of action-1960 onwards.

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Intro to ob ppt

  • 1. Dr . SABIYA . MUFTI ASSISTANT PROFESSOR DEPARTMENT OF BUSINESS & FINANCIAL STUDIES UNIVERSITY OF KASHMIR
  • 2. What is an Organization?  An organization is a collection of people who work together to achieve individual and organizational goals.
  • 3. What is an Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
  • 4. What is Organizational Behavior? Organizational behavior (OB) is the study of factors that affect how individuals and groups act in organizations and how organizations manage their environments.
  • 5.
  • 6. Levels of Analysis Organizational Level Group Level Individual Level
  • 7. Components of Organizational Behavior Understanding organizational behavior requires studying Individuals in Organizations Group and Team Processes Organizational Processes
  • 8.
  • 9. What is Management? Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness.
  • 10. The Functions Of Management Management  process of working with people and resources to accomplish organizational goals  effective - achieve organizational goals  efficient - achieve goals with minimum waste of resources 1-10
  • 11.
  • 12. Planning Organizing Managers’ Job Leading Controlling
  • 13. Managers’ Job Management  Organizing Functions Henry Fayol a French  Determines what tasks are to Industrialist wrote that all managers perform four management functions be done;  Who is to do them; Planning Organizing  How the tasks are to be Leading Controlling grouped;  Who reports to whom; and Planning  Where decisions are to be Organizing made. Leading controlling
  • 14. Managers’ Job Management Functions  Leading Henry Fayol a French Industrialist wrote that all managers perform four management functions  Motivating employees;  Direct their activities; Planning Organizing  Select the most effective Leading Controlling communication channels; or  Resolve conflicts among Planning members. Organizing Leading controlling
  • 15. Managers’ Job Management Functions  Controlling Henry Fayol a French Industrialist wrote that all managers perform four management functions  Monitoring performance;  Comparing performance with Planning Organizing the set standard; Leading  Making corrections, if Controlling necessary. Planning Organizing Leading Controlling
  • 16. Management Levels Top-level managers Middle managers Frontline managers 1-16
  • 17. Management Levels  Management level  Top-level managers  senior executives responsible for overall management of an organization  focus on long-term issues  emphasize the survival, growth, and effectiveness of the firm  concerned with the interaction between the organization and its external environment 1-17
  • 18. Management Levels  Management level (cont.)  Middle-level managers (tactical managers)  located between top-level and frontline managers in the organizational hierarchy  responsible for translating strategic goals and plans into more specific objectives and activities  traditional role was that of an administrative controller who bridged the gap between higher and lower levels  growing role is that of a developmental coach to the people who report to them 1-18
  • 19. Management Levels  Management level (cont.)  Frontline managers (operational managers)  lower-level managers who supervise the operational activities of the organization  directly involved with non management employees  increasingly being called on to be innovative and entrepreneurial  Working leaders with broad responsibilities  in leading small companies, managers have strategic, tactical, and operational responsibilities  have a knowledge of all business functions, are accountable for results, and focus on internal and external customers 1-19
  • 20. Managerial Roles  Manager: Any person who supervises one or more subordinates.  Role: A set of behaviors or tasks a person is expected to perform because of the position he or she holds in a group or organization. Managerial roles identified by Mintzberg. Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance handler Resource allocator Negotiator
  • 21. Management Roles  In 1960s, Mintzberg after studying 5 executives to determine what those managers did on their jobs.  Mintzberg concluded that mangers perform 10 different, highly interrelated roles – or set of behaviors – attributable to their jobs.
  • 22. Mintzberg’s Managerial Roles Role Description Interpersonal Figurehead Symbolic head, required to perform a number of routine duties of a legal or social nature Leader Responsible for the motivation & direction of employees Liaison Maintains a network of outside contacts who provide favors & information
  • 23. Mintzberg’s Managerial Roles Role Description Informational Monitor Receives a wide variety of information; serves as nerve centre of internal & external information of the organization Disseminator Transmits information received from outsiders or from other employees to members of the organization Spokesperson Transmits information to outsiders on organization's plans, policies, actions, & results; serves as an expert on organization’s industry
  • 24. Mintzberg’s Managerial Roles Role Description Decisional Entrepreneur Searches organization & its environment for opportunities & initiatives projects to bring about change Disturbance handler Responsible for corrective action when organization faces important, unexpected disturbances Resource allocator Makes or approves significant organizational decisions Negotiator Responsible for representing the organization at major negotiation
  • 25. Managerial Skills  Conceptual Skills: The ability to analyze and diagnose a situation and distinguish between cause and effect.  Human Skills: The ability to understand, work with, lead, and control the behavior of other people and groups.  Technical Skills: Job-specific knowledge and techniques.
  • 26. Luthans’ Study of Managerial Activities  Four types of managerial activity:  Traditional Management  Decision-making, planning, and controlling.  Communication  Exchanging routine information and processing paperwork  Human Resource Management  Motivating, disciplining, managing conflict, staffing and training.  Networking  Socializing, politicking, and interacting with others.  Managers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)
  • 27. Wilson Managerial Skills Research Statistically  Dealing effectively with people is validated profile what management is all about; of managerial  The 11 skills constitute a goal skills: over 20 creation/communication/feedb years’ research by ack/reward/accomplishment Clark Wilson et al cycle with human interaction at every turn. (2003)  Managers with high skills’ mastery tend to have better subunit performance & employee morale than managers with low skills’ mastery
  • 28. Wilson Managerial Skills Research (cont.) Statistically  Effective female & male managers validated profile of do not have significantly different managerial skills: skill profiles, contrary to claims in over 20 years’ the popular business press in research by Clark recent years. Wilson et al (2003)  At all career stages, derailed managers (those who failed to achieve their potential) tended to be the ones who overestimated their skill mastery ( rated themselves higher than their employees did).
  • 29. Research evidence  Concluding remarks of researcher: “when selecting individuals for promotion to managerial positions, those who are arrogant, aloof, insensitive, and defensive should be avoided”
  • 30. Skills exhibited by Effective Manager  Clarifies goals & objectives for everyone involved;  Encourages participation, upward communication, & suggestions;  Plans & organizes for an orderly work flow;  Has technical & administrative expertise to answer organization-related questions;  Facilitates work through team building, training, coaching, & support;
  • 31. Skills exhibited by Effective Manager (Cont.)  Provides feedback honestly & constructively;  Keeps things moving by relying on schedules, deadlines, & helpful reminders;  Controls details without being arrogant;  Applies reasonable pressure for goal accomplishment;  Empowers & delegates key duties to others while maintaining goal transparency & commitment;  Recognizes good performance with rewards & positive corroboration.
  • 32. Managing For Competitive Advantage Cost Innovation Competitiveness Competitive Advantage Quality Speed 1-32
  • 33. Managing For Competitive Advantage  Cost competitiveness  costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers  key is efficiency - accomplishing goals by using resources wisely and minimizing waste  Quality  excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability  importance of quality has increased dramatically  must identify specific elements of quality to correct problems, target needs, and deliver world-class value 1-33
  • 34. Managing For Competitive Advantage (cont.)  Speed  often separates winners from losers in world competition  speed became a vital requirement in the 1990s  requirement has increased exponentially  Innovation  the introduction of new goods and services  important to adapt to changes in consumer demands and to new sources of competition Best managers and companies delivering all four 1-34
  • 35. Organizational Behavior A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. “Gregory Moorhead :2007”
  • 36. Organizational Behavior  The field of OB deals with human behavior in organizations  OB is the multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying individual, groups, and organizational processes. “Jerald Greenberg:2008”
  • 37. Organizational Behavior  This knowledge is used both by scientists interested in understanding human behaviour & by practitioners interested in enhancing organisational effectiveness & individuals well being. “Robert A .Baron:2008”
  • 38. Organizational Behavior Organisation Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation. “Robbins: 1998,9”
  • 39. Organizational Behavior OB highlights four central characteristics of the field.  It is firmly grounded in the scientific method.  It studies individuals, groups & organisations.  It is interdisciplinary in nature.  It is used as the basis for enhancing organisational effectiveness & individual well-being.
  • 40. Organizational Behavior The study of Organisational Behaviour involves:  consideration of the interaction among the formal structure (organisational context in which the process of management takes place)  the technology employed and the methods of carrying out work  the behaviour of people  the process of management  the external environment
  • 41. Organizational Behavior Interrelated dimensions influencing behaviour:  The Individual - working environment should satisfy individual needs as well as attainment of organisational goals.  The Group - formal and informal. Understanding of groups complements a knowledge of individual behaviour.  The Organisation - impact of organisation structure and design, and patterns of management, on behaviour.  The Environment - technological and scientific development, economic activity, governmental actions.
  • 42. Intuition and Systematic Study  Intuition  Gut feelings  Individual observation  Common sense  Systematic Study  Looks at relationships  Scientific evidence  Predicts behaviors  The two are complementary means of predicting behavior.
  • 43. An Outgrowth of Systematic Study… Evidence-Based Management (EBM)  Basing managerial decisions on the best available scientific evidence.  Must think like scientists:  Pose a managerial question  Search for best available evidence  Apply relevant information to case
  • 44. Intuition and Systematic Study The trick is to know when to go with your gut. “Jack Welch”  Intuition is often based on inaccurate information  Faddism is prevalent in management  Systematic study can be time-consuming Use evidence as much as possible to inform your intuition and experience. That is the promise of OB. Managers Should Use All Approaches
  • 45. Behavioral Contributions Unit of Output science Learning analysis Motivation Personality Emotions Perception Training Leadership effectiveness Psychology Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Wok design Individual Work stress Behavioral change Attitude change Social Communication psychology Group processes Group decision making Communication Study of Group Power organizational Conflict behavior Intergroup behavior Sociology Formal organization theory Organizational technology Organizational change Organizational culture Organizational Comparative values system Comparative attitudes Cross-cultural analysis Anthropology Organizational environment power Organizational culture
  • 46. Four Contributing Disciplines  Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.  Unit of Analysis: Individual  Contributions to OB:  Learning, motivation, personality, emotions, percepti on  Training, leadership effectiveness, job satisfaction  Individual decision making, performance appraisal, attitude measurement  Employee selection, work design, and work stress
  • 47. Four Contributing Disciplines  Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.  Unit of Analysis: Group  Contributions to OB:  Behavioral change  Attitude change  Communication  Group processes  Group decision making
  • 48. Four Contributing Disciplines • Sociology The study of people in relation to their fellow human beings. – Unit of Analysis: Organizational System –Group Contributions to OB:  Group dynamics  Formal organization theory  Work teams  Organizational technology  Communication  Organizational change  Power  Organizational culture  Conflict  Intergroup behavior 1-48
  • 49. Four Contributing Disciplines Anthropology The study of societies to learn about human beings and their activities. Unit of Analysis: Organizational System -- Group Contributions to OB: •Comparative values  Organizational culture  Organizational •Comparative attitudes environment •Cross-cultural analysis
  • 50. SIGNIFICANCE OF OB  Road map to our lives in organizations  Helps us understand and predict organizational life  Influences events in organizations  Helps understand self and others better  Helps a manager get things done better  Helps maintain cordial relations  Highly useful in the field of marketing  Helps in career planning and development
  • 51. Limitations of OB  Knowledge about OB does not help an individual manage personal life better  Qualities of OB are mysterious  Has become a fad with managers  Is selfish and exploitative  Managers expect quick-fix solutions-not possible  Principles and practices may not work in the events of declining fortunes  Cannot eliminate totally conflict and frustration
  • 52. Challenges & Opportunities for OB  Responding to Globalization  Managing Workforce Diversity  Improving Quality and Productivity  Improving Customer Service  Improving People Skills  Stimulating Innovation and Change  Coping with “Temporariness”  Working in Networked Organizations  Helping Employees Balance Work-Life Conflicts  Creating a Positive Work Environment  Improving Ethical Behavior 1-52
  • 54. Globalization  Refers to the economic, social and cultural connectivity within people in other parts of the world.  It is all about the ongoing process of increasing interdependence with each other around the planet, whether through trading goods & services, sharing knowledge or interacting with people from different cultures & locations in the world.
  • 55. Challenges and Opportunities for OB  Responding to Globalization  Increased foreign assignments  Working with people from different cultures  Overseeing movement of jobs to countries with low- cost labor  Managing people during the war on terror 1-55
  • 56. Why Globalization?  Access to additional resources (including skilled workforce)  Low cost  Economies of scale  Favorable regulations & tax systems  Direct access to new and growing markets  Ability to customize products to local tastes & styles
  • 57. Workforce Diversity Workforce diversity means that organisations are becoming a more heterogeneous mix of people in terms of gender , age , race , physical ability etc . A diversity workforce e.g. may include ,  Women  Color of people  The physically disabled  Senior citizens etc.
  • 58. Workforce Diversity in India Indian organisations have accommodate a very diverse social group of employees based on socio- economic, cultural and linguistic composition.  Scheduled castes & Scheduled tribes  Other Backward castes  Bonafide members of the state  Ex-defense & paramilitary personnel  Disabled persons  Gender issues
  • 59. Diversity Diversity enhances creativity and innovation (Adler, 1997;Jackson et al., 1992), and produces competitive advantages(Coleman, 2002; Jackson et al., 1992). Diverse teams make it possible to enhance flexibility (Fleury, 1999) and Rapid response and adaptation to change (Adler, 1997; Jackson et al., 1992.
  • 60. The Four Layers of Diversity Functional Level/ Classification Geographic Location Marital Work Mgmt. Income Status Content/ Status Age Field Parental Personal Status Race Habits Personality Recreational Division/ Appearance Habits Sexual Dept./ Union Ethnicity Orientation Unit/ Affiliation Group Physical Work Ability Religion Experience Educational Background Work Location Seniority
  • 61. Test Your Knowledge  Sam is a 55 year-old, male Sales Manager for XYZ corporation. He likes to drive fast cars and is Native American. Which layer of diversity has not been mentioned about Sam? A. Personality B. Internal C. External D. Organizational
  • 62. Challenges and Opportunities for OB  Managing Workforce Diversity  The people in organizations are becoming more heterogeneous demographically (disability, gender, age, national origin, non- Christian, race, and domestic partners)  Embracing diversity  Changing demographics etc.
  • 63. Primary and Secondary Dimensions of Diversity
  • 64. Impact of Diversity  Organizational culture  Calls for diverse approaches to managing people including training the staff in desired skills  For example, “people with adequate programming skills are not available in US & UK markets” (HR Head, Infosys, Economic Times, 2009)
  • 65. Prominent world level companies  McDonald  Founded in 1967 in Canada  Operating income 50% earned from outside US operations (2005)  Every three hrs. a new McDonald opens somewhere on earth  2/3rd of its workforce non-US
  • 66. Prominent world level companies  Coca-Cola  Operates in more than 200 countries  80% of its workforce are non- US citizens  Has 500 trained personnel to go anywhere in the world to offer advice and expertise concerning operational and customer service problems  70% of its operating income comes from operations out side of US
  • 67. Prominent world level companies Nokia  the cell phone giant from Finland employs over 1000 foreign workers in Finland & over 60% of its 53000 employees are non-fins Philips  an electronic giant employs 83% of its workforce outside of its headquarters in the Netherlands IBM  employ almost 80000 people in India (Eco. Times, April, 2010)
  • 68. Prominent world level companies TCS  an Indian IT giant is planning to increase its non- Indian workforce to 20000 from present 10000 over the next 5 years Infosys & Wipro  could see non-Indians account for 10-15% of their total employee base in next 3-5 years, from around 5% presently (Economic Times, 27th April, 2009)
  • 69. Increased Workforce Diversity - Women  Glass Ceiling  Invisible barrier blocking women and minorities from top management positions  Women CEO’s (as of 2/2007):  10 of Fortune 500  23 of Fortune 1000  What helps break the ceiling?
  • 70. Increased Workforce Diversity - Race  Racial minorities are growing  2006 – 1,016 race-based charges of discrimination to EEOC
  • 73. Benefits from Managing Diversity Xerox  plants using diverse work teams are now 30 per cent more productive than conventional plants. Procter & Gamble  achieves 30-40 per cent higher productivity at its 18 diverse team-based plants than at its non-diverse plants. Motorola  beat its competition by producing the world’s most efficient and high-quality cellular phones which are produced almost exclusively by diverse work teams. Research has shown that organizations that proactively recruit, develop, and leverage multinational leaders are in better positions in the global marketplace.
  • 74. Benefits from Managing Diversity  GE Power Systems achieved 13 per cent productivity gains from cross-functional and multicultural teams versus homogeneous teams.  Numerous empirical studies of work teams demonstrate that when tasks are complex and not clearly defined, heterogeneous teams outperform homogeneous teams. ‘Super teams’, those that were diverse in numerous respects and selected because of their differences, outperformed those that were homogeneous.
  • 75. Benefits from Managing Diversity  ‘Unlike other MNCs, diversity for us is a business imperative and not an issue of legal compliance. We want HLL’s management to be representative of our diverse customer base so that they understand the needs of the customer better. If a manager understands the brand she is handling, the learning curve is that much shorter. For instance, in marketing, if the target audience is women, it is an advantage if a woman is incharge of the brand’. Says Prem Kawath, HR Manager, HLL.4
  • 76. Leaders in Diversity  Pepsi’s CEO & direct reports are each assigned different employee group (e.g., GLT, Asian, women of color)  Responsible for:  Understanding the issues these employees face  Facilitating their growth and development  Hold themselves accountable
  • 77. Evolution of Organizational Behaviour Three significant Eras:  The Classical Era (1880-1930) Administrative theory Scientific Management  The Behavioural Era (1930-1960) The Hawthorne Legacy  The Modern Era (1960 onwards) Contingency Approach
  • 78. A Brief History of OB  Classical approach to management (scientific management and administrative management)  Hawthorne studies (workers respond to attention)  Human relations movement (treat workers well to boost productivity) contd.
  • 79. A Brief History of OB Contd.  The contingency approach (examine individual and situational differences before taking action)  Positive organizational behavior (focus on measurable strengths of workers to improve performance)
  • 80. The classical approach  The focus of scientific management was the application of scientific methods to increase individual worker’s productivity.  According to the principles of scientific management, there is a division of work between managers and workers.
  • 81. The classical approach TAYLOR’S PRINCIPLES  the development of a true science for each person’s work  the scientific selection, training and development of the workers  co-operation with the workers to ensure work is carried out in the prescribed way  the division of work and responsibility between management and the workers.
  • 82. The classical approach  Administrative management was concerned primarily with how organizations should be managed and structured.  The core of management knowledge lies within the classical school, including the framework of planning, organizing, and controlling.
  • 83. The classical approach Henry Fayol classified all the business activities into six functions:  Technical activities  Commercial activities  Financial activities  Security activities  Accounting activities  Managerial activities
  • 84. The Hawthorne Studies  During the 1920s, attention began to focus on social factors at work, groups, leadership, the informal organisation and behaviour of people.  ‘Behavioural’ and ‘informal’ are alternative headings sometimes given to this approach.  Turning point came with the famous Hawthorne experiments at the Western Electric Company in America (1924-32)  One of the researchers (leader) was ELTON MAYO (1880-1949)
  • 85. The Hawthorne Studies Four Main Phases to the Hawthorne Experiments  The Illumination Experiments - level of production was influenced by factors other than changes in physical conditions of work.  The Relay Assembly Test Room - attention and interest by management reason for higher productivity.
  • 86. The Hawthorne Studies  The Interviewing Programme -20,000 interviews. Gave impetus to present-day personnel management and use of counselling interviews. Highlighted the need for management to listen to workers.  The Bank Wiring Observation Room - Piecework Incentive Scheme. Group pressures stronger than financial incentives offered by management
  • 87. The Hawthorne Studies  A major conclusion from these studies was the workers reacted positively because management cared about them (the Hawthorne effect).  The Hawthorne effect is the tendency of people to behave differently when they receive attention because they respond to the demands of the situation. contd.
  • 88. The Hawthorne Studies contd.  The Hawthorne studies also led to many other conclusions, such as the fact that effective communication with workers is critical to managerial success
  • 89. The Human Relations Movement  The human relations movement was based on the belief that an important link exists among managerial practices, morale, and productivity.  Key points of the movement are that satisfied workers are more productive and that, given the proper working environment, virtually all workers would be highly productive.
  • 90. Contingency Approach  Writers in the 1950s and 1960s who adopted a more psychological orientation.  Major focus was the personal adjustment of the individual within the work organisation and the effects of group relationships and leadership styles.  Main contributors: MASLOW, HERZBERG AND McGREGOR.
  • 91. Contingency Approach MASLOW’S HIERARCHY OF HUMAN NEEDS General Examples NEEDS Organisational Examples Achievement SELF-ACTUALISATION Challenging Job Status ESTEEM Job Title Friendship social Friends in the Work Group Stability SECURITY Pension Plan Sustenance PHYSIOLOGICAL Base Salary
  • 92. Contingency Approach HERZBERG isolated two different sets of factors affecting motivation and satisfaction at work. 1. Hygiene or Maintenance Factors - concerned basically with job environment. Extrinsic to the work itself. 2. Motivators or Growth Factors - concerned with job content. Intrinsic to the work itself. Goal of managers is to achieve a state of no dissatisfaction by addressing Hygiene Factors. Task of improving motivation is then by addressing the Motivators.
  • 93. Contingency Approach McGREGOR argued that the style of Management adopted is a function of the manager’s attitudes towards human nature and behaviour at work. He put forward two suppositions called Theory X and Theory Y which are based on popular assumptions about work and people.
  • 94. Contingency Approach THEORY X ASSUMPTIONS  People do not like work and try to avoid it.  People do not like work, so managers have to control, direct, compel, and threaten employees to get them to work toward organisational goals.  People prefer to be directed, to avoid responsibility, to want security, and have little ambition.
  • 95. Contingency Approach THEORY Y ASSUMPTIONS  People do not naturally dislike work; work is a natural part of their lives.  People are internally motivated to reach goals to which they are committed.  People are committed to goals to the degree that they receive personal rewards when they reach their objectives.  People will seek and accept responsibility under favourable conditions.  People have the capacity to be innovative in solving organisational problems.  People are bright, but generally their potentials are under-utilised.
  • 96. Contingency Approach  A cornerstone of the human relations movement is Theory X and Theory Y of Douglas McGregor.  Theory X is the somewhat stern and pessimistic traditional assumptions about worker capabilities.  Theory Y is an alternative, and optimistic, set of assumptions
  • 97. The Contingency Approach  The contingency approach to management emphasizes there is no one best way to manage people or work.  The contingency approach is derived from the study of leadership styles.  The strength of the contingency approach is that it encourages managers and professionals to examine individual and situational differences before deciding on a course of action.
  • 98. Milestones in the History of Organization Behaviour Industrial Revolution Robert Owen, Andrew Ure and J.N. Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach. Taylor believed in rationalizing production. He Scientific Management– believed Early 20th Century that human behaviour was based on ‘rabble hypothesis.’ Human Relations Movement Great Depression, labour movement and during 1920s to 1940s Hawthorne led to the movement. The movement subsequently became a fad Organisational behaviour – 1950’s The contingency approach is that it encourages Contingency Approach managers and professionals to examine individual and situational differences before deciding on a course of action-1960 onwards.