Organizational Behavior


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Organizational Behavior

  1. 1. Organizational Behavior An Introduction
  2. 2. <ul><li>People spend most of their life in some organization or the other. Right from this college, to the mode of transport you used to come here, to the food you have, we come across thousands of organizations on a regular basis. </li></ul><ul><li>Organizations are basically places where there is a constant interaction between people, structures and technology. </li></ul>
  3. 3. <ul><li>Organizations are strategies created to bring order to a concrete effort for the achievement of certain objectives and goals. </li></ul><ul><li>Since these objectives cannot be achieved by an individual or a small group, some concepts like division of labor and hierarchy of authority have been formulated. </li></ul>
  4. 4. <ul><li>Manager: Someone who gets things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. </li></ul><ul><li>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 and has formal and informal relations with each other. </li></ul>
  5. 5. <ul><li>Behavior is a function of the person and the environment, or B = f (P, E). </li></ul>Like other inputs into an enterprise, the human beings employed by that enterprise constitute a resource -- in this case, a human resource (HR) . Because HR is considered as one of the most important resources, it needs special attention. Organizational Behavior will basically focus on this resource – HR.
  6. 6. Organizational Behavior <ul><li>. . . is 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 </li></ul><ul><li>… is a process of explaining, understanding, predicting, maintaining, and changing employee behavior to increase the overall productivity of an organization. </li></ul>
  7. 7. <ul><li>To facilitate the study of Organizational Behavior , we will look at human behavior in the organization from three perspectives. </li></ul><ul><li>1. First , we will examine human behavior from a psychological perspective . This level of analysis will permit us to examine human traits and characteristics with a view to understanding how elements of personality may influence an individual's responses to his or her organizational environment. </li></ul>
  8. 8. <ul><li>2. Second , we will look at how individuals interact in small group or team environments (a sociological perspective ). </li></ul><ul><li>3. Finally, it will be necessary to examine the impact of larger or wider organizational factors on the individuals within that organization. </li></ul>
  9. 10. <ul><li>In summary , to understand behavior in the organization, we must examine the interaction of individuals with the various factors the individuals encounter in that organizational setting. The behaviors encountered in the organization are, of course, very diverse. The diversity of personalities interacting with varied organizational environments results in considerable variation in concomitant behavior. </li></ul>
  10. 12. <ul><li>Employees expect respect and meaningful work </li></ul><ul><li>The organization expects its employees to follow the rules and policies of the firm and to perform the required tasks </li></ul>
  11. 14. A. Importance of Developing Managers’ Interpersonal Skills <ul><li>Companies with reputations as a good place to work—such as Hewlett-Packard, Southwest Airlines, Infosys etc, have a big advantage when attracting high performing employees. A recent study of the workforce of some of these companies found that Wages and fringe benefits are not the reason people like their jobs or stay with an employer. More important to workers is the job quality and the supportiveness of the work environments. Managers’ good interpersonal skills are likely to make the workplace more pleasant, which in turn makes it easier to hire and retain high performing employees. </li></ul>
  12. 15. Management Functions <ul><li>French industrialist Henri Fayol wrote that all managers perform five management functions: plan, organize, command, coordinate, and control. </li></ul><ul><li>Modern management scholars have condensed to four: Planning, Organizing, Leading, and Controlling. </li></ul><ul><li>Planning requires a manager to define goals (organizational, departmental, worker levels) </li></ul><ul><li>Establish an overall strategy for achieving those goals </li></ul><ul><li>Develop a comprehensive hierarchy of plans to integrate and coordinate activities. </li></ul>
  13. 16. <ul><li>Organizing requires a manager to determine what tasks are to be done, Who is to be assigned the tasks, How the tasks are to be grouped, who reports to whom, where decisions are to be made. (centralized/decentralized) </li></ul><ul><li>Leading requires a manager to Motivate employees, direct the activities of others, select the most effective communication channels, resolve conflicts among members. </li></ul><ul><li>Controlling requires a manager to Monitor the organization’s performance, Compare actual performance with the previously set goals, correct significant deviations. </li></ul>
  14. 17. Core Concepts <ul><li>Individual difference : “All humans are different since birth” says the Law of Individual Differences. And hence, all individuals have to be looked at differently. Managers should not expect all their subordinates to be like them ( of the same stereotype ). Managers should treat every person as a different entity. </li></ul>
  15. 18. <ul><li>Whole person : Peter Drucker makes the case that a company cannot just hire &quot;a hand&quot;; an entire human being always comes with that hand. This means that the firm also hires the values, attitudes, and other personal attributes the worker brings to the workplace. According to Drucker: </li></ul><ul><li>The human resource... is, of all resources... the most productive, the most versatile, the most resourceful. </li></ul><ul><li> cannot &quot;hire a hand&quot;; its owner always comes with it. </li></ul>
  16. 19. <ul><li>Caused Behavior ( Motivation ) : This concept is governed by the Newton’s law : Every action has an equal and opposite reaction. A Manager by his own behavior, can cause an employee behave in a particular way. If he is respectful to his employees they are bound to be respectful to him, not otherwise. </li></ul>
  17. 20. <ul><li>Human Dignity : Though “People” are ultimately a “Factor of Production” they need to be treated differently from the other factors simply because they are humans, not machines. They have to be treated with dignity and respect. </li></ul>
  18. 21. ORIGINS OF ORGANIZATIONAL BEHAVIOR <ul><li>Psychology . Psychological theories have helped us explain and predict individual behavior . Many of the theories dealing with personality, attitude, learning, motivation, and stress have been applied in Organizational Behavior to understand work-related phenomena such as job satisfaction, commitment, absenteeism, turnover, and worker well-being . </li></ul>
  19. 22. Sociology <ul><li>Sociologists , studying the structure and function of small groups within a society have contributed greatly to a more complete understanding of behavior within organizations. Taking their cue from Sociologists, scholars in the field of Organizational Behavior have studied the effects of the structure and function of work organization on the behavior of groups, as well as the individuals within those groups. </li></ul><ul><li>Many of the concepts and theories about groups and the processes of communication, decision making, conflict, and politics used in Organizational Behavior, are rooted in the field of Social Psychology . </li></ul>
  20. 23. Political Science <ul><li>The field of Political Science has helped us understand how differences in preferences and interests lead to conflict and power struggles between groups within organizations. </li></ul>
  21. 24. Economics <ul><li>Economics has assisted students of Organizational Behavior in understanding how competition for scarce resources both within and between organizations leads these organizations to increase their commitment to efficiency and productivity (with concomitant influences on the behavior of individuals and groups). </li></ul>
  22. 25. Anthropology <ul><li>Organizational Behavior draws on the field of Anthropology for lessons about how cultures ( corporate culture) and belief systems develop. </li></ul>
  23. 26. Organization Models <ul><li>A utocratic Custodial Supportive Collegial </li></ul><ul><li>Model Power Economic Leadership Partnership </li></ul><ul><li>Depends Resources </li></ul><ul><li>On </li></ul><ul><li>Managerial Authority Money Support Teamwork </li></ul><ul><li>Orientation </li></ul><ul><li>Employee Obedience Security Job Responsibility </li></ul><ul><li>Orientation Performance </li></ul><ul><li>Employees Depends on Depends on Depends on Depends on </li></ul><ul><li>Psychological Boss Organization participation self discipline </li></ul><ul><li>Result </li></ul><ul><li>Performance Minimum Passive Awakened Moderate </li></ul><ul><li>Result Co – operation drives enthusiasm </li></ul>