This presentation gives a deep introduction to Organizational Behaviour for the benefit of new learners

1. INTRODUCTION TO ORGANIZATIONAL
BEHAVIOUR
By
Dr.MALATHI SELVAKKUMAR

2. EVOLUTION OF OB
Industrial Revolution
Started in 1776
Robert Owen- Welsh factory
owner in 1800 emphasised on
human needs in employees
Against Child Labour
Created awareness about the
cleanliness of workplace

3. Industrial Revolution
• Andrew Ure in 1835
• “Philosophy of
Manufacturers”
• Identified human factor in
addition to mechanical &
commercial aspects of mfg
• Provided tea, medical treat-
ment, fans (ventilation)and
sickness payments to
employees

4. Industrial Revolution
• In India, J.N.Tata (Jamset
Nusserwanji) introduced:-
Provident Fund
Pension Scheme
Accident compensation
Installed humidifiers
Fire sprinklers

5. TATA’s contribution to India

6. Scientific Management
• Contributed by F.W.Taylor in the early 1990s
• He is called as the Father of
Scientific Management
• Right person for the right job
• Training of employees
• Remuneration
• Recognition of productivity of
industrial workers

7. Scientific Management - Principles
• Scientifically study each part of the job, and develop
the “one best way” of doing it
• Carefully select and train the employees
• Cooperate with the workers to ensure they use proper
methods
• Divide work and responsibility between workers and
managers

8. Scientific Management- Principles
• Apply financial incentives
system
• Establish standards of work
• Utilise specialised
functional supervision
• Develop and maintain
friendly labour
management relations

9. Scientific Management
Criticisms
Focus on time- so workers are
under pressure to perform fast
Focus on productivity and
profitability
Exploitation of workers and
customers
Leads to mistrust between labour and
management

10. Criticisms
• RABBLE HYPOTHESIS
He was widely criticised for
considering the society as
unorganised, and the
individual worker for working
with self interest

11. HR MOVEMENT
• Because of the Great Depression in 1929, HR
became an important aspect of management
• Decent hours of work
• Fair wages
• Good working conditions
• Employee relations
• Worker cooperation and morale
• Human element - capital

12. HR MOVEMENT
• Exploitation of workers
led to their need for
protection of their rights
• This led to formation of
trade unions
• Primary emphasis on
wages and employee
relations

13. OB- Definition
• Organizational Behaviour (OB) can be defined
as “the understanding, prediction and
management of human behaviour both
individually or in a group that occur within an
organization”.

14. OB - Meaning
• While at work, to understand others
behaviour as well as make others understand
ours.
• For a healthy working environment, we need
to adapt to the environment and understand
the goals we need to achieve.

15. Management Skills
• Technical Skills
• Human Skills
• Conceptual Skills

16. Disciplines that contribute to OB
• Psychology – motivation, personality, perception,
emotions, work stress, job satisfaction
• Social Psychology – attitude & behavioural change,
communication
• Sociology – power, conflict,
intergroup behaviour,
organisational change and
culture
• Anthropology – cross cultural
analysis, comparative values and attitudes

17. Importance of OB
• It helps in explaining the interpersonal
relationships employees share - peers, higher
and subordinates.
• The individual behaviour can be predicted.
• It balances relationship in
an enterprise through
effective communication.

18. Importance of OB
• It assists in marketing.
• It helps managers to encourage their sub-
ordinates.
• Any change within the organization can be
made easier.
• It helps in predicting human behavior & their
application to achieve organizational goals.
• It helps in making the organization more
effective.

19. Challenges of OB
• Responding to economic pressures
• Responding to globalisation
• Increased foreign assignments
• Working with people from different cultures

20. Challenges of OB
• Stimulating innovation and change
• Managing workforce diversity
• Improving customer service
• Improving people skills
• Creating a positive
environment
• Helping employees balance
work life conflicts

21. Models of OB
Autocratic
Model
Supportive
Model
Collegial
Model
Custodial
Model
Systems
Model

22. Approaches/Models of OB
• Supportive Model – HR Approach – leadership
based
• Autocratic Model – Theory X
• Custodial Model –
employee welfare based
• Collegial Model – team work
based on self-discipline
• Systems Model – holistic
approach to management

23. Autocratic Model
• Power of the BOSS
• Penalty is the motivator
• Tight control over the
employees at work
• Ideal when employees are lazy
• Has a negative impact as employees are
uninformed, insecure and afraid
• Not applicable in the present global work culture

24. Custodial Model
• Depends on economic resources
• Employees highly dependant on
the organisation
• Passive cooperation from
employees
• Welfare & development programs
• Employees are secured and
satisfied
• Depends on material rewards
• (eg) PSUs

25. Supportive Model
• Depends on leadership instead
of power/money
• Self directed and creative
team
• Supports employee
performance
• Cares for psychological needs
of employees
• Better superior- subordinate
relationship
• Confidence and trust(eg) S/W
firms

26. Collegial Model
• Workers feel they are partners in the organisation
– matrix organisation
• Team spirit and self discipline
• Promotes participation and
cooperation
• Highly motivated employees
• Makes employees responsible
• Extension of the supportive
model (eg) NGOs

27. Models of OB – A comparison
Basis of comparison Autocratic Custodial Supportive Collegial Systems
Basis of the Model Power Economic sources Leadership Partnership
Trust and
understanding
Managerial
Orientation Authority Money Support Teamwork Care & compassion
Employee
Orientation Obedience Security &
benefits
Job Performance Responsible
Behaviour
Psychological
ownership
Employee Psyche Dependence on
Boss
Dependence on
organisation
Participation Self-discipline Self motivation
Employee
performance Minimum Passive cooperation Awakened drives Moderate
enthusiasm
Organisational goal
Employee Needs Subsistence Security Status and recognition Self actualisation Passion, commitment

28. FOUNDATIONS OF INDIVIDUAL
BEHAVIOUR
• According to Lewin “ a person’s behaviour is
the product of the person and his/her
environment.
• B= ∑ (P, E), where B= Behaviour; P= Person;
and E= Environment

29. FOUNDATIONS OF INDIVIDUAL
BEHAVIOUR
• Personal Factors
• Psychological Factors
• Environmental Factors
• Organisational systems and resources

30. Foundations of Individual Behaviour
Personal Factors
 Age
 Sex
 Education
 Abilities
 Marital Status
 No. of dependants
 Creativity
 Emotional Intelligence
 Identity

31. Ability
It is an individual’s capacity to perform various
tasks in a job.
The ability of an individual is
made up of 2 types of skills :-
Intellectual skills –skills
required to perform mental
activities
Physical skills – are the abilities
required to perform a task

32. Dimensions of Intellectual Ability
• Number aptitude – the ability to do speedy and
accurate calculations
• Verbal comprehension – the
ability to understand what is read
or heard, and the relationship of
words to each other
• Inductive reasoning– the ability to
identify the logical sequence in a
problem and then solve it

33. Dimensions of Intellectual Ability
• Perceptual speed – ability to identify visual similarities
and differences
quickly and accurately
• Deductive reasoning – Ability to
use logic and assess the implications
of an argument
• Spatial visualisation - ability to
imagine how an object would look, if
its position in space were changed
• Memory – ability to retain and recall
past experiences

34. Nine basic physical abilities
strength factors
• Dynamic strength – ability to exert muscular
strength continuously over time
• Trunk Strength - ability to
exert using trunk muscles
• Static strength – ability to exert
force against external objects
• Explosive strength - ability to
expand a maximum of energy

35. Nine basic physical abilities
flexibility factors
• Extent flexibility – ability to move the trunk
and back muscles as far as possible
• Dynamic flexibility – Ability to make rapid,
repeated flexing movements
• Body coordination – ability
• to coordinate actions of
diff different parts of the body

36. Nine basic physical abilities
flexibility factors
• Balance - ability to maintain equilibrium
despite unbalancing forces
• Stamina – Ability to continue maximum effort
requiring prolonged effort over time

37. Psychological Factors
• Personality
• Perception
• Attitudes
• Values
• Learning

38. Environmental Factors
• Economic Factors
• Social and cultural
factors
• Ethics and social
responsibility
• Political factors

39. Environmental Factors
• Economic environment
• Employment opportunities
• Wages
• Trade cycles
• Technological change

40. Social and Cultural Environment
• Work ethics
• Achievement needs
• Effort – reward expectations
• Cultural attributes like
educational system, media
conditioning, institutional
characteristics
• Values – individual judgement of right and wrong

41. Ethics and Social Responsibility
• Moral principles – good/bad; right/wrong
• Personal ethics and business ethics
– same when looked at the leader
• Example- Chung Mong Koo, Head of Hyundai
Motors – 6th largest car maker in the world,
sentenced to 3 years imprisonment for
embezzlement of funds and breach of trust

42. CSR
•

43. Political Factors
• Stability of the ruling government affects the
employment opportunities
• Does not attract investors from India or FDI

44. Organisational Systems and
Resources
• Physical facilities
• Organisational structure and
design
• Leadership styles
• Reward Systems
• Work related behaviour – joining, remaining,
performing tasks, deviant behaviour and
exhibiting organisational citizenship

45. Organisational Citizenship Behaviour
Forms
Altruism – helping co-workers, volunteering
Conscientiousness
Civic Virtue – attending meetings voluntarily,
keeping up with new information
Sportsmanship – not finding fault with the
organisation
Courtesy- not creating problems

46. Forms of Organisational Behaviour
• Deviant behaviour – 2 forms
Constructive behaviour – whistle blowing
Destructive behaviour – workplace violence
• Cyber loafing – using office internet and e-mails
for personal purposes
• Employee theft – 2 reasons
“Others are doing, why not me”?
To settle scores if they believe they are ill -treated

47. Whistle Blowing
It is “raising a concern about
a wrong doing within an
organisation”.
A whistle blower is a person
who exposes misconduct,
alleged dishonest or illegal
activity occurring in an
organisation

48. Whistle Blowing- Types
Internal – is blowing the whistle inside the
organisation, to draw the attention of the
management
Personal – is blowing the whistle on the
offender and the charge here is not against the
organisation but against an individual

49. Whistle Blowing- Types
External – is blowing the whistle to law
enforcement agencies or to teams worried with
legal matters (eg) lawyers, IT department, mass
media and law enforcement
(factory/food/safety inspector)

50. Components of WB Policy
 An effective communicated statement of responsibility
 A clear defined procedure
of reports
 Well trained personnel to
receive and investigate
reports
 A commitment to take
appropriate action
 A guarantee against retaliation
reports in good faith

52. WB -The Ranbaxy Case
• American investigative journalist Katherine Eban
pored over to piece together a riveting and definitive
account of how once storied Indian pharma major
Ranbaxy blatantly cut corners - to improve its bottom
line.
• Ranbaxy had fabricated quality data in order to gain
approval to market its drugs .
•

53. WB -The Ranbaxy Case
• The allegations had first been made by a company
whistle blower who had contacted the agency (FDA)
• The whistle blower in question is Dinesh Thakur,
then Ranbaxy's Director and Global Head
of Research, Information and Portfolio Management,
who, in 2004 put together a team to study a deadly
secret he had come across: that the company was
fudging data.
• He blew the lid off illegal practices by Indian pharma
companies compromising on quality

54. WB -The Ranbaxy Case
The team gathered bits of information and
stumbled into Ranbaxy’s secret: the company
manipulated almost every aspect of its
manufacturing process to produce impressive
data to improve its bottom line
The company’s scientists at the behest of its
managers substituted lower purity ingredients
for higher ones to reduce cost

55. WB -The Ranbaxy Case
 They altered test parameters so that formulations with higher
impurities could be approved
 They faked dissolution studies
 They superimposed brand-name test results onto their own in
applications
 The company forged its own Standard Operating Procedures
(SOP) that is relied upon by FDA investigators
 Employees backdated documents and artificially aged them in a
steamy room overnight to fool regulators

56. WB -The Ranbaxy Case
Takur worked for 14 hour days for several
weeks doing exhaustive research and finally
brought his team’s preliminary findings to the
notice of his boss Raj Kumar
It was then the team realised that the
company was committing fraud and
potentially harming patients on a global scale

57. WB -The Ranbaxy Case
He escalated it into a 4 page report to the CEO
Brian Tempest, and still no action was taken
He was accused of downloading pornography
on his office computer
When no action was taken for 2 weeks, he
masked his identity and sent a message
directly to FDA Commissioner Lester Crawford
on August 15, 2005
The rest is history

58. WB -The Ranbaxy Case
It was found that adulterated drugs were
manufactured and distribution in 2 Indian
facilities misrepresenting clinical generic drug
data
These included drugs destined for treatment of
HIV/AIDS in Africa
They were fined $150 million to settle civil claims
and $350 million for state laws

59. Refer example of good relations
Japanese example- taxi

60. Psychological Factors
• Individual mental characteristics
• Personality
• Attitudes
• Values
• Perception
• Learning

61. Causation of Human Behaviour
Input
(Environment)
Output
(Behaviour)
Thruput
(Evaluation)
Feedback

62. MODELS OF MAN
Based on individual differences, individuals are
classified as under:-
Rational Economic Man
Self- Actualising Man
Complex Man
Social Man
Organization Man

63. Rational Economic Man
• Oldest model of man
• Man works hard to earn
more in a rational manner
• He can be motivated
through incentives to
increase his efficiency –
piece rate
• Organisation will continue
only till contribution from
employee matches the cost

64. Self – Actualising Man
• Assumes that man is self
motivated and controlled
• Economic incentives have
their own drawbacks
• Based on Maslow’s Theory
• Sense of achievement gives
satisfaction

65. Complex Man
• Behaviour of individuals is caused
due to individual differences,
making them unpredictable
• Hence human behaviour is complex
• Managerial actions should consider the
complex variables affecting human behaviour

66. Social Man
• Based on the assumption that man is
influenced by social variables
• Social relationships more
important than economic
motives
• HR approach
• Concerned with people’s
feelings in the organisation

67. Organisation Man
• Concept developed by Whyte
• He is an extension of the social
man
• Importance to loyalty
• Cordial relationship with
co-workers
• Organisation takes care of
employee needs

68. MODELS OF INDIVIDUAL BEHAVIOUR
• Theory X and Theory Y
• Economic (scientific management) & Self-
actualising Model (self fulfilment, personal
growth and job competence)
• Behaviouristic (observable behaviour) and
Humanistic ( conscious reasoning) Model
• Rational (collecting relevant information and
then analysing it) & Emotional ( unconscious
responses guided by emotions) Model

69. MARS Model
Behaviour and
Performance
Situational
Factors
Role Perception
Ability
Motivation