ContentsIntroductionDefinitions of OBHistorical evolution ofOB as a disciplineContributing disciplinesto the OB field1 Organizational Behavior
IntroductionOrganizations need to develop their interpersonal orpeople skills for being effective.Organizational behavior is a field of study that investigatesthe impact that individuals, groups, and structure have onbehavior within an organization, then applies thatknowledge to make organizations work more effectively.Robbins (2003)OB concentrates on how to Improve productivity Reduce absenteeism and turnover Increase employee citizenship Increase employee job satisfaction2 Organizational Behavior
The field of organizational behavior takes extracts fromthe behavioral science disciplines like psychology, socialpsychology, and cultural anthropology.Some basic ideas included in OB are personality theory,attitudes and values, motivation and learning,interpersonal behavior, group dynamics, leadership andteamwork, organizational structure and design, decision-making, power, conflict and negotiation.3 Organizational Behavior
Learning ObjectivesAfter this unit, you will be able to understand-----Historical evolution of OB as a disciplineContributing disciplines to the OB field4 Organizational Behavior
Definitions of OBOrganizations are defined as social arrangements,constructed by people, who can also change them.----Buchanan and Huczynski (1997)Organizations are a system of cooperative activities -and their coordination requires something intangibleand personal that is largely a matter of personalrelationships.---- Barnard (1938)OB is concerned with “the study of the structure,functioning and performance of organizations, and thebehavior of groups and individuals within them”.---- Pugh (1971)5 Organizational Behavior
OB is about----1. “the study of human behavior, attitudes and performance within anorganizational setting;2. drawing on theory, methods and principles from suchdisciplines---3. as psychology, sociology, and cultural anthropology to learn aboutindividual perception, values, learning capabilities, and actions4. while working with groups and within the total organization;5. analyzing the external environment’s effect on the organization6. and its human resources, missions, objectives and strategies.” Organizational behavior is defines as “The understanding,prediction and management of human behavior in organizations.”Fred Luthans6 Organizational Behavior
Contd.From the above definitions, OB can be seen as----A way of thinkingAn interdisciplinary fieldHaving a distinctly humanistic outlookPerformance orientedSeeing the external environment as criticalUsing scientific methodHaving an application orientation7 Organizational Behavior
Levels of AnalysisWood (1997) suggested that different levels ofanalysis can be applied when judging the importanceof an organizational issue. He proposed eightlevels----IndividualTeamInter-groupOrganizationalInter-organizationalSocietalInternationalGlobal8 Organizational Behavior
Historical Evolution of OB as aDisciplineMany people have contributed to the growth of OB.Some important contributions are-A) Early Theorists1. Adam Smith’s contributionIn the Wealth of Nations published in 1776, AdamSmith stated that organizations and society wouldbenefit if they practice division of labor.Division of labor increased productivity by improvingworkers’ skills and expertise and by saving time.9 Organizational Behavior
2. Work of Charles BabbageHe added some more advantages to the list ofadvantages of division of labor proposed by Adam Smith:It decreases the time needed to learn a job.It reduces wastage of material during the learningprocess.Improves skill levels.It matches people’s skills and physical abilities withspecific tasks.10 Organizational Behavior
B) The Classical EraClassical era covers the period from 1900 tomid 1930s.The main contributors during this period wereFrederick TaylorHenri FayolMax WeberMary Parker FolletChester Barnard11 Organizational Behavior
1.Frederick TaylorHis main focus was on finding one best way of doing a job.He gave importance on selecting the right people for the rightjob and train them to do the job in one best way.His scientific principles of management highlighted thefollowing principles Shift all responsibility for the organizational work from worker tomanager. Use scientific methods to find the most efficient way of doing work. Select the best person to do the job. Train the worker to do the work effectively. Observe the performance of workers to make sure that proper workmethods are used and correct results are obtained.12 Organizational Behavior
2.Henri Fayol He was a mining engineer and a manager by profession. He defined the nature and working patterns of twentieth centuryorganizations in his book, General and Industrial Management,published in 1916. In this book 14 principles of management are defined. They are----1. Division of work – Tasks should be divided among employees.2. Authority and responsibility – Authority is the right to give orders.It should match with responsibility.3. Discipline – It is necessary for proper functioning of business.4. Unity of command – An employee should receive orders from onesuperior only.5. Unity of direction – Activities related to a single objective should becoordinated by a single plan.13 Organizational Behavior
6. Subordinates of individual interest to general interest – Individualor group goals must not take priority over business goals.7. Remuneration of personnel – It should be fair, encourage effortand there should be no overpayment.8. Centralization – The extent of centralization of power of issuingorders at the top depends on size of the organization and theskills of its personnel.9. Scalar chain (line of authority) – Flow of communication shouldbe up and down the line of authority.10. Order – Material and personnel should be at proper place.11. Equity – People should be treated with kindness and justice.12. Stability of tenure of personnel – Quick turnover of people shouldbe avoided because it takes time to develop expertise.13. Initiative – Employees should be encouraged to take initiatives.14. Esprit de corps – All efforts should be made to maintain peaceand harmony within the organization.14 Organizational Behavior
3.Max Weber His theory is also known as bureaucratic theory in management. He described an ideal kind of organization and called it bureaucracy.The features of Weber’s bureaucratic structure are------- Areas of authority should be clearly specified. Organizations follow principle of hierarchy where subordinates followinstructions of superiors but have a right to appeal. Abstract rules guide decisions and actions. Officials are selected on the basis of technical qualifications. Employment by the organization is a career.15 Organizational Behavior
C) The Human RelationsMovement1. Mary Parker Follet------The view that people are important to the world ofbusiness was given by Mary Parker Follet. With this theconcept of human relations movement started.Follet believed that organizations should be based oncollectivism (group ethics) rather than individualism.The manager’s task was to coordinate group efforts.Managers and workers should be like partners.16 Organizational Behavior
2. Chester BarnardBarnard believed that organizations consist of peoplewho have interacting social relationships.He believed that organizations can be successful ifthey cooperate with various stakeholders such asemployees, customers, investors, suppliers, etc.He emphasized on the need for development of skillsand motivation of employees for the success oforganization.17 Organizational Behavior
3. Elton Mayo He is known as the founder of human relations movement. He is also known for his research including the Hawthorne Studiesand his book ‘The Social Problems of an Industrialized Civilization(1933)’. The research conducted under the Hawthorne Studies showed theimportance of groups in affecting the behavior of individuals at work. He found that work satisfaction depended on the social relationshipof the workgroup. Physical conditions and financial incentives have very lowmotivational value. He concluded that performance depends on both social issues andjob content.18 Organizational Behavior
4. Dale CarnegieHis book How to Win Friends and Influence People isused by management experts even today.He believed that to succeed, an organization shouldwin the cooperation of its people.He advised------Make others feel important by appreciating their efforts.Try to make a good impression.Win people by being sympathetic and never telling that theyare wrong.Change people by praising their good qualities.19 Organizational Behavior
5. Abraham MaslowHe proposed the need hierarchy theory (physiological,safety, social, esteem and self actualization needs).Each step in the hierarchy must be satisfied beforemoving on to the next step.After a need is satisfied, it does not motivate anindividual.The final goal of human existence is self actualization.Managers who accepted this theory tried to changeorganization and management practices to reducehurdles that prevent employees from reaching selfactualization.20 Organizational Behavior
Maslow’sMaslow’sHierarchyHierarchyof Needsof NeedsSelfSelfEsteemEsteemSocialSocialSafetySafetyPhysiologicalPhysiologicalBe where you want to beNeed for respect from othersNeed to be in a group, be lovedNeed for stability and consistencyBasic needs like food, water
6. Douglas McGregor He gave two statements about human nature – Theory X andTheory Y. Theory X put forward a negative view of people stating that thiscategory has Little ambition Dislike work Want to avoid responsibility Need close supervision at work Theory Y put forward a positive view of people stating that thiscategory has Self direction Take responsibility Consider work as a natural activity McGregor believed that managers should give freedom to theirsubordinates to utilize their creativity and potential.22 Organizational Behavior
D) Behavioral ScienceTheorists1. B.F. Skinner-His research on classical and operant conditioningand behavior modification affected the design oforganization’s training programs and reward systems.According to Skinner, behavior depends on results.He stated that people show a desired behavior only ifthey are rewarded for it.A behavior is not repeated if an individual is notrewarded or punished for it.23 Organizational Behavior
2.David McClellandHis work has helped organizations to match peoplewith jobs and in redesigning jobs for high achievers tomotivate them.For example, people who have received achievementtraining in India, work for longer hours, initiate morenew business ventures, make greater investments inproductive assets as compared to people who did notreceive such training.24 Organizational Behavior
3.Fred FiedlerHis work in the field of leadership has a bigcontribution to the growth of OB as a discipline.He highlighted the situational aspects of leadershipand tried to develop a complete theory of leadershipbehavior.25 Organizational Behavior
4.Frederick Herzberg He tried to find answer tothe question: Whatindividuals want from theirjobs? By his study, he reached aconclusion that peoplepreferred jobs that providedrecognition, achievement,responsibility and growth. Only hygiene factors werenot sufficient to motivatepeople at workplace. This work is important in OBbecause it helped inenriching jobs and thequality of work life inmodern organizations.26 Organizational BehaviorMotivational FactorsHygiene Factors•Company policies• Quality of supervision• Relations with others• Personal life• Rate of pay• Job security• Working conditions• Achievement• Career advancement• Personal growth• Job interest• Recognition• Responsibility
E) OB in Present TimesOnly a single theory cannot improveorganizational functioning and effectiveness.Therefore a contingency approach issuggested.Today, the focus is on understanding thesituational factors and how they affect abehavior pattern of individuals.27 Organizational Behavior
Contributing Disciplines to the OB FieldOrganizational behavior is a behavioral science that takescontributions from various behavioral disciplines like----PsychologySociologySocial psychologyAnthropologyPolitical science28 Organizational Behavior
Psychology It is the science that tries to measure, explain and change thebehavior of humans and other animals.Early industrial or organizational psychologists wereconcerned with problems of tiredness, boredom and otherfactors that affect performance.But now, they are concerned with learning, perception,personality, training, leadership effectiveness, etc.SociologyIt is the study of the social system in which the individual lives.It studies people with respect to their colleagues.Sociologists make an important contribution to OB throughtheir study of group behavior in organizations.29 Organizational Behavior
Social PsychologyIt mixes the concepts of psychology and sociology.It focuses on influence of people on one another.AnthropologyIt is the study of societies to learn about human beings and their activities.Anthropologists work on culture and environments.They help in understanding differences in fundamental values, attitudes andbehavior of people in different countries and different organizations.Political ScienceIt studies behavior of individuals and groups within a political environment.It focuses on areas like conflict, intra-organizational politics and power.30 Organizational Behavior
Motivation and Job SatisfactionWhy is this important?Are you tired of unmotivated, uninterested, and inept workers?One-third to one-half your life is spent at work!!
Theories of MotivationContentTheories: Focus on the importance of the work(e.g., challenges and responsibilities)Specific needs that motivate human behaviorProcessTheories: Deal with the cognitive processes used inmaking decisions about our work
Content TheoriesAchievement MotivationTheory: David McClelland.Emphasizes need to accomplish something. Linked to successfulmanagersFavor environment where they can assume responsibilityTake calculated risks and set attainable goalsNeed continuing recognition and feedbackManagers high in achievement motivation show more respectfor subordinates and use more participatory systems
Need Hierarchy TheoryAbraham Maslow: proposed that we have a hierarchy ofneeds. Once one is fulfilled we can move on to the nextPhysiologicalSafetyBelonging and LoveEsteemSelf-Actualization
ERG TheoryAlderferSimilar to Maslow. We have needs, but in this case they arenot hierarchically arrangedSatisfying a need may increase its strengthExistence NeedsRelatedness NeedsGrowth Needs
Motivator-Hygiene (Two Factor)TheoryMotivator Needs: internal to work itself. If conditions aremet, job satisfaction occursJob enrichment: expand a job to give employee a greater role inplanning, performing, and evaluating their workHygiene Needs: Features of work environment. If not met,job dissatisfaction occurs
Job Characteristics TheoryIf employees have a high need for growth, specific jobcharacteristics lead to psychological conditions that lead toincreased motivation, performance, and satisfaction.Skill varietyUnity of a jobTask significanceAutonomyFeedback
Process TheoriesValence-Instrumentality-Expectancy (VIE)Theory: peoplewill work hard if they expect their effort to lead to rewardImportance of outcome determines its strength as amotivator – supported by research
Equity TheoryMotivation is influenced by how fairly we feel we are treatedat workBenevolentWorkers: martyrs. Feel guilt when rewardedEquityWorkers: Sensitive to fairness. NormalEntitledWorkers
Goal-Setting TheoryIdea that our primary motivation on the job is defined interms of our desire to achieve a particular goalResearch shows that having goals leads to better performancethan not having goalsSpecific goals are more motivating than generalModerately difficult goals are most motivating
High Performance CycleExpands on Goal SettingTheorySpecific, attainable goals influenced byModerators (commitment to goal, self-efficacy, taskdifficulty, feedback) andMediating Mechanisms (universal task strategies such asdirection of attention, effort and persistence)
Job SatisfactionOverall measures of satisfaction may be too broad: currentmeasures address different facets of job satisfactionOverall job satisfaction rate has remained the same for over 50yearsRates are much lower for government workersWhen people say they are satisfied, they often mean they are notdissatisfied!!
Personal Characteristics and JobSatisfactionAge: in general, increases with ageMalcontents have stopped workingOlder workers have greater chance of fulfillmentGender: inconclusive resultsRace: whites are happierCognitive Ability: slight negative relationship between level ofeducation and satisfaction
Personal Characteristics, Cont.Use of SkillsJob CongruencePersonality: less alienation and internal locus of control leadto higher satisfactionOccupational Level: the higher the status level the greater thesatisfaction
Low Satisfaction and Job BehaviorAbsenteeism: any given day 16-20% of workers miss work.Costs businesses $30 billion dollars a yearYounger have higher absence ratesRates are influenced by economic conditionsTurnover: Not always a bad thing!FunctionalTurnover: when bad workers leaveDysfunctionalTurnover
LEADERSHIPLeadershipLeadership involves qualities related to a persons character andbehaviors, as well as roles within a group or organization. Itrequires that a person have the ability to guide and influenceanother person, group, or both to think in a certain way,achieve common goals, or provide inspiration for change.Marquis and Huston (2003) state that leaders:Often do not have delegated authority, but obtaintheir power through other means, such as influence.Have a wider variety of roles than do managers.May not be part of the formal organization.
Autocratic LeadershipA leadership style characterized by specific instructions toemployees regarding what,how,and when work shouldbe done.•Micro-management style•The leader plans, organizes, controls, andcoordinates.•Emphasis is on getting the job done withoutregard for input from others.
Autocratic Leadership (cont.)AdvantagesEfficiencyEmployees know the manager’s expectations.DisadvantagesDiscourages employees from thinking about processimprovementsEmployee dissatisfactionDecline in worker performanceDoes not prepare employees for promotion or possibleadvancement
Autocratic Leadership (cont.)When to use the autocraticstyleDuring an emergencyManaging temporaryemployeesManaging newemployees
Democratic LeadershipA leadership style characterized by encouragement foremployees to share in the decision-making and problem-solving processes.•General management style•Considers everyone’s viewpoint indecision making•Utilizes team concept in goal setting
Democratic Leadership (cont.)AdvantagesEmployees actively involved in decision makingHigher employee moraleStronger employee commitment to establishedgoalsDisadvantagesTime consumingNot everyone likes to participate in decisionmaking.
Democratic Leadership (cont.)When to use the democraticstyleManaging employees who arecommitted to their jobsManaging employees who areinterested in moreresponsibilityManaging experienced andwell-trained employees
Laissez-faire LeadershipA leadership style in which minimal direction andsupervision is given to workers.•Open management style•Management shares information•Team (or individual employee) iscompletely responsible for theworkload.
Laissez-faire Leadership (cont.)AdvantagesEasy management style to administerComplete empowerment for employeesDisadvantagesPoor decision making may result.Some employees do not perform well withoutdirection and supervision.
Laissez-faire Leadership (cont.)When to use laissez-faireManaging experienced,well-trained, and highly-motivated workersManaging home-basedemployees, outsidesalespersons
Situational LeadershipLeadership characterized by shifts in management style asappropriate for individual employees.•The managementstyle applieddepends on theneeds of eachemployee.
Situational Leadership (cont.)AdvantagesManagement style personalized for eachemployeeImproved communicationHigh employee moraleImproved productionDisadvantagesTime consumingDifficult to manage
Situational Leadership (cont.)When to use situationalmanagementHighly experienced managerManager highly skilled in humanrelationsEmployees with range of needsfor supervision
The Art & Craft of SupervisionThe Art The CraftInterpersonaland ConceptualSkillsTechnicalSkills
Making the TransitionFind out what management expects of you.Establish your authority.Get to know your operation.Get to know your people.Communicate your expectations.
DONT DO IT! Playing favorites. Doing the work. Let your employees be the technical workers. Being emotional. Lying your way out of things. Trying to be "One of the Gang." Taking credit for your employees successes. Blaming management for problems. Selling out your employees. Refusing to make a proper commitment to the job. Neglecting to grow into the job.
Qualities of SupervisorsGoal orientedBottom line orientedCommunicates and enforces standardsInitiative – seeks opportunities to solve problemsSkillful use of influenceCommunicates confidencein people
Qualities of Supervisors (continued)Interpersonal sensitivityDevelops and coaches othersGives performance feedbackCollaboration and team buildingConceptual skills and systematicproblem solvingConcern for image andreputation
Supervisor DefinitionSupervisor has its roots in Latin, where it means “LooksOver”Super which means Very Good andVision which meansDetailed Focus.
What Is Supervision?Supervision is the first level of management in anorganizationSupervisors do not do operative work, but see that it isaccomplished through the effort of others
Who are Supervisors?A supervisor is the manager who serves as the link betweenoperative employees and all other managers
Five Attitudes for SuccessfulSupervisionImA member of managementResponsible for the performance of my entire teamEasy to work forEasy to get along withAble to forgive myself for mistakes
The Functions of SupervisionPlanningOrganizingStaffingLeadingControllingDetermining how well the work is beingdone compared to what was plannedDirecting & channelingemployee behaviorObtaining & developinggood peopleDistributing the work & arrangingit so that it flows smoothlyDetermining the most effectivemeans for achieving the work
The Functions of Supervision3 types of skills required of supervisors:Technical:Knowledge about machines, processes, and methods of productionHuman relations:Knowledge about human behavior and the ability to work well withpeopleAdministrative:Knowledge about the organization and how it works
What Factors Affect Behavior?PoliciesPeer groupMediaDifference of ethics taught and ethics observedExternal influencesFamilyReligiousCulturalPolitical
Supervisor’s ResponsibilityKnow and understand values of the department,subordinates, self.Demonstrate integrity.Instruct, monitor, correct behaviors in subordinates.
Ethics In The WorkplaceEmployees’ ideas of what is acceptable and not acceptable arebased on the supervisor’s actionsThe supervisor’s failure to take corrective action in certainsituations can also affect the behavior of the employees
Areas Requiring Ethical ConductLoyaltySupervisors who are viewed as being interested only in themselves and theirfuture will have difficulty in getting the full cooperation of employeesHuman relationsThis category centers on the supervisor’s concept of fairness, particularly inthe treatment of subordinatesOvert personal actionsThis category includes the supervisor’s behavior within the company andhow they handle themselves in the community
Dealing with Dishonest EmployeesA. Dealing with dishonest subordinates1. Recognize the problem, get the facts, and document the case2. Confront the employee3. Follow the established disciplinary systemB. Dealing with dishonest peers or other managers1. You may not be able to deal directly with the problem2. In most cases, report your suspicions and findings to your boss and let themconfront those involvedB. Whistle blowing1. Whistle blower places himself or herself at risk