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Organizational behaviour


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Organizational behaviour

  1. 1. ContentsIntroductionDefinitions of OBHistorical evolution ofOB as a disciplineContributing disciplinesto the OB field1 Organizational Behavior
  2. 2. IntroductionOrganizations 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
  3. 3. 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
  4. 4. Learning ObjectivesAfter this unit, you will be able to understand-----Historical evolution of OB as a disciplineContributing disciplines to the OB field4 Organizational Behavior
  5. 5. Definitions of OBOrganizations 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
  6. 6. 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
  7. 7. Contd.From the above definitions, OB can be seen as----A way of thinkingAn interdisciplinary fieldHaving a distinctly humanistic outlookPerformance orientedSeeing the external environment as criticalUsing scientific methodHaving an application orientation7 Organizational Behavior
  8. 8. Levels of AnalysisWood (1997) suggested that different levels ofanalysis can be applied when judging the importanceof an organizational issue. He proposed eightlevels----IndividualTeamInter-groupOrganizationalInter-organizationalSocietalInternationalGlobal8 Organizational Behavior
  9. 9. Historical Evolution of OB as aDisciplineMany people have contributed to the growth of OB.Some important contributions are-A) Early Theorists1. Adam Smith’s contributionIn 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
  10. 10. 2. Work of Charles BabbageHe 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
  11. 11. B) The Classical EraClassical era covers the period from 1900 tomid 1930s.The main contributors during this period wereFrederick TaylorHenri FayolMax WeberMary Parker FolletChester Barnard11 Organizational Behavior
  12. 12. 1.Frederick TaylorHis 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 2. Chester BarnardBarnard 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
  18. 18. 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
  19. 19. 4. Dale CarnegieHis 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
  20. 20. 5. Abraham MaslowHe 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 2.David McClellandHis 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
  25. 25. 3.Fred FiedlerHis 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
  26. 26. 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
  27. 27. E) OB in Present TimesOnly 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
  28. 28. Contributing Disciplines to the OB FieldOrganizational behavior is a behavioral science that takescontributions from various behavioral disciplines like----PsychologySociologySocial psychologyAnthropologyPolitical science28 Organizational Behavior
  29. 29. 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.SociologyIt 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
  30. 30. Social PsychologyIt mixes the concepts of psychology and sociology.It focuses on influence of people on one another.AnthropologyIt 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 ScienceIt studies behavior of individuals and groups within a political environment.It focuses on areas like conflict, intra-organizational politics and power.30 Organizational Behavior
  31. 31. Motivation and Job SatisfactionWhy is this important?Are you tired of unmotivated, uninterested, and inept workers?One-third to one-half your life is spent at work!!
  32. 32. Theories of MotivationContentTheories: Focus on the importance of the work(e.g., challenges and responsibilities)Specific needs that motivate human behaviorProcessTheories: Deal with the cognitive processes used inmaking decisions about our work
  33. 33. Content TheoriesAchievement MotivationTheory: David McClelland.Emphasizes need to accomplish something. Linked to successfulmanagersFavor environment where they can assume responsibilityTake calculated risks and set attainable goalsNeed continuing recognition and feedbackManagers high in achievement motivation show more respectfor subordinates and use more participatory systems
  34. 34. Need Hierarchy TheoryAbraham Maslow: proposed that we have a hierarchy ofneeds. Once one is fulfilled we can move on to the nextPhysiologicalSafetyBelonging and LoveEsteemSelf-Actualization
  35. 35. ERG TheoryAlderferSimilar to Maslow. We have needs, but in this case they arenot hierarchically arrangedSatisfying a need may increase its strengthExistence NeedsRelatedness NeedsGrowth Needs
  36. 36. Motivator-Hygiene (Two Factor)TheoryMotivator Needs: internal to work itself. If conditions aremet, job satisfaction occursJob enrichment: expand a job to give employee a greater role inplanning, performing, and evaluating their workHygiene Needs: Features of work environment. If not met,job dissatisfaction occurs
  37. 37. Job Characteristics TheoryIf employees have a high need for growth, specific jobcharacteristics lead to psychological conditions that lead toincreased motivation, performance, and satisfaction.Skill varietyUnity of a jobTask significanceAutonomyFeedback
  38. 38. Process TheoriesValence-Instrumentality-Expectancy (VIE)Theory: peoplewill work hard if they expect their effort to lead to rewardImportance of outcome determines its strength as amotivator – supported by research
  39. 39. Equity TheoryMotivation is influenced by how fairly we feel we are treatedat workBenevolentWorkers: martyrs. Feel guilt when rewardedEquityWorkers: Sensitive to fairness. NormalEntitledWorkers
  40. 40. Goal-Setting TheoryIdea that our primary motivation on the job is defined interms of our desire to achieve a particular goalResearch shows that having goals leads to better performancethan not having goalsSpecific goals are more motivating than generalModerately difficult goals are most motivating
  41. 41. High Performance CycleExpands on Goal SettingTheorySpecific, attainable goals influenced byModerators (commitment to goal, self-efficacy, taskdifficulty, feedback) andMediating Mechanisms (universal task strategies such asdirection of attention, effort and persistence)
  42. 42. Job SatisfactionOverall measures of satisfaction may be too broad: currentmeasures address different facets of job satisfactionOverall job satisfaction rate has remained the same for over 50yearsRates are much lower for government workersWhen people say they are satisfied, they often mean they are notdissatisfied!!
  43. 43. Personal Characteristics and JobSatisfactionAge: in general, increases with ageMalcontents have stopped workingOlder workers have greater chance of fulfillmentGender: inconclusive resultsRace: whites are happierCognitive Ability: slight negative relationship between level ofeducation and satisfaction
  44. 44. Personal Characteristics, Cont.Use of SkillsJob CongruencePersonality: less alienation and internal locus of control leadto higher satisfactionOccupational Level: the higher the status level the greater thesatisfaction
  45. 45. Low Satisfaction and Job BehaviorAbsenteeism: any given day 16-20% of workers miss work.Costs businesses $30 billion dollars a yearYounger have higher absence ratesRates are influenced by economic conditionsTurnover: Not always a bad thing!FunctionalTurnover: when bad workers leaveDysfunctionalTurnover
  47. 47. 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.
  48. 48. Leadership StylesAutocraticDemocraticLaissez-faireSituational
  49. 49. 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.
  50. 50. Autocratic Leadership (cont.)AdvantagesEfficiencyEmployees know the manager’s expectations.DisadvantagesDiscourages employees from thinking about processimprovementsEmployee dissatisfactionDecline in worker performanceDoes not prepare employees for promotion or possibleadvancement
  51. 51. Autocratic Leadership (cont.)When to use the autocraticstyleDuring an emergencyManaging temporaryemployeesManaging newemployees
  52. 52. 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
  53. 53. Democratic Leadership (cont.)AdvantagesEmployees actively involved in decision makingHigher employee moraleStronger employee commitment to establishedgoalsDisadvantagesTime consumingNot everyone likes to participate in decisionmaking.
  54. 54. Democratic Leadership (cont.)When to use the democraticstyleManaging employees who arecommitted to their jobsManaging employees who areinterested in moreresponsibilityManaging experienced andwell-trained employees
  55. 55. 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.
  56. 56. Laissez-faire Leadership (cont.)AdvantagesEasy management style to administerComplete empowerment for employeesDisadvantagesPoor decision making may result.Some employees do not perform well withoutdirection and supervision.
  57. 57. Laissez-faire Leadership (cont.)When to use laissez-faireManaging experienced,well-trained, and highly-motivated workersManaging home-basedemployees, outsidesalespersons
  58. 58. Situational LeadershipLeadership characterized by shifts in management style asappropriate for individual employees.•The managementstyle applieddepends on theneeds of eachemployee.
  59. 59. Situational Leadership (cont.)AdvantagesManagement style personalized for eachemployeeImproved communicationHigh employee moraleImproved productionDisadvantagesTime consumingDifficult to manage
  60. 60. Situational Leadership (cont.)When to use situationalmanagementHighly experienced managerManager highly skilled in humanrelationsEmployees with range of needsfor supervision
  61. 61. Supervision
  62. 62. The Art & Craft of SupervisionThe Art The CraftInterpersonaland ConceptualSkillsTechnicalSkills
  63. 63. Making the TransitionFind out what management expects of you.Establish your authority.Get to know your operation.Get to know your people.Communicate your expectations.
  64. 64. 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.
  65. 65. Qualities of SupervisorsGoal orientedBottom line orientedCommunicates and enforces standardsInitiative – seeks opportunities to solve problemsSkillful use of influenceCommunicates confidencein people
  66. 66. Qualities of Supervisors (continued)Interpersonal sensitivityDevelops and coaches othersGives performance feedbackCollaboration and team buildingConceptual skills and systematicproblem solvingConcern for image andreputation
  67. 67. Supervisor DefinitionSupervisor has its roots in Latin, where it means “LooksOver”Super which means Very Good andVision which meansDetailed Focus.
  68. 68. What Is Supervision?Supervision is the first level of management in anorganizationSupervisors do not do operative work, but see that it isaccomplished through the effort of others
  69. 69. Who are Supervisors?A supervisor is the manager who serves as the link betweenoperative employees and all other managers
  70. 70. Five Attitudes for SuccessfulSupervisionImA member of managementResponsible for the performance of my entire teamEasy to work forEasy to get along withAble to forgive myself for mistakes
  71. 71. 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
  72. 72. The Functions of Supervision3 types of skills required of supervisors:Technical:Knowledge about machines, processes, and methods of productionHuman relations:Knowledge about human behavior and the ability to work well withpeopleAdministrative:Knowledge about the organization and how it works
  73. 73. Skills & Levels of Management
  74. 74. What Factors Affect Behavior?PoliciesPeer groupMediaDifference of ethics taught and ethics observedExternal influencesFamilyReligiousCulturalPolitical
  75. 75. Supervisor’s ResponsibilityKnow and understand values of the department,subordinates, self.Demonstrate integrity.Instruct, monitor, correct behaviors in subordinates.
  76. 76. Ethics In The WorkplaceEmployees’ ideas of what is acceptable and not acceptable arebased on the supervisor’s actionsThe supervisor’s failure to take corrective action in certainsituations can also affect the behavior of the employees
  77. 77. Areas Requiring Ethical ConductLoyaltySupervisors who are viewed as being interested only in themselves and theirfuture will have difficulty in getting the full cooperation of employeesHuman relationsThis category centers on the supervisor’s concept of fairness, particularly inthe treatment of subordinatesOvert personal actionsThis category includes the supervisor’s behavior within the company andhow they handle themselves in the community
  78. 78. 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