Semester II- BCourse: Organisational BehaviourInstructor: Fezeena KhadirModule IOrganizational basis for behaviour − contributing disciplines to theOB field − Why managers require a knowledge of OB − Need for acontingency approach to the study of OB − Emerging challengesand opportunities for OB − The organization as a system − Systemapproach to organizational behaviour − Managerial functions −The organization and people
What Managers DoWhat are Managerial Activities ?•Make decisions•Allocate resources•Direct activities of others toattain goalsManagers (or administrators)Individuals who achieve goals through other people.
Where Managers Work?Organization•A consciously coordinated social unit,• composed of two or more people,•that functions on a relatively continuousbasis•to achieve a common goal or set ofgoals.
Management Functions (cont’d)PlanningA process that includes•defining goals,•establishing strategy, and•developing plans to coordinateactivities.
Management Functions (cont’d)Organizing•Determining what tasks are to be done,• who is to do them,•how the tasks are to be grouped,•who reports to whom, and•where decisions are to be made.
Management Functions (cont’d)LeadingA function that includes•motivating employees,•directing others,•selecting the most effectivecommunication channels, and•resolving conflicts.
Management Functions (cont’d)Controlling•Monitoring activities to ensure they are beingaccomplished as planned and•correcting any significant deviations
Management SkillsTechnical skillsThe ability to apply specializedknowledge or expertise.Human skillsThe ability to workwith, understand, and motivateother people, both individually andin groups.Conceptual SkillsThe mental ability to analyze anddiagnose complex situations.
Organizational BehaviorOrganizational behavior (OB)A field of study thatinvestigates•the impact that individuals,groups, and structure have on• behavior within organizations,• for the purpose of applyingsuch knowledge•toward improving anorganization’s effectiveness.
The Independent VariablesIndependentVariablesIndividual-LevelVariablesOrganizationSystem-LevelVariablesGroup-LevelVariablesIndependent variableThe presumed cause of some change in the dependentvariable.
The Dependent VariablesProductivityA performance measure thatincludes effectiveness andefficiency.EffectivenessAchievement of goals.EfficiencyThe ratio of effective outputto the input required toachieve it.AbsenteeismThe failure to report to work.TurnoverThe voluntary and involuntarypermanent withdrawal from anorganization.Job satisfactionA general attitude toward one’s job, thedifference between the amount of rewardworkers receive and the amount theybelieve they should receive.Organizational citizenship behavior(OCB)Discretionary behavior that is not partof an employee’s formal jobrequirements, but that neverthelesspromotes the effective functioning ofthe organization.
Contributing Disciplines to the OBField1. PsychologyThe science that seeks to measure, explain, and sometimes changethe behavior of humans and other animals.
Contributing Disciplines to the OBField (cont’d)2. SociologyThe study of people in relation to their fellow human beings.
Contributing Disciplines to the OBField (cont’d)3. Social PsychologyAn area within psychology that blends concepts from psychologyand sociology and that focuses on the influence of people on oneanother.
Contributing Disciplines to the OBField (cont’d)4. AnthropologyThe study of societies to learn about human beings and theiractivities.
Contributing Disciplines to the OBField (cont’d)5. Political ScienceThe study of the behavior of individuals and groupswithin a political environment.
Why managers require a knowledge ofOB?• Organizations exist to achieve goals• Organizations include people who work towardsthe common goals of the organization• Managers achieve goals through other people.• So in the highly competitive environment,managers require people skills also– apart from the basic technical managerial skills– to manage, control and coordinate people…contd…
…contd…• For retaining high performing employees- depends onmanagers’ interpersonal skills• To ensure satisfaction and commitment of employees• To understand the individual, the group and thestructure of the organization so that this knowledgecan be applied for effective functioning• To predict behaviour more accurately• To identify and resolve conflicts and problems withinindividuals and groups in the organisation• For effective decision making
Need for a contingency approach tothe study of OB• The contingency approach refers to situational factors thatare variables which moderate the relationship between theindependent and dependent variables.• Situational factors: variables that moderate therelationship between two or more other variables andimprove the correlation.• There are four key dependent variables(productivity, absenteeism, turnover, and job satisfaction)• and a large number of independent variables (forexample, motivation, leadership, work processes)• Because of the large number of independent variables, thestudy of OB is complex and• requires a systematic approach within organizations as weseek to predict the behavior of people at work.
• The appropriate managerial action or behaviorin any given situation depends on theelements of the situation• a universal rule cannot be applied in certaincases,– because no two individuals are the same anddifferent people posses different ideologies
Emerging Challenges andOpportunities for OB (1)• Responding to Globalization– Increased foreign assignments– Working with people from different cultures– Overseeing movement of jobs to countries with low-cost labor (eg: US outsourcing to India)• Managing Workforce Diversity– Embracing diversity– Changing workforce demographics– Women managers– Implications for managers• Recognizing and responding to differences
Major Workforce Diversity Categories(2)CasteReligionNationalOriginAgeDisability (PHP)Gender
Challenges and Opportunities for OB (3)• Improving Quality and Productivity– Quality management (QM)– Process reengineering• Responding to the Labor Shortage– Changing work force demographics– Fewer skilled laborers– Early retirements and older workers• Improving Customer Service– Increased expectation of service quality– Customer-responsive cultures
What Is Quality Management? (4)1. Intense focus on the customer.2. Concern for continuous improvement.3. Improvement in the quality of everything theorganization does.4. Accurate measurement.5. Empowerment of employees.
Improving Quality and Productivity (5)• Quality management (QM)– The constant attainment of customer satisfaction throughthe continuous improvement of all organizationalprocesses.– Requires employees to rethink what they do and becomemore involved in workplace decisions.• Process reengineering– Asks managers to reconsider how work would be done andtheir organization structured if they were starting over.– Instead of making incremental changes inprocesses, reengineering involves evaluating every processin terms of its contribution.
Challenges and Opportunity for OB (6)• Improving People Skills• Empowering People• Stimulating Innovation and Change• Working in Networked Organizations• Helping Employees Balance Work/LifeConflicts• Improving Ethical Behavior
Organsiation as a system• Helps managers to view organisations from a broaderperspective• Earlier, individual departments were considered self-sufficient• Now, managers are recognizing the various parts of theorganization, and their interrelations, e.g., the coordinationof central offices with other departments, engineering withmanufacturing, supervisors with workers etc.• Managers now focus more attention on matters of ongoingorganization and feedback.• Managers now diagnose problems, not by examining whatappear to be separate pieces of the organization, but byrecognizing larger patterns of interactions
System approach to OB: Various inputs aretransformed into outputs with important feedback from the environment
The systems approach (contd..)• How organisations import resources from theexternal environment(money, materials, knowledge, innovation, machines)• convert them into more useful goods andservices (products, profit, satisfaction andimproved quality of life)• and export them to the markets