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  2. 2. INTRODUCTIONOB is one among the specialized fields of study concernedwith understanding and describing human behavior in anorganization. It is the study of why people behave as theydo in organizations. Organizational behavior involves threelevels of analysis : It is concerned with individual behavior,group behavior and the behavior of the organization itself. SANDHYA YERIYURU UMESH 2
  3. 3. CONT……In the words of Keith Davis “Organizational behavior is anacademic discipline concerned with understanding anddescribing human behavior in an organizationalenvironment. It seeks to shed light on the whole complexhuman factor in organization by identifying causes andeffects of that behavior”. SANDHYA YERIYURU UMESH 3
  4. 4. CONT….Organization are social systems. As pointed out by Etzinoni,“We are born in organization, educated by organizations,and most of us send much of our lives working fororganizations. Organizations of one form or another are anecessary part of our society and they serve manyimportant needs. Organizations affect us enormously. Inshort, we lead organizational lives. It is important,therefore, if one wishes to work in them, to manage them,to understand how organization are formed, they operateand how pervasive are influences which they exercise onthe behavior of people. SANDHYA YERIYURU UMESH 4
  5. 5. DEFINITIONS & MEANINGFred Luthan in his book “Organizational Behvaiour”defined, “Organizational behaviour attempts to study thebehaviour of people in organizations. It is concerned withthe understanding, prediction and control of suchbehaviour”. Organizational behvaiour is the study of thebehaviour of people within an organizational setting. SANDHYA YERIYURU UMESH 5
  6. 6. It involves the understanding, prediction and control ofhuman behaviour and the factors. Which influence theperformance of people as member of an organization.They study of it is to utlize it as a tool for human benefit. Itcan broadly be applied to the behaviour of people in alltypes of organizations, such as those of business,government and service organizations. SANDHYA YERIYURU UMESH 6
  7. 7. In the words of Stephen P. Robbins; “OrganizationalBehaviour is a field of study that investigates the impactthat individuals, groups and structure have on behaviourwithin organizations, for the purpose of applying suchknowledge towards improving an organization’seffectiveness”. From this definition we could understandthat organizational behaviour is a field of study and it is adistinct area of expertise with a common body ofknowledge. What does it study ? SANDHYA YERIYURU UMESH 7
  8. 8. Organizational BehaviorProductivity, JobAbsenteeism, Satisfactionand Turnover The Organization SANDHYA YERIYURU UMESH 8
  9. 9. Organizational behavior is the systematic study of theactions and attitudes that people exhibit in organizations.Three behavioral determinants of the performance ofemployees areProductivityAbsenteeism Turnover All managers are concerned with the quantity and qualityof output that each employee generates. But absence andturnover can adversely affect this output. SANDHYA YERIYURU UMESH 9
  10. 10. Job satisfaction (an attitude) is important for threereasons.First, there may be a link between satisfaction andproductivity.Second, satisfaction appears to be negatively related toabsenteeism and turnover. Third, it can be argued that managers have ahumanistic responsibility to provide employees with jobsthat are challenging, intrinsically rewarding, andsatisfying. SANDHYA YERIYURU UMESH 10
  11. 11. OB is specifically concerned with work-related behaviorwhich takes place in organizations. An organization is aformal structure of planned coordination involving two ormore people who share a common purpose. It ischaracterized by formal roles that define and shape thebehavior of its members. SANDHYA YERIYURU UMESH 11
  12. 12. Emerging TrendsGlobalizationChanging WorkforceEmerging Employment RelationshipsInformation TechnologyWorkplace Values and Ethics SANDHYA YERIYURU UMESH 12
  13. 13. Elements of Organizational BehaviorOrganizations operate their functional activities by someelements, which affect organizations.People:People make up the internal social system in theorganization. They consist of individuals and groups.Groups may be large or small, formal and informal,official or unofficial. Human organization changes everyday. People are living, thinking and feeling beings thatcreated the organization and try to achieve the objectivesand goals. SANDHYA YERIYURU UMESH 13
  14. 14. Structure: Structure defines the formal relationship and useof people in the organization. Different people in anorganization are given different roles and they havecertain relationship with others. Those people have to berelated in some structural way so that their work can beeffectively coordinated. SANDHYA YERIYURU UMESH 14
  15. 15. Technology: The technology imparts the physical and economicconditions within which people work. With their bearhands people can do nothing. So they are givenassistance of building, machines, tools, processes andresources. The nature of technology depends very muchon the nature of the organization, influences the work orworking conditions. SANDHYA YERIYURU UMESH 15
  16. 16. Social System: Social system provide external environment withinwhich organization operates. A single organization cannot exist alone. It is a part of the whole. A singleorganization can not give everything and therefore thereare many other organizations. All these organizationsinfluence each other. SANDHYA YERIYURU UMESH 16
  17. 17. Goals ofOrganizational BehaviorPrediction Explanation Control SANDHYA YERIYURU UMESH 17
  18. 18. The goals of OB are to explain, predict, and control humanbehavior.When we seek answers to why an individual or group didsomething, we are pursing the explanation objective.It is probably the least important of the three goals becauseit occurs after the fact. If we are to understand something,however, we must begin by trying to explain it.The goal of prediction focuses on future events to determinewhat outcomes will follow from a given action. A managercan use this information when making decisions. SANDHYA YERIYURU UMESH 18
  19. 19. The most controversial goal is using OB knowledge tocontrol behavior. The idea that one person should attemptto get others to behave in a certain way, while thesubjects may not know that their behavior is beingmanipulated, has been viewed in some circles asunethical and repugnant. While OB offers ways to controlthe behavior of people, whether those methods should beused is a question of ethics. SANDHYA YERIYURU UMESH 19
  20. 20. Goals of Organizational BehaviorDescribe: The first goal is to describe, systematically howpeople behave under a variety of conditions. Achievingthis goal allows managers to communicate about humanbehavior at work using a common language.Understand: A second goal is to understand any peoplebehave as they do. The managers would be frustrated ifthey could talk about behavior of their employees, but notunderstand the reasons behind those actions. SANDHYA YERIYURU UMESH 20
  21. 21. Predict: The managers would have capacity to predictwhich employees might be dedicated and productive orwhich ones might have absent, cause problem. And thusthe managers could take preventive actions.Control: The final goal of OB is to control and developsome human activity at work. Since managers are heldresponsible for performance outcome, they are vitallyinterested in being able to make an impact on employeebehavior, skill development, team effort, and productivity.Managers need to be able to improve results through theactions they and their employees take, and organizationalbehavior can aid them in their pursuit of this goal. SANDHYA YERIYURU UMESH 21
  22. 22. Fundamental Concepts of Organizational BehaviorIn every field of social science, or even physical science,has a philosophical foundation of basic concepts thatguide its development. There are some certainphilosophical concepts in organizational behavior also.The concepts are- SANDHYA YERIYURU UMESH 22
  23. 23. Individual differences:Every individual in the world is different from others. Thisidea is supported by science. Each person is differentfrom all others, probably in million ways.The idea of individual difference comes originally frompsychology. From the day of birth, each person is unique,and individual experiences after birth tend to makepeople even more different. SANDHYA YERIYURU UMESH 23
  24. 24. Perception:Peoples perceptions are also differ when they see anobject. Two people can differently present a same object.And this is occurring for their experiences. A personalways organizes and interprets what he sees according tohis lifetime of experience and accumulated value.Employees also see work differently for differ in theirpersonalities, needs, demographics factors, pastexperiences and social surrounding. SANDHYA YERIYURU UMESH 24
  25. 25. A whole person:An employee’s personal life is not detached from hisworking life. As an example, A women who attend theoffice at 8:30 AM is always anxious for her children’sschool time (if her children able to attend the school ornot). As a result, its impact falls on her concentration thatmeans her working life. For this reason, we cannotseparate it. So manager should treat an employee as awhole person. SANDHYA YERIYURU UMESH 25
  26. 26. Motivated behavior:An employee has so many needs inside him. So, theywant to fulfill those needs. That’s why; they had toperform well in the organization. Some motivations areneeded to enrich the quality of work. A path towardincreased need fulfillment is the better way of enrichesthe quality of work. SANDHYA YERIYURU UMESH 26
  27. 27. Desire for involvement:Every employee is actively seeking opportunities at workto involve in decision-making problems. They hunger forthe chance to share what they know and to learn from theexperience. So, organization should provide them achance to express their opinions, ideas and suggestion fordecision-making problem. A meaningful involvement canbring mutual benefit for both parties. SANDHYA YERIYURU UMESH 27
  28. 28. Value of the person:An employee wants to be treated separately from otherfactor of production (land, capital, labor). They refuse toaccept the old idea that they are simply treated aseconomic tools because they are best creation ofalmighty Allah. For this reason, they want to be treatedwith carrying respect, dignity and other things from theiremployers and society. SANDHYA YERIYURU UMESH 28
  30. 30. Autocratic ModelThe autocratic model depends on power. Those who are incommand must have the power to demand “you do this-orelse,” meaning that an employee who does not followorders will be penalized.In an autocratic environment the managerial orientationis formal, official authority. This authority is delegated byright of command over the people to it applies. SANDHYA YERIYURU UMESH 30
  31. 31. CONT…………………Under autocratic environment the employee is obedienceto a boss, not respect for a manager.The psychological result for employees is dependence ontheir boss, whose power to hire, fire, and “perspire” themis almost absolute.The boss pays minimum wages because minimumperformance is given by employees. They are willing togive minimum performance-though sometimesreluctantly-because they must satisfy subsistence needsfor themselves and their families. SANDHYA YERIYURU UMESH 31
  32. 32. CONT……….Some employees give higher performance because ofinternal achievement drives, because they personally liketheir boss, because the boss is “a natural-born leader,” orbecause of some other factor; but most of them give onlyminimum performance. SANDHYA YERIYURU UMESH 32
  33. 33. The Custodial ModelA successful custodial approach depends on economicresources.The resulting managerial orientation is toward money topay wages and benefits.Since employees’ physical needs are already reasonablymet, the employer looks to security needs as a motivatingforce. If an organization does not have the wealth toprovide pensions and pay other benefits, it cannot follow acustodial approach. SANDHYA YERIYURU UMESH 33
  34. 34. CONT……….The custodial approach leads to employee dependence onthe organization. Rather than being dependence on theirboss for their weekly bread, employees now depend onorganizations for their security and welfare.Employees working in a custodial environment becomepsychologically preoccupied with their economic rewardsand benefits. SANDHYA YERIYURU UMESH 34
  35. 35. CONT………As a result of their treatment, they are well maintainedand contended. However, contentment does notnecessarily produce strong motivation; it may produceonly passive cooperation. The result tends to be thoseemployees do not perform much more effectively thanunder the old autocratic approach. SANDHYA YERIYURU UMESH 35
  36. 36. The Supportive ModelThe supportive model depends on leadership instead ofpower or money. Through leadership, managementprovides a climate to help employees grow andaccomplish in the interests of the organization the thingsof which they are capable. SANDHYA YERIYURU UMESH 36
  37. 37. CONT……The leader assumes that workers are not by naturepassive and resistant to organizational needs, but thatthey are made so by an inadequately supportive climateat work. They will take responsibility, develop a drive tocontribute, and improve themselves if management willgive them a chance. Management orientation, therefore,is to support the employee’s job performance rather thanto simply support employee benefit payments as in thecustodial approach. SANDHYA YERIYURU UMESH 37
  38. 38. CONT……….Since management supports employees in their work, thepsychological result is a feeling of participation and taskinvolvement in the organization. Employee may say “we”instead of “they” when referring to their organization.Employees are more strongly motivated than by earliermodels because of their status and recognition needs arebetter met. Thus they have awakened drives for work. SANDHYA YERIYURU UMESH 38
  39. 39. The Collegial ModelA useful extension of the supportive model is the collegialmodel. The term “collegial” relates to a body of people workingtogether cooperatively.The collegial model depends on management’s building afeeling of partnership with employees.The result is that employees feel needed and useful. They feelthat managers are contributing also, so it is easy to accept andrespect their roles in their organization. Managers are seen asjoint contributors rather than as bosses.The managerial orientation is toward teamwork. Managementis the coach that builds a better team SANDHYA YERIYURU UMESH 39
  40. 40. CONT……..The employee’s response to this situation is responsibility.For example employees produce quality work not becausemanagement tells them to do so or because the inspectorwill catch them if they do not, but because they feel insidethemselves an obligation to provide others with highquality. They also feel an obligation to uphold qualitystandards that will bring credit to their jobs and company. SANDHYA YERIYURU UMESH 40
  41. 41. CONT……The psychological result of the collegial approach for theemployee is self-discipline. Feeling responsible,employees discipline themselves for performance on theteam in the same way that the members of a footballteam discipline themselves to training standards and therules of the game.In this kind of environment employees normally feel somedegree of fulfillment, worthwhile contribution, and self-actualization, even though the amount may be modest insome situation. This self-actualization will lead tomoderate enthusiasm in performance. SANDHYA YERIYURU UMESH 41
  42. 42. The System ModelAn emerging model of organization behavior is thesystem model. It is the result of a strong search for highermeaning at work by many of today’s employees; theywant more than just a paycheck and job security fromtheir jobs. Since they are being asked to spend manyhours of their day at work, they want a work context therethat is ethical, infused with integrity and trust, andprovides an opportunity to experience a growing sense ofcommunity among coworkers. SANDHYA YERIYURU UMESH 42
  43. 43. CONT………To accomplish this, managers must increasinglydemonstrate a sense of caring and compassion, beingsensitive to the needs of a diverse workforce with rapidlychanging needs and complex personal and family needs.In response, many employees embrace the goal oforganizational effectiveness, and reorganize the mutualityof company-employee obligations in a system viewpoint.They experience a sense of psychological ownership forthe organization and its product and services. SANDHYA YERIYURU UMESH 43
  44. 44. CONT……..They go beyond the self-discipline of the collegialapproach until they reach a state of self-motivation, inwhich they take responsibility for their own goals andactions.As a result, the employee needs that are met are wide-ranging but often include the highest-order needs (e.g.,social, status, esteem, autonomy, and self actualization). SANDHYA YERIYURU UMESH 44
  45. 45. CONT……..Because it provides employees an opportunity to meetthese needs through their work as their work as well asunderstand the organization’s perspectives, this newmodel can engender employees’ passion andcommitment to organizational goals. They are inspired;they feel important; they believe in the usefulness andviability of their system for the common good. SANDHYA YERIYURU UMESH 45
  46. 46. Historical overviewThe notion of an organisation as an imperative, absolute entity, is the direct outcome of historicaltransformations occurred in Europe and North America from the end of the 18th century onwards: SANDHYA YERIYURU UMESH 46
  47. 47. CONT……..Before the 19th Century:• Experience of Artisan work (e.g. Ironsmith) – Technical skills, personal competence and craft pride constitutive of the working process.Industrial revolution in the 19th Century – Close relationship between the subject of work and his/her activity was lost SANDHYA YERIYURU UMESH 47
  48. 48. CONT..........Early 20th Century: ‘Classical approach’Advent of scientific management (F.W. Taylor) – Aim: controlling labour through science – Far-reaching process of establishing control and surveillance: to discipline the mind and body of the productive subject was the central concern. – Deconstruction of the task from ‘within’ – Rigid control over time and body movements – Conception and execution as separate domains in hierarchical relationships SANDHYA YERIYURU UMESH 48
  49. 49. CONT..........Hawthorne Studies and the Human RelationsMovement (Elton Mayo, 1923-1933) – Hawthorne studies: environment and productivity? – Results: organizations are social systems, not just technical economical systems – Groups, teamwork, different job roles, human relations are of great significance in organizations – We are motivated by many needs – Leadership should be modified to include concepts of human relations A new discipline of human behaviour and, by extension, Organisational behaviour. (1960s) SANDHYA YERIYURU UMESH 49
  50. 50. CONT..........Systems Rationalist approach Modern Approach Organisation (open system view) inputs Transformation process outputs SANDHYA YERIYURU UMESH 50
  51. 51. CONT……… The organization seen as an open socio- technical system. The existence of subsystems which interact with one another. Management is a distinct subsystem which is responsible for direction and coordination of all other subsystems SANDHYA YERIYURU UMESH 51
  53. 53. The study of Organizational behavior Psychology Individual Sociology Study ofSocial Psychology Group Organizational Behavior Anthropology Organization Political Science SANDHYA YERIYURU UMESH 53
  54. 54. PSYCHOLOGY• Concentrates on the study of individual behavior, as well as, personality and group behavior.• Psychology is the science that seeks to measure, explain, and sometimes change the behavior of individuals. The following areas of psychology have contributed to the knowledge base of OB: Learning and personality theorists, Counseling psychologists, Industrial and organizational psychologists SANDHYA YERIYURU UMESH 54
  55. 55. SOCIOLOGY Focuses on social behavior and is particularly concerned about societal structures and controls• Sociology, the study of people in relation to their fellow human beings, has contributed to OB in the following areas: Group dynamics Design of work teams Organizational culture, theory Structure and technology Power, communications, and conflict SANDHYA YERIYURU UMESH 55
  56. 56. SOCIAL PSYCHOLOGY• Social psychology blends concepts from psychology and sociology to focus on how people influence one another. Social psychologists have made significant contributions in the areas of measuring, understanding, and changing attitudes; communication patterns; the ways in which group activities can satisfy individual needs; and group decision-making processes. SANDHYA YERIYURU UMESH 56
  57. 57. ANTHROPOLOGY• Anthropology is the study of societies to learn more about human beings and their activities. Much of our current understanding of organizational cultures and environments, and the differences among national cultures is the result of the work of anthropologists. SANDHYA YERIYURU UMESH 57
  58. 58. POLITICAL SCIENCE• Political science is the study of the behavior of individuals and groups within a political environment. Specific topics of concern include structuring of conflict, allocation of power, and how people manipulate power for individual self-interest. SANDHYA YERIYURU UMESH 58
  59. 59. Changing Social and Cultural Environment• National culture• Organizational ethics and well-being• Diverse work force SANDHYA YERIYURU UMESH 59
  60. 60. SOCAIL SYSTEM AND ORGANISATIONAL CULTURE• The first challenge is the changing social and cultural environment. Forces in the social and cultural environment are those that are due to changes in the way people live and work – changes in values, attitudes, and beliefs brought about by changes in a nation’s culture and the characteristics of its people. SANDHYA YERIYURU UMESH 60
  61. 61. CONT…….• National culture is the set of values or beliefs that a society considers important and the norms of behavior that are approved or sanctioned in that society. Over time, national cultures change and this affects the values and beliefs of each nation’s members. SANDHYA YERIYURU UMESH 61
  62. 62. CONT………• Ethics scandals have hit many companies recently including Tyco, Adelphia, Enron, and Arthur Andersen. An organization’s ethics are the values, beliefs, and moral rules its managers and employees should use to analyze or interpret a situation and then decide what is the most appropriate way to behave. SANDHYA YERIYURU UMESH 62
  63. 63. CONT…..• Ethical organizational behavior affects the well-being (happiness, health, and prosperity) of a nation, an organization, citizens, and employees.• Ethics also define an organization’s social responsibility – its obligations toward people or groups outside the organization that are directly affected by its actions. SANDHYA YERIYURU UMESH 63
  64. 64. What Is Organizational Culture? Organizational Characteristics Culture 1. Innovation and risk taking A common perception held by the organization’s 2. Attention to detail members; a system of 3. Outcome orientation shared meaning 4. People orientation 5. Team orientation 6. Aggressiveness 7. StabilitySANDHYA YERIYURU UMESH 64
  65. 65. What Do Cultures Do?Culture’s Functions1. Defines the boundary between one organization and others2. Conveys a sense of identity for its members3. Facilitates the generation of commitment to something larger than self-interest4. Enhances the stability of the social system5. Serves as a sense-making and control mechanism for fitting employees in the organization SANDHYA YERIYURU UMESH 65
  66. 66. How Organizational Cultures Have an Impact on Performance and Satisfaction SANDHYA YERIYURU UMESH 66
  67. 67. INTERNATIONAL DIMENSION• The world of organizations is no longer defined by national boundaries. INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL BEHAVIOR breaks down the conceptual, theoretical, and practical boundaries limiting our ability to understand and work with people in countries and cultures around the world. The approach views global complexity as neither unpredictable nor random; rather, she demonstrates that variations across cultures and their impacts on organizations follow systematic, predictable patterns. SANDHYA YERIYURU UMESH 67