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By
Narendra Salunke
Google Classroom Code: qt57wbr
CO1: DESCRIBE the major theories, concepts, terms, models,
(Remembering) frameworks and research findings in the field of
organizational behavior.
Organization
Behaviour…..What & Why?
Organizational Behaviour
 Organizational Behaviour is a field of study that
investigates the impact that individuals, groups and
organizational structures have on behaviour within
organization for the purpose of applying such knowledge
towards improving an organizations effectiveness.
 Organizational Behaviour can be defined as the
understanding, prediction and management of how
human behaviour affects the performance of the
organization
Who is a Manager & What is
Management?
Manager
 Takes Decisions
 Manage Resources
 Takes Responsibility
 Plans, Organizes, Leads and
Controls
General Rules (Universal Rules)
 Human Resource have been, are and
will continue to be the major
challenges and critical to competitive
advantage
 The answer to the successful
Organization: “People are the key”
Scope:
Individual Level
•Perception
•Aspirations
•Attitude
•Motivation
Group Level
•Group Dynamics
•Group Norms
•Intra Group &
Intergroup
Relations
•Leadership
•Communication
Organizational Level
•Organizational
Structure
•Culture
•Change Management
•Environmental
Impacts
•Technology
Importance of OB
9. Improving Ethical Behaviour
10. Group Dynamics
1. Stimulating Innovation & Change
2. Improving Customer Services
3. Responding to Globalization
6. Balancing work life
7. Managing Work force Diversity
8. Improving People Skill
4. Responding to Economic Pressure
5. Creating positive work
environment
Imp of OB
Contributing fields of OB
Psychology
Economics
Interesting Fact:
1826
1839
1847
1947
2018
Evolution of OB
Scientific
Management
Human
Relation
Movement
OB
Industrial
Revolution
Pre – Classical Contributions
I. INDUSTRIAL REVOLUTION
 One to One relationship in Organization
 People used to work in small group or alone
 Faced exploitation by employer as there were no stipulated
conditions to regulate the employment conditions
 The growth of factory system further aggravated the
conditions of employment
Adam Smith (1723 – 1790)
 Economist
 Published book: “The Wealth of Nations” (An Inquiry
in to Nature & Causes of Wealth of Nations) in 1776
 Advocated division of labor
 Gave the example of manufacturing pins to illustrate
his point
Robert Owen (1771-1858)
(New Lanark Mill)
 First to recognize, how the growing factory system is
demeaning to the workers
 HRM Pioneer
 Proposed Legislative Reforms regarding Standard
Working Day 0f 10.5 Hrs
 Refused to employ children below the age of 10 yrs
 Improved Living Conditions of Employee
 Father of Personnel Administration
 Silent Monitor Concept
Silent Monitor:
The 'silent monitors' were hung next to each worker in
the mills, with each side displaying a different colour.
•'Bad' behaviour was represented by the colour black;
•indifferent' was represented by blue;
•'good' by yellow;
•and
•'excellent' by white.
Charles Babbage(1792-1871)
 Mathematician
 Author of the book “Economy of Machinery &
Manufactures” in 1832
 Father of Modern Computing
 First Mechanical Calculator & Analytical Engine
 Supporter & Advocate of Division of Labor: Saves
Time, Reduce Wastage, High skills can be attained
 Devised Profit Sharing Plan
Adrew Ure & Charles Dupin
(1778-1857 & 1784-1873)
 British & French Academician
 Advocated the study of Management
Henry R. Towne (1844-1924)
 Author of research Paper: “The Engineer as an
Economist”
 Emphasized the need to consider Management as
separate field of study
 Emphasized the importance of Business Skills for
running business
 Need to develop Management Principles
Max Weber (1864 to 1920)
 Sociologist
 Claimed that the Industrial Revolution's focus on
efficiency constrained the worker to a kind of
"prison" and "stripped a worker of their individuality"
 Proposed Bureaucratic model or Bureaucratic
management: organization shall be rested on rational
and legal principles and maximized technical
efficiency."
Classical Contributions
II. Scientific Management
Frederick Winslow Taylor (1856-1915)
(Started working as apprentice in Midvale Steel Co. & rose to the
post of Chief Engineer in 6 years)
 Father of Scientific Management
 Machine model of Organization
 Wrote the revolutionary book: “Principles of
Scientific Management”: Gave 4 Step scientific
management plan
a. Develop Science for each element of Job
b. Scientifically Select employees & Train them to do these Jobs
c. Supervise employees to follow the prescribed method to follow
the Job
d. Continue to plan the work but use the workers to actually get the
work done
•Tackled “Soldiering Problem”
1. Fear of loosing Jobs
2. Faulty Wage System
3. Use of Outdated Methods
•Two Major Management Practices evolved:
a. Piece Rate Incentive System
b. Time & Motion Study
Frank & Lillian Gilbreth
(1868-1924 & 1878-1972)
 Frank Gilbreth: Father of Motion Studies
 Motion Studies:
- Finding out best sequence & Minimum no. of motions
required to complete a job
- Exploring new ways of eliminating unnecessary motions
 Devised a classification scheme to label 17 basic hand
motions
Henry Gantt (1861-1919)
 Task Bonus System
 Bonus System for Foreman
 Gantt Charts
Gantt Chart : Modern Version
III. Human Relation Movement
Elton Mayo
 Hawthorne Experiment
- AT & T Founded in 1876 (Divided in 1984)
- By 1929: 40,00 workers were there in Western Electric
Plant of Hawthorne (Chicago, USA)
- In 1927, Researchers Elton Mayo & Fritz Roethlisberger
were invited to join the research
- Consisted of 4 - Parts
1. Illumination Experiment
 Carried out to find out relationship between Output &
Illumination
2. Relay Assembly Test Room Experiment
• Group of 6 Girls was selected
• Informal Environment was maintained
• Productivity & Morale went high
• Conclusion: Socio-psychological Factors such as
Feeling of being Important, Recognition,
Attention, Participation, Non Directive
Supervision held the key for higher production
3. Mass Interview Program:
 Regarding Work, Working Conditions, Supervision
 Direct Questions: Responses were guarded
 Indirect Method: Confirmed the importance of Social
Factors at Work
4. Bank Wiring Test Room Experiment
 Carried out by Roethlisberger & Dickson
 Objective: To develop new method of observation &
Finding out the causes of restricting the output
 Group of 14 workers were selected
 Observations:
-Employees were restricting their o/p
- Group has evolved with their own “unofficial”
productivity norms
- Isolation, Harassment & Punishment to Non-
followers
Contribution
 Organization is also a social system, wherein group
psychology plays an important role, hence informal
group efforts shall more be relied.
 Productivity of the employee is not the function of
only physical condition of the work & Money Wages
paid to them.
 Employee can be motivated by psychological and
social wants
 Productivity of the employee depends heavily upon
satisfaction of the employee in their work situation.
IV. Organizational Behaviour
 The study of group was emphasized in Human Relations
Movement
 Research based new approached developed in late 1950’s
and early 1960’s: called “Organizational Behaviour
 1970s: Theories of Motivation, Leadership, Job
Satisfaction
 1980s: Organizational Culture, Team Work, Political Skills
in an Organization
 1990s: Personal Integrity, Character, Virtues, Ethics
 2000s: Fred Luthans: POB (Positive Organizational
Behaviour): Confidence, Hope, Optimism
Models of OB:
Sr. No. Model Name
(Driving Power)
Description
1 Autocratic
(Authority/
Power)
•Manager has the power to command his/her
employee
•Psychological Result is “Increased Dependence on
Boss”
2 Custodial
(Security:
Salary/Money)
•Organization satisfy security & Welfare needs of
employees
•Focuses on better employee satisfaction,
•Results in dependence on Organization rather on
Boss
3 Supportive
(Support)
•Depends on leadership instead of Power or Money,
•Support employees Job performance,
•Psychological result is the feeling of participation
and task involvement
4 Collegial
(Team Work)
•Management is seen as joint contributor rather than
boss
•Employee response to this situation is responsibility
•Psychological result is “Self discipline”, enthusiasm
Sr. No. Model Name Organizations
1 Autocratic
(Authority)
•Military
•Police Force etc
2 Custodial
(Salary/Money)
•Government & Semi Govt. Organizations
•Public Sector Banks
3 Supportive
(Support)
•NGOs
•Educational Institutions
4 Collegial
(Team Work)
•Wipro
•Infosys
•HDFC
5 System Model
(Emotions)
•Google
•Facebook
•TCS
Models of OB:
 Behavioural Bias
 Indiscipline & Irresponsible Behaviour
 Law of Diminishing Returns
 Unethical Practices & Manipulation
 Not an absolute answer
Behavioural Bias
Stakeholders’ Expectations
Employee
Satisfaction
Stellar Services & Products
Organization Performance
Organization Profitability
Indiscipline & Irresponsible Behaviour
Law of Diminishing Returns
Unethical Practices & Manipulation
Not an absolute answer
Questions in University Exams
1. Define “OB”. Explain theoretical behaviouristic framework and
its practical implications in handling professionals at
organization. (April 2018)
2. Explain four models of OB with suitable examples. (April 2018)
3. “Organizational Theories study organizations to identify how
they solve problems and How they maximize efficiency and
productivity” Do you agree or disagree with statement? Why?
(Oct 2017)
4. Define OB. Explain various models of OB (Oct 2017)
5. Why Organizational Behaviour is needed to study in modern
era? Explain. (April 2015, Oct 2016)
6. Explain various theoretical frameworks of OB. (Oct 2016)
7. “Behaviour is predictable : so there is no need to study OB
formally.” Comment. (April 2016)
Model Answer to Q3
 Statement & Clearly state do you agree or disagree 1M
 (If you are agree with statement)
 Connection between employee behaviour and
Organization Productivity & Problem Solving 1M
 Explain in brief, how following theories help predict the
employee behaviour
 Cognitive Theory
 Behaviouristic Theory
 Social Cognitive theory (2M each =) 6M
 Overall Representation of Answer 2M
MCQs
Q. Which of the following field of study is one of the
contributors in developing OB?
a. History
b. Political Science
c. Fine Arts
d. None of these
Q2. Who proposed Legislative Reforms regarding
Standard Working Day and Age of workers?
1. Charles Babbage
2. Adam Smith
3. Robert Owen
4. Henry Gyantt
Q3. Who is considered as father of scientific
management?
a. Adam Smith
b. Charles Babbage
c. Elton Mayo
d. Frederick W Taylor
Q4. Who gave the Cognitive Framework of OB?
a. Edward Tolman
b. Evan Pavlov
c. John Watson
d. Albert Bandura
Q5. Which of the following model of OB is based on
dictating power of Manager/Owner?
a. Autocratic Model
b. Custodial Model
c. Supportive Model
d. Collegial Model

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Organizational Behavior Theories and Models Explained

  • 1. By Narendra Salunke Google Classroom Code: qt57wbr CO1: DESCRIBE the major theories, concepts, terms, models, (Remembering) frameworks and research findings in the field of organizational behavior.
  • 4. Organizational Behaviour  Organizational Behaviour is a field of study that investigates the impact that individuals, groups and organizational structures have on behaviour within organization for the purpose of applying such knowledge towards improving an organizations effectiveness.  Organizational Behaviour can be defined as the understanding, prediction and management of how human behaviour affects the performance of the organization
  • 5. Who is a Manager & What is Management?
  • 6. Manager  Takes Decisions  Manage Resources  Takes Responsibility  Plans, Organizes, Leads and Controls
  • 7. General Rules (Universal Rules)  Human Resource have been, are and will continue to be the major challenges and critical to competitive advantage  The answer to the successful Organization: “People are the key”
  • 8. Scope: Individual Level •Perception •Aspirations •Attitude •Motivation Group Level •Group Dynamics •Group Norms •Intra Group & Intergroup Relations •Leadership •Communication Organizational Level •Organizational Structure •Culture •Change Management •Environmental Impacts •Technology
  • 9. Importance of OB 9. Improving Ethical Behaviour 10. Group Dynamics 1. Stimulating Innovation & Change 2. Improving Customer Services 3. Responding to Globalization 6. Balancing work life 7. Managing Work force Diversity 8. Improving People Skill 4. Responding to Economic Pressure 5. Creating positive work environment Imp of OB
  • 10. Contributing fields of OB Psychology Economics
  • 13. Pre – Classical Contributions
  • 14. I. INDUSTRIAL REVOLUTION  One to One relationship in Organization  People used to work in small group or alone  Faced exploitation by employer as there were no stipulated conditions to regulate the employment conditions  The growth of factory system further aggravated the conditions of employment
  • 15. Adam Smith (1723 – 1790)  Economist  Published book: “The Wealth of Nations” (An Inquiry in to Nature & Causes of Wealth of Nations) in 1776  Advocated division of labor  Gave the example of manufacturing pins to illustrate his point
  • 16. Robert Owen (1771-1858) (New Lanark Mill)  First to recognize, how the growing factory system is demeaning to the workers  HRM Pioneer  Proposed Legislative Reforms regarding Standard Working Day 0f 10.5 Hrs  Refused to employ children below the age of 10 yrs  Improved Living Conditions of Employee  Father of Personnel Administration  Silent Monitor Concept
  • 17. Silent Monitor: The 'silent monitors' were hung next to each worker in the mills, with each side displaying a different colour. •'Bad' behaviour was represented by the colour black; •indifferent' was represented by blue; •'good' by yellow; •and •'excellent' by white.
  • 18. Charles Babbage(1792-1871)  Mathematician  Author of the book “Economy of Machinery & Manufactures” in 1832  Father of Modern Computing  First Mechanical Calculator & Analytical Engine  Supporter & Advocate of Division of Labor: Saves Time, Reduce Wastage, High skills can be attained  Devised Profit Sharing Plan
  • 19. Adrew Ure & Charles Dupin (1778-1857 & 1784-1873)  British & French Academician  Advocated the study of Management
  • 20. Henry R. Towne (1844-1924)  Author of research Paper: “The Engineer as an Economist”  Emphasized the need to consider Management as separate field of study  Emphasized the importance of Business Skills for running business  Need to develop Management Principles
  • 21. Max Weber (1864 to 1920)  Sociologist  Claimed that the Industrial Revolution's focus on efficiency constrained the worker to a kind of "prison" and "stripped a worker of their individuality"  Proposed Bureaucratic model or Bureaucratic management: organization shall be rested on rational and legal principles and maximized technical efficiency."
  • 23. Frederick Winslow Taylor (1856-1915) (Started working as apprentice in Midvale Steel Co. & rose to the post of Chief Engineer in 6 years)  Father of Scientific Management  Machine model of Organization  Wrote the revolutionary book: “Principles of Scientific Management”: Gave 4 Step scientific management plan a. Develop Science for each element of Job b. Scientifically Select employees & Train them to do these Jobs c. Supervise employees to follow the prescribed method to follow the Job d. Continue to plan the work but use the workers to actually get the work done
  • 24. •Tackled “Soldiering Problem” 1. Fear of loosing Jobs 2. Faulty Wage System 3. Use of Outdated Methods •Two Major Management Practices evolved: a. Piece Rate Incentive System b. Time & Motion Study
  • 25. Frank & Lillian Gilbreth (1868-1924 & 1878-1972)  Frank Gilbreth: Father of Motion Studies  Motion Studies: - Finding out best sequence & Minimum no. of motions required to complete a job - Exploring new ways of eliminating unnecessary motions  Devised a classification scheme to label 17 basic hand motions
  • 26. Henry Gantt (1861-1919)  Task Bonus System  Bonus System for Foreman  Gantt Charts
  • 27.
  • 28. Gantt Chart : Modern Version
  • 30. Elton Mayo  Hawthorne Experiment - AT & T Founded in 1876 (Divided in 1984) - By 1929: 40,00 workers were there in Western Electric Plant of Hawthorne (Chicago, USA) - In 1927, Researchers Elton Mayo & Fritz Roethlisberger were invited to join the research - Consisted of 4 - Parts
  • 31. 1. Illumination Experiment  Carried out to find out relationship between Output & Illumination 2. Relay Assembly Test Room Experiment
  • 32. • Group of 6 Girls was selected • Informal Environment was maintained • Productivity & Morale went high • Conclusion: Socio-psychological Factors such as Feeling of being Important, Recognition, Attention, Participation, Non Directive Supervision held the key for higher production
  • 33. 3. Mass Interview Program:  Regarding Work, Working Conditions, Supervision  Direct Questions: Responses were guarded  Indirect Method: Confirmed the importance of Social Factors at Work
  • 34. 4. Bank Wiring Test Room Experiment  Carried out by Roethlisberger & Dickson  Objective: To develop new method of observation & Finding out the causes of restricting the output  Group of 14 workers were selected  Observations: -Employees were restricting their o/p - Group has evolved with their own “unofficial” productivity norms - Isolation, Harassment & Punishment to Non- followers
  • 35. Contribution  Organization is also a social system, wherein group psychology plays an important role, hence informal group efforts shall more be relied.  Productivity of the employee is not the function of only physical condition of the work & Money Wages paid to them.  Employee can be motivated by psychological and social wants  Productivity of the employee depends heavily upon satisfaction of the employee in their work situation.
  • 36. IV. Organizational Behaviour  The study of group was emphasized in Human Relations Movement  Research based new approached developed in late 1950’s and early 1960’s: called “Organizational Behaviour  1970s: Theories of Motivation, Leadership, Job Satisfaction  1980s: Organizational Culture, Team Work, Political Skills in an Organization  1990s: Personal Integrity, Character, Virtues, Ethics  2000s: Fred Luthans: POB (Positive Organizational Behaviour): Confidence, Hope, Optimism
  • 37. Models of OB: Sr. No. Model Name (Driving Power) Description 1 Autocratic (Authority/ Power) •Manager has the power to command his/her employee •Psychological Result is “Increased Dependence on Boss” 2 Custodial (Security: Salary/Money) •Organization satisfy security & Welfare needs of employees •Focuses on better employee satisfaction, •Results in dependence on Organization rather on Boss 3 Supportive (Support) •Depends on leadership instead of Power or Money, •Support employees Job performance, •Psychological result is the feeling of participation and task involvement 4 Collegial (Team Work) •Management is seen as joint contributor rather than boss •Employee response to this situation is responsibility •Psychological result is “Self discipline”, enthusiasm
  • 38. Sr. No. Model Name Organizations 1 Autocratic (Authority) •Military •Police Force etc 2 Custodial (Salary/Money) •Government & Semi Govt. Organizations •Public Sector Banks 3 Supportive (Support) •NGOs •Educational Institutions 4 Collegial (Team Work) •Wipro •Infosys •HDFC 5 System Model (Emotions) •Google •Facebook •TCS Models of OB:
  • 39.  Behavioural Bias  Indiscipline & Irresponsible Behaviour  Law of Diminishing Returns  Unethical Practices & Manipulation  Not an absolute answer
  • 40. Behavioural Bias Stakeholders’ Expectations Employee Satisfaction Stellar Services & Products Organization Performance Organization Profitability
  • 43. Unethical Practices & Manipulation
  • 44. Not an absolute answer
  • 45. Questions in University Exams 1. Define “OB”. Explain theoretical behaviouristic framework and its practical implications in handling professionals at organization. (April 2018) 2. Explain four models of OB with suitable examples. (April 2018) 3. “Organizational Theories study organizations to identify how they solve problems and How they maximize efficiency and productivity” Do you agree or disagree with statement? Why? (Oct 2017) 4. Define OB. Explain various models of OB (Oct 2017) 5. Why Organizational Behaviour is needed to study in modern era? Explain. (April 2015, Oct 2016) 6. Explain various theoretical frameworks of OB. (Oct 2016) 7. “Behaviour is predictable : so there is no need to study OB formally.” Comment. (April 2016)
  • 46. Model Answer to Q3  Statement & Clearly state do you agree or disagree 1M  (If you are agree with statement)  Connection between employee behaviour and Organization Productivity & Problem Solving 1M  Explain in brief, how following theories help predict the employee behaviour  Cognitive Theory  Behaviouristic Theory  Social Cognitive theory (2M each =) 6M  Overall Representation of Answer 2M
  • 47. MCQs Q. Which of the following field of study is one of the contributors in developing OB? a. History b. Political Science c. Fine Arts d. None of these
  • 48. Q2. Who proposed Legislative Reforms regarding Standard Working Day and Age of workers? 1. Charles Babbage 2. Adam Smith 3. Robert Owen 4. Henry Gyantt
  • 49. Q3. Who is considered as father of scientific management? a. Adam Smith b. Charles Babbage c. Elton Mayo d. Frederick W Taylor
  • 50. Q4. Who gave the Cognitive Framework of OB? a. Edward Tolman b. Evan Pavlov c. John Watson d. Albert Bandura
  • 51. Q5. Which of the following model of OB is based on dictating power of Manager/Owner? a. Autocratic Model b. Custodial Model c. Supportive Model d. Collegial Model