Organizational behavior is the study of how individuals and groups act within organizations and how organizations manage their environments. The document discusses key concepts in OB including:
1. OB draws from psychology, sociology, social psychology, and anthropology to study individuals, groups, and organizational systems.
2. Effective management requires skills in planning, organizing, leading, and controlling organizations to achieve goals efficiently and effectively.
3. Managers at different levels (top, middle, frontline) perform varying roles and responsibilities.
4. Understanding OB allows organizations to gain competitive advantages through low costs, high quality, speed, and innovation.
ORGANISATIONAL CHANGE & STRESS MANAGEMENT
-Managing Planned change
-Resistance to change
-Overcoming resistance to change
-Politics of change
-Lewin's Three Step Change Model
-Action Research
-Organisational Development
-OD Techniques
-Change issues for today's Managers
Technology in workplace
Stimulating Innovation
Creating & managing a learning organisation
Culture-Bond in organisation
-Work Stress & its management
-Types of stress
-Demand-Resources Model of Stress
-Potential Sources of Stress
-Consequences of Stress
-Not all Stress is Bad
-Burnout
-Stress v/s Burnout
-Managing stress
-Global Implications
-Summary & Managerial Implications
-How to Manage stress.
ORGANISATIONAL CHANGE & STRESS MANAGEMENT
-Managing Planned change
-Resistance to change
-Overcoming resistance to change
-Politics of change
-Lewin's Three Step Change Model
-Action Research
-Organisational Development
-OD Techniques
-Change issues for today's Managers
Technology in workplace
Stimulating Innovation
Creating & managing a learning organisation
Culture-Bond in organisation
-Work Stress & its management
-Types of stress
-Demand-Resources Model of Stress
-Potential Sources of Stress
-Consequences of Stress
-Not all Stress is Bad
-Burnout
-Stress v/s Burnout
-Managing stress
-Global Implications
-Summary & Managerial Implications
-How to Manage stress.
This slide presentation will help students understand how management evolved and the significant approaches to make organizations more productive, effective, and efficient.
The Manager: Omnipotent or Symbolic
Define the omnipotent and symbolic views of management.
Contrast the action of manager according to the omnipotent and symbolic views.
Explain the parameters of managerial discretion.
The Organization’s Culture
Define organizational culture.
Explain what the definition of culture implies.
Describe the seven dimensions of organizational culture.
Define a strong culture.
What Is Control and Why Is It Important?
Define control.
Contrast the three approaches to designing control systems.
Discuss the reasons why control is important.
The Control Process
Describe the three steps in the control process.
Tell why what is measured is more critical than how it’s measured.
Explain the three courses of action managers can take in controlling.
This slide presentation will help students understand how management evolved and the significant approaches to make organizations more productive, effective, and efficient.
The Manager: Omnipotent or Symbolic
Define the omnipotent and symbolic views of management.
Contrast the action of manager according to the omnipotent and symbolic views.
Explain the parameters of managerial discretion.
The Organization’s Culture
Define organizational culture.
Explain what the definition of culture implies.
Describe the seven dimensions of organizational culture.
Define a strong culture.
What Is Control and Why Is It Important?
Define control.
Contrast the three approaches to designing control systems.
Discuss the reasons why control is important.
The Control Process
Describe the three steps in the control process.
Tell why what is measured is more critical than how it’s measured.
Explain the three courses of action managers can take in controlling.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
1. Dr . SABIYA . MUFTI
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS & FINANCIAL STUDIES
UNIVERSITY OF KASHMIR
2. What is an Organization?
An organization is
a collection of
people who work
together to achieve
individual and
organizational
goals.
3. What is an Organization
A consciously coordinated social
unit, composed of two or more
people, that functions on a relatively
continuous basis to achieve a common
goal or set of goals.
4. What is Organizational Behavior?
Organizational behavior
(OB) is the study of factors
that affect how individuals
and groups act in
organizations and how
organizations manage their
environments.
7. Components of Organizational Behavior
Understanding
organizational behavior
requires studying
Individuals in Organizations
Group and Team Processes
Organizational Processes
8.
9. What is Management?
Management is the process of
planning, organizing, leading, and
controlling an organization’s
human, financial, material, and
other resources to increase its
effectiveness.
10. The Functions Of Management
Management
process of working with people and resources to
accomplish organizational goals
effective - achieve organizational goals
efficient - achieve goals with minimum waste of resources
1-10
13. Managers’ Job
Management Organizing
Functions
Henry Fayol a French Determines what tasks are to
Industrialist wrote that all
managers perform four
management functions
be done;
Who is to do them;
Planning
Organizing How the tasks are to be
Leading
Controlling
grouped;
Who reports to whom; and
Planning Where decisions are to be
Organizing made.
Leading
controlling
14. Managers’ Job
Management Functions Leading
Henry Fayol a French Industrialist
wrote that all managers perform
four management functions
Motivating employees;
Direct their activities;
Planning
Organizing Select the most effective
Leading
Controlling
communication channels; or
Resolve conflicts among
Planning members.
Organizing
Leading
controlling
15. Managers’ Job
Management Functions Controlling
Henry Fayol a French Industrialist
wrote that all managers perform
four management functions
Monitoring performance;
Comparing performance with
Planning
Organizing the set standard;
Leading Making corrections, if
Controlling
necessary.
Planning
Organizing
Leading
Controlling
17. Management Levels
Management level
Top-level managers
senior executives responsible for overall management
of an organization
focus on long-term issues
emphasize the survival, growth, and effectiveness of the firm
concerned with the interaction between the organization and
its external environment
1-17
18. Management Levels
Management level (cont.)
Middle-level managers (tactical managers)
located between top-level and frontline managers in the
organizational hierarchy
responsible for translating strategic goals and plans into more
specific objectives and activities
traditional role was that of an administrative controller who
bridged the gap between higher and lower levels
growing role is that of a developmental coach to the people
who report to them
1-18
19. Management Levels
Management level (cont.)
Frontline managers (operational managers)
lower-level managers who supervise the operational activities
of the organization
directly involved with non management employees
increasingly being called on to be innovative and
entrepreneurial
Working leaders with broad responsibilities
in leading small companies, managers have
strategic, tactical, and operational responsibilities
have a knowledge of all business functions, are accountable
for results, and focus on internal and external customers
1-19
20. Managerial Roles
Manager: Any person who supervises one or
more subordinates.
Role: A set of behaviors or tasks a person is
expected to perform because of the position he or
she holds in a group or organization.
Managerial roles identified by Mintzberg.
Figurehead Leader
Liaison Monitor
Disseminator Spokesperson
Entrepreneur Disturbance handler
Resource allocator Negotiator
21. Management Roles
In 1960s, Mintzberg after studying 5 executives to
determine what those managers did on their jobs.
Mintzberg concluded that mangers perform 10
different, highly interrelated roles – or set of behaviors
– attributable to their jobs.
22. Mintzberg’s Managerial Roles
Role Description
Interpersonal
Figurehead Symbolic head, required to perform a
number of routine duties of a legal or social
nature
Leader Responsible for the motivation & direction of
employees
Liaison Maintains a network of outside contacts who
provide favors & information
23. Mintzberg’s Managerial Roles
Role Description
Informational
Monitor Receives a wide variety of information; serves as
nerve centre of internal & external information
of the organization
Disseminator Transmits information received from outsiders or
from other employees to members of the
organization
Spokesperson Transmits information to outsiders on
organization's plans, policies, actions, & results;
serves as an expert on organization’s industry
24. Mintzberg’s Managerial Roles
Role Description
Decisional
Entrepreneur Searches organization & its environment for
opportunities & initiatives projects to bring
about change
Disturbance handler Responsible for corrective action when
organization faces important, unexpected
disturbances
Resource allocator Makes or approves significant organizational
decisions
Negotiator Responsible for representing the organization at
major negotiation
25. Managerial Skills
Conceptual Skills:
The ability to analyze and
diagnose a situation and
distinguish between cause
and effect.
Human Skills:
The ability to
understand, work
with, lead, and control the
behavior of other people
and groups.
Technical Skills:
Job-specific knowledge
and techniques.
26. Luthans’ Study of Managerial Activities
Four types of managerial activity:
Traditional Management
Decision-making, planning, and controlling.
Communication
Exchanging routine information and processing paperwork
Human Resource Management
Motivating, disciplining, managing conflict, staffing and
training.
Networking
Socializing, politicking, and interacting with others.
Managers who promoted faster (were successful) did
different things than did effective managers (those who
did their jobs well)
27. Wilson Managerial Skills Research
Statistically Dealing effectively with people is
validated profile what management is all about;
of managerial The 11 skills constitute a goal
skills: over 20 creation/communication/feedb
years’ research by ack/reward/accomplishment
Clark Wilson et al cycle with human interaction at
every turn.
(2003)
Managers with high skills’
mastery tend to have better
subunit performance &
employee morale than managers
with low skills’ mastery
28. Wilson Managerial Skills Research (cont.)
Statistically Effective female & male managers
validated profile of do not have significantly different
managerial skills: skill profiles, contrary to claims in
over 20 years’ the popular business press in
research by Clark recent years.
Wilson et al (2003) At all career stages, derailed
managers (those who failed to
achieve their potential) tended to
be the ones who overestimated
their skill mastery ( rated
themselves higher than their
employees did).
29. Research evidence
Concluding remarks of researcher:
“when selecting individuals for promotion to
managerial positions, those who are
arrogant, aloof, insensitive, and defensive should
be avoided”
30. Skills exhibited by Effective Manager
Clarifies goals & objectives for everyone involved;
Encourages participation, upward communication, &
suggestions;
Plans & organizes for an orderly work flow;
Has technical & administrative expertise to answer
organization-related questions;
Facilitates work through team
building, training, coaching, & support;
31. Skills exhibited by Effective Manager (Cont.)
Provides feedback honestly & constructively;
Keeps things moving by relying on schedules, deadlines, & helpful
reminders;
Controls details without being arrogant;
Applies reasonable pressure for goal accomplishment;
Empowers & delegates key duties to others while maintaining goal
transparency & commitment;
Recognizes good performance with rewards & positive
corroboration.
33. Managing For Competitive Advantage
Cost competitiveness
costs are kept low enough so that you can realize profits and price your products
at levels that are attractive to consumers
key is efficiency - accomplishing goals by using resources wisely and
minimizing waste
Quality
excellence of a product, including its attractiveness, lack of
defects, reliability, and long-term durability
importance of quality has increased dramatically
must identify specific elements of quality to correct problems, target needs, and
deliver world-class value
1-33
34. Managing For Competitive Advantage (cont.)
Speed
often separates winners from losers in world competition
speed became a vital requirement in the 1990s
requirement has increased exponentially
Innovation
the introduction of new goods and services
important to adapt to changes in consumer demands and to new
sources of competition
Best managers and companies delivering all four
1-34
35. Organizational Behavior
A field of study that investigates the impact that
individuals, groups, and structure have on behavior within
organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness.
“Gregory Moorhead :2007”
36. Organizational Behavior
The field of OB deals with human behavior in
organizations
OB is the multidisciplinary field that seeks
knowledge of behavior in organizational settings
by systematically studying individual, groups, and
organizational processes.
“Jerald Greenberg:2008”
37. Organizational Behavior
This knowledge is used both by scientists
interested in understanding human behaviour
& by practitioners interested in enhancing
organisational effectiveness & individuals well
being.
“Robert A .Baron:2008”
38. Organizational Behavior
Organisation Behaviour is concerned with the
study of what people do in an organisation
and how that behaviour affects the
performance of the organisation.
“Robbins: 1998,9”
39. Organizational Behavior
OB highlights four central characteristics of
the field.
It is firmly grounded in the scientific method.
It studies individuals, groups & organisations.
It is interdisciplinary in nature.
It is used as the basis for enhancing organisational
effectiveness & individual well-being.
40. Organizational Behavior
The study of Organisational Behaviour involves:
consideration of the interaction among the formal structure
(organisational context in which the process of management
takes place)
the technology employed and the methods of carrying out work
the behaviour of people
the process of management
the external environment
41. Organizational Behavior
Interrelated dimensions influencing behaviour:
The Individual - working environment should satisfy individual
needs as well as attainment of organisational goals.
The Group - formal and informal. Understanding of groups
complements a knowledge of individual behaviour.
The Organisation - impact of organisation structure and
design, and patterns of management, on behaviour.
The Environment - technological and scientific
development, economic activity, governmental actions.
42. Intuition and Systematic Study
Intuition
Gut feelings
Individual observation
Common sense
Systematic Study
Looks at relationships
Scientific evidence
Predicts behaviors
The two are complementary means of
predicting behavior.
43. An Outgrowth of Systematic Study…
Evidence-Based Management (EBM)
Basing managerial decisions on the best available
scientific evidence.
Must think like scientists:
Pose a managerial question
Search for best available evidence
Apply relevant information to case
44. Intuition and Systematic Study
The trick is to know when to go with your gut.
“Jack Welch”
Intuition is often based on inaccurate
information
Faddism is prevalent in management
Systematic study can be time-consuming
Use evidence as much as possible to inform your
intuition and experience. That is the promise of OB.
Managers Should Use All Approaches
45. Behavioral Contributions Unit of Output
science Learning
analysis
Motivation
Personality
Emotions
Perception
Training
Leadership effectiveness
Psychology Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Wok design Individual
Work stress
Behavioral change
Attitude change
Social
Communication
psychology
Group processes
Group decision making
Communication Study of
Group
Power organizational
Conflict behavior
Intergroup behavior
Sociology Formal organization theory
Organizational technology
Organizational change
Organizational culture
Organizational
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology Organizational environment
power
Organizational culture
46. Four Contributing Disciplines
Psychology
The science that seeks to
measure, explain, and sometimes change
the behavior of humans and other animals.
Unit of Analysis:
Individual
Contributions to OB:
Learning, motivation, personality, emotions, percepti
on
Training, leadership effectiveness, job satisfaction
Individual decision making, performance
appraisal, attitude measurement
Employee selection, work design, and work stress
47. Four Contributing Disciplines
Social Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.
Unit of Analysis:
Group
Contributions to OB:
Behavioral change
Attitude change
Communication
Group processes
Group decision making
48. Four Contributing Disciplines
• Sociology
The study of people in relation to their fellow human beings.
– Unit of Analysis:
Organizational System
–Group
Contributions to OB:
Group dynamics
Formal organization theory
Work teams
Organizational technology
Communication
Organizational change
Power
Organizational culture
Conflict
Intergroup behavior
1-48
49. Four Contributing Disciplines
Anthropology
The study of societies to learn about human beings and
their activities.
Unit of Analysis:
Organizational System
-- Group
Contributions to OB: •Comparative values
Organizational culture
Organizational
•Comparative attitudes
environment •Cross-cultural analysis
50. SIGNIFICANCE OF OB
Road map to our lives in organizations
Helps us understand and predict organizational life
Influences events in organizations
Helps understand self and others better
Helps a manager get things done better
Helps maintain cordial relations
Highly useful in the field of marketing
Helps in career planning and development
51. Limitations of OB
Knowledge about OB does not help an individual manage personal
life better
Qualities of OB are mysterious
Has become a fad with managers
Is selfish and exploitative
Managers expect quick-fix solutions-not possible
Principles and practices may not work in the events of declining
fortunes
Cannot eliminate totally conflict and frustration
52. Challenges & Opportunities for
OB
Responding to Globalization
Managing Workforce Diversity
Improving Quality and Productivity
Improving Customer Service
Improving People Skills
Stimulating Innovation and Change
Coping with “Temporariness”
Working in Networked Organizations
Helping Employees Balance Work-Life Conflicts
Creating a Positive Work Environment
Improving Ethical Behavior
1-52
54. Globalization
Refers to the economic, social and cultural
connectivity within people in other parts of the
world.
It is all about the ongoing process of increasing
interdependence with each other around the
planet, whether through trading goods &
services, sharing knowledge or interacting with
people from different cultures & locations in the
world.
55. Challenges and Opportunities for OB
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Overseeing movement of jobs to countries with low-
cost labor
Managing people during the war on terror
1-55
56. Why Globalization?
Access to additional resources (including skilled
workforce)
Low cost
Economies of scale
Favorable regulations & tax systems
Direct access to new and growing markets
Ability to customize products to local tastes &
styles
57. Workforce Diversity
Workforce diversity means that organisations are
becoming a more heterogeneous mix of people in
terms of gender , age , race , physical ability etc .
A diversity workforce e.g. may include ,
Women
Color of people
The physically disabled
Senior citizens etc.
58. Workforce Diversity in India
Indian organisations have accommodate a very
diverse social group of employees based on socio-
economic, cultural and linguistic composition.
Scheduled castes & Scheduled tribes
Other Backward castes
Bonafide members of the state
Ex-defense & paramilitary personnel
Disabled persons
Gender issues
59. Diversity
Diversity enhances creativity and innovation
(Adler, 1997;Jackson et al., 1992), and
produces competitive advantages(Coleman, 2002;
Jackson et al., 1992).
Diverse teams make it possible to enhance
flexibility (Fleury, 1999) and
Rapid response and adaptation to change
(Adler, 1997; Jackson et al., 1992.
60. The Four Layers of Diversity
Functional Level/
Classification
Geographic Location
Marital Work
Mgmt. Income
Status Content/
Status Age
Field
Parental Personal
Status Race Habits
Personality
Recreational Division/
Appearance Habits
Sexual Dept./
Union Ethnicity Orientation
Unit/
Affiliation Group
Physical
Work Ability
Religion
Experience
Educational
Background
Work
Location Seniority
61. Test Your Knowledge
Sam is a 55 year-old, male Sales
Manager for XYZ corporation. He likes
to drive fast cars and is Native
American. Which layer of diversity has
not been mentioned about Sam?
A. Personality
B. Internal
C. External
D. Organizational
62. Challenges and Opportunities for OB
Managing Workforce Diversity
The people in organizations are becoming more
heterogeneous demographically
(disability, gender, age, national origin, non-
Christian, race, and domestic partners)
Embracing diversity
Changing demographics etc.
64. Impact of Diversity
Organizational culture
Calls for diverse approaches to managing people
including training the staff in desired skills
For example, “people with adequate programming skills
are not available in US & UK markets” (HR
Head, Infosys, Economic Times, 2009)
65. Prominent world level companies
McDonald
Founded in 1967 in Canada
Operating income 50% earned from outside US
operations (2005)
Every three hrs. a new McDonald opens somewhere
on earth
2/3rd of its workforce non-US
66. Prominent world level companies
Coca-Cola
Operates in more than 200 countries
80% of its workforce are non- US citizens
Has 500 trained personnel to go anywhere in the
world to offer advice and expertise concerning
operational and customer service problems
70% of its operating income comes from operations
out side of US
67. Prominent world level companies
Nokia
the cell phone giant from Finland employs over 1000
foreign workers in Finland & over 60% of its 53000
employees are non-fins
Philips
an electronic giant employs 83% of its workforce
outside of its headquarters in the Netherlands
IBM
employ almost 80000 people in India (Eco.
Times, April, 2010)
68. Prominent world level companies
TCS
an Indian IT giant is planning to increase its non-
Indian workforce to 20000 from present 10000 over the
next 5 years
Infosys & Wipro
could see non-Indians account for 10-15% of their total
employee base in next 3-5 years, from around 5%
presently
(Economic Times, 27th April, 2009)
69. Increased Workforce Diversity -
Women
Glass Ceiling
Invisible barrier blocking women and
minorities from top management
positions
Women CEO’s (as of 2/2007):
10 of Fortune 500
23 of Fortune 1000
What helps break the ceiling?
70. Increased Workforce Diversity - Race
Racial
minorities are
growing
2006 – 1,016
race-based
charges of
discrimination
to EEOC
73. Benefits from Managing Diversity
Xerox
plants using diverse work teams are now 30 per cent
more productive than conventional plants.
Procter & Gamble
achieves 30-40 per cent higher productivity at its 18
diverse team-based plants than at its non-diverse plants.
Motorola
beat its competition by producing the world’s most
efficient and high-quality cellular phones which are
produced almost exclusively by diverse work teams.
Research has shown that organizations that
proactively recruit, develop, and leverage
multinational leaders are in better positions in the
global marketplace.
74. Benefits from Managing Diversity
GE Power Systems achieved 13 per cent productivity gains from
cross-functional and multicultural teams versus homogeneous
teams.
Numerous empirical studies of work teams demonstrate that when
tasks are complex and not clearly defined, heterogeneous teams
outperform homogeneous teams. ‘Super teams’, those that were
diverse in numerous respects and selected because of their
differences, outperformed those that were homogeneous.
75. Benefits from Managing Diversity
‘Unlike other MNCs, diversity for us is a business imperative and
not an issue of legal compliance. We want HLL’s management to be
representative of our diverse customer base so that they
understand the needs of the customer better. If a manager
understands the brand she is handling, the learning curve is that
much shorter. For instance, in marketing, if the target audience is
women, it is an advantage if a woman is incharge of the brand’.
Says Prem Kawath, HR Manager, HLL.4
76. Leaders in Diversity
Pepsi’s CEO & direct
reports are each assigned
different employee group
(e.g., GLT, Asian, women of
color)
Responsible for:
Understanding the issues
these employees face
Facilitating their growth
and development
Hold themselves
accountable
77. Evolution of Organizational Behaviour
Three significant Eras:
The Classical Era (1880-1930)
Administrative theory
Scientific Management
The Behavioural Era (1930-1960)
The Hawthorne Legacy
The Modern Era (1960 onwards)
Contingency Approach
78. A Brief History of OB
Classical approach to management (scientific
management and administrative management)
Hawthorne studies (workers respond to attention)
Human relations movement (treat workers well to
boost productivity)
contd.
79. A Brief History of OB
Contd.
The contingency approach (examine individual
and situational differences before taking action)
Positive organizational behavior (focus on
measurable strengths of workers to improve
performance)
80. The classical approach
The focus of scientific management was the
application of scientific methods to increase
individual worker’s productivity.
According to the principles of scientific
management, there is a division of work
between managers and workers.
81. The classical approach
TAYLOR’S PRINCIPLES
the development of a true science for each person’s
work
the scientific selection, training and development
of the workers
co-operation with the workers to ensure work is
carried out in the prescribed way
the division of work and responsibility between
management and the workers.
82. The classical approach
Administrative management was concerned
primarily with how organizations should be
managed and structured.
The core of management knowledge lies
within the classical school, including the
framework of planning, organizing, and
controlling.
83. The classical approach
Henry Fayol classified all the business activities
into six functions:
Technical activities
Commercial activities
Financial activities
Security activities
Accounting activities
Managerial activities
84. The Hawthorne Studies
During the 1920s, attention began to focus on social factors at
work, groups, leadership, the informal organisation and
behaviour of people.
‘Behavioural’ and ‘informal’ are alternative headings sometimes
given to this approach.
Turning point came with the famous Hawthorne experiments at
the Western Electric Company in America (1924-32)
One of the researchers (leader) was ELTON MAYO (1880-1949)
85. The Hawthorne Studies
Four Main Phases to the Hawthorne Experiments
The Illumination Experiments - level of production
was influenced by factors other than changes in
physical conditions of work.
The Relay Assembly Test Room - attention and
interest by management reason for higher
productivity.
86. The Hawthorne Studies
The Interviewing Programme -20,000 interviews. Gave
impetus to present-day personnel management and use of
counselling interviews. Highlighted the need for
management to listen to workers.
The Bank Wiring Observation Room - Piecework
Incentive Scheme. Group pressures stronger than financial
incentives offered by management
87. The Hawthorne Studies
A major conclusion from these studies was the
workers reacted positively because management
cared about them (the Hawthorne effect).
The Hawthorne effect is the tendency of people to
behave differently when they receive attention
because they respond to the demands of the
situation.
contd.
88. The Hawthorne Studies
contd.
The Hawthorne studies also led to many other
conclusions, such as the fact that effective
communication with workers is critical to
managerial success
89. The Human Relations Movement
The human relations movement was based on the
belief that an important link exists among
managerial practices, morale, and productivity.
Key points of the movement are that satisfied
workers are more productive and that, given the
proper working environment, virtually all workers
would be highly productive.
90. Contingency Approach
Writers in the 1950s and 1960s who adopted a more
psychological orientation.
Major focus was the personal adjustment of the individual
within the work organisation and the effects of group
relationships and leadership styles.
Main contributors: MASLOW, HERZBERG AND McGREGOR.
91. Contingency Approach
MASLOW’S HIERARCHY OF HUMAN NEEDS
General Examples NEEDS Organisational
Examples
Achievement SELF-ACTUALISATION Challenging Job
Status ESTEEM Job Title
Friendship social Friends in the Work
Group
Stability SECURITY Pension Plan
Sustenance PHYSIOLOGICAL Base Salary
92. Contingency Approach
HERZBERG isolated two different sets of factors affecting
motivation and satisfaction at work.
1. Hygiene or Maintenance Factors - concerned basically with job
environment. Extrinsic to the work itself.
2. Motivators or Growth Factors - concerned with job content.
Intrinsic to the work itself.
Goal of managers is to achieve a state of no dissatisfaction by
addressing Hygiene Factors. Task of improving motivation is
then by addressing the Motivators.
93. Contingency Approach
McGREGOR argued that the style of Management adopted is a
function of the manager’s attitudes towards human nature and
behaviour at work.
He put forward two suppositions called Theory X and Theory Y
which are based on popular assumptions about work and
people.
94. Contingency Approach
THEORY X ASSUMPTIONS
People do not like work and try to avoid it.
People do not like work, so managers have to
control, direct, compel, and threaten employees to get them to
work toward organisational goals.
People prefer to be directed, to avoid responsibility, to want
security, and have little ambition.
95. Contingency Approach
THEORY Y ASSUMPTIONS
People do not naturally dislike work; work is a natural part of their
lives.
People are internally motivated to reach goals to which they are
committed.
People are committed to goals to the degree that they receive personal
rewards when they reach their objectives.
People will seek and accept responsibility under favourable
conditions.
People have the capacity to be innovative in solving organisational
problems.
People are bright, but generally their potentials are under-utilised.
96. Contingency Approach
A cornerstone of the human relations movement is
Theory X and Theory Y of Douglas McGregor.
Theory X is the somewhat stern and pessimistic
traditional assumptions about worker capabilities.
Theory Y is an alternative, and optimistic, set of
assumptions
97. The Contingency Approach
The contingency approach to management
emphasizes there is no one best way to manage
people or work.
The contingency approach is derived from the
study of leadership styles.
The strength of the contingency approach is that
it encourages managers and professionals to
examine individual and situational differences
before deciding on a course of action.
98. Milestones in the History of Organization Behaviour
Industrial Revolution Robert Owen, Andrew Ure and J.N. Tata
provided certain welfare facilities. The ideas
degenerated into paternalistic approach.
Taylor believed in rationalizing production. He
Scientific Management– believed Early 20th Century that human
behaviour was based on ‘rabble hypothesis.’
Human Relations Movement Great Depression, labour movement and
during 1920s to 1940s Hawthorne led to the
movement. The movement subsequently
became a fad Organisational behaviour – 1950’s
The contingency approach is that it encourages
Contingency Approach managers and professionals to examine
individual and situational differences before
deciding on a course of action-1960 onwards.