Ob 1(importance, nature and framework)

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ORGANIZATIONAL BEHAVIOR
AND MANAGEMENT

CHAPTER 1 Organizational Behavior and Management
Copyright © 2002 Prentice-Hall
22
What is an Organization?
An organization is a
collection of people
who work together
to achieve
individual and
organizational goals.

33
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.

44
Insert Figure 1.1 here

55
Insert Figure 1.2 here

66
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.

77

88
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 (see
Table 1.1):
Figurehead Leader
Liaison Monitor
Disseminator Spokesperson
Entrepreneur Disturbance handler
Resource allocator Negotiator

• Organizational Behaviour studies encompass the
study of organizations from multiple viewpoints,
methods, and levels of analysis. Provides a set of
useful tools;
-At the individual level- interpersonal relations,
- At the group level – group dynamics – formal
teams and informal groups – inter-group
relations,
- At the organisational level – inter-organisational
gps – M&As.
9

Why Study Organizational Behavior
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Goals
• Describe how people behave under a
variety of conditions
• Understand why people behave as they do
• Predict future employee behaviour
• Control and develop human activity at work
to improve productivity, skill improvement,
team effort, etc
11

Forces
• People- individuals and groups
• Structure- jobs and relationships
• Technology-machinery, computers
• Environment-govt, competition, social
pressures.
All the above forces interact on each other
resulting in OB.
12

99
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.

1100
Challenges for Organizational Behavior
and Management
Using new information technology to enhance
creativity and organizational learning.
Managing human resources to increase
competitive advantage.
Developing organizational ethics and well-being.
Managing a diverse work force.
Managing the global environment.

Challenge 1:
Using New Information Technology to
Enhance Creativity and Organizational Learning
1111
• Information technology: The
computer systems and software
that organizations use to speed
the flow of information around
an organization and to better link
people and subunits within it.
• Creativity: The decision-making
process that produces novel and
useful ideas that lead to new or
improved goods and services or
to improvements in the way they
are produced.

1122

1133
New Ways to Increase Performance
• Reengineering: A complete rethinking and
redesign of business processes to increase
efficiency, quality, innovation, or responsiveness
to customers.
• Restructuring: Altering an organization’s
structure (e.g., by eliminating a department) to
streamline the organization’s operations and
reduce costs.
• Outsourcing: Acquiring goods or services from
sources outside the organization.
• Freelancers: Independent individuals who
contract with an organization to perform specific
services.

1144
Challenge 3
Developing Organizational Ethics and Well-Being
• Ethics: Rules, beliefs, and values that outline the
ways in which managers and workers should
behave when confronted with a situation in which
their actions may help or harm other people inside
of or outside an organization.
• Well-being: The condition of being happy,
healthy, and prosperous.
• Social responsibility: An organization’s moral
responsibility toward individuals or groups
outside the organization that are affected by its
actions.

1166
Diversity Challenges
Decision Making
and
Performance
Flexibility
Fairness
and
Justice

• In the 1890s, with F W Taylor representing
the peak of this movement. Proponents of
scientific management held that
rationalizing the organization with precise
sets of instructions and time-motion studies
would lead to increased productivity.
• Studies of different Compensation systems
were carried out.

• Soon after, Frederic Winslow Taylor introduced the
systematic use of goal setting and rewards to motivate
employees.
• In the 1920s, Australian-born Harvard professor Elton
mayo and his colleagues conducted productivity studies at
Western Electric's Hawthorne plant in the United States.
• They discovered the importance of formal and informal
group dynamics in the work place, resulting in a dramatic
shift towards the ‘human relations’ school of thought.
21

• After the First World War, the focus of organizational
studies shifted to analysis of how human factors and
psychology affected organizations, a transformation
propelled by the identification of the Hawthorne
effect . This Human relations Movement focused on
teams, Motivation and the actualization of the goals
of individuals within organizations.
• Prominent early scholars included Chester Barnard,
Henry fayol, Frederick Herzberg, Abraham Maslow,
David McClelland and Victor Vroom
22

Four Principles of
Scientific Management
1. Study the way employees perform their
tasks, gather informal job knowledge that
employees possess, and experiment with
ways of improving the way tasks are
performed.
2. Codify the new methods of performing
tasks into written rules and standard
operating procedures.
23

Four Principles of
Scientific Management
3. Carefully select employees so that they
possess skills and abilities that match the
needs of the task, and train them to perform
the task according to the established rules
and procedures.
4. Establish an acceptable level of
performance for a task, and then develop a
pay system that provides a reward for
performance above the acceptable2 l4evel.

The Hawthorne Studies
• Hawthorne Works of the Western Electric Company
near Chicago; 1924-1932 – these studies mark the
starting point of the field of Organisational
Behaviour
• Initiated as an attempt to investigate how
characteristics of the work setting affect employee
fatigue and performance (i.e., lighting).(Illumination
experiment)
• Found that productivity increased regardless of
whether illumination was raised or lowered.
25

• Started in 1924– to examine the relationship between
light intensity and employee productivity – a test group
and a control group were used – the test group initially did
not show any increase or decrease in output in proportion
to the increase/decrease in illumination.
• The control group with unchanged illumination
increased output by the same amount overall by the test
group. Subsequent phases brought the level of light down
to moonlight intensity: the workers could barely see what
they were doing, but productivity increased.
• The results baffled the researchers. Obviously,
something besides the level of illumination was causing
the change in productivity – the complex human
variable. 26

The results of these experiments provided the impetus for
the further study of human behaviour in the work place.
Subsequent phase – Relay room assembly test , where
operators assembled relay switches – test specific variables,
such as length of workday, rest breaks, and method of
payment. – basically the same results –
Each test period yielded higher productivity than the
earlier one. Even when the workers were subjected to the
original conditions of experiment, productivity increased–
that was causing the change in the output.
27

• Conclusion – the independent variables (rest
pauses, etc.,) were not by themselves causing the
change in the dependent variable (output).
Something was still not being controlled.
• The bank wiring room study: the bank wirers were
placed in a separate test room. No experimental
changes during the study – an observer and an
interviewer gathered objective data – department’s
regular supervisors were used to maintain order
and control.
28

Implications
• Workers’ preference to work in the relay room,
because of:
i. Small group
ii. Type of supervision
iii Earnings
iv Novelty of the situation
v. Interest in the experiment
vi. Attention received in the test room
The last 3 associated with “Hawthorne Effect” –
special attention paid to them 29

• The end

Ob 1(importance, nature and framework)

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