This document provides an overview of organizational behaviour concepts for a semester 2 course. It discusses feedback from semester 1 exams, outlines the semester 2 schedule including topics like groups and group behavior, and clarifies the differences between a business, organization, and management. A business aims to make money but is not necessarily an organization, while an organization uses management principles and has a consciously coordinated structure to achieve goals. Groups are formed for social identity and consist of interdependent people who interact and communicate to achieve something specific. Characteristics of group behavior include roles, norms, size, and cohesiveness.

1. Organisational Behaviour
Semester 2
Rizvi Management Institutes, Mumbai
2022-24
Session 1 – February 15, 2023

2. Welcome to Semester
2

3. Attendance

4. Agenda today
• Feedback on your Sem 1 exams performance
• Sem 2 details – 5W 1H
• Business =/x Organisation =/x Management?
• Groups and Group Behaviour

5. Feedback on your exams performance
Sem 1
• Classical conditioning
• B F Skinner
• AET
• Motivation
– Maslow’s theory
• 5 human needs?
• Hierarchy in management?
• Attribution theory
• Fishbone diagram*

6. Benefits of using a fishbone diagram
1. Being a visual tool, it is easy to understand for
problem analysis and identification of a solution
2. Easy to identify the root cause of the problem
3. Locates bottlenecks in the work process and
different segments/parts of each process
4. Finds ways to improve the work process or any of
its segments or parts
5. Forces in-depth discussion of the problem, to
educate the concerned team members
6. Prioritises further analysis, to take corrective actions
and steps, if any

7. What are the advantages of using the
fishbone diagram* in problem solving?
 It gives root cause
 Problem solving is effective
• It takes less time to solve any
problem
• Problem of various types can
be solved
• By using fishbone diagram,
one can easily find any type of
problem
• It does not require any kind of
cost; so, it can be used by
small scale industry as well as
large scale industry
• Decision can be taken by the
output given by this diagram
• The major advantage – it
requires proper timing of
solving problem
• Any department or any
industry can use fishbone
diagram to solve problem
• Fishbone diagram is efficient
and effective by an immediate
effect
• To find problem within
organisation should not require
any type of formal education;
just need to ask question to the
problem you will get root cause
to that problem

8. Wake up, this is now urgent

9. Semester 2 – 14 lectures
1. Groups and group behaviour
2. Understanding work teams 1
3. Understanding work teams 2
4. Emotional intelligence
5. Leadership 1
6. Leadership 2
7. Leadership 3
8. Mid-term test
9. Power and Politics
10.Conflict
11.Negotiation
12.Organisational structure
13.Organisational culture
14.Organisational change

10. Crucial instructions and advice for Sem 2
• 13 lectures and 1 mid-term test (February 15 to April 16)
• Get serious about your education
• Duration 2 hours per lecture; no toilet/water breaks
– MMS A
– MMS B
• Subject treatment – much more intensive, case studies
• Mid-term test – after 7 lectures
• Semester-end evaluation process
– 60 marks Semester 2 Examination (written test)
– 40 marks Internal assessment
• 30 marks Mid-term written test
• 10 marks Classroom (virtual) behaviour, late-joining
into class, lecture involvement, improved
learning and interest, periodic assignments,
responses to classroom questions`

11. Is BUSINESS = ORGANISATION =
MANAGEMENT?
If no, what is the difference?

12. What is a business?
1. Manufacturing
– By making and “selling” a product and earning money
2. Trading
– By buying and “selling” a service and earning money
3. Consultancy/Advisory
– By understanding work and “selling” advice and earning money
• So, “selling” to earn/make money (= “item/service bechna”)
• Hence, in any business, the buyer (= your customer) pays you
money; so, s/he is always most important
– S/he who pays you to buy your product, service or advice
• Measures of business performance – market share, revenue, bonus,
sales, qly, ½ yly, cost savings, outstandings, collections, recoveries,
credits, pay for performance …….
• Any action, activity, work, job or task that earns money

13. Fundamentals in business
Making and “selling” a
product – Manufacturing
• Mobile phones
• Motor cars
• Furniture
• TV sets
• Tooth paste
• Book printing
• Foods kitchen
• Shoes and chappals
• Clothing
• Computers
Buying and “selling” a
service – Trading
• Airlines
• Banks
• Hotels
• Insurance
• Laundry services
• Advisory/Consultancy
• Bus (local and inter-city)
• Rail (local and inter-city)
• Food delivery services
• Courier services

14. What is an organisation?
• What?
1. A consciously coordinated social unit
2. Hierarchy of authority and responsibility
1. Chain of command
2. Unity of command
3. Division of effort amongst two or more people who are
working together
• Why?
• Purpose is to integrate (= combine) everyone’s effort, to
achieve the organisation’s common goals, targets,
objectives, KRAs
• Purpose of business is to make money!

15. Different kinds of organisations
• Company
• Partnership
• Multi-National Corporation (MNC)
• Kirana store
• Shopping mall
• Paan-bidi shop
• Cooperative housing society
• Government department
• Public Sector Undertaking (PSU)
• Ration office
• BMC ward office
• NGO

16. Different kinds of businesses
• Banking
• Airlines
• Consulting
• FMCG
• Telecom
• Retail
• IT & ITES
• Auto
• Shipping
• Real Estate and infrastructure
• Furniture
• Engineering

17. Different functions in a business
Your specialisations
• Marketing
– Product management
– Sales management
– Sales promotion and PR
– Sales administration
• Manufacturing
– Production
– Maintenance
– Purchase and vendor development
– Research and quality
– Logistics/Supply chain
• Systems, IT
• Finance, accounts and audit
• HR and administration

18. “Business” is/is NOT an “Organisation”?
• A business MAY be a consciously coordinated social unit
• A business MAY have a hierarchy of authority and
responsibility
– Chain of command
– Unity of command
• A business MAY have a division of effort amongst two or
more people who are working together
• A business MAY have the purpose to integrate everyone’s
efforts, in order to achieve the organisation’s “common”
goals
• But, a business is NOT an organisation if making money is
its MAIN goal, although it depends on people’s efforts

19. So…….
• For a business to become an organisation, methods,
systems and processes are necessary
• In any organisation, money must be utilised (= used as a
means) to achieve business goals, NOT become an end
in itself
• Thus, knowledge of management helps to achieve
ORGANISATIONAL GOALS by applying methods,
systems and processes, not just to make money
– Goal/s = target/s = objective/s = KRA/s
• Strong correlation between “employee behaviour” and
“goal/s”
• MBO = Management By Objectives
• Understanding OB helps business to manage the desire
and drive towards achieving the “goal/s” of the business

20. And… MANAGEMENT teaches….?
1. WHAT are the RIGHT methods, systems and processes
to apply, so that the business runs BEST?
2. HOW to apply them?
• ORGANISATION = CONSCIOUSLY COORDINATED
set of structure, systems, processes and methods
– Hierarchy
– Unity of command
– Chain of command
– Division of effort amongst two or more employees
• These right methods, systems and processes enable its
employees to successfully achieve and surpass its
goals, provided they are all COMMONLY understood
and accepted

21. Origins of OB are in Human Behaviour
Hence, we first study individual
OB (Sem 1), and then study group
OB (Sem 2)

22. Organisational Behaviour – Semester 1
 What is Organisational Behaviour (OB)?
 Manager’s job – functions, roles, skills
 Diversity – age, gender, tenure
 Learning and shaping of behaviour
 Attitude
 Job satisfaction
 Emotions and moods
 Personality and values
 Perception
 Individual decision making
 Motivation – concepts
 Motivation – applications
 Communication and Interview readiness

23. What is a group?

24. Group
• Definition = A group consists of two or more inter-dependent people
who come together to achieve something specific, by interacting and
communicating with each other
• Two or more people come together
• They together achieve something specific
• They interact and communicate with one another
• They are inter-dependent
• Key issues to understand
1. Each group member has a different upbringing, beliefs, culture, attitude and
behaviour
2. However, the group’s beliefs, culture, attitudes and behaviours can be
modified to suit a specific organisation’s environment and expectations
• Every business organization and it’s management’s primary task
– To find and establish common ground, by creating a common
understanding and acceptance amongst ALL team members, about
the organisation’s goals and result expectations

25. Why do people form groups?
• “Social identity” theory (= Converging identities)
o Similarity
o Upbringings, beliefs, cultures, attitudes, behaviours
o Distinctiveness
o Uniqueness, speciality, exclusiveness
o Status
o Esteem, social position
o More certainty
o More re-assurance and, therefore, less uncertainty
about expectations, roles and norms, as well as
members’ safety and security

26. Group working
• Fundamentals of a group?
• How and why are groups formed?
• Progressive, differing stages of group
development
• Group behaviour = behaviour of people in a
group?
• Different aspects of behaviour in a group
• Major, obvious differences between GROUP
behaviour and INDIVIDUAL behaviour – in an
organisational setting?

27. Fundamentals of group and their behaviour
• Group
– Different types of groups
– Why does a group get formed?
– How does a group develop?
• Behavioural aspects of groups
– Role
– Norms
– Status
– Size
– Cohesiveness

28. Characteristics of group behaviour
• Individuals naturally tend to form groups since “no man is an island”
1. People are happier living and working in groups
2. Their individual upbringings, beliefs, cultures and attitudes impact
workplace behaviours
3. Group members exert significant influence on the organisation’s
performance and results
4. Members create the foundation of how and why the entire group
works
• So, how and what a group does, is a sigma of what all the group
members can do
• To improve (and/or correct) their behaviour
• Their upbringings and beliefs cannot be changed, but the group
members’ cultures and attitudes can be improved
• This is a manager’s primary task
• Your ASKs will always be tested on your competence to do this task

29. Types of groups
Types of groups
Imagine you’re working in an organisation
1.Formal
– Command group
– Task group
2.Informal
– Interest group
– Friendship group

30. Stages of group development
1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning*

31. 5 key aspects of human behaviour in groups
1. Role
– What work does each member do, in a group?
– What related (= inter-connected) set of activities does each person
in the group perform, to complete a task or process?
2. Norms
– What standards of behaviour must all group members observe
and adhere to?
3. Status
– What status (= esteem, relative social position) does each of the
group members perceive, about self and others?
4. Size
– How many people are members in the group (size = big/small)?
– Is there an “ideal” group size?
– How to judge what size is “ideal”?
5. Cohesiveness
– What attracts and binds (= holds) all the group members together?

32. Role requirements/expectations change in
different situations/groups
• Role perception
– My view of my role
• Role expectations
– Other peoples’ expectations of my role
• Role conflict
– Compliance issues = do my views comply or
conflict with what and how others see, as my
role?

33. Norms and status influence an individual’s
behaviour in a group
• Conformity = adherence to the group’s norms
• Deviant workplace behaviour
• Status characteristics theory
– Power
– Ability
– Personal characteristics
• Status inequity

34. Size of the group affects it’s performance
• Small group size
• Danger that all members will be stressed due to
overwork
• Large group size
• Danger of some members not fully occupied,
resulting in “social loafing”

35. Cohesiveness in the group
• Extent of attraction to the group
• Extent of motivation within the group
• Productivity of the group

36. Next lecture
February 17 and 18
Group decision making
Understanding workplace teams