unit i intro to ob
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Introduction to Organisational Behavior
Who is a Manager & What Managers Do ?
Managerial ActivitiesMake decisions
Allocate resources
Direct activities of others to attain goals
Where Managers Work
Four Functions of Management
PlanningDecide on organizational goals
and allocate and use resources to
achieve those goals
OrganizingEstablish the rules and
reporting relationships thatallow people to
achieve organizational goals
ControllingEvaluate how well the
organization is achieving goals and take action to
maintain, improve, and correctperformance
LeadingEncourage and coordinate
individuals and groups so that they work
toward organizational goals
Management Functions (cont’d)
Management Functions (cont’d)
Management Functions (cont’d)
Management Functions (cont’d)
Managerial Skills
Conceptual Skills Technical Skills
Human Skills
Managerial Skills
Insert Figure 1.1 here
What is Organizational Behavior?
Complementing Intuition with Systematic Study
Systematic Study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence
Provides a means to predict behaviors
Intuition
“Gut” feelings about “why I do what I do” and “what makes others tick”
Organisational Behavior Defined :
• Organisational Behavior is concerned with the understanding, prediction and control of human behavior in organisation/s.
Features of Organisational Behavior :
• It is the study of human behavior in organisation.
• Knowledge of human behavior helps in improving organisational effectiveness and efficiency.
Elements of Organisational Behavior :
There are three basic elements of the organisation namely:
• People • Structure • Technology
Relation between the three Elements :
Levels of Organizational Behavior :
Goals of Organisational Behavior at Different Levels :
• Organisational Level : Culture, Change Management, Financial Performance, Customer Satisfaction & Retention.
• Group Level : Group performance, Information Sharing, Cross-functional Partnerships, Conflict Management, Leadership, Power & Politics.
• Individual Level : Perception,Performance, Personality,Attitude & Motivation.
Fundamental Concepts of Organisational Behavior : Basic Assumptions
• Nature of People : Individual Difference A whole person Caused Behavior Value of the person
• Nature of Organisation : Social System Mutual Interest
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Towards an OB Discipline
Social psychology
Psychology
Behavioural
science
Contribution Unit ofanalysis
Output
Anthropology
Sociology
Political science
Study ofOrganizational
Behaviour
Organizationsystem
LearningMotivationPerception
TrainingLeadership effectiveness
Job satisfactionIndividual decision making
Performance appraisalAttitude measurement
Employee selectionWork designWork stress
Group dynamicsWork teamsCommunication
PowerConflict
Intergroup behaviour
Formal organization theoryOrganizational technology
Organizational changeOrganizational culture
ConflictIntraorganizational politics
Power
Organizational cultureOrganizational environment
Behavioural changeAttitude changeCommunicationGroup processes
Group decision making
Group
Comparative valuesComparative attitudesCross-cultural analysis
Individual
An Open Systems View of Organizational Behavior
A Social Learning Approach to OB
Models of OB
Facets AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL
Model depends on
Power Economic Resources
Leadership Partnership
Managerial Orientation
Authority Money Support Team Work
Employee Orientation
Obedience Security Job Performance
Responsibility
Employee Psychological Result
Dependence on Boss
Dependence on Organisation
Participation Self Discipline
Employee Needs Met
Subsistence Maintenance Higher Order Self Actualisation
Performance Result
Minimum Passive Co-operation
Awakened Drives
Moderate Enthusiasm
Historical Development of OB
The predecessors of OB are :• Industrial Psychology• Scientific Management Movement• Human Relations Movement
Historical Development of OB (cont.)
• Industrial Psychology : It is simply the application or extension of psychological facts & principles concerning human beings operating within the context of business & industry. Group testing, trade testing, rating scales, personality inventories are all its contribution which came into existence with the formation of APA (American Psychological Association)
Historical Development of OB (cont.)
• Scientific Management Movement : Fredrick Winslow Taylor advocated the concept of parity of wages, selection of right man for right job, maximum output with minimum wastage etc. he insisted upon supervisory training to make supervisor a strong link between management & non – management group/s.
Historical Development of OB (cont.)
• Human Relations Movement : According to Fred Luthans, three events cumulatively ushered in the era of human relations movement. These are :
The Great DepressionRise of Trade UnionismThe Hawthorne Experiments
Historical Development of OB (cont.)
The Hawthorne Experiments have been segmented into following broad categories :
Illumination Experiments (1924-1927) Relay Room Experiments (1927-1932) Bank Wiring Room Experiment (1931-1932) Mass Interview Program (1928-1930)
Historical Development of OB (cont.)
• The discipline of OB came to be recognised as a field of study around 1950. OB studies not only the human behavior within the parameters of the organisation but also the group dynamics. OB studies the external environment which influences the human behavior within the organisation. That is why OB takes cognizance of TQM, TPM, BPR or for that matter, any new concept originating in the external environment.
A Paradigm Shift
The term ‘Paradigm’ is used to mean a broad model, a framework, a way of thinking or a scheme for understanding reality.
Joel Barker defined Paradigm as : “A paradigm simply establishes the rules,
defines the boundaries & tells one how to behave within the boundaries to be successful.”
A Paradigm ShiftParadigms powerfully influences our
perceptions of the world around us.We like our current paradigms & therefore
resist change.Outsiders are more effective at introducing
paradigms (new ones) to us.Early adopters of new paradigms must often do
so on faith & not on factsNew paradigms give us new ways of viewing
the world & solving problems
Management Challenges
• Globalization• Technical Innovation & Change• Quality Revolution• Workforce Diversity• Employee Empowerment• Facilitating Work Life Balance• Maintenance of Work Ethics & Culture• Corporate Reorganisation
Challenges Faced by Different Levels at Workplace
Workplace
Organizational Level
• Productivity• Developing Effective Employees• Global Competition• Managing in the Global Village
Group Level
• Working With Others• Workforce Diversity
Individual Level
• Job Satisfaction• Empowerment• Behaving Ethically
Challenges and Opportunity for OB
• Responding to Globalization• Managing Workforce Diversity• Improving Quality and Productivity• Responding to the Labor Shortage• Improving Customer Service
Challenges and Opportunity for OB (cont’d)
• Improving People Skills• Empowering People• Coping with “Temporariness”• Stimulation Innovation and Change• Helping Employees Balance Work/Life
Conflicts• Improving Ethical Behavior
Emerging Trends/ Concerns in OB
• Cultural Diversity & Team Work• Ethical Management & Corporate Social
Responsibility (CSR)
Organisation & Environment
• The environment of any organisation is “the aggregate of all conditions, events & influences” that surround and affect it.
Components of Organisational Environment
Organisational Environment can be broadly classified into following categories :
• Internal Environment• External Environment
External General EnvironmentExternal Operating Environment
Components of Internal Environment
• Internal Environment :Organisational AspectPersonnel AspectProduction AspectMarketing AspectFinancial Aspect
Components of External Environment
• External Environment :External Operating Environment :
Supplier ComponentCustomer ComponentLabor ComponentCompetition ComponentInternational Component
Components of External Environment
• External Environment:External General Environment :
Economic ComponentDemographic ComponentTechnological ComponentLegal ComponentPolitical ComponentSocial Component
Environmental Analysis
Role of Environmental Analysis in Organisation
The role of environmental analysis vary drastically from organisation to organisation, however, the basic role played by it are as under:
• Function Oriented Role: Its main purpose is to improve organisational performance by providing environmental information concerning effective performance of specific organisational functions.
Role of Environmental Analysis in Organisation
• The Integrated Strategic Planning Role: Its main purpose is to improve organisational performance by making top managers & divisional managers aware of the issue that arises in organisation’s environment, by having a direct impact on planning & by linking corporate & divisional planning.
Role of Environmental Analysis in Organisation
• The Policy Oriented Role : Its main purpose is to improve organisational performance by simply keeping top management informed about major trends emerging in the environment. It is basically unstructured, indirect & informal.
Strategies for Managing Environment
• Proper recruitment & selection• Organisational image building through advertising.• Proper domain choice & domain change• Contracting• Smoothening• Lobbying• Vertical integration• Buffering• Strategic alliances/ mergers/ acquisitions
OB: Cognitive Framework
The cognitive framework determines a person’s deliberate or conscious efforts towards acquiring knowledge.‘Cognition’ the basic unit of cognitive framework can be defined as an act of knowing an item of information. It involves a person’s higher mental processes. Edward Toleman is being credited for the evolution of cognitive framework.
OB: Behavioristic Framework
• The roots of behavioristic framework could be traced back to the research work of Ivan Pavlov & B.F Skinner
OB: Behavioristic Framework
• Classical Conditioning/ Reflexive Conditioning: Ivan Pavlov emphasized the S-R (Stimulus- Response) approach. Learning is building up association between Unconditioned Stimulus (UCS) & Conditioned Stimulus (CS). The experiment is conducted in three stages:
OB: Behavioristic Framework
• Stage I: Pre-conditioning:
UCS – UCR(Meat Powder) (Salivation)
CS – No Response(Bell)
OB: Behavioristic Framework
• Stage II: During Conditioning :
CS + UCS - UCR (Bell) (Meat Powder) (Salivation)
(The activity is done repeatedly over a period of time.)
OB: Behavioristic Framework
• Stage III: Post Conditioning :CS - CR(Bell) (Salivation)
UCS: Unconditioned Stimulus (Meat Powder)UCR: Unconditioned Response (Salivation)CS: Conditioned Stimulus (Bell)CR: Conditioned Response (Salivation)
OB: Behavioristic Framework
• Operant Conditioning/Instrumental Conditioning: B.F Skinner proposed the theory of operant conditioning emphasizing R-S (Response-Stimulus) approach. It is basically presumed that a person’s behavior is determined by environment & individual learns by producing alteration in their environment.
OB: Behavioristic Framework
It presupposes that human beings explore their environment (out of curiosity) & thereafter act upon it. Reinforcement is given only when a correct response is made.(Most behavior in organisation are learnt controlled & are altered by theconsequences, by manipulatingreward system.)
OB: Social Cognitive Framework
The social cognitive framework of organisational behavior discusses the two major concerns:
• Knowledge Management• Emotional Intelligence
OB: Social Cognitive Framework
• Knowledge Management: It’s the collection of processes that govern the creation, dissemination & utilization of knowledge. It requires :
Establishing a strategy.Redesigning the organisational structure.Reshaping the organisational culture.
Sense making
Knowledge awareness
Empowerment
Training
Communication
Rewards
Individual learning
Environmentalscanning
Grafting
Experimentation
KnowledgeKnowledgeAcquisitionAcquisition
KnowledgeKnowledgeSharingSharing
Elements of Knowledge Management
OB: Social Cognitive Framework
• Emotional Intelligence: It refers to the assortment of non-cognitive skills, capabilities, competencies that influences a person’s ability to succeed in coping with environmental demands & pressures. The concept has been devised by Daniel Goleman.
OB: Social Cognitive Framework
• Emotional Intelligence: It is composed of five dimensions:
Self Awareness: awareness of one’s own feelings. Self Management: ability to manage one’s emotions &
impulses. Self Motivation: ability to persist in the face of
setbacks & failures. Empathy: ability to sense how others are feeling. Social Skills: ability to handle other’s emotions.
OB: Social Cognitive Framework
The assessment and analysis of emotional intelligence is represented as a measure/ value of EQ (Emotional Quotient)
QUESTIONS
Review
• Discuss the contribution of different disciplines in the study of OB?
• Discuss the fundamental concepts of OB.• Why should a manager know about this
domain of knowledge?• Contrast formal versus informal organization.• What are the three basic elements of an
organization?
Review
• Discuss Hawthorne Studies?• What is Scientific Management Movement?• Describe 3 challenges facing managers today;
why are they considered as “challenges”?• What is Emotional Intelligence & how is it
important in work organisation ?• Discuss the role of Knowledge Management in
an organisation.
Review
• “Organisations differ in their nature”. In the light of this statement discuss various models of OB.
• Discuss the purpose & role of environmental analysis in an organisation.
• “OB represents interaction among individual, group & the organisation”. Elucidate this statement.
Review• The Hawthorne Experiment heralded the: Management approach Group Work approach Human Relations Approach Organisational Behavior Approach• OB as a discipline now has a fairly strong presence in the
study of management because: It borrows extensively from other behavioral sciences It has a strong emphasis on studying human behavior to
harness it in enhancing organisational effectiveness It helps in changing organisations It leads to better people management
THANK YOU