ORGANIZATIONAL BEHAVIOUR

Louise Agyeman Barning

OUTLINE

• What is OB

• Understanding the fundamental concepts

connected with OB.

• Understanding the basic approaches for

organizational behaviour

• Framing the study of OB

• Understanding the goals of OB knowing

the importance of OB for the manager

Definitions

• A multi-disciplinary field devoted to

understanding individual and group

behaviour, interpersonal processes and

organizational dynamics.

• A knowledge base that that helps people

work together to improve the

performance of the organization

What is organization

• A social unit of people that is structuredand managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment

Organizational Behaviour

• The systematic study of human

behaviour, attitudes and performance

within the organizational setting - jobs

and design of work, communication

performance appraisal, organizational

design and structure, psychological,

interpersonal and behavioural dynamics

in the organization

• Drawing from theory methods and

principles from such disciplines as pshyc

• psychology, sociology and cultural

anthropology to learn about individual

perceptions, values learning capacities,

and actions while working in groups and

careful applications of knowledge about

how people as individuals and as groups

acdt within total organizations.

Definitions

• A consciously coordinated social unit

composed of two or more people that

function on a relatively continuous basis

to achieve a common goal or set of

goals.

ORGAZATION STRUCTURE ( 2)

• Formal Organization

• Official structure of command and

control that exist within an organization

• Informal structure

• Unofficial organization of personal and

social relations that develop in an

organization

• Look at Mintzberg’s model

ORG STRUCTURE - 3 LEVELS

• Top-level management The top consists of

the board of directors (including non-

executive directors and executive directors),

president, vice-president, CEOs and other

members of the C-level executives.

• They are responsible for controlling and

overseeing the entire organization.

Responsibility and Autthority command

top

midde

Bottom

Tall verses Flat Structures

Top level mangers

• They set a tone at the top and develop

strategic plans, company policies, and make

decisions on the direction of the business.

• top-level managers play a significant role in

the mobilization of outside resources and are

accountable to the shareholders and general

public.

• The board of directors is typically primarily

composed of non-executives which owe a

fiduciary duty to shareholders and are not

closely involved in the day-to-day activities

of the organization, although this varies

depending on the type (e.g., public versus

private), size and culture of the organization.

• Helpful skills of top management vary by

the type of organization but typically

include[ a broad understanding

competition, world economies, and

politics. In addition, the CEO is

responsible for executing and

determining (within the board's

framework) the broad policies of the

organization

• Analysing the external environment

effect on the organization and its human

resources, missions, objectives and

strategies.

• . Executive management accomplishes

the day-to-day details, including:

instructions for preparation of department

budgets, procedures, schedules;

appointment of middle level executives

such as department managers;

coordination of departments; media and

governmental relations; and shareholder

communication.

the CEO is responsible for executing and

determining the broad policies of the

organization. Executive management

accomplishes the day-to-day details,

including: instructions for preparation of

department budgets, procedures,

schedules; appointment of middle level

executives such as department managers;

coordination of departments; media and

governmental relations; and shareholder

communication.

MIDDLE MANAGEMENT

• Consist of general managers, branch

managers and department managers.

They are accountable to the top

management for their department's

function. They devote more time to

organizational and directional functions.

Their roles can be emphasized as

executing organizational plans in

conformance with the company's policies

• and the objectives of the top

management, they define and discuss

information and policies from top

management to lower management, and

most importantly they inspire and provide

guidance to lower level managers

towards better performance. Their

functions include:

• Design and implement effective group and

inter-group work and information systems.

• Define and monitor group-level performance

indicators.

• Diagnose and resolve problems within and

among work groups.

• Design and implement reward systems that

support cooperative behaviour. They also

make decision and share ideas with top

managers.

First Level Management

• Consist of supervisors, section leaders,

foremen, etc. They focus on controlling

and directing. They usually have the

responsibility of assigning employees

tasks, guiding and supervising

employees on day-to-day activities,

ensuring quality and quantity production,

making recommendations, suggestions,

and up channelling employee problems,

etc.

• First-level managers are role models for

employees that provide:

• Basic supervision

• Motivation

• Career planning

• Performance feedback

Management & Its Interface with OB

• Org behaviour is a broad area of Mgt that

studies how people act in organization.

Managers can use the theories and

knowledge of org behaviour to improve

management practices to attain

organizational goals

OB’S Contribution to Management

• The most successful organizations make

the most use of their employees talent

and energy. Firms have competitive edge

if they are able to manage their

employees Pfeiffer estimates that org.

can reap 40%gain by managing people in

ways that build commitment and

involvement

• Employees are key to org. success how

well a manager interacts and his

subordinates is key to a managers

success. A manager who is skilled in OB

is able to work effectively with employees

and colleagues influencing them to

achieve organizational goals.

Management Def. by Henri Fayol

• Forecasting

• Planning

• Organizing

• Commanding

• Coordinating

• Controlling

Henri Fayol most influential contributors to

modern concept of management

Managers Roles

• Interpersonal

• Informational

• Decisional

• Skills

• Political- build powerbase

• Conceptual – analysing complex

situations

• Interpersonal - communicate

• Diagnostic – problem solving

Manager’s role

• Leadership – ability to lead and provide

guidance

• Technical – Expertise in one particular

functional area

Organization goals:

• Those ends that an organization seeks to

achieve by its existence and operation.

• Goals are predetermined and describe

future results toward which present

efforts are directed.

These goals are expected to be SMART

The organization and its environment

• PEST ANALYSIS

• Political

• Economic

• Social

• Technological

ORGANIZATIONAL CULTURE

Characteristics of Org culture

• Organization’s goals & mission statement

• Behaviour patterns – interaction within

the organization and between

organization and stakeholders

• The distribution of authority

• The structure of the organization

• The nature of leadership – how power is

exercised.

Org. culture

• Values of Organization

• The entrepreneurial spirit

• Its receptiveness to embracing change

4 TYPES OF ORG. CULTURE BY

HANDY

• Entrepreneurial structure and power

culture - spider’s web

• Bureaucratic structure and role culture

greek temple

• Matrix structure and task culture

• Independence structure and person

culture

Definition

Refers to the deep-seated values

underpinning the organization, manifesteed

through a no. of features. Being

recognized as one of the fundtmental

contributions to success or failure of

organization in meeting their goals.

Characteristics of Org. Culture – to

develop an understanding

• Organizational goals – mission statement

• Dominant behaviour patterns –

interactions with all stakeholders

• Distribution of Authority – decision

making

• Structure of Organization –

• The nature of leadership –how power is

exercised

• Values of organization

• The entrepreneurial spirit

• Its receptiveness to change

Handy’s 4 types of Organizational Culture

• Entreprenerial structure & Power culture

• Spider’s web

• Bureaucratic and Role culture

• Greek temple

• Matrix structure and task culture

• The net

• Independence structure & the person

culture ( cluster )

Peter & Waterman’s 2 types of culture

• Rational – derives its structure and

culture from the ideas of classical and

scientific management theory

• Organizations are large – economies of

scale

• Low cost and cheapness of product –

way to success.

• Strict budgets and cash flow analysis

• Orthodox thinking is encouraged and

rewarded

• Org. structure is complex and detailed

with job descriptions

• People are treated as factors of

production

• Money is the motivator, non performers

are dismissed, Inspection is used to

achieve quality control/business profits

must be achieved at once

Rational - THROB

• Tall

• Hierarchic

• Rigid

• Organized

• Bureaucratic –

Alternative Model - Excellence

• Emphasis on quality than on price

• A search for innovation and new products

• A distrust on the over reliance on

numerical analysis

• Long view replacing short termism in

company decisions

• Stress on value instead of profits

• Organizational structure should be simple

and flat.

• Human capital the best assets

Exellence Model is FELT

Flat

Empowered – greater control over decision

making

Lean – Keeping stock holding to a

minimum and JIT techniques utilized

Teams – Replacement of conventional

departments with multifunctional teams –

work roles are flexible

National cultures and its influence on

work place behaviour

• USA

• French

• German

• English

Influencing organizational behaviour

1. Missions, objectives and goals – all

workers to pull in the same direction

2. Organization values /ideas –

bureaucracy/ management styles,

structural analysis

Human Relations school – Elton Mayo,

Maslow, Mc Gregor – theory x and y, Mc

Clelland – Hygiene factors

Emphasis on flexible structures and ability

to change

Influencing Organizational Behaviour

• 3. Atmosphere and feel of the

organization- Less tangible aspects of

the organizational life - set of unwritten

rules that govern behaviour – ‘the way

we do things around here’ to ensure you

are accepted by both individuals and the

group

Less tangible aspects

• Codes of behaviour

• Language - jargon etc.

• Rites - dress codes, after work get togethers,

• Symbols – Office lay outs, size of desks,

number of support staff

• Organizational folklore – stories and anecdotes

that convey values

• Taboos – the signals of don’ts- unacceptable

behaviour

OTHER FACTORS TO BE CONSIDERED

• Personality and perception

• Attitudes, learning and stress

• Motivation

• Job satisfaction and job re-design

• Group working

• Leadership

• Communication

The Psychological contract – Employee

• Provide safe and hygienic working

conditions

• Make every reasonable effort to provide

job security

• Attempt to provide challenging and

satisfying jobs and reduce alienating

aspects of wok

• Equitable personnel policies and

procedures

Psychological Contract -Employer

• Accepting values and ideologies of

organization

• Working hard in pursuit of organizational

goals and objectives

• Not abusing the goodwill shown by

Management

• Showing loyalty to the orgnaizatin

• Observing reasonable standards of

personal behaviour and appearance

• Reasonable opportunities for personal

development and career progression

• Treat members with respect

• Demonstrate an understanding and

considerate attitude towards personal

problems

Difference between climate and culture

• Culture might be described as the foundation upon which any organisation is built. It develops over the longer term and consists of the values –stated and implicit- beliefs, norms and traditions which guide how the organisation does its business and in turn how people behave. In simple terms, culture could be described as the personality of the organisation and, often, the culture of a particular enterprise can be traced back to those personal values held by the founder, or it is a reflection of the senior

management in the business.

Climate

• Climate, on the other hand, could be described as something more surface level and relates to the here and now; it is about what it feels like to work in the organisation. If culture is the personality, then climate has more to do with the mood or prevailing atmosphere within the business. The climate is prone to more short term fluctuations and is determined by many factors which include leadership, structure, rewards and recognition.