1.2 OB Aegis

Organizational Behavior 1.2UNIT 1

1. History of OB

2. Evaluation

3. Challenges and Opportunities

4. Contributing Disciplines-The OB Model

5. Management Functions and relevance to OB

6. Personality-Determinants, Structure, behaviors, Assessments

7. Psycho-Analytical, social learning, Job fit, Trait theories

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OB : History

Hawthorne studies-Bell Telecom Mary Follet Maslow Gilbreth

Evaluation Foundations: Levels Individual – Group – Organization

Essence of the study Preparing, understanding and motivating People (Rewards, Punishments) Managerial Effectiveness—Interpersonal skills

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Challenges for OB Studies

Dramatic Changes:

Typical Employees getting older

Breakdown of Racism

More women @the workplace

Corporate Downsizing

Huge Temporary Workforce

Changing Employee Loyalty

Global Competition-Flexibility

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What Managers Do

Individual level:

1. Getting things done through people.

2. Make decisions.

3. Allocate Resources.

4. Direct activities of others to attain Goals.

Organization wide:

1. Coordinated Social unit.

2. Functions on day to day basis to achieve a common Goal or set of Goals.

3. Classified as Manufacturing,Service,NPO

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Challenges Contd

Managing Workforce DiversityEmbracing diversity

Changing demographics

Implications for managers

Recognizing and responding to difference

For Managers Adapting to different People from same nation(Asian Influence) Heterogeneous in Gender,Age,Race and ethnicity(even Disabled ,aged, lesbians) From Melting-Pot to Differentiation Approach Immigrants@ workplace

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Challenges in the contemporary Business Environment:

Responding to GlobalizationIncreased opportunities for overseas assignmentsWorking with people from different cultures

Overseeing movement of jobs to countries with low-cost labor

Managing Workforce DiversityEmbracing diversityChanging demographicsImplications for managers

Recognizing and responding to difference

Improving Quality and ProductivityQuality management (QM)Process reengineering

Responding to the Labor ShortageChanging work force demographicsFewer skilled laborersEarly retirements and older workers

Improving Customer ServiceIncreased expectation of service qualityCustomer-responsive cultures

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Challenges-Contd

Responding to Globalization

Increased foreign assignments

Working with people from different cultures

Overseeing movement of jobs to countries with low-cost labor

It’s a Seamless World-Mc Donald’s

Coke

Metro

Nokia

Managers-Foreign Assignments—Transfers to actual Facilities

New Teams-Attitudes, Cultural Differences

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Improving Quality and Productivity

Quality management (QM)Process reengineering

Overcrowded market in the same categories (home appliances,machinery,electronics) Shift pressure of production due to competition on to labor Excessive involvement of people into quality processes(6 sigma, benchmarking etc) Managing change

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Responding to the Labor Shortage

Changing work force demographics

Fewer skilled laborers

Early retirements and older workers

Changing Economies(1990’s to 2000) Developed countries-layoff’s to outsourcing Ageing Europeans ,declining birthrates (shortage of employees)

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Opportunities from OB studies

Improving People Skills

Empowering People

Stimulating Innovation and Change

Coping with “Temporariness”

Working in Networked Organizations

Helping Employees Balance Work/Life Conflicts

Improving Ethical Behavior

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Improving Customer Service

Increased expectation of service quality

Customer-responsive cultures

Technology driven processes Delivery mechanism From customer satisfaction to……….

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Learning Organizations

Modification of Behavior through Practice, Training or Experience

COMPONENTS

Change (situations) All changes don’t reflect learning-Temporary Reflected in Behavior (potentially) Occurs as an Experience Should be reinforced Is ongoing

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The OB Model

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Psychology - Learning

Motivation

Personality

Emotions

Perception

Training ,Leadership, Job satisfaction

Decision making PA Attitude

Individual

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What is to be Learnt?

Put learning aside, understand human (competent) Performance

Theoretical approaches : Learning Outcomes Stages of Learning Expert-Novice Differences

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Indigo alters refund policyAnshul Dhamija I TNN

Bangalore : Indigo has a new passenger friendly cancellation policy. Till Recently Indigodid not allow cancellation of any tickets or even refunds. The only money the passenger could salvage was the “passenger service” fee of Rs.225.But now, Indigo offers more flexibility. Passengers get an option of an open ticket valid for 180 days (equivalent to ticket costs with a nominal deduction of Rs.500 )against a ticket cancellation.Further,Passenger can also cancel / reschedule tickets up to 2 hours prior to departure.

“Our improved OTP (On time performance) has been attracting corporate travelers and their concerns for greater ticketing flexibility was the reason we revisited our cancellation policy". Said CEO,Ramki Sundaram.

OTP,according to the airline, has improved partly because of steps taken to Turn around Aircrafts more quickly.Indigo’s current Turnaround time for ATR aircraft is 15 Minutes and Airbus aircraft is 25 minutes. Source : The Times of India, Bangalore Friday 5th July 2010

1.2 OB Aegis

Theories of Personality

Type theory-Physical, Psychological

Trait Theory

Psychoanalytic theory- Id theory (libido) unconscious, Ego-Conscious (reality) super Ego-Cultural upbringing (strives for perfection)

Social learning-Learning: Any change in one’s behavior that occurs as a result of experience

Self Theory

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The Big 5 TRAITS

Agreeableness (High Low) (with others:Gentle,Cooperative,Forgiving,Good natured)

Conscientiousness (High Low) (No of Goals Focused at a time : Many/Few, Organized,Systematic,responsible,self styled)

Negative Emotionality (Less Neg More Neg) (People with Less Negative E: calm,poised,secure) Manage better-Job Stresses,Pressure,tension Extroversion ( Extroversion Introversion) (Comfort levels with relationships) E-Social,Talkative,assertive,open for new ideas,realtionships Openness (More Less) High : Willing for new ideas Changes own ideas Beliefs Attitudes Low : Few interests (Narrow) Less curious, Creative

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Foundations of Individual Behavior

• Personality - Definition : • “Is the relatively stable set of Psychological Attributes that distinguish one person from another”

• Nature or Nurture ?• Biological or Environmental• For Managers : U/s basic personality attributes • Perception• Attitude (in Situations)• The Myers-Briggs Framework• U/s Personalities in Organizations• Basis- Intuiting• Sensing• Judging• Perceiving• MBTI-Questionnaire for all Corporate interviews• Other Personality Traits @Work• Locus of Control-Internal / External

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• Self Efficacy-Assessment• Belief in their capabilities (High/low )• self confident,image,looking glass self,real self

• Authoritarianism• Expect instructions only from a higher authority• Question things, disagreements• Autocratic manager/Participative manager

• Machiavellianism (Nicoli Machiavelli)• Gaining power, control behavior of others • Self Esteem• extent to which a person believes that He/She is worthwhile and deserving.

• High Esteem-Seek higher status jobs,confident

1.2 OB Aegis

Points to Ponder

Organizations should hire the Smartest people. Agree/Disagree How might Employees learn Unethical things at Work?

Does Age,Gender,Race and Tenure affect performance?

1.2 OB Aegis

Perception

“The set of Processes by which an individual becomes aware of-and interprets information about the environment”

aabaa selective Perception a a a a a

abaaa ------------ -------- a a a a a

aabba a a a

screening out info that discomforts beliefs

aba --------------- Stereotyping -------- bbb

ba aaa

a

BASIC PERCEPTUAL PROCESS

1.2 OB Aegis

Basic Perceptual Processes

• Selective perception

• -Screening out information

• -Uncomfortable or contradictory to beliefs

• -Ex. Managers are fond of particular workers (Goof ups are forgiven)

• (when : Good/Bad)

• Stereotyping

• -Categorizing or labeling people

• -Ex Communication skills necessary for jobs

• -(Good/Bad ?)Race or gender

• -Costing an organization of both sets- Efficiency, opportunity, federal law, unethical behavior

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Factors affecting Perception (Info processing by the mind)

Internal factors- Needs and Desires Personality Experience External Factors-Size Intensity Frequency,Reception Contrast Status Movement

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Managing the perceptual Process

• Perceiving oneself accurately (awareness)

• Improve one’s self concept (maslow’s)

• Empathetic

• Positive attitude

• Avoiding Perceptual distortions

• Applications in Organizations

• -Interviews

• -Appraisal

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Learning Process

• “Learning is a permanent change in Behavior as a result of experience”

• Components• Learning involves change (Good/Bad)

• Change in behavior must be permanent • (Not fatigue, temporary adaptations)

• Acquired Through Experience (directly thro’ practice, observation)• Analytical skills, problem solving, Decision making

• Is a lifelong process

1.2 OB Aegis

• Determinants of Learning-(What determines change in behavior)

• Motive- Drives prompt a person to learn. Motives Leads to motivation

• Stimuli-Objects that exist in the environment where we live.

• General stimuli when events twice or more, the response is generalized

• (Late comers, Halo effect)

• Discriminatory stimuli : Responses vary from stimuli to stimuli

• (Student learning methodology)

• Responses-Can be seen as Attitudes,perception,behavior

• Reinforcement-conditioning of learning. increases strength of response and induces

• repetitions in behavior. (consumer buying)

• Retention-Capability of Reproducing the learning's

• Remembrance (learning that return is “Spontaneous recovery”)

• Forgetting (learning lost is “Extinction”)

1.2 OB Aegis

Types of Reinforcements in Organizations

Positive Reinforcement

Possibility of Pay rise-------- High performance----- pay rise awarded ----------- continued Perf

STIMULUS DESIRABLE BEHAVIOR PRESENTATION OF REPITITION OF

ATTRACTIVE CONSEQUENCE DESIRED BEHV

Avoidance

THREAT OF PUNISHMENT FOR LAZINESS---------PUNCTUAL---------NO PUNSIHMENT-----------CONTINUED PUNCTUALITY

STIMULUS DESIRED BEHV REMOVAL OF REPITITION OF

AVERSIVE CONSEQUENCE DESIRED BEHAVIOR

Extinction

Possibility of---------------- Frequent Boasting ------- No Recognition ---------- less Frequent Boasting

Promotion for Boasting

STIMULUS UNDESIRABLE BEHV NO CONSEQUENCE DECREASE IN

PRESENTED UNDESIRED BEHAVIOR Punishment

Threat of Punishment --------- smoking in office ---------- Reprimand given ---------- less smoking @work

for smoking in premises

STIMULUS UNDESIRABLE BEHV PRESENTATION OF DECREASE IN

UNDESIRABLE AVERSIVE CONSEQUENCE BEHAVIOR

1.2 OB Aegis

Learning Theories

CLASSICAL CONDITIONING Ivan Pavlov-Experiment with Dogs Unconditioned Stimulus-Food / Unconditioned Response-Increased Reaction Conditioned stimulus-only Bell sound Elicit-------Emit (employees coming on time) Examples- Crackers Bursting ,DDT,Cleaning of window panes (In organizations-it is more cause-effect conditioning)

OPERANT CONDITIONING Suggests Behavior is an outcome of Consequences Learn to Behave to get something You like / avoid something don’t like Learned/Voluntary Behavior (instead of reflexive) Used in Organizations for –Reinforcement, Punishment and extinction

COGNITIVE LEARNING Supposed to be the only theory that explains human learning happens to help in problem solving at work. COGNITION- is an individuals:Thoughts,interpretations,understanding,views of oneself (Monkey and the stick!)

SOCIAL LEARNING Individuals learn from others (Role Models)-Parents,Teachers,Peers,Superiors,Motion pictures and Television. Following actions take place when individuals imitate a role model :1.Attention Process. 2.Retention Process. 3.Motor reproduction process. 4.Reinforcement process Shaping Good/Bad Behaviors in Organizations ?

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Principles of Learning

Reinforcement-Positive : Rewards (Bonus) Negative : Punishment/Reprimand (Late coming)

Reinforcement Patterns: 1.Continous Reinforcements (Targets-Empathize on some occasions and

forgive)

2.Intermittent Reinforcement (Between intervals) Fixed Intervals (Ex : rewards are announced after only consignments)

Variable intervals (unannounced visits of Corporate audits)

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LEARNING CURVES A diagrammatic representation of the amount of learning happened in

relation to time.Types of Learning Curves:

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Behavioral Management

Almost all Human Behaviors is LEARNED !

Learning helps Managers change human Behavior in Organizational situations such as –

# Reducing Absenteeism (Lottery system rewarding 100% attendance category, reduced 30%overall absenteeism)

# Substituting well-Pay for sick Pay ( wellness or full attendance instead of Paid Sick leave: Forbes magazine) # Delegating/Inviting employee to train in inductions (Rewarding most disciplined employees: HP)

# Improving employee Discipline (From Managing to leading: Mr.Mannivanan)