UNIT IIntroduction to Organizational Introduction to Organizational

BehaviorBehavior

OrganizationsTwo or more individuals who are interacting

with each other within a deliberately structured

set up and working in an interdependent way

to achieve some common objective/s.

BehaviourManifestation of ideas through actions or inactions, words, signs or symbols etc.

Organizational BehaviourOB is a field of study that investigates the impact that individuals, groups, and structures have in behaviour within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness.

An Open Systems View of Organizations and OB

Insert Figure 1.1 here

Figure 1.1 What is Organizational Behavior?

Figure 1.2 Levels of Analysis

Group Level

Individual Level

Organizational Level

Fundamental concepts of OB

Individuals are different Individual is whole and it is not fragmented Behaviour of an individual is caused An individual has dignity Organizations are social systems There is mutuality of interest among

organizational members Organizational behaviour is holistic in nature.

Approaches of OB

Human Resource Approach Contingency Approach Productivity Approach Systems Approach Systematic research approach

Contributing disciplines of OB

Organizational behaviour is an applied behavioural science that is built on contributions from a number of behavioural disciplines such as psychology, sociology, social psychology, anthropology and economics.

Challenges for Organizational Behavior

Changing Social/ Cultural Environment Globalization Workforce diversity Advancing Information Technology: Virtual

organizations & teams Corporate reorganizations Improving quality & productivity Stimulating innovation & change Improving ethical behaviour Changing Employment Relationships

Challenges for Organizational Behavior

Changing Social/ Cultural Environment

– National culture

– Social responsibility

Challenges for Organizational Behavior

Diversity Challenges– Fairness and Justice– Decision-Making and Performance– Increasing number of women in

workforce

Challenges for Organizational Behavior

Evolving Global Environment (Globalization)

– Understanding Global Differences

– Increased Foreign Assignments– Working with people from different

culture– Labour Movement

Challenges for Organizational Behavior

Advancing Information Technology– Virtual Organizations / Teams– Information Technology– Intranets

Need of OB

OB helps an individual understand himself and others better

OB helps the managers understand his employees better

Improves communication It seeks to satisfy employees’ needs and

attain organizational objectives Helps in creation of positive

organizational climate

MODEL OF OB(General model of OB)

PersonalityPerceptionLearningAttitudes & valuesMotivation

Group dynamicsLeadershipPower & politicsCommunicationConflict

Organizational CultureWork stressOrganizational change & development

Organization

Organizational Effectiveness

Individual behaviour

Group Behaviour

Historical perspective of OB

Evolution of OB can be understood through following four phases:

Pre industrial revolution era Industrial revolution Scientific management Human relations movement

– Great depression– Labour movement– Hawthorne studies

Organizational behaviour

SCIENTIFIC MANAGEMENT As mechanical engineer at the Midvale and

Bethlehem Steel companies in Pennsylvania, Taylor was constantly appalled at the inefficiency of workers. Employees used vastly different techniques to do the same job. They were prone to “taking it easy” on the job.

Taylor sought to create a mental revolution among both the workers and management by defining clear guidelines for improving production efficiency. He argued that his principles would result in the prosperity of both management and workers. Workers would earn more pay, and management more profits.

Features of Scientific Management Time & motion study Differential payment Reorganization of supervision Scientific recruitment & training Cooperation between Management & workersLimitations of Scientific Management Overemphasis on monetary incentives Criticism of time motion studies Monotony of work due to division of planning &

doing Resentment among workers due to advancement of

machines

The Hawthorne Studies

Without question, the most important contribution to the human relations movement within organizational behavior came out of the Hawthorne studies undertaken at the Western Electric Company’s Hawthorne Works in Cicero, Illinois. These studies originally begun in 1924 but eventually expanded and carried on till 1932. It was carried out in four phases:

Illumination experiment (1924 – 1927) Relay assembly test room experiment (1927 - 1928) Mass interview phase (1928 - 30) Bank wiring experiment (1931 - 32)

Implications of Hawthorne Studies

Individual behaviour and sentiments are closely related

Group influences significantly affect individual behaviour

Group standards establish individual output Money was not important motivator in deciding

output Group standard, group sentiments and security

provided by the group were responsible for higher productivity.

Milestones in history of OB

Industrial Revolution: Robert Owen, Andrew Ure & J.N. Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach

Scientific Management (early 20th century): Taylor believed in rationalizing production

Human Relations Movement (1920s to 1940s): Great depression, labour movement and Hawthorne studies led to the movement

Organizational Behaviour (1950s)

FOOD FOR THOUGHT

Millions of workers have lost their jobs because of downsizing. At the same time, many organizations are complaining that they cannot find qualified people to fill vacancies. How do you explain this apparent contradiction?

OBJECTIVE TYPE QUESTIONS1. OB is

a) Interdisciplinary & multi levelb) Multilingualc) Multi variabled) All of the above

2. Psychology seeks to measure, explain and change the behaviour of a) Animalsb) Human beingsc) Both of thesed) None of these

3. The constant attainment of customer satisfaction through the continuous improvement of all organizational processes isa) Quality circleb) Quality of work lifec) Quality managementd) Organizational development

4. Putting employees in charge of what they do is all abouta) Participationb) Empowermentc) Leadershipd) Motivation

5. Effectiveness relates toa) the degree to which the objectives are achievedb) ratio of input to outputc) ratio of output to inputd) All of the above

6. The voluntary or involuntary permanent withdrawal from an organization is ____________a) Absenteeismb) Hoppingc) Tempingd) Turnover

7. _______________ is the discretionary behaviour that is not part of an employee’s formal job requirements, but that promotes the effective functioning of the organizationa) Politicsb) Rationalityc) Organizational citizenshipd) OB Mod

8. ____________ is a simplified version of real world phenomenaa) Structureb) Modelc) Systemd) Process

9. ________________ is a performance measure that includes effectiveness and efficiency.a) Satisfactionb) Profitabilityc) Productivityd) Turnout

10. Who has categorized the managerial roles into ‘Interpersonal, Informational and Decisional roles’?a) Mintzbergb) Adam Smithc) Peter Druckerd) Tom Peters

11. The mental ability to analyze and diagnose complex situations is ___________a) Technical Skillsb) Human Skillsc) Conceptual Skillsd) Soft Skills

12. ___________ deal with the ability to understand and motivate other people, both individually and in groups.a) Technical Skillsb) Human Skillsc) Conceptual Skillsd) Soft Skills

13. A field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge towards improving an organization’s effectiveness is _______________a) Organizational Behaviourb) Industrial Psychologyc) Organizational Developmentd) Assessment Center

14. Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where the decisions are to be made is known asa) Planning b) Structuringc) Directing d) Organizing