Presentation on theme: "Define organizational behavior (OB). Describe what managers do."— Presentation transcript:
1 AFTER STUDYING THIS CHAPTER AND LISTENING TO MY LECTUER,I HOPE THTAT YOU WILL BE ABLE TO: Define organizational behavior (OB).Describe what managers do.Explain the value of the systematic study of OB.List the major challenges and opportunities for managers to use OB concepts.Identify the contributions made by major behavioral science disciplines to OB.
2 Describe why managers require a knowledge of OB. Explain the need for a contingency approach to the study of OB.
3 What is the field of Organizational Behavior all about? OB helps in understanding human behavior and helps in enhancing organizational effectiveness and individual well beingOB highlights four central characteristics of the fieldFirst OB is firmly grounded in the scientific methodSecond OB studies individuals groups and organizationsThird OB is interdisciplinary in natureFourth OB is used as he basis for enhancing effectiveness andindividual well-being
4 What is the field of Organizational Behavior all about? OB is the study of what people think feel and do in and aroundorganizationsOB emerged as a distinct field around the 1940s-origin can betraced much furtherThe Greek philosopher Plato wrote about the essence ofleadershipThe writings of Chinese philosopher Confucius in 500 BC arebeginning to influence contemporary thinking about ethics andIn 1776 Adam advocated a new form of organizational structurebased on the division of labor
5 One hundred years later German sociologist Max Weber wrote about rational organizations and initiated discussion oncharismatic leadershipFrederick Winslow Taylor introduced the systematic use of goalsetting and rewards to motivate employeesIn the 1920s Elton Mayo and his colleagues discovered theimportance of formal and informal group dynamicsOB was organized into a unified discipline until World War II
6 Enter Organizational Behavior Organizational behavior (OB)Deals with human behavior in organizations. It is a multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes and organizational dynamics
7 What is Organizational behavior? The Meaning of Organisational Behaviour (OB)OB is the study of human attitudes, behaviour and performance. It is the study of what people do in an organisation and how that behaviour affects the performance of the organisation. As rightly indicated by J.W. Newstrom, OB is the systematic study and careful application of knowledge about how people – as individuals and as groups – act within organisations. It is an action-oriented and goal-directed discipline. Its goals are to make managers more effective at describing, understanding, predicting, and controlling human behaviour.Describe behaviourUnderstand behaviourPredict behaviourControl behaviour
11 What is Organizational behavior? OB applies the Scientific Method to Practical Managerial problemsManagers rely heavily on knowledge derived from OB researchFor example researchers have shed light on such practical questionsHow can goals be set to enhance people’s job performance?How many jobs be designed so as to enhance employees feelings of satisfaction?Under what conditions do individuals make better decisions than groups?What can be done to improve the quality of organizational communication?What steps can be taken to alleviate work related stress?What do leaders do to enhance the effectiveness of their teams?How can organizations be designed to make people highly productive?
12 What is Organizational behavior? OB applies the Scientific Method to Practical Managerial problemsOB through the scientific research and theory will answer to the questionsIt is safe to say that the scientific and applied facets of OB not only coexist but complements each otherJust as knowledge about the properties of physics may be put to use by engineers and engineering data can be used to test theories of basic physicsKnowledge and practical applications are closely interwined in the field of OB
13 What is the secret source that makes company the best place to work the secret source that makes a company the best place to work for?High and differentiated compensationInnovative titlesFaster career progression plansMeaningful growth avenuesMore satisfying jobsOverseas exposureOpportunity to work on cutting-edge technologies and problemsReferral schemes etc. (many a time, employees may want a bit of all these and much more!)
14 What Managers Do Managers (or administrators) Individuals who achieve goals through other people.Managerial ActivitiesMake decisionsAllocate resourcesDirect activities of others to attain goals
15 Where Managers Work Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
16 Management Functions Management Functions Planning Organizing Leading ControllingManagement Functions
17 Management Functions (cont’d) PlanningA process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
18 Management Functions (cont’d) OrganizingDetermining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
19 Management Functions (cont’d) LeadingA function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
20 Management Functions (cont’d) ControllingMonitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
21 Roles Managerial Roles Henry Mintzberg offered a view of the managing job that throws considerable light on how managers perform their work. Managers, according to Mintzberg, must fill many roles as they carry out the management functions. These roles can be grouped into three categories: interpersonal, informational and decisional.
23 Roles Interpersonal relationships essential to all managerial work Managers team leaders should be able to develop maintain and work well with wide variety of people-outside and inside the organizationWork with task networks-(of specific job related contactsCareer networks(of career guidance and opportunity resources)Social networks(trustworthy friends and peers)
26 MindsetRecently Henry Mintzberg and his colleague Jonathan Gosling asked questionWhat does it mean to think like a managerComplexity of managerial workTo help managers develop attitudes and ways of thinkingthat can improve their effectivenessDefined managerial mind set as an attitude a frame of mindthat opens up new vistas
27 Mindset The five mind sets important to success in managerial work The reflective mindset deals with being able to manage oneselfThe analytic mindset deals with managing organizational operations anddecisionsThe worldly mindset deals with managing in the global contextThe collaborative mindset deals with managing relationshipsThe action mindset deals with managing changeAll five mind sets must work together for managerial decisions
28 SkillsA skill is an ability to translate knowledge into action that results in a desired performance
29 Skills Managerial skills Performing management functions and roles and achieving competitive advantage are the principal characteristics of a manager’s job. Merely understanding this fact, however, does not guarantee success. Managers need a variety of skills to do these things well. Skills here refer to specific abilities that result from knowledge, information, practice and aptitude. Robert L. Katz has identified three basic types of skills – technical, human and conceptual – that he says are needed by all managers.
30 Management SkillsTechnical skills The ability to apply specialized knowledge or expertise.Human skills The ability to work with, understand, and motivate other people, both individually and in groups.Conceptual Skills The mental ability to analyze and diagnose complex situations.
31 Management Skills Emotional intelligence ability to understand and deal with emotionsSelf-awareness-ability to understand your own moods and emotionsSelf-regulation-ability to think before acting and control disruptive impulsesMotivation-ability to work hard and persevereEmpathy-ability to understand the emotions of othersSocial skill-ability to gain rapport with others and build good relationships2008 John Wiley & Sons, Inc.
32 Effective Versus Successful Managerial Activities (Luthans) Traditional managementDecision making, planning, and controllingCommunicationExchanging routine information and processing paperworkHuman resource managementMotivating, disciplining, managing conflict, staffing, and trainingNetworkingSocializing, politicking, and interacting with others
33 Allocation of Activities by Time Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).
34 Multidisciplinary Nature of OB OB is multidisciplinary in nature. It is, in fact, an applied behavioural science that is built on contributions from a wide variety of social science disciplines, such as psychology, sociology, social psychology, anthropology, political science, economics etc.The Multidisciplinary Roots of OBDiscipline Relevant OB topicsPsychology - Perception and learning, personality, emotion and stress, attitudes, motivation, decision-making and creativity.Sociology - Group dynamics, socialisation, communication, intergroup behaviour, power, conflict.SocialPsychology - Intergroup collaboration, group decision-making, integration of individual needs with group activities, effect of change on individuals.Anthropology- Organisational culture, leadership, organisational empowermentEconomics Decision-making, organisational powerPolitical Science Conflict, intra-organisational politics, manipulating power forindividual self-interest.
36 Contributing Disciplines to the OB Field Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
37 Contributing Disciplines to the OB Field (cont’d) Sociology The study of people in relation to their fellow human beings.
38 Contributing Disciplines to the OB Field (cont’d) Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
39 Contributing Disciplines to the OB Field (cont’d) Anthropology The study of societies to learn about human beings and their activities.
40 Contributing Disciplines to the OB Field (cont’d) Political Science The study of the behavior of individuals and groups within a political environment.
41 Emerging fields from which organizational behavior knowledge is acquired Discipline (traditional )Relevant OB topicsEconomicsDecision making, negotiation , organizational powerIndustrial engineeringJob design, productivity, work measurementEmerging disciplinesCommunicationsKnowledge management, electronic mail, corporate culture , employee socializationInformation systemsTeam dynamics, decision making, knowledge managementMarketingKnowledge management, creativity, decision makingWomen’s studiesOrganizational power,perception
42 Five anchors of Organizational Behavior Multidisciplinary anchorOB should import knowledge from many disciplinesSystematic research anchorOB should study organizations using systematic research methodsContingency anchorOB theory should recognize that the effects of actions often vary with the situationMultiple levels of analysis anchorOB knowledge should include three levels of analysis:individual,team,and organizationOpen system anchorOB should view organizations as open systems that interact with their environment
43 Open System view External Environment Inputs RM HR Information Financial resource equipmentSubsytemsTransforming inputs to outcomesOutputsProduct/servicesEmployee behaviorsProfits/lossesWaste/pollution
44 -Subsystems such as process(communication and reward systems) -Task activities(Production, marketing) -Social dynamics(informal groups, power dynamics) -Aid of technology(equipment ,work method and information) These subsystems transform inputs into outputs
45 External Environment and stakeholders Successful organizations monitor their environments and are able to maintain a close fit with changing conditionsConfigure their outputs(new products and services, reducing waste)Transforming their processesOrganizations need to adapt to changing environmentStakeholders represent a central part of the internal and external environmentStakeholders influence the firms access to inputs and ability to discharge outputsIf leaders pay attention to only shareholders organization will be troubleCannot ignore corporate social responsibility
46 There Are Few Absolutes in OB There are few if any simple and universal principles that explain OBLaws in the physical sciences-chemistry astronomy physics-that are consistent apply in a wide range of situationsScientists generalize –pull of gravity-confident about sending astronauts into space to repair satellitesHuman beings complex-not alike-our ability to make simple accurate and sweepinggeneralization is limitedBehavior changes in different situationsDoes not mean that reasonably accurate explanations of human behavior or make valid predictionsOB concepts must reflect situational or contingency conditions
47 There Are Few Absolutes in OB Contingency variablesSituational factors: variables that moderate the relationship between two or more other variables and improve the correlation.Contingency Variablesxy
48 Challenges and Opportunities for OB Responding to GlobalizationIncreased foreign assignmentsWorking with people from different culturesCoping with anti-capitalism backlashOverseeing movement of jobs to countries with low-cost laborManaging Workforce DiversityEmbracing diversityChanging demographicsImplications for managersRecognizing and responding to differences
49 Major Workforce Diversity Categories GenderNational OriginDisabilityAgeRaceDomestic Partners
50 Challenges and Opportunities for OB (cont’d) Improving Quality and ProductivityQuality management (QM)Process reengineeringResponding to the Labor ShortageChanging work force demographicsFewer skilled laborersEarly retirements and older workersImproving Customer ServiceIncreased expectation of service qualityCustomer-responsive cultures
51 Improving Quality and Productivity Quality management (QM)The constant attainment of customer satisfaction through the continuous improvement of all organizational processes.Requires employees to rethink what they do and become more involved in workplace decisions.Process reengineeringAsks managers to reconsider how work would be done and their organization structured if they were starting over.Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.
52 Challenges and Opportunity for OB (cont’d) Improving People SkillsEmpowering PeopleStimulating Innovation and ChangeCoping with “Temporariness”Working in Networked OrganizationsHelping Employees Balance Work/Life ConflictsImproving Ethical Behavior
53 Models of OB Models of OB A model is a simplified presentation of some real-world phenomenon. The OB model focuses attention on three distinct levels of analysis—individuals, groups and organisations. It tries to look into the impact the individuals, groups and organisations have on the behaviour of members working in an organisation. It tries to utilise this knowledge with a view to improve organisational performance. The model of OB is generally built around two sets of variables, namely dependent variables (productivity, absenteeism, turnover, job satisfaction) and independent variables (individual level variables, group level variables and organisation system level variables). The basic objective of any model of OB is to make managers more effective at describing, understanding, predicting and controlling human behaviour.
54 Basic OB ModelModelAn abstraction of reality. A simplified representation of some real-world phenomenon.
55 The Dependent Variables A response that is affected by an independent variable.xy
56 The Dependent Variables (cont’d) Productivity A performance measure that includes effectiveness and efficiency.Effectiveness Achievement of goals.Efficiency The ratio of effective output to the input required to achieve it.
57 The Dependent Variables (cont’d) AbsenteeismThe failure to report to work.TurnoverThe voluntary and involuntary permanent withdrawal from an organization.
58 The Dependent Variables (cont’d) Organizational citizenship behavior (OCB)Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.
59 The Dependent Variables (cont’d) Job satisfactionA general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.
60 The Independent Variables The presumed cause of some change in the dependent variable.Independent VariablesIndividual-Level VariablesOrganization System-Level VariablesGroup-Level Variables
61 Organisation Structure Organisational Culture, Creativity and InnovationHuman Resource Policies andPracticesOrganisation LevelOrganisational Change andDevelopmentInternational OrganisationalBehaviourProductivityGroup BehaviourTeams and TeamworkCommunicationGroupLevelOutcomesLeadershipAbsenteeismPower and PoliticsConflict and NegotiationTurnoverJobSatisfactionCont….
62 Basic OB Model Personality Perception and Attribution Ethics and SocialResponsibilitiesValues, Attitudes and JobSatisfactionIndividual LevelLearning and BehaviourModificationBasic Concepts in MotivationJob Design, Empowermentand Work SchedulingBasic OB ModelResources
63 Basic OB ModelThe model examines the variables influencing individual behaviorThe knowledge obtained at the individual level will help us analyse the behaviour at group level and organisational level.