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ORGANIZATIONAL BEHAVIOR. OB Prescribed book Organizational Behavior 9 th Edition Fred Luthans Syllabus Ch 1,2 4-9 12-14 17.

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Presentation on theme: "ORGANIZATIONAL BEHAVIOR. OB Prescribed book Organizational Behavior 9 th Edition Fred Luthans Syllabus Ch 1,2 4-9 12-14 17."— Presentation transcript:

1 ORGANIZATIONAL BEHAVIOR

2 OB Prescribed book Organizational Behavior 9 th Edition Fred Luthans Syllabus Ch 1,

3 Internal Marks50 > Quizzes10 > Assignments10 > Class participation / attendance 05 > Mid term Test 25 External 50 Total 100 Pass percentage50 Semester Work load Quizzes6 ( 3 each before & after mid term ) Assignments2 ( 1 each before & after mid term ) Midterm Test 1 ( in 7 th week ) Terminal Exam1 ( in 15 th week ) AttendanceA minimum of 11 classes must be attended Evaluation

4 Mid Term Test Will be of one hours duration, and will be fallowed by lecture. Result will be announced next week. Sessional Marks Will be announced in the last class before terminal exams. Terminal Exam Paper Will be of 3 hours duration canting approx 14 question of which at least 9 will have to be attempted. Exam will be held according to date sheet from 2 to 5 pm.

5 ORGANIZATIONAL BEHAVIOR is defined as:- The understanding, estimation and management of human behavior in organization.

6 MANAGEMENT The process of getting activities completed efficiently and effectively with and through other people. It is manipulation of resources to achieve objectives. resourcesmen money material machine man is the most important resource.

7 BEHAVIOR A manner of acting or conducting. The way one conducts oneself.

8 ORGANIZATION A formal intentional structure of positions, roles and functions to achieve organizational objectives.

9 Why Study OB Study of OB provides specific, necessary background and skills to make managers effective with the human dimension of management.

10 BEHAVIOR CHANGE CAUSES Change in Working Conditions / surrounding Personality Attitude Perception Ethics, values, beliefs, norms, Motivation Needs Stress Anger Happiness

11 METHODOLOGY FOR STUDY Experimental Studies –Hawthorne Studies Scientific Perspective –Starting with theory –Use of research –Validity of studies

12 THEORETICAL FRAMEWORKS Cognitive Behavioristic Social cognitive

13 COGNITIVE FRAMEWORK Cognition is the act of knowing an item of information. Knowing, perceiving, conceiving as an act distinct from emotion and sentiments.

14 BEHAVIORISTIC FRAMEWORK Use of conditioning experiments to formulate This method is environmentally based.

15 SOCIAL FRAMEWORK People are self-aware and engage purposeful behavior People learn about their environment, and then alter behavior.

16 ORGANIZATION It is a formalized intentional structure of roles and position. It is a structure or network of relationships among individuals and position in a work setting, and the processes by which the structure is created, maintained and used It is a deliberate arrangement of people to accomplish some specific purpose.

17 Characteristics of Org. 1.Distinct purpose 2.Deliberate structure 3.People

18 Org. System System:is a set or inter–related and inter-department parts arranged in a manner that produces a unified whole. Open system Close system

19 Open System A system that is dynamic and interacts with its environment. Closed System A system that is not influenced by or does not interact with its environment.

20 ORG. STRUCTURE A frame work of an org. expressed by its degree of complexity, formalization and centralization.

21 ORG. DESIGN The development or changing of an organizational structure.

22 FORMALIZATION The degree to which an organization relies on rules and procedures to direct the behavior and work of its employees.

23 CENTERALIZATION The concentration of decision –making authority in upper management.

24 DECENTERALIZATION The handing down of decision – making authority to lower levels in an organization.

25 DEPARTMENTALIZATION The process of grouping individuals into separate units or departments to accomplish organizational objectives.

26 DEPARTMENT A Department designates a distinct area, division or branch of an organization over which a manager has authority for the performance of specified activities.

27 PROCESS OF ORG. STEPS 1.Establishing objective 2.Formulating supporting plans & policies 3.Identifying activities necessary to accomplish these (1&2 above) 4.Grouping these activities in the light of human and material resources available and to the best way of using them. 5.Delegating to the head of each group the authority necessary to perform the activities. 6.Tying the groups together vertically and horizontally through chain of command and flow of communication.

28 PURPOSES OF ORG. Divide work to be done into specific jobs & departments Assign tasks and responsibilities associated with individual jobs Coordinate diverse organizational tasks Clusters jobs into units Establish relationships among individuals, groups and departments Establish formal lines of authority Allocate and deploy organizational resources.

29 TYPES OF ORG. Mechanistic Organic Team-based Boundary-less Matrix Strategic Business Unit

30 MECHANISTIC ORG. (Bureaucracy) A structure that is high in complexity, formalization and centralization Permanent Shared responsibility Work by the book

31 ORGANIC ORG. (Adhocracy) A structure that is low in complexity, formalization and centralization. Transient Adhocism Creative

32 TEAM-BASED ORG. A set up made of work groups or teams that perform organization’s work.

33 BOUNDARY – LESS ORG. A set up whose design is not defined or limited to boundaries imposed by a pre- defined structure Also knows as Network org, modular or virtual org.

34 MATRIX ORG. A set up that assigns specialists from different functional departments to work on one or more projects that are led by a project manager.

35 STRATEGIC BUSINESS UNIT (SBU) A set up for a single business that is independent of main organization and formulates its own strategy. Unique mission Specialized competitors Separate plans / resources

36 SET UP OR ORG.  Vertical  Horizontal Vertical Many tiers (levels) No of subordinates three or less than three Horizontal Few tiers No of subordinates six or more than six

37 Vertical Set up Advantages Close supervision Close control Fast communication Disadvantages Many level of management Excessive distance between the top & lowest level Close involvement by superiors in work of subordinate High cost due to many levels

38 Horizontal Set up Advantages Superiors are obliged to delegate Clear policies are made Subordinates are carefully selected Disadvantages Overloaded superiors become decision bottlenecks Superiors may lose control Over all work suffers

39 Culture Culture is the general pattern of behavior, shared beliefs, values, and norms among members of a society.

40 Org. Culture It pertains to the values and beliefs shared by employees of an org. and the general pattern or their behavior.

41 Manifestation of Org. Culture Formal rules and procedures Formal code of behavior Rituals, traditions, customs Jargon, jokes Formal dress code Pay & benefit systems

42 Creating Org. Culture Birth of a new enterprise Creation of a core management group Sharing of common vision amongst the CMG CMG begins to act in concert and develop dominant values, philosophy norms and org. climate etc.

43 Maintenance of Org. Culture Steps of Socializations Selection of entry – level personnel Placement on the job Job mastery Measuring and rewarding performance Adherence to important values Recognition and promotion

44 Changing of Org. Culture Requirement External environment has drastically changed Merger Internal environment changes

45 Guidelines for changes Assess the current culture. Set realistic goals that impact an bottom line. Recruit outside personnel with appropriate industry experience. Make changes from the top down. Include employees in change process. Removal all old cultural reminders. Anticipate problems and take care of them. Move quickly to bring changes. Pe persuasive and persistent.

46 ORGANIZATIONAL REWARD SYSTEM Money is the positive reinforcer Money as a reward Effectiveness of pay Method of Administering of pay Pay for performance Now pay techniques Organizational recognition

47 Effectiveness of Pay  Basic need  Pay and morale  Pay vrs efficiency  Pay vrs power & status  Pay vrs expected outcomes

48 Method of Administering Pay Base pay Merit pay Pay for performance Base pay:determined by market condition Merit pay:tied to some pre – determined criteria Pay for performance:Individual performance Group performance

49 New Pay techniques Standard pay technique provides for minimum compensation for a particular job. It does not reward above – average performance nor does penalize below average performance.  Commissions beyond targets  Rewarding leadership effectiveness  Rewarding new goals  Pay for knowledge  Skill pay  Competency pay  Broadbanding

50 NON – FINANCIAL REWARD  Social rewards  Feed back as a reward  Job related rewards

51 Social Rewards  Consumables  Manipulatables  Visual and auditory  Socialability

52 Feed back as a Reward Feed backup enhances individual performance  Positive  Immediate  Graphic

53 Job Related Rewards  More responsibility  New title  Special assignments  Authority to schedule own work  Flexible hours  Participation in decision making  Knowledge training

54 Recognition as an organizational Reward Recognition Vrs Money  More important  Not time bound / anytime  Many forms Formal Recognition Social recognition

55 Traditional Benefits Required by law Organization given Old age benefits Disability insurance work compensation Medical cover Pension / gratuaty Paid leave Life insurance / group insurance

56 Newer Benefits Wellness program Life-cycle benefits Flexible cafeteria-style benefits Shopping benefits Legal services Schooling (in org / company run schools) Jobs (in above, for wives/ sons/ daughters) Recreational benefits Home / auto loans


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