ORGANIZATIONAL BEHAVIOUR

ORGANIZATIONAL BEHAVIOUR DR.DALEEP PARIMOO

WHY ORGANIZATIONAL BEHAVIOUR With the advent of globalization, organizations in the present scenario are employing people from different cultural and ethnic backgrounds. Apart from diverse workforce, managers also have to deal with challenges like changes in technological advancements, strategic alliances, etc. All these challenges complicate the task of managing an organization. If the managers are to facilitate the smooth functioning of their organization, they have to effectively manage the most important resource available to them, i.e., the human resource. This is where OB plays an important role. OB is a study that helps managers in understanding and analyzing the nature of an organization’s workgroups and the individuals within a workgroup.

Why Do We Study OB? To learn about yourself and how to deal with others. It is a systematic study of the actions and attitudes that people exhibit within organization You are part of an organization, and will continue to be a part of various Teams/groups/sub-groups Organizations are increasingly expecting individuals to be able to work in teams at most of the time Understanding of the organizational factors that influence work Understanding of how the work environment shapes organizational performance · It helps managers in getting the work done in effective way It emphasizes the interaction and relations between the organization and individual behavior, thus making an attempt to fulfill psychological contract between individuals and the organization. It helps to develop work-related behavior and job satisfaction. It helps in building motivating climate It helps in building cordial industrial relations. It helps in predicting behavior and applying it in some meaningful way to make organizations more effective. It implies effective management of human resources.

Organizational Behavior consists of two words & Behavior

Organization A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals.

Behavior Behavior refers to the actions or reactions of an individual/set of individuals or organism, usually in relation to the environment. Behavior can be conscious or subconscious, overt or covert

Managers are Individuals who achieve goals through other people. What Managers Do Managers are Individuals who achieve goals through other people. Managerial Activities Make decisions Allocate resources Direct activities of others to attain goals

Management Functions Management Functions Planning Organizing Leading Controlling Management Functions

Management Functions (cont’d) Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

Management Functions (cont’d) Organizing 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 decisions are to be made.

Management Functions (cont’d) Leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

Management Functions (cont’d) Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Organizational Behavior The study of Organizational Behavior (OB) is very interesting and challenging too. It is related to individuals, group of people working together in teams. The study of organizational behavior relates to the expected behavior of an individual in the organization. No two individuals are likely to behave in the same manner in a particular work situation There are no absolutes in human behavior. It is the human factor that is contributory to the productivity, hence the study of human behavior is important

Organizational Behaviour OB is the study of what people think, feel and do in and around the organizations. It explores individual emotions, behavior, team dynamics and systems and structures of organizations. A field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. The study of human behaviour in organizational contexts with a focus on individual and group processes and actions”

ORGANIZATIONAL BEHAVIOUR-DEFINITION S………………..CONTD According to Keith Davis, Organizational Behavior is an academic discipline concerned with understanding and describing human behavior in an organizational environment. It seeks to shed light on the whole complex human factor in organizations by identifying causes and effects of that behavior According to Luthans, Organizational Behavior is directly concerned with the understanding, prediction, and control of human behavior in organizations According to Joe Kelly, Organizational Behavior is the systematic study of the nature of organizations: how they begin, grow and develop, and their effect on individual members, constituent groups, other organizations, and large institutions. According to Robbins, Organizational Behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization's effectiveness According to Baron and Greenberg, Organizational Behavior is the field that seeks knowledge of behavior in organizational settings by systematically studying individual, group, and organizational processes.

Organizational Behavior In simple terms organizational behavior refers to the behavior of persons in an organization.

Organizational Behavior

There are 3 parts of the Definition The individual behavior, ORGANIZATIONAL BEHAVIOUR-DEFINITION S………………..CONTD The study of human behavior in organizational settings, the interface between human behavior and the organizational context, and the organization itself.“ There are 3 parts of the Definition The individual behavior, The organization and The (interface between the two) Each individual brings to an organization a unique set of beliefs, values, attitudes and other personal characteristics and these characteristics of all individuals must interact with each other in order to create organizational settings. The organizational behavior is specifically concerned with work-related behavior, which takes place in organizations.

Organizational Behavior focuses on five levels of analysis. They are : · Individual behavior · Inter-personal behavior · Group behavior and group dynamics · Organizational issues · Environmental issues.

Organizational Behavior Study of Behaviour What is it? Individual Behavior Organizational Structure/ Behaviour Group Behavior

ELEMENTS OF ORGANISATIONAL BEHAVIOUR People Structure: Technology: Environment:

Evolution of Management Thought

Evolution of Management Thought Organizational Behaviour 1970’s Human Relations Hawthorne Studies 1940’s Classical Organization Theory Scientific Management 1900’s

Basic OB Model, Stage I Group level Individual level Organization systems level Group level Individual level

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

CHALLENGES AND OPPORTUNITIES

Challenges and Opportunity for OB Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service

Challenges and Opportunity for OB (cont’d) Improving People Skills Empowering People Coping with “Temporariness” Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior

Improving Quality and Productivity A) By using self-directed work teams, streamlining processes and implementing continuous improvement programs must be a model of manufacturing efficiency. B) By implementing programs such as TQM and reengineering programs that require extensive employee involvement

Improving people skills People skills are critical to managerial effectiveness. b. There are specific people skills that managers can use on the job

Managing Work Force Diversity Organizations are becoming more heterogonous in terms of gender, race, and ethnicity, encompasses anyone who varies from the' norm’. b. Managers need to recognize differences and respond them. c. Traditional melting pot approach is applied. d. If positively managed diversity can increase

Responding to Globalization you are increasingly likely to find yourself in a foreign assignment b. you are going to find yourself working with bosses, peers, and subordinates who were born and raised in different countries.

The reshaping of the relationship between managers and employees. Empowering People The reshaping of the relationship between managers and employees. Decision making is being pushed down to the operating level. Managers give up control, employees control their work themselves, make appropriate decisions. Using of self managed teams.

Stimulating Innovation and Change Must foster innovation and master the art of change b. Maintain the flexibility, improve quality c. To stimulate employee creativity and tolerance to change

Coping with Temporariness Workers need to continually update their knowledge and skills b. Workers are in a state of flux. c. Organizations are in state of flux too. d. Managers and employees must learn to live with flexibility ,spontaneity, and unpredictability.

Theoretical Framework Every business model has a theoretical framework and based on the theoretical framework,the application is developed

Theoretical frameworks such as Cognitive framework, Behavioral framework, and Social learning framework help in developing an overall model of organizational framework.

Cognitive Framework The cognitive approach is based on the expectancy, demand, and incentive concepts. Under this approach, behavior is determined with the help of cognition. The term cognition can be explained as a psychological process of recollecting information and past experiences. Cognition provides inputs regarding a person’s thoughts, perception, problem solving, and information processing The concept of a cognitive framework is clearly explained by Edward Tolman, who conducted some laboratory experiments on animals. He believed that behavior was the appropriate unit of analysis, meant for a definite purpose, and was directed towards a goal. In OB, the cognitive approach is applied in the analysis of perception, personality and attitude, goal setting, and motivation.

Behaviorist Framework Ivan Pavlov and John B Watson who pioneered the behaviorist theory explained human behavior with the help of stimulus-response experiments. The duo observed that a stimulus elicits a certain response, which results in learning. For example, when a person is pricked with a pin, he immediately flinches. The theory tried to explain the role of physical reflexes in human beings that contributed to the stimulus-response relationship. BF Skinner further developed this concept and explained operant behaviors that had not been dealt with by the earlier researchers. Operant behavior indicates voluntary or learned behavior. After conducting operant conditioning experiments, Skinner concluded that the consequences of the response of an individual to a stimulus could lead to a particular behavior rather than the stimulus itself. He concluded that stimuli only managed to prompt a certain behavior and did not actually cause the behavior. Skinner believed that behavior was a function of the consequences to response.

SOCIAL LEARNING Many traditional theorists like Douglas McGregor used a humanistic approach to OB. Theorists like Victor Vroom, Lyman Porter, and Edwin Locke used cognitive concepts in OB. Modern theorists and researchers have been increasingly applying the behaviorist approach in OB. They also emphasize the need to integrate the behaviorist and cognitive approaches to develop a comprehensive model of OB. Since the social learning approach incorporates both the concepts, the theoretical foundation of OB is based on the social learning approach.

The model is based on the fact that the cognitive approach helps in understanding the behavior of human beings whereas the behaviorist approach helps in predicting and controlling human behavior. Edward Thorndike in his book Classic Law of Effect explained that the behaviorist approach held that a particular behavior when followed by positive consequences would be reinforced and exhibited frequently in an organization, whereas, a behavior that was followed by an unpleasant consequence would become weak and be exhibited less frequently. Thus, managing the immediate work environment helps managers to predict and control organizational behavior. The internal causal factors in an organization are cognitively oriented whereas the external environmental factors are behavioristically oriented. Therefore, both the approaches have gained considerable importance in the development of the conceptual model of OB. Hence, social learning that incorporates both the approaches is used in the OB model.

SOCIAL LEARNING-A Framework of Organizational Behavior The OB model based on the social learning approach is termed as the SOBC model, where S stands for stimulus O for organism B for behavior C for consequence. The S-O-B-C model gives the basic framework rather than a complete explanation of OB.

SOCIAL LEARNING-A Framework of Organizational Behavior S – Stimulus is an environmental variable that depicts the environmental situation, both contextual and organizational. O – Organism is a cognitive variable that understands organizational participants which link the environmental situation and the resulting organizational behavior. B – Represents the organizational behavior. C – Consequence is an environmental variable that depicts organizational and group dynamics and the consequences of previous interactions between environmental, personal and behavioral variables.

MODELS OF OB

Models of organizational behavior are as follows A. Autocratic model B. Custodial model C. Supportive model D. Collegial model

Autocratic Model In an autocratic model', the manager has the power to command his subordinates to do a specific job. Management believes that it knows what is best for an organization and therefore, employees are required to follow their orders. The psychological result of this model on employees is their increasing dependence on their boss. Its main weakness is its high human cost. Custodial Model This model focuses better employee satisfaction and security. Under this model organizations satisfy the security and welfare needs of employees. Hence, it is known as custodian model. This model leads to employee dependence on an organization rather than on boss. As a result of economic rewards and benefits, employees are happy and contented but they are not strongly motivated. Supportive Model The supportive model depends on 'leadership' instead of power or money. Through leadership, management provides a climate to help employees grow and accomplish in the interest of an organization. This model assumes that employees will take responsibility, develop a drive to contribute and improve them if management will give them a chance. Therefore, management's direction is to 'Support' the employee's job performance rather than to 'support' employee benefit payments, as in the custodial approach. Since management supports employees in their work, the psychological result is a feeling of participation and task involvement in an, organization. Collegial Model The term 'collegial' relates to a body of persons having a common purpose. It is a team concept. Management is the coach that builds a better team. The management is seen as joint contributor rather than as a boss. The employee response to this situation is responsibility. The psychological result of the collegial approach for the employee is 'self-discipline'. In this kind of environment employees normally feel some degree of fulfillment and worthwhile contribution towards their work. This results in enthusiasm in employees' performance.

FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR Autocratic Custodial Supportive Collegial Basis of Model Power Economic resources Leadership Partnership Managerial- orientation Authority Money Support Teamwork Employee psychological result Dependence on boss Dependence on organization Participation Self-discipline Employee needs met Subsistence Security Status and recognition Self-actualization Performance result Minimum Passive cooperation Awakened drives Moderate enthusiasm