ORGANIZATION BEHAVIOUR ORGANIZATION BEHAVIOUR

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. reaction to stimulus

Organizational Behavior is the study and application of knowledge about how people as individuals and as groups act within organizations.

Managers are responsible for performance outcome, they are vitally interested in being able to make an impact on employee behavior, skill development, team effort , and productivity. Managers need to be able to improve results through actions they and their employees take, and Organizational Behaviors can aid them in their pursuit of this goal. Organizational Behavior is a human tool for human benefit. Organization Behavior applies broadly to the behavior of people in all types of organizational, business, government, schools and ervice organizations. !herever organizations are , there is a need to "#$escribe, %nderstand, &redict and '(ontrol) better manage human behavior
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Nature of 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. But all social units are not organizations.
T ree c aracteristics of organizations!

i. ii. iii.

$ivision of labour &resence of one o more power centres, and ubstitution of personnel

Other social units are marked by some degree of conscious planning 'e.g. family budget), by the e*istence of power centres 'e.g. tribal chief), and by replaceable membership 'e.g. through divorce), but the e*tent to which these other social units are consciously planned, deliberately structured and restructured, with a membership which is routinely changed, is much less than in the case of those social units we are calling organizations hence organizations are much more in control of their nature and destiny than any other social grouping. Organization as a syste" Organizations are made up of components 'sub+systems), each of which has uni,ue properties, capabilities and mutual relationships. An Organization is an O#en $yste" %&atz ' &a n( An organization is a system that interacts with and depends upon its environment.

) at *anagers +o They get things done through other people. *anage"ent Acti,ities: Make decisions Allocate resources $irect activities of others to attain goals !ork in an organization
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Management Functions
-lanning Organizing .o""anding .ontrolling

Management Roles

(Henry Mintzberg)

-he ten roles can be grouped as being primarily concerned with interpersonal relationships, the transfer of information, and decision making.
1. Interpersonal roles Figureheadduties that are ceremonial and symbolic in nature Leadershiphire, train, motivate, and discipline employees Liaisoncontact outsiders who provide the manager with information. These may be individuals or groups inside or outside the organization. Monitorcollect information from organizations and institutions outside their own Disseminatora conduit to transmit information to organizational members po!espersonrepresent the organization to outsiders 1. Decisional roles "ntrepreneurmanagers initiate and oversee new pro#ects that will improve their organization$s performance Disturbance handlersta!e corrective action in response to unforeseen problems %esource allocatorsresponsible for allocating human, physical, and monetary resources &egotiator rolediscuss issues and bargain with other units to gain advantages for their own unit

2. Informational roles

Management Skills
%obert 'atz has identified three essential management s!ills( technical, human, and conceptual. 1. Technical skills The ability to apply specialized !nowledge or e)pertise. *ll #obs re+uire some specialized e)pertise, and many people develop their technical s!ills on the #ob. 2. Human skills The ability to wor! with, understand, and motivate other people, both individually and in groups, describes human s!ills. Many people are technically proficient but interpersonally incompetent.

3. Conceptual skills The mental ability to analyze and diagnose comple) situations Decision ma!ing, for e)ample, re+uires managers to spot problems, identify alternatives that can correct them, evaluate those alternatives, and select the best one.

Strategic Approach to OB

Organi ational Beha!ior

A fiel" of stu"# that in!estigates the impact that in"i!i"uals$ groups$ an" structure ha!e on %eha!ior &ithin organi ations$ for the purpose of appl#ing such kno&le"ge to&ar" impro!ing an organi ation's effecti!eness.

(enerali ations a%out Beha!iour

.appy workers are productive workers. All individuals are most productive when their boss is friendly, trusting, and approachable. -he best leaders are those that e*hibit consistent behavior, regardless of the situations they face. /nterviews are effective selection devices for separating 0ob applicants who would be high+ performing employees from those who would be low performers. 1veryone wants a challenging 0ob. 2ou have to scare people a little to get them to do their 0obs. 1veryone is motivated by money. Most people are much more concerned with the size of their own salaries than with the size of other people#s salaries. -he most effective work groups are devoid of conflict.

Intuition an" S#stematic Stu"#

Intuition
o o

A feeling not necessarily supported by research. 3ooking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence.

Systematic Study

Behavior is generally predictable. -here are differences between individuals. -here are fundamental consistencies. -here are rules 'written 4 unwritten) in almost every setting. 4

The two are complementary means of predicting behavior.

Goals of OB
+escri/ing /e a,iour ! o0 #eo#le /e a,e under a ,ariety of conditions Understanding /e a,iour! 0 y t ey /e a,e as t ey do -redicting /e a,iour! (Managers should have the capacity to predict employees actions on a certain day and take preventive actions) .ontrolling /e a,iour! at least #artially and de,elo# so"e u"an acti,ity at 0or1

2eatures of OB
i. ii. iii. iv. v. vi. vii. viii. An integral part of management A field of study /nter+disciplinary approach 3evel of analysis 5oal+oriented .uman tool cience and art atisfaction of employee needs

Need of studying OB
6. %nderstanding of self and others 7. $evelopment of soft 'interpersonal) skills 8. &ersonal growth via insight into others 9. Motivation of human resources :. 1nhancement of individual and organizational effectiveness ;. 1ffective communication <. 1ffective organizational climate =. 5ood human relations >. /ntroduction of change in the organization 6?. harpening and refining common sense 'common sense is often wrong)

&ey ele"ents of OB3 &ey factors affecting OB

&eople tructure -echnology 1nvironment

-eo#le &eople make up the internal ocial ystem of the Organization. -hat ystem consists of individuals and groups. -here are formal and informal groups. 5roups are dynamic. -hey form, change, and disband. &eople are the living, thinking, feeling beings who work in the organization to achieve their ob0ectives. @emember that Organizations e*ist to serve people, rather than people e*isting to serve organizations. -he !orkforce of today organizations are richly diverse '1mployees have a wide array of educational background, talents and perspectives) Managers need to be tuned in to these diverse pattern and trends and be prepared to adapt to them.

Management 3eadership practices must change to match the new conditions. $tructure $efines the formal relationship and use of people in organizations. $ifferent Aobs are re,uired to accomplish all of an organization#s activities. -hus, there are managers, employees, accountants and assemblers etc., in an organization. &eople in the Organization have to be related in some structural way so that their work can be effectively coordinated.

Tec nology -echnology provides the resources with which people work and affects the tasks that they perform. -he -echnology used has a significant influence on working relationships. -he great benefit of technology is that it allows people to do more and better work, but it also restricts people in various ways. /t has cost as well as benefits

En,iron"ent All organizations operate within an internal and an e*ternal environment. A single organization does not e*ist alone. /t is part of a larger ystem that contains many other elements, such as government, the family, and other organizations. Bumerous changes in the environment create demands on organizations.

5e,els of analysis

2oundations of OB
.once#ts relating to nature of "an /ndividual differences !hole person (ausation of human behaviour .uman dignity .once#ts relating to nature of organization
(ocial syste! Mutual interest

$co#e of OB! OB includes the study of individual, 5roup and structure.

Individuals
Personality Perception Attitude Motivation Job satisfaction Learning values

Groups
rp dyna!ics rp conflicts "o!!unication Leaders#ip Po$er % politics

Structure
&or!ation of org structure "ulture "#ange 'evelop!ent

A##roac es to understand OB3 2ra"e0or1 of OB

C Organizational Behavior relates the various theoretical frameworks that serve as a foundation for a model of organizational behavior.
C

.ogniti,e 2ra"e0or1! .OGNITION4 0 ic is t e /asic unit of cogniti,e fra"e0or14 is an

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act of 1no0ing an ite" of infor"ation. (ognition proceeds behavior and considers the person#s

thinking, perception, problem solving and information processing. As per this theory every behavior is directed towards a particular goal. An animal becomes restless when it is hungry. -he restlessness continues till its hunger is met. (ognitive approach is dependent on &1@(1&-/OB, &1@ OBA3/-2 and A--/-%$1, MO-/DA-/OB and 5OA3 1--/B5.
C

Be a,ioristic 2ra"e0or1! -his is based on the work of &avlov and !atson. As per this theory,

every human behavior is based on stimulus+response e*planation. A stimulus generates a response i.e. behavior.
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$ocial learning 2ra"e0or1! -his approach suggests that people are self aware and engaging

purposeful behavior. &eople learn about the environment to make reinforces available and the importance of rules and symbolic process in learning.

*cGregor6s T eory 7 ' T eory 8 T eory 7

Pessi!istic assu!ptions )!pedi!ent to e!ployee !orale % productivity

Assumptions of Theory X Employees: Are )n#erently la*y and $ill avoid $or+ Are ,nly interested in !oney Are )n need of close supervision -ave little a!bition $it#out incentive progra! Avoid responsibility .eed to be driven t#roug# control syste!s

T eory 8
Positive assu!ptions More positive vie$ of $or+ers and t#e possibilities t#at create ent#usias!

Assumptions of Theory Y Employees: Are a!bitious/ self0!otivated and an1ious to accept greater responsibility 21ercise self0direction/ autono!y and e!po$er!ent 21ercise creativity and beco!e for$ard loo+ing

omparison of Theory X and Theory Y

Model of !rgani"ational #ehavior

3#ere are five !odel of organi*ational be#avior/ suc# as0 14 Autocratic Model/ 5

24 "ustodial Model/ 34 "ollegial Model/ 44 (upportive Model/ and 54 (yste! Model4

Autocratic *odel! -he basis of this model is power with a managerial orientation of authority. -he employees in turn are oriented towards obedience and dependence on the boss. -he employee need that is met is subsistence. -he performance result is minimal. .ustodial *odel! -he basis of this model is economic resource with a managerial orientation of money. -he employees in turn are oriented towards security and benefits and dependence on the organization. -he employee need that is met is security. -he performance result is passive co+operation. .ollegial *odel! -he basis of this model is partnership with a managerial orientation of teamwork. -he employees in turn are oriented towards responsible behavior and self+discipline. -he employee need that is met is self+actualization. -he performance result is moderate enthusiasm. $u##orti,e *odel! -he basis of this model is leadership with a managerial orientation of support. -he employees is turn are oriented towards 0ob performance and participation. -he employee need that is met is recognition. -he performance result is awakened drives. $yste" *odel! An emerging model of organizational behavior is the system model. /t is the result of a storng search for higher meaning at work by many of today employees. -hey want more than a pay+check and 0ob security from their 0ob. /n this model helps for gowning sense of community among co+worker. %nder the system model manager try to convey to each other that you are an important part of your whole system. !e sincerely care about of you. !e want to 0oin together to achieve a better product or service local community and society at large. Make friendly environment, self motivation of the employee. -hey take responsibility to achieve their own goals. -rust to the employee psychology co+operative e*plain the best model of organizational model.

.ontri/uting

Many sciences have contributed to the development of Behavior

disci#lines

to

OB

behavioral Organizational

-syc ology T e science t at see1s to "easure4 e9#lain4 and so"eti"es c ange t e /e a,ior of u"ans and ot er ani"als. Unit of Analysis! /ndividual

.ontri/utions to OB! 3earning, motivation, personality, emotions, perception -raining, leadership effectiveness, 0ob satisfaction /ndividual decision making, performance appraisal attitude measurement 1mployee selection, work design, and work stress

$ocial -syc ology An area 0it in #syc ology t at /lends conce#ts fro" #syc ology and sociology and t at focuses on t e influence of #eo#le on one anot er. Unit of Analysis! 5roup

.ontri/utions to OB! Behavioral change Attitude change

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(ommunication 5roup processes 5roup decision making

$ociology Unit of Analysis! ++ Organizational ystem

.ontri/utions to OB! 5roup dynamics !ork teams (ommunication &ower (onflict /ntergroup behavior ++ 5roup Eormal organization theory Organizational technology Organizational change Organizational culture

Ant ro#ology Unit of Analysis! ++ Organizational ystem

.ontri/utions to OB! Organizational culture Organizational environment ++ 5roup (omparative values (omparative attitudes (ross+cultural analysis

. allenges and O##ortunities for OB

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 Responding to conomic !ressures Responding to "lobali#ation Managing $orkforce %iversity I"#ro,ing :uality and -roducti,ity
,. Total +uality management -T.M/ is a philosophy of management that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes. 0. 1mplementing +uality programs re+uires e)tensive employee involvement -Exhibit 1-4). 2. 3rocess reengineering as!s the +uestion( 45ow would we do things around here if we were starting over from scratch67 "very process is evaluated in terms of contribution to goals %ather than ma!e incremental changes, often old systems are eliminated entirely and replaced with new systems

To improve productivity and +uality, managers must include employees

I"#ro,ing .usto"er $er,ice

,. The ma#ority of employees in developed countries wor! in service #obs #obs that re+uire substantive interaction with the firm$s customers. For e)ample, 89 percent of :. . wor!ers are employed in service industries. 0. "mployee attitudes and behavior are directly related to customer satisfaction re+uiring management to create a customer responsive culture. 2. 3eople s!ills are essential to managerial effectiveness. ;. <= provides the concepts and theories that allow managers to predict employee behavior in given situations.

I"#ro,ing -eo#le $1ills $ti"ulating Inno,ation and . ange .o#ing 0it ;Te"#orariness<
,. Managers have always been concerned with change( >hat is different today is the length of time between changes ?hange is an ongoing activity for most managers. The concept of continuous improvement, for instance, implies constant change 1n the past, managing could be characterized by long periods of stability, interrupted occasionally by short periods of change. Today, long periods of ongoing change are interrupted occasionally by short periods of stability@ =oth managers and employees must learn to live with fle)ibility, spontaneity, and unpredictability The #obs that wor!ers perform are in a permanent state of flu), so wor!ers need to continually update their !nowledge and s!ills to perform new #ob re+uirements.

0. 3ermanent 4temporariness7(

2. >or! groups are also increasingly in a state of flu). 12

3redictability has been replaced by temporary wor! groups, teams that include members from different departments and whose members change all the time, and the increased use of employee rotation to fill constantly changing wor! assignments.

;. <rganizations themselves are in a state of flu). They reorganize their various divisions, sell off poorAperforming businesses, downsize operations, subcontract nonAcritical services and operations to other organizations, and replace permanent employees with temporaries.

)or1ing in Net0or1ed Organizations Hel#ing E"#loyees Balance )or1=5ife .onflicts .reating a -ositi,e )or1 En,iron"ent I"#ro,ing Et ical Be a,ior

Res#onding to Econo"ic -ressures ) at do you do during difficult econo"ic ti"es> 1ffective management is critical during hard economic times. Managers need to handle difficult activities such as firing employees, motivating employees to do more with less and working through the stress employees feel when they are worrying about their future. OB focuses on issues such as stress, decision making, and coping during difficult times. Res#onding to Glo/alization Increased foreign assign"ents )or1ing 0it #eo#le fro" different cultures O,erseeing "o,e"ent of ?o/s to countries 0it lo0=cost la/or *anaging )or1force +i,ersity The people in organi#ations are becoming more heterogeneous demographically 1mbracing diversity (hanging demographics
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 (hanging management philosophy @ecognizing and responding to differences

+e,elo#ing an OB *odel
A model is an a/straction of reality @ a si"#lified re#resentation of so"e real=0orld # eno"enon. Our OB "odel as t ree le,els of analysis 1ach level is constructed on the prior level

Ty#es of $tudy Varia/les

X
Inde#endent %7(

-he presumed cause of the change in the dependent variable '2). -his is the variable that OB researchers manipulate to observe the changes in 2. +e#endent %8( -his is the response to F 'the independent variable). /t is what the OB researchers want to predict or e*plain. -he interesting variableG
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Interesting OB +e#endent Varia/les

-roducti,ity -ransforming inputs to outputs at lowest cost. /ncludes the concepts of effecti,eness 'achievement of goals) and efficiency 'meeting goals at a low cost). A/senteeis" Eailure to report to work a huge cost to employers. Turno,er Doluntary and involuntary permanent withdrawal from an organization. +e,iant )or1#lace Be a,ior Doluntary behavior that violates significant organizational norms and thereby threatens the well+being of the organization andHor any of its members. Organizational .itizens i# Be a,ior %O.B( $iscretionary behavior that is not part of an employee#s formal 0ob re,uirements, but that nevertheless promotes the effective functioning of the organization. Ao/ $atisfaction A general attitude 'not a behavior) toward one#s 0obI a positive feeling of oneJs 0ob resulting from an evaluation of its characteristics.

T e Inde#endent Varia/les
The independent variable (&) can be at any of these three levels in this model' Indi,idual Grou# (ommunication, group decision making, leadership and trust, group structure, conflict, power and politics, and work teams Biographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning, and individual decision making

Organization $yste" Organizational culture, human resource policies and practices, and organizational structure and design

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