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ORGANIZATIONAL

BEHAVIOUR

Dr. Sunil R. Misra


Associate Professor

Course Topics

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O.B. Introduction, Definition, History


Personality & Learning
Perception, Attribution, Judgment
Values, Attitudes & Work Behaviour
Theories of Work Motivation
Motivation in Practice
Groups and Teamwork
Influence, Socialization, Culture
Leadership

MID-TERM

Communication
Decision Making
Power, Politics and Ethics
FINAL EXAM
Conflict & Stress
Organizational Structure
Environment, Strategy, Technology
Change, Development, Innovation 2

Course Overview
Text available:
Organizational Behaviour, Stephen P.
Robbins, Timothi A. Judge and Seema
Sanghi, 12th ed, Prentice Hall India.

Format:
Combination of lectures and in-class
exercises.
3

Course Overview

Further Text:

1. Organizational Behaviour: Understanding


and Managing Life at Work (8th Edition), by
Gary Johns and Alan Saks (Prentice Hall).
2. Organizational Behaviour-Human Behaviour
at work by John W Newstrom, 12th edition,
McGrawHill.
3. Organizational behavior and management
by Ivancevich, Konopaske and Matteson -7th
edition, Tata McGrawHill.
4. Organisational Behaviour by Steven L Mc
Shane Mary Ann Von Glinow Radha R Sharma
4
Tata McGrawHill.

How to find me
Contact info:
Email: misra@lycos.com
Website:
http://www.sunilmisra.webs.com
Mobile phone: +91-909 808 1129
Office hours: By appointment

Expectations
What I expect of you
Attendance. I expect you to attend every
class.
Participation. Strongly encouraged
Group work.
What to expect from me
Lecture notes will be posted by Saturday of
each week.
Exams will be based on text and lecture
notes; so even if we dont review it in the
lecture, if it is in the text, it is fair game.
Available after class or by appt. 6

Questions?

UNIT 1
INTRODUCTION TO
ORGANIZATIONAL
BEHAVIOR

TOPICS TO BE COVERED
1. Define organizational behavior (OB).
2. Identify the primary behavioral
disciplines contributing to OB.
3. Describe the three goals of OB.
4. List the major challenges and
opportunities for managers to use OB
concepts.
5. Discuss why workforce diversity has
become an important issue in
management.
6. Discuss how a knowledge of OB can help
managers stimulate organizational
innovation and change.

Icebreaker
What do we have in common?
Make groups of four to five students
Find two things in common with each other
E.g., food likes, sports, music, TV shows,
hobbies

Rule: The thing in common cant be that


you are a OCM student studying MBA
Pick a spokesperson who will introduce the
group members and tell the class what
they have in common.
10

Organizational Behavior
(OB)
OB is concerned with the study
of what people do in an
organization and how their
behavior
affects
the
organizations performance.
Specifically with employmentrelated situations - Jobs, work,
absenteeism,
employment
turnover, productivity, human
performance, and management.

Organizational Behavior
(OB)
OB theories have widespread
applications
Knowing these theories can help
you to:
Evaluate solutions proposed by
consultants and managers
Solve new problems and adapt to new
situations
Stay current in your field

Evidence-based management is
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Definition of OB
The study of human behavior,
attitudes, and performance within an
organizational setting
drawing on theory, methods, and principles from
such disciplines as psychology, sociology, political
science, and cultural anthropology
to learn about individual, groups, structure, and
processes

Organizational Behavior
(OB)
It studies three determinants of
behavior in organizations: individuals,
groups, and structure.
In addition, OB applies the knowledge
gained about individuals, groups, and
the effect of structure on behavior in
order to make organizations work
more effectively.

Key Points About OB


OB is a way of thinking
OB is multidisciplinary
There is a distinctly humanistic orientation within
OB
4. The field of OB is performance-oriented
5. The role of the scientific method is important in
studying variables and relationships
6. OB has a distinctive applications orientation
1.
2.
3.

What is Organizational Behavior?

Insert Figure 1.1 here

Why Study Organizational Behavior?


OB theories help you to make sense of the
workplace
Question and rebuild your personal theories for work
Important -- much of our time is in organizations

OB provides knowledge/tools to work with others


Helps you to get things done

OB improves an organizations financial health


Effective and competitive organizations
Help you to retain the people who came up with the
good ideas

Components of Organizational
Behavior
Understanding
organizational behavior
requires studying
Part One Individuals in Organizations
Part Two Group and Team Processes
Part Three Organizational Processes

The Basic Elements of a


System

Inputs

Process

Environmen
t

Outputs

Introduction
Organizations are much more than
only a means for providing goods
and service
They create the settings in which
most of us spend our lives
They have profound influence on
employee behavior

The core 21st century


qualities needed to create
the ideal work atmosphere
begin with intelligence,
passion, a strong work ethic,
and a genuine concern for
people.

Managing and Working Today and


in the Future:
Managers must become agile and
flexible to help their firms develop
and sustain competitive advantage
To be successful, managers will need
to harness the powers of:
information technology
human capital

Environmental Forces Reshaping


Management Practice
Power of
Human
Resources

Globalism

Rapidity of
Change

Cultural
Diversity
New WorkerEmployer
Psychological
Contract

Technology

Challenges of These Forces to


Managers
Resisting the reality of
these forces will likely
lead to:
Unnecessary conflict
Reduced managerial
performance
Reduced nonmanagerial
performance
Lost opportunities

Failing to cope and deal


with these forces will likely
result in:
Job dissatisfaction
Poor morale
Reduced commitment
Lower work quality
Burnout
Poor judgment
Unhealthy
consequences

Contributions to the Study of Organizational


Behavior
Discipline

Unit of Analysis

Output

Psychology
Individual
Sociology

Social Psychology

Group

Anthropology
Organization
Political Science

Organizational
Behavior

Topics in Studying and Understanding OB


The
Organizations
Environment
Understanding
and Managing
Individual
Behavior
Organizational
Processes

Group Behavior
and
Interpersonal
Influence
Organizational
Structure

Change and
Innovation

OB studies what people do in


an organization and how that
behavior affects the
performance of the
organization.
The field of OB seeks
to replace intuitive
explanations with
systematic study
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Three Perspectives on Effectiveness

Individual
effectiveness

Group
effectiveness

Organizational
effectiveness

Systems Theory and Effectiveness


(1 of 2)

Effectiveness criteria must reflect the


entire input-process-output cycle, not
simply output
Effectiveness criteria must reflect the
interrelationships between the
organization and its outside
environment

Systems Theory and Effectiveness


(2 of 2)

Organizational effectiveness is an allencompassing concept that includes


a number of component concepts
The managerial task is to maintain
the optimal balance among these
components

Managers can lead the way to


higher levels of effectiveness by:

(1

of 2)

Providing opportunities for training


and continuous learning
Sharing information with employees
Encouraging cross-development
partnerships
Linking compensation to performance

Managers can lead the way to


higher levels of effectiveness by:
of 2)

Avoiding layoffs
Being a supportive role model
Respecting the differences across
employees
Being a good listener

(2

Key Points

(1 of 2)

The key to an organizations success


is its human resources
Organizations need human resources
that:
work hard
think creatively
perform excellently

Key Points

(2 of 2)

Rewarding, encouraging, and


nurturing the human resources in a
timely and meaningful manner is
what is required
The behavior of employees is the key
to achieving effectiveness

A Short History of Organizational


Behavior
F.W. Taylor and Scientific
Management
Mary Parker Follett
Hawthorne Studies
Theory X and Y

F.W. Taylor and


Scientific Management
Scientific management: the
systematic study of relationships
between people and tasks for the
purpose of redesigning the work
process to increase efficiency
The amount of and effort each
employee expends to produce a unit
of output can be reduced by
increasing specialization and the
division of labor

Four Principles of
Scientific Management
1. Study the way employees perform
their tasks, gather informal job
knowledge that employees possess,
and experiment with ways of
improving the way tasks are
performed
2. Codify the new methods of
performing tasks into written rules
and standard operating procedures

Four Principles of
Scientific Management_2
3. Carefully select employees so that
they possess skills and abilities that
match the needs of the task, and train
them to perform the task according to
the established rules and procedures
4. Establish an acceptable level of
performance for a task, and then develop
a pay system that provides a reward for
performance above the acceptable level

Mary Parker Follett


Management must consider the
human side
Employees should be involved in job
analysis
Person with the knowledge should be
in control of the work process
regardless of position
Cross-functioning teams used to
accomplish projects

The Hawthorne Studies


Hawthorne Works of the Western
Electric Company; 1924-1932
Initiated as an attempt to investigate
how characteristics of the work
setting affect employee fatigue and
performance (i.e., lighting)
Found that productivity increased
regardless of whether illumination
was raised or lowered

The Hawthorne Studies_2


Factors influencing behavior:
Attention from researchers
Managers leadership approach
Work group norms

The Hawthorne Effect

Douglas McGregor:
Theory X and Theory Y
Theory X
Average employee is
lazy, dislikes work, and
will try to do as little as
possible
Managers task is to
supervise closely and
control employees
through reward and
punishment

Theory Y
Employees will do what
is good for the
organization when
committed
Managers task is create
a work setting that
encourages
commitment to
organizational goals and
provides opportunities
for employees to be
exercise initiative

Evolution of OB
Classical View (Early 1900s)
Attempts to prescribe the correct way to
manage an organization and achieve its
goals
High specialization of labour (each dept
tended to its own business, and decision
making was centralized)
Bureaucracy
Max Weber
Strict chain of command, detailed rules, high specialization,
centralized power, and selection and promotion based on
technical competence

Scientific Management

Frederick Taylor
Use of careful research to determine degree of specialization
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Evolution of OB
Human Relations Movement
Hawthorne Studies research conducted at
the Hawthorne plant of Western Electric in
the 1920s that examined how psychological
and social processes affect productivity
How physical environment affects
productivity
Effect of interest being shown in them
Advocates management styles that are
more participative and oriented towards
employee needs
44

Question
Which approach (classical or human
relations) is better? Which approach
would you use?

45

Evolution of OB
Where are we today???
The Contingency Approach
No one best way to manage
Management style depends on the
demands of the situation

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What Managers Do?


A.Management Function:
Henri Fayol----Planning

Organizing

Commanding

Coordinating

Controlling
Today----planning, organizing,

leading, controlling

What do Managers do?


Mintzberg
Informational Roles: Ways the manager
receives and transmits information (e.g.,
attend workshop)
Interpersonal Roles: Establishing and
maintaining interpersonal relations (e.g.,
mentor, discipline)
Decisional Roles: Deal with decision
making (e.g,. conflicts)

48

Quiz Question
The contingency approach to management
suggests that:
A) Management style depends on the demands
of the situation.
B) The best management style depends on the
size of the organization.
C) Management style makes no difference.
D) Management styles are constantly changing.
E) One management style should work for all
individuals.
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Contemporary
Management Concerns

50

Focus on Quality, Speed, and


Flexibility
Intense competition has given rise to the
need for organizations to improve quality,
speed, and flexibility.
This requires a high degree of employee
involvement, commitment, and teamwork.
Organizational behaviour is concerned
with these issues.

51

Recruitment and
Retention
A major challenge facing organizations today is
the recruitment and retention of skilled
employees.
Canadian organizations face severe shortages
of labour in the coming years and many are
already having trouble hiring and retaining
employees.
Question: Why do you think this is the case?
Organizational behaviour can help companies
improve their recruitment and retention and
become an employer of choice.
52

Workplace Diversity
More women in workforce and
professions
Different needs of Gen-X/Gen-Y and
baby-boomers
Diversity has advantages, but firms
need to adjust

53

Employee-Employer Relationships
Employability
New deal relationship
Continuously learn new skills

Contingent work
No contract for LT employment
Minimum hours of work vary

Consequences
Decreased trust, lower morale, decline in
job satisfaction, increased stress,
absenteeism on the rise
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Questions?

55

Contributing Disciplines
to the OB Field
Psychology
Micro:
The
Individual

Macro:
Groups &
Organizations

Contributing Disciplines
Psychology seeks to
measure,explain,
and change
behavior

Sociology studies
people in relation to their
fellow human beings

Social psychology
focuses on the
influence of people
on one another
Anthropology is the
study of societies
to learn about human
beings and their activities

Political science is the


study of the
behavior of individuals
and groups within
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a political environment

Contributing Disciplines
Organizational behavior is an applied
behavior science that is built on
contributions from a number of
behavior disciplines.

the predominant areas :


psychology,
social psychology,
sociology,
anthropology,
political science

Psychology----individual
learning, motivation, personality,
emotions,
perception, training, job satisfaction,
leadership effectiveness,
individual decision making, performance
appraisal, attitude measurement,
employee selection,
work design, work stress

Social psychology----group
Behavioral change, attitude change,
communicate,
group processes,
group decision making

Sociology
Communication, power, conflict,
intergroup behavior,
----group
formal organization theory,
organizational technology,
organizational change,
organizational culture
----organization system

Anthropology
Comparative values,
comparative attitudes,
cross-culture analysis, ----group
organizational culture,
Organizational enviroment,
Power
----organization
system

Political science
Conflict,
Intra-organizational politics, ----group
Power
----organization
system

OB Model

62

Levels of Analysis
Organizational Level
Group Level
Individual
Level

Goals of OB
Explanation
If we are to understand a phenomenon,we
must begin by trying to explain it. We can
then use this understanding to determine
a cause.

Prediction
It seeks to determine what outcomes will
result from a given action.

Control
The control objective is frequently seen by
manager as the most valuable contribution the
OB makes toward their effectiveness on the job.

Challenges and Opportunities


for OB
1.Responding to Globalization
Increased foreign assignments
Working with people from different
cultures
Coping with anticapitalism backlash
Overseeing movement of jobs to
countries with low-cost labor
Managing people during the war on
terror

2.Managing workforce diversity


Workforce diversity:
Gender, race, national origin, age, disability,

Embracing diversity
Changing demographics

Workforce diversity can increase


creativity and innovation in
organizations as well as improve
decision making by providing different
perspective on promble.

3.Improving quality and


productivity
Almost all quality improvement comes
via simplification of design,
manufacturing, layout, processes, and
procedures.----Tom Peters
Todays managers understand that
success of any effort at improving quality
and productivity must include their
employees.

4.Improving people skills


Well present relevant concepts and
theories that can help you explain
and predict the behavior of people at
work.
Learn a ways to motivate people
How to be a better communicator
How to create more effective teams

5.Empowering people
Decision making is being pushed down to
the operating level, where workers are being
given the freedom to make choices about
schedules and procedures and to solve workrelated problems.
Self-management team
Managers are empowering emplyees.
Managers-how to give up control
Emplyees-how to take responsibility for their
work and make appropriate decisions
Leading style, power relationships, the way
work is designed, the way organizations are

6.Stimulating innovation and


change
Todays successful organizations must
foster innovation and master the art of
change or theyll become candidate for
extinction.
An organizations employees can be the
impetus for innovation and change or they
can be a majors stumbling block.
The challenge for managers is to stimulate
their employees creativity and tolerance
for change.

7.Coping with temporariness


Managing today would be more accurately
described as long periods of ongoing change,
interrupted occasionally by short periods of
stability!
The actual jobs that workers perform are in a
permanent state of flux.
So workers need to continually update their
knowledge and skills to perform new job
requirements.

8.Helping employees balance


work/life conflicts
A number of forces have contributed to
blurring the lines between employee work
and personal lives.
First, the creation of global organizations
means their world never sleeps.
Second, communication technology allows
employee to do their work at home, in their
car, or on the beach in Tahiti.
Third, organizations are asking employees to
put in longer hours.
Finally, fewer families have only a single
breadwinner.

9.Declining employee loyalty


Beginning in the mid-1980s, in response
to global competition, unfriendly
takeovers, leveraged buyouts, and the
like, corporations began to discard
traditional policies on job security,
seniority and compensation.
An important OB challenge will be for
managers to devise ways to motivate
workers who feel less committed to their
employers, while maintaining their
organizations global competitiveness.

10.Improving ethical behavior


Members of organizations are increasingly
finding themselves facing ethical
dilemmas, situations in which they are
required to define right and wrong
conduct.
In recent years, the line differentiating
right from wrong has become even more
blurred.
Managers and their organizations are
writing and distributing codes of ethics to
guide employees through ethical
dilemmas.

Individual behavior
values, attitudes, perception, and learning
the role of personality and emotions
motivation issues

Group behavior
Group behavior model
Ways to make teams more effective
Communication issues and group decision
making
Leadership, trust, power, politics, conflict
and negotiation

Organizational behaviors
Culture, structure, .

Summary
OB has widespread applications
Evolution of OB
Classical
Human Relations
Contingency
Managers have different roles
Receive and transmit information
Interact with people
Make decisions
Quality, speed, flexibility

Contemporary Concerns

76

For Next Class


Read chapters two and three.

77

AAA

Organizational Learning Processes


KNOWLEDGE
KNOWLEDGE
ACQUISITION
ACQUISITION

KNOWLEDGE
KNOWLEDGE
SHARING
SHARING

KNOWLEDGE
KNOWLEDGE
USE
USE

Extracting
information and
ideas from its
environment as
well as through
insight

Distributing
knowledge
throughout the
organization

Applying
knowledge to
organizational
processes in ways
that improves the
organizations
effectiveness

Examples in practice
Hiring skilled
staff

Posting case
studies on
intranet

Giving staff
freedom to try
out ideas

Types of
Individual Behavior

Types of Individual Behavior


Task Performance

Goal-directed behaviors under


persons control

Organizational
Citizenship

Performance beyond the required job


duties

more

Types of Behavior in Organizations

(cont)

Counterproductive
Work Behaviors

Voluntary behavior that potentially


harms the organization

Joining/staying with
the Organization

Goal-directed behaviors under


persons control

Maintaining Work
Attendance

Attending work at required times

Contemporary
Challenges
for Organizations

Globalization
Economic, social, and cultural connectivity
with people in other parts of the world
Higher connectivity (and interdependence)
due to better information technology and
transportation systems
Globalization has many effects on
organizations, as discussed throughout this
book
e.g., leadership, diversity, conflict, org structures

Increasing Workforce
Diversity
Surface-level diversity
Observable demographic or physiological
differences in people (e.g. race, ethnicity, gender,
age, physical disabilities)
Increasing surface-level diversity
Deep-level diversity
Differences in the psychological characteristics of
employees (e.g. personalities, beliefs, values, and
attitudes)
Example: Differences across age cohorts (e.g. GenX, Gen-Y)
Implications
Leveraging the diversity advantage
Also challenges of diversity (e.g. team
development, conflict)

Employment Relationships
Work hours
Less separation from work
24/7 work schedule
Due mainly to info technology and globalization
Push for more work-life balance
minimizing conflict between work and non-work
demands

Virtual work
Perform jobs away from traditional workplace
(e.g. telecommuting)
Some benefits, but also suited more to some
types of people

Anchors of
Organizational
Behavior
Knowledge

Organizational Behavior
Anchors
Multidisciplinary anchor
Many OB concepts adopted from other disciplines
OB develops its own theories, but also scans other
fields

Systematic research anchor


OB researchers rely on scientific method
Should apply evidence-based management
Problems applying evidence-based management
Bombarded with theories and models from many sources
Challenge translating general OB theories to specific
situations
People swayed by heavy marketing of some theories/models
Perceptual biases -- we ignore evidence contrary to our
current theories

Organizational Behavior
Anchors
(cont)

Contingency anchor
A particular action may have different consequences in
different situations
Need to diagnose the situation and select best strategy
under those conditions

Multiple levels of analysis anchor


Individual, team, organizational level of analysis
OB topics usually relevant at all three levels of analysis

Introduction to
the Field of
Organizational
Behavior
Chapter One

1. Define organizational behavior (OB).


2. Explain the value of the systematic study of OB.
3. Identify the contributions made to OB by major
behavioral science disciplines.
4. Describe how OB concepts can help make
organizations more productive.
5. List the major challenges and opportunities for
managers to use OB concepts.
6. Identify the three levels of analysis in OB.

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