CONTENT OF THE MODULE

Unit One: Study of Organizational Behavior

Unit Two: Individual Dimensions of Organizational Behavior
Unit Three: Motivation in Organizations
Unit Four: Conflict Management
Unit Five: Organizational Culture
Unit Six: Power and Politics
Unit Seven: Organizational Structure and Design
Unit Eight: Organizational Change and Development

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LEARNING OUTCOMES
By the end of this module, graduate students will be able to:
• Develop mechanism to manage the employee behavior in the
organization
• Create and apply tools to facilitate employee motivation in the
organization
• Analyze the role of motivation on individual, group and organizational
performances
• Apply techniques to manage organizational conflict and change
• Evaluate factors that contributes to desirous change and
development in organizations
• Design organizational structure that fits with public sector strategies
and polices

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UNIT 1: STUDY OF ORGANIZATIONAL BEHAVIOR
Unit objectives: After reading this unit, you will be able to:
• Describe organizational behavior (OB).
• Apply the concept of management theories to improve
organizational performance.
• Analyze the major challenges and opportunities for
managers to use OB concepts.
• Describe why managers require knowledge of OB.
• Explain the need for a contingency approach to the
study of OB.

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DEFINITIONS
• OB is a field of study that investigates the impact that
individuals, groups and organizational structure have
on behavior within the organization, for the purpose of
applying such knowledge towards improving an
organizational effectiveness
• Three elements that are interactive in nature.
• It studies individual, group and organizational
structure in relation to organizational growth and
culture

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CONTRIBUTING FIELDS TO OB
• Psychology - contributed towards various theories on learning, motivation,
personality, training and development, theories on individual decision
making, leadership, job satisfaction…
• Sociology - impact of culture on group behavior; has contributed to a large
extent to the field of group-dynamics, roles that individual plays –
communication, conflict management…
• Political science - stability of government at national level as a major factor
for international business, investments, rules and regulations…
• Social psychology - concept of psychology and sociology are blend, formal
assembly of people who are assigned specific jobs
• Anthropology - human activities in various cultural and environmental
frameworks

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BEHAVIOUR MODEL FOR ORGANIZATIONAL EFFICIENCY
• Organizational behavior is a study and application of managerial
skills and knowledge to people in the organization to investigate
individual and group behavior.
• It attempt to identify, not only the human behavior but also modify
their attitude and promote skills so that they can act more
effectively.
• An organization has three basic elements namely, people, structure,
and technology.
• It is the people, their value system, and faith in the leadership that
make an organization.
• Leader must be able to describe, understand, predict and control
individual behavior in the organization

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ORGANIZATIONAL COMPONENTS THAT NEED TO BE MANAGED

1. People:
• Every individual has a personal goal
• Organizations must identify the need spectrum of individuals
and take suitable steps for its fulfillment
• Relationship between the workers, with subordinates and
superiors should be established based on full understanding
and complete faith based on mutual trust
• Work teams - team goals accomplishment - play a vital role
in the organization - Individual may have to keep his
personal interest aside if it conflicts with team or group
goals.

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ORGANIZATIONAL COMPONENTS …

2. STRUCTURE
T WO T Y P ES O F O RG A N IZ AT IO N S : FO R M A L A N D I N FO R M A L

FORMAL
INFORMAL
• Build based upon the objective set for it
• Hierarchical in nature
• People at each level having their own • What do you think are
objectives the features of the
• People at lower levels report to higher
informal organizations?
level
• Unity of command inbuilt in it • Should leaders strive to
• Pyramid structure or flat structure abandon them? Why?
• Efficiency free flow of the information,
efficient communication, well-defined
authority, rules and regulations.

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ORGANIZATIONAL COMPONENTS …
3. Technology
• Managing technology is an important job of any management.
• Selection of technology, procurement, installation, operation and maintenance
4. Jobs
• An assignment assigned to an individual
• Encompasses various tasks within it
5. Processes
• Management of processes and its inter-dependence is very crucial to high
productivity and higher job satisfaction.
• Managers should select appropriate subordinates to carry out a job based on
aptitude, personality traits, mental build up and attitude
• Managers should involve himself and lead subordinates by personal example
6. External environment

Have you experienced any challenge related to

process at your work place?

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EVOLUTION OF MANAGEMENT CONCEPTS

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BUREAUCRACY

• Max Weber (1864-1920) a German sociologist introduced the theory of

Bureaucracy.
• His major contribution to the theory is the concept of authority, structure
and its inter-relationship.
• Three types of authority in any organization.
• Legal authority - legal position or a rank
• Traditional authority - obeying a person because he is from a
traditionally recognized power holding family
• Charismatic authority - special power that a leader possesses
• Elements of Bureaucracy - hierarchy of authority, division of work based on
competence, system of policy, rules, and regulations to ensure rationality,
impartiality, standardization of methods, systems, processes, competence
based selection and promotion, power derived from the official position

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SCIENTIFIC MANAGEMENT - TAYLOR
known as the father of scientific management
• Effective use of human beings
• Knowing exactly what you want men to do and then see
that they do it the best and cheapest way’
• Standardized the work and introduced better methods of
doing and motion study
• Introduction of differential piece-rate system of payment
offering additional reward for production beyond the
standard
• Functional foremanship, creating supervisor having direct
authority over the workers

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FEATURES OF SCIENTIFIC MANAGEMENT

• Separation of Planning and doing

• Functional foremanship
• Job Analysis – time and motion led to standardization
• Scientific selection and training of workers
• Financial incentives - piece- rate of payment system - fixed
targets for each work and they were paid based on
efficiency.
• Economies - no wastage in time and material
• Mental revolution - sound relations between the
management and the workers

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PRINCIPLES OF SCIENTIFIC MANAGEMENT

• Replacing Rule of Thumb with

Science
• Harmony in Group Action
• Co-operation
• Maximum Output and development
of workers

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PROCESS MANAGEMENT THEORY – FAYOL

• Looked at the problems from the top management point of view

• Used the term ‘administration’ instead of management
• Industrial Activities - activities of an industrial organization could be
divided into six groups:
• Technical – relating to production and maintenance
• Commercial – buying, selling and exchange.
• Financial – search for capital and its optimum utilization.
• Security – protection of property and human beings
• Accounting – accounting of stores and equipment. Statistics is also
covered under accounting.
• Managerial – activities include planning, organizing, commanding,
coordinating and control.

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14 PRINCIPLES OF MANAGEMENT

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PROCESS MANAGEMENT THEORY – FAYOL…
Divided his approach of studying management into
three parts.
• Managerial Qualities –physical ability, mental
ability, moral ability, educational ability, technical
ability, experience
• General Principles of Management – the 14
principles
• Elements of Management - Planning, organizing,
commanding, coordination, controlling

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 NEO-CLASSICAL THEORIES
Human Relations Era
• Started in 1927 onwards
• Spearheaded by Elton Mayo
• Key to higher productivity was employee satisfaction
• Abraham Maslow, Douglas McGregor… also made the
contribution
The contributions made by Elton Mayo was – experiment – to
examine the effect of various illumination levels on productivity:
• Two groups of workers: one under constant illumination intensity,
the other subjected to varying intensity

Mayo Concluded that

Mayo’s contribution will ever
be remembered for its
contribution to the
behavioral approach to
management.
Individual behavior and sentiments are closely related.
Group influences significantly affected individual behavior.
Group standards established individual output.
Money was less a factor in determining output.
Group standards, group sentiments and security provided by the
group were Responsible for higher productivity. 19
MODERN MANAGEMENT THEORIES
1. Re-engineering
• Michael Hammer has coined the concept of re-engineering
• fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements
• Involves total redesign of the job
• Objective is to improve efficiency, performance and overall productivity
• Steps in Re-engineering Process
• Re-engineer the mission
• Re-engineer the process
• Creation of sense of urgency
• Identification of customer needs
• Organizational support

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MODERN MANAGEMENT THEORIES…
2. Benchmarking
• is the process of comparing work and service methods
against the best practices and outcomes for the purpose of
identifying changes that will result in higher quality output
• It offers following benefits to the organization.
• It helps comparison for improvement
• Identification of improvement strategies
• Assist in learning from others
• It helps create a need for change in work procedure and
assignments

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MODERN MANAGEMENT THEORIES…
3. Systems Approach to Management
• system as an organized, unitary whole composed of two or more
interdependent parts, components, or sub – systems and delineated by
identifiable boundaries from its environmental supra system
• A system is therefore composed of several sub system and sub-sub
system
• Every system or sub-system has its own objective and various processes.
Personnel employed to manage the system have to play their roles and
work under systems that are open.
• Organization import resources, energy and information from
environment, transform them into product and services and export it to
the environment, then feedback, and modifications – flexibility is needed

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MODERN MANAGEMENT THEORIES…
4. Contingency Theory of Management
• The theory suggests:
• There cannot be a suitable management solutions for
all situations.
• External and internal factors keep changing, hence
systems theory is insufficient
• What a manger should do in a particular situation
based on the examination of the facts relating to each
situation
• suggests active inter-relationship between various
variables in a situation and managerial action
devised.

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MODERN MANAGEMENT THEORIES…

Features of the Contingency Theory

• Organization integrated with the environment – actions depend on
environment
• Because of the specific organization – environment relationship, no action
can be universal.
• Internal functions of the organization - consistent with the technology, demand
on the organization by the society, external environment and needs of the
members.
• Contingency approach suggests suitable alternatives for those managerial
actions, which are influenced by external and internal environment like:
• organizational design, strategy formulation, decision systems, leadership
styles and organization improvement.
• Organizational systems are not absolute. They have to adjust or modify
considering social, political, technical and economic situations.

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