Organizational Behaviour

Organizational Behaviour

 Organization
 Behaviour

 Need to study OB!!

Organizational Behaviour

 A new manager joins a dept. of a company

 Notices one employee comes late regularly
 Department Avg. on-time reporting is 90 % +
 HR says that he is a chronic late comer
 & earlier manager has resisted any action against
him
 Suggest a stringent action
 What action should he take?
Organizational Behaviour

 New manager issues a memo & 1 LWP to the late

comer employee
 Announces his decision to all the employees of the
department
 What would have happened after this?
Organizational Behaviour

 Next months onward late comers increased

 4th month the Dept. Avg. on-time reporting is 67%
 HR is asking the manager to explain.

Avg Late Comers %

Organization

 A Social Unit
 Conscious Coordination
 Two or More People
 Continuous Functioning
 Common Goal
Organization

 TATA
 Reliance
 Walt Disney
 Microsoft
 Ford
 Indian Military
 Google
Successful Organizations….

“People are the key!”……

Sam Walton
(The founder of Wal-Mart)
Successful Organizations….
Successful Organizations….
Shell …………..&……..People

 our best idea come from our best assets that is our
people.
People…..
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People…..
13
Organization ….. People


Organization ….. People


Successful Organizations put People First
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Maruti motors
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Infosys
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Organization

 Group
 Team
 Organization
Organiz
ation

Team

Group
Organization

 Group
 Team
 Organization

Group
Group

Team

Organizations
Parameters for cohesiveness
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 Purpose
 Interdependence
 Role Awareness
 Trust
 Collaboration
 Managing
 Communication
 Structure
Behaviour……

 Response
 Observable
 Directly/ Indirectly
 How one conducts oneself
Your Understanding of Behaviour…Exercise
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 Your understanding……. Questionable

 Group understanding…… Debatable

 Need to pay attentions to our assumptions about

others’ behaviour
Understanding OB

 To learn about yourself

 To learn to deal with others
 As part of an organization
 To work effectively in teams
 May need to manage
 Need to study Organizational Behavior
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 To Understand
 Human behavior in the workplace.
 Relation between people and the organization.

 and the organization itself.

 OB’s Major goals are to

 Explain
 Predict

 And control behavior

 The Rigour of OB
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 OB looks at consistencies
 What is common about behaviour, and helps predictability?

 OB is more than common sense

 Systematic study, based on scientific evidence

 OB has few absolutes

 OB takes a contingency approach
 Considers behaviour in context
 ???
27

 Are happy workers always productive workers?

 Are individuals always more productive when their
boss is a real “people person?”.
 Does everyone want a challenging job?
Great Place to Work
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Great Place to Work
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Great Place to Work
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Great Place to Work
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Great Place to Work
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Understanding OB

Productivi
ty

Job
Turnover Satisfacti
on

OB
Organizati
Absenteei onal
sm Commitm
ent
Absenteeism & Company Profit
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Employee commitment & shareholder return
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Productivity
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OB

Productivity
A performance measure that includes
effectiveness and efficiency

Effectiveness
Achievement of goals

Efficiency
Meeting goals at a low cost
OB

Absenteeism
The failure to report to work

Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization
OB

Deviant Workplace Behavior

Voluntary behavior that violates
significant organizational norms,
thereby threatens the well-being of the
organization

Job Satisfaction
A general attitude toward one’s job;
a positive feeling of one's job
resulting from an evaluation of its
characteristics
Challenges of OB

Globalization
Workforce
&Cultural Technology
Demographics
Diversity

Changing High Quality &

Expectation Low Cost
Globalization
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 Globalization
 Multinational Organizations
 Expatriates
 Culture Shock
 Repatriation
Diversity
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 More woman in workplace

 Racial Diversity
 Demographics
Technology
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 Changes
 Disruption
 Job Redundancy
Changing Organizations
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 Downsizing… Rightsizing
 Virtual Organizations
 Telecommuting
 Flexi-timings
 Idiosyncratic Work Arrangements (i-deals)
 Contingent Workers
 Compressed weekdays
 Job Sharing
 Voluntary Reduced Work Time Programme
Models of OB
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 Autocratic
 Custodial
 Supportive
 Collegial
 System
Models of OB
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Autocratic Custodial Supportive Collegial System

Basis Power Economic Leadership Partnership Trust,

Resources Community
Manager Authority Money Support Teamwork Caring,
Orientation
Employee Obedience Security & Job Responsible Psychologi
Orientation Benefits Performance Behavior cal
ownership
Psychological Dependenc Dependence on Participation Self Discipline Self-
Result e on Boss Org. Motivation

Needs Met Subsistence Security Status & Self Wide

Recognition Actualization Range
Performance Minimum Passive Awakened Moderate Passion for
Result Cooperation Drives Enthusiasm Org. goals
 Power & Authority
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Basis for Comparison Power Authority

Power means the ability The legal and formal right
or potential of an to give orders and
Meaning individual to influence commands, and take
others and control their decisions is known as an
actions. Authority.

It is a formal right, given

What is it? It is a personal trait.
to the high officials.
Source Knowledge and expertise. Position & office
Power does not follow Authority follows the
Hierarchy
any hierarchy. hierarchy.
Resides with Person Designation
Legitimate No Yes
Amazon : A Cruel, Soul-Devouring Workplace
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Culture of working incredibly hard

No Responsibility for Junior People
Intense competition within team
Relentless Evaluation system
Need to be present 24*7
No job security
 Donald Trump of Trump Organization
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 He is a definition of the American success story,

having set new standards of excellence in business.
 He however is also atypical of an autocratic leader
who centralizes decision-making, and wields
absolute power. He involves himself with the
minutest of details of his enterprise, and limits inputs
from a select few in his team.
 Trump is nevertheless a marked departure from
most other autocratic leaders in the sense he is not
vicious. Although he could be a little “rough" and
“bossy," he respects his employees and is liked by
all.
Supportive Model
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Supportive Model
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Supportive Model
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Hawthorne Experiments
 Hawthorne experiments (1920s)

 @ Western Electric factory

 experiment to find optimal level of lighting
 work groups of 6, in separate rooms
 experimental group & control group
 no change in lighting for control group
 findings:
 increasing brightness raises productivity
 reducing brightness raises productivity
 members of the control group also
increased productivity
 Hawthorne experiments
 outcome of first experiments: puzzled experts
 next round of studies: try to understand what’s
going on in these groups
 change work schedules: length & timing of breaks
 production kept going up, even when back to the
original (no rest break) schedule
 Hawthorne experiments

 further investigation showed that

 work teams regulated the pace of work of their
members
 the supervisor (not in the room most of the time) had
no idea of the extent of this self-regulation
 the group raised its productivity
 because it felt involved in the project,
and listened to
 because the experimental conditions
presented it with a challenge
Hawthorne experiments
 lessons
 for managers, the importance of
 teams, not just individuals

 workers aren’t machines, they make choices, &

their choices are affected by how others treat
them
 expert-specified tasks still have a lot of room for
improvement (slack), & workers often know where
that slack is
 these findings contributed to the development of the
human relations approach to management
 59

Evolution Of
Management Thoughts
 Industrial Revolution - Factory (England, 1750)
60
 Small entrepreneurial
organization before industrial
revolution

 Advances in technology fueled

the Industrial Revolution in
England

 The invention of the steam

power
 Steam power enabled the
opening of large textile mills
with powered looms
Industrial Revolution
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 The introduction of
factory
 led to the need to organize
work
 through specialized tasks
workers
 Adam Smith wrote of the
advantages of the
division of labor in The
Wealth of Nations
Job Specialization & Division of Labor

 Adam Smith (18th century economist)

 Observed pins manufactured in two different ways:
Craft-style—each
worker did all steps.
Production—each worker specialized in one step.

 Realized that job specialization resulted in much higher

efficiency and productivity
Factory & Concept of Organization
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 Growth of factories
required the organization
& supervision

 Workers came to work in

factories instead of
working at home

 Larger factories required

hiring supervisors

 Supervisors with technical

skills as well as
peacekeeping skills.
Birth of Management Idea
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 Need for effective ways to

co-ordinate a large
number of people

 Need for efficiency in

producing goods

 A number of individuals
starting looking for
solutions to various
problems
 Classical management theory
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 Focuses on

study of the principles and functions of management

the authority structures of organizations.

 Interested in determining what managers really do in

organizations
Classical management theory
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Scientific Management
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 The Principles of Scientific
Mgt 1911.
 Taylor suggested
responsibility of management
to:
 Determine the one best way
to do each job through
precise, objective
measurement.
 Select the ‘best person’ for
the job

F. W. Taylor (1856-1915)
Bureaucratic management
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Weber’s ideal bureaucracy

 Specialisation of labour
 Formal rules & procedures
 Impersonality
 Well-defined hierarchy
 Advancement on merit

German sociologist Max Weber

(1864-1920)
Administrative management
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 Classified what managers
do into Five Functions Of
Management.
 Planning, Organizing,
Commanding, Coordinating,
& Controlling
 Focused on middle and
upper management activities
in multi-unit organizations.
 He also defined 14
“principles” of effective
management. Henri Fayol
(1841-1925
Administrative management
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 Division of work  Centralisation
 Authority  Scalar chain
 Discipline  Order
 Unity of command  Equity
 Unity of direction  Low turnover
 Primacy of general  Initiative
interest  Esprit de corps
 Remuneration
The Behavioral Perspective
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 acknowledges that psychological and social processes of

human behavior can result in improvements in productivity
and work satisfaction.
 The Hawthorne effect - when a manager shows
concern for employees, their motivation and productivity
levels are likely to improve.
 Human Relations Approach - the relationship between
employees and a supervisor is a vital aspect of
management.
 Employee motivation
 Leadership style
Behavioral Management Theory
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 The study of
 how managers should behave

 to motivate employees & encourage them

 to perform at high levels
 and be committed to the achievement of organizational
goals.
McGregor’s X & Y Theory
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 Theory X assumptions
believe that employees are
inherently lazy and lack
ambition.
 A negative perspective on
human behavior.

 Theory Y assumptions
believe that most employees
do not dislike work and want
to make useful contributions
to the organization. (1906 - 1964)

 A positive perspective on
human behavior.
McGregor’s X & Y Theory
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