introduction of organisation behaviour

1. Organizational BehaviorOrganizational Behavior

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What is an Organization?What is an Organization?
A structured social system consisting of
groups and individuals working together
to meet some agreed-upon objectives.

3. Definition of OBDefinition of OB
Organizations are a system of cooperative
activities - and their coordination requires
something intangible and personal that is largely
a matter of personal relationships.
---- Barnard (1938)
OB is concerned with “the study of the structure,
functioning and performance of organizations,
and the behavior of groups and individuals within
them”.
---- Pugh (1971)
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4. ORGANIZATIONAL BEHAVIOUR
Key forces affecting Organizational Behavior
People
•Individuals
•Groups
Environment
•Government
•Competition
•Societal pressure
Organizational Behavior
Technology
•Machinery
•Computer hardware&software
Structure
•Jobs
•Relationships

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Organizational BehaviorOrganizational Behavior
The field that seeks increased knowledge
of all aspects of behavior in organizational
settings through the use of the scientific
method.
Characteristics of the field:
– OB applies the scientific method to practical managerial
problems.
– OB focuses on three levels of analysis.
– OB is multidisciplinary in nature.
– OB seeks to improve organizational effectiveness and
the quality of life at work.

6. Scope of OBScope of OB
Field of study and not a discipline
Interdisciplinary approach
An applied science oriented towards
human behaviour
Contingency orientation
Levels of performance
Behavioural approach
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Practical ManagerialPractical Managerial
ProblemsProblems
How can goals be set to enhance people’s job
performance?
How may jobs be designed so as to enhance
employees’ feelings of satisfaction?
Under what conditions do individuals make better
decisions than groups?
What can be done to improve the quality of
organizational communication?
What steps can be taken to alleviate work-related
stress?
How can leaders enhance the effectiveness of
their teams?

8. Levels of AnalysisLevels of Analysis
Wood (1997) suggested that different levels of
analysis can be applied when judging the importance
of an organizational issue. He proposed eight
levels----
Individual
Team
Inter-group
Organizational
Inter-organizational
Societal
International
Global
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9. Basic Models of OBBasic Models of OB
 Autocratic - The basis of this model is power with a
managerial orientation of authority. The employees in turn
are oriented towards obedience and dependence on the
boss. The employee need that is met is subsistence. The
performance result is minimal.
Custodial - The basis of this model is economic resources
with a managerial orientation of money. The employees in
turn are oriented towards security and benefits and
dependence on the organization. The employee need that is
met is security. The performance result is passive
cooperation
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10. Basic Models of OBBasic Models of OB
 Supportive - The basis of this model is leadership with a
managerial orientation of support. The employees in turn
are oriented towards job performance and participation.
The employee need that is met is status and recognition.
The performance result is awakened drives.
Collegial - The basis of this model is partnership with a
managerial orientation of teamwork. The employees in turn
are oriented towards responsible behavior and self-
discipline. The employee need that is met is self-
actualization. The performance result is moderate
enthusiasm.
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Basic OB ModelBasic OB Model

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Multidisciplinary RootsMultidisciplinary Roots

13. Towards an OBTowards an OB
DisciplineDiscipline

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OB MattersOB Matters
 Satisfied Employees
• More Pleasant at Work
• Lower Costs
• Higher Productivity
• Less Likely to Quit
 Unsatisfied Employees
• Reject Organization Policies
• More Likely to Steal
• Increased Mental and Physical Illnesses

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Why is OB Important?Why is OB Important?
Companies whose managers accurately appraise the work of
their subordinates enjoy lower costs and higher productivity.
People who are satisfied with the way they are treated on their
jobs are more pleasant to work with and less likely to quit.
People who are trained to work together tend to be happier and
more productive.
Employees who believe they have been treated unfairly are more
likely to steal and reject the policies of their organizations.
People who are mistreated by their supervisors have more
mental and physical illnesses than those who are treated with
kindness, dignity, and respect.
Organizations that offer good employee benefits and have
friendly conditions are more profitable than those that are less
people oriented.

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Fundamental AssumptionsFundamental Assumptions
OB recognizes the dynamic nature of
organizations.
– Open SystemsOpen Systems: Self-sustaining systems that
transform input from the external environment into
output, which the system then returns to the
environment.
 OB assumes there is no “one best” approach
– Contingency ApproachContingency Approach: A perspective suggesting
that organizational behavior is affected by a large
number of interacting factors. How someone will
behave is said to be contingent upon many
different variables at once.

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The Open Systems ModelThe Open Systems Model

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The History of OBThe History of OB
 The Early Days:
Scientific Management
and the Hawthorne
Studies
 Classical Organizational
Theory
 Late Twentieth Century:
Organizational Behavior
as a Social Science
 OB Today: The Infotech
Age

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The Early DaysThe Early Days
Scientific ManagementScientific Management: An early approach
to management and organizational
behavior emphasizing the importance of
designing jobs as efficiently as possible.
Human Relations MovementHuman Relations Movement: A
perspective on organizational behavior
that rejects the primarily economic
orientation of scientific management and
recognizes, instead, the importance of
social processes and work settings.

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Classical Organizational TheoryClassical Organizational Theory
An early approach to the study of management
that focused on the most efficient way of
structuring organizations.
Division of LaborDivision of Labor: The practice of dividing
work into specialized tasks that enable people
to specialize in what they do best.
BureaucracyBureaucracy: An organizational design
developed by Max Weber that attempts to make
organizations operate efficiently by having a
clear hierarchy of authority in which people are
required to perform well-defined jobs.

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Challenges and OpportunitiesChallenges and Opportunities
in OBin OB
 The rise of global
businesses with
culturally diverse
workforces.
 Rapid advances in
technology.
 The rising
expectations of
people in general.

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GlobalizationGlobalization
 The process of interconnecting the
world’s people with respect to the
cultural, economic, political,
technological, and environmental
aspects of their lives.
 Multinational EnterprisesMultinational Enterprises:
Organizations that have significant
operations spread throughout
various nations but are
headquartered in a single country.

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Working AbroadWorking Abroad
 ExpatriatesExpatriates: People who are citizens of one
country but who are living and working in another
country.
 CultureCulture: The set of values, customs, and beliefs
that people have in common with other members
of a social unit (e.g., a nation).
 Culture shockCulture shock: The tendency for people to
become confused and disoriented as they
attempt to adjust to a new culture.
 RepatriationRepatriation: The process of readjusting to one’s
own culture after spending time away from it.

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Working AbroadWorking Abroad

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Management PerspectivesManagement Perspectives
 Convergence HypothesisConvergence Hypothesis: A biased
approach to the study of management,
which assumes that principles of good
management are universal, and that ones
that work well in the United States will
apply equally well in other nations.
 Divergence HypothesisDivergence Hypothesis: The approach to
the study of management that recognizes
that knowing how to manage most
effectively requires clear understanding of
the culture in which people work.

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Shifting DemographicsShifting Demographics
 More women are in
the workforce than
ever before.
 Racial and ethnic
diversity is reality.
 People are living –
and working –
longer than ever
before.

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Responding to Changes in TechnologyResponding to Changes in Technology
 Creating Leaner OrganizationsCreating Leaner Organizations
 Downsizing/RightsizingDownsizing/Rightsizing: The process of adjusting the
number of employees needed to work in newly designed
organizations.
 OutsourcingOutsourcing: The process of eliminating those parts of
organizations that focus on noncore sectors of the business
and hiring outside firms to perform these functions instead.
 Creating Virtual OrganizationsCreating Virtual Organizations
 Highly flexible, temporary organizations formed by a group of
companies that join forces to exploit a specific opportunity.
 Increasing the Use of TelecommutingIncreasing the Use of Telecommuting
 The practice of using communications technology so as to
enable work to be performed from remote locations.

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Responding to Changes in ExpectationsResponding to Changes in Expectations
 Increasing
Flexibility in
Response to
Employees’ Needs
 The Quality
Revolution
 Corporate Social
Responsibility

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Increasing FlexibilityIncreasing Flexibility
Flextime ProgramsFlextime Programs: Policies that give employees some
discretion over when they can arrive and leave work,
thereby making it easier to adapt their work schedules to
the demands of their personal lives.
The Contingent WorkforceThe Contingent Workforce: People hired by organizations
temporarily to work as needed for finite periods of time.
Compressed WorkweeksCompressed Workweeks: The practice of working fewer
days each week but longer hours each day.
Job SharingJob Sharing: A form of regular part-time work in which
pairs of employees assume the duties of a single job,
splitting its responsibilities, salary, and benefits in
proportion to the time worked.
Voluntary Reduced Work Time ProgramsVoluntary Reduced Work Time Programs: Programs that
allow employees to reduce the amount of time they work by
a certain amount, with a proportional reduction in pay.

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The Quality RevolutionThe Quality Revolution
 Total Quality ManagementTotal Quality Management: An organizational
strategy of commitment to improving customer
satisfaction by developing techniques to carefully
manage output quality.
 BenchmarkingBenchmarking: The process of comparing one’s
own products or services with the best from
others.
 Malcolm Baldridge Quality AwardMalcolm Baldridge Quality Award: An award
given annually to American companies that
practice effective quality management and make
significant improvements in the quality of their
goods and services.

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Corporate Social ResponsibilityCorporate Social Responsibility
Business decision making
linked to ethical values,
compliance with legal
requirements, and respect
for individuals, the
community at large, and
the environment. It
involves operating a
business in a manner that
meets or exceeds the
ethical, legal, and public
expectations that society
has of business

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Ethics in OrganizationsEthics in Organizations
Good ethics is good businessGood ethics is good business
 Improved financial performance
 Reduced operating costs
 Enhanced corporate reputation
 Increased ability to attract and retain employees
Code of EthicsCode of Ethics: A document describing what an
organization stands for and the general rules of conduct it
expects of its employees.
Ethics OfficersEthics Officers: Individuals (usually at the vice
presidential level) who oversee the ethics of a company’s
operations.
Ethics AuditEthics Audit: The process of actively investigating and
documenting incidents of dubious ethical value within a
company.

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Ethical GuidelinesEthical Guidelines
1. Does the behavior
violate the obvious
“shall nots”?
2. Will anyone get hurt?
3. What if you did it 100
times?
4. How would you feel if
someone did it to you?
5. What’s your gut
feeling?
6. Would the behavior
pass the “front page
test”?