organization theory & behavior. foundation of organization behavior definition of an...

ORGANIZATION THEORY &

BEHAVIOR

FOUNDATION OF ORGANIZATION BEHAVIORDEFINITION OF AN ORGANIZATION

DEFINITION OF ORGANIZATION BEHAVIOR

ASSUMPTIONS

ITS SIGNIFICANCE FOR EFFECTIVENESS

TRENDS

RESEARCH FOUNDATIONS

ORGANIZATION???

DEFINITION OF ORGANIZATION

• CONSCIOUSLY COORDINATED SOCIAL UNIT

• COMPOSED OF 2 0R MORE PEOPLE

• CONTINUITY

• COMMON GOAL

ORGANIZATION

HUMAN BEHAVIOR IN ORGANIZATION SETTINGS

INDIVIDUAL ORGANIZATION INTERFACE

ENVIRONMENT

ENVIRONMENT

ORGANIZATIONAL PARTICIPANTS

ORGANIZATIONAL BEHAVIOR ORGANIZATIONAL ENVIRONMENT

COGNITIVE REPRESENTATION OF REALITY HELPS GUIDE OB

PARTICIPANTS CONTROL THEIR OWN BEHAVIOR TO THE EXTENT THAT THEY RELY ON COGNITIVE SUPPORTS & MANAGE RELEVANT ENVIRONMENTAL CUES & CONSEQUENCES

MOST COMPLEX BEHAVIOR ACQUIRED BY DIRECTLY OBSERVING & IMITATING OTHERS IN SURROUNDING ENVIRONMENT

ORGANIZATIONALGOALS

INDIVIDUAL TASKS

TEAM ROLES

? ? ? ?• Is ORGANIZATION nothing but an aggregate of

individuals?

• If so then – is ORGANIZATION behavior all about individual differences?- Differences in values, beliefs, perception, personality, motivation

• What about differences in goals, strategies, systems , structure in an ORGANIZATION-do these bring about a distinctive ORGANIZATION behavior

AN ORGANIZATION WOULD THEREFORE HAVE

• A GOAL-OBJECTIVE

• STRUCTURE-BOUNDARIES & ROLE

• STRATEGIES & SYSTEMS

• CULTURE, CUSTOMS, VALUES-DETERMINING BEHAVIOR

GOAL

CULTURE

SYSTEMS STRUCTURE

STRATEGIES

FUNCTIONS-TASKS/ACTIVITIES-WHAT & WHY?

PROCEDURES-HOW?

ROLES & RESPONSIBILITIES

WHO?

CORE VALUES

VISION -MISION

HOW ORGANIZATION ACHIEVES ITS GOAL?

M A N P O W E R M A C H IN E S M O N E Y

O R G G O A LA N N U A L P L A N

ORGANIZATIONAL PROCESSES

MANAGEMENT FOR ORG EFFECTIVENESS

• MANAGERIAL FUNCTIONS- Planning, Organizing, Leading & Controlling

• MANAGERIAL ROLES-Interpersonal , Information, Decisional

• MANGERIAL SKILLS-Technical, Human & Conceptual

Org Effectiveness

O B

Generalization of human behavior

Certain consistencies in human behavior

DEFINITION

• ORGANIZATION BEHAVIOR CAN BE DEFINED AS A FIELD OF STUDY THAT INVESTIGATES THE IMPACT THAT INDIVIDUALS , GROUPS AND STRUCTURE HAVE ON BEHAVIOR WITHIN ORGANISATION, TO ENABLE APPLYING THIS KNOWLEDGE TOWARDS IMPROVING ORGANIZATIONAL EFFECTIVENESS

DEFINTION-OB

• STUDY OF BEHAVIOR OF INDIVIDUALS WITHIN WORKGROUPS , INCLUDING AN ANALYSIS OF THE NATURE OF GROUPS, THE DEVELOPMENT OF STRUCTURES BETWEEN AND WITHIN WORKGROUPS AND THE PROCESS OF IMPLEMENTING CHANGE

DETERMINANTS OF OB

• INDIVIDUALS.

• GROUPS.

• STRUCTURE. OB APPLIES KNOWLEDGE GAINED ABOUT

INDIVIDUALS, GROUPS & THE EFFECT OF STRUCTURE ON BEHAVIOR TO MAKE THE ORGANIZATION MORE EFFECTIVE.

SIGNIFICANCE OF OB

• INDIVIDUAL BEHAVIOR & PERFORMANCE AT WORK

• GROUP WORKING-NORMS & BEHAVIOR

• STRUCTURE OF ORGANIZATION

• ORGANIZATION DESIGN

• MANAGING CHANGE

OB EMPHASIS

• BEHAVIOR AS RELATED TO JOBS & COMPETENCIES WORK –JOB DESIGN PERFORMANCE & PRODUCTIVITY ABSENTEEISM EMPLOYMENT TURNOVER

OB LINKAGES TO ORG GOAL

• PERSONALITY, PERCEPTION, SKILL & ATTITUDE DEVELOPMENT

• LEARNING

• MOTIVATION

• LEADER BEHAVIOR & POWER

• INTERPERSONAL COMMUNICATION

• GROUP STRUCTURE & PROCESSES

• WORK DESIGN, CONFLICTS & STRESS

• CHANGE PROCESSES

OB & BEHAVIORAL SCIENCE

• OB concerned with a whole gamut of :– units ( individuals, roles, dyads, teams and org)– Interfaces ( interpersonal, inter team and org

environment)

Each deserve independent understanding and study and hence foundation of OB is multidisciplinary

Behavioral Science Sources of OBOrg unit Topic Relevant Behavioral Science

INDIVIDUAL Motivation, Perception

Personality, Personal effectiveness

Decision Making

Inter Personal styles, Attitudes

PSYCHOLOGY

ROLE Role Effectiveness

Leadership

Work Motivation

Role Stress and burnout

Coping

SOCIOLOGY & PSYCHOLOGY

TEAMS & INTER TEAMS

Team effectiveness

Leadership, Conflict Management

Consensus Building, Collaboration

PSYCHOLOGY

ORGANISATION Org Culture, Org climate, Org Communication,Org Learning, Org Change, Org Dev,

Power & Politics,

Cross Cultural Org

PSYCHOLOGY

POLITICAL SCIENCE

ANTHROPOLOGY

CONTEXT Societal culture, Values

Positive Thinking, Learning

ANTHROPOLOGY

PSYCHOLOGY

MANAGING FOR EFFECTIVENESS

INDIVIDUAL LEVEL OUTCOMES

ORG LEVELOUTCOMESTEAM LEVEL OUTCOMES

PRODUCTIVITYPERFORMANCEABSENTEEISMTURNOVERATTITUDESSTRESS

PRODUCTIVITYPERFORMANCENORMSCOHESIVENESS

PRODUCTIVITYABSENTEEISMTURNOVERFINANCIAL PERFORMANCESURVIVALCONSTITUENT SATISFACTION

TRACING HISTORY OF ORGANIZATIONAL RESEARCH

CONCEPT PIONEERS PHILOSOPHY OB ATTRIBUTES

SCIENTIFIC MANAGEMENT

FREDERICK TAYLOR (1911)

Time & Motion Studies. Finding most efficient way

Maximize Cost , Task specialization, maximize output

PRINCIPLES OF MANAGEMENT

HENRI FAYOL ( 1916-25) Management Principles

Training in use of Principles

Order, Equity, Division of work, Discipline

HUMAN RELATIONS ELTON MAYO (1933) Psychological factors-Job Satisfaction, Team work

Paying attention to worker needs & satisfaction

DECISION MAKING HERBERT SIMON (1947) Bounded Rationality

Optimization of Goals

Hierarchy o Goals , Effective use of resources

SOCIO-TECHNICAL E L TRIST & K W BAMFORTH (1951)

Social Systems view means that organization is an open system

Fit between social & technological factors

BEHAVIOR DOUGLAS Mc GREGOR

(1961) RENSIS LIKERT (19670

Individual needs & importance of participative management

Cohesiveness, Loyalty, commitment & Employer Management system

STRATEGIC MANAGEMENT

ALFRED CHANDLER (1962)

Establish Strategy , then Structure is established

Strategy/Structure fit need to adapt to environmental changes

TRACING HISTORY OF ORGANIZATIONAL RESEARCH-Contd

CONCEPT PIONEERS PHILOSOPHY OB ATTRIBUTES

CONTINGENCY P R LAWRENCE & J W LORSCH ( 1967)

Structure firm to meet environmental demands

Integration fit

QUALITY DEMING(1971)

& JURAN ( 1974)

How to detect & eliminate defects

Instill pride in quality’

Focus on customer satisfaction

ENPOWERNMENT 1984

PROACTIVE PERFORMANCE

1987 Responsiveness to change , Need for Social Support

EMERGING PERSPECTIVES IN OB

• SYSTEMS APPROACH

• CONTINGENCY PERSPECTIVE

• INTERACTIONALISM

SYSTEMS APPROACH

• VIEWS ORGANIZATION AS A SET OF INTERRELATED ELEMENTS FUNCTIONING AS A WHOLE

TRANSFORMATION TECHNOLOGY

INPUTS- material, human, financial, international

OUTPUTS

Product/Service

Profit/Losses

Employee behavior

FEEDBACK

CONTINGENCY APPROACH

• SUGGESTS THAT IN MOST ORGANIZATIONS SITUATIONS & OUTCOMES ARE CONTINGENT ON , OR INFLUENCED BY, OTHER VARIABLES

ORG PROBLEMS/SITUATIONS

CONTINGENT WAYS OF RESPONDINGORG PROBLEMS

EVALUATE IN TERMS OF THE SITUATION,

WHICH THEN SUGGEST

CAUSE & EFFECTWAY

OF RESPONDING

UNIVERSAL APPROACH

CONTINGENCY APPROACH

INTERACTIONALISM

• INDIVIDUALS AND SITUATIONS INTERACT CONTINUOSLY TO DETERMINE INDIVIDUALS’ BEHAVIOR

INDIVIDUALS

SITUATIONS

BEHAVIOR

POPULAR PRESS

• ARTICLES, RESEARCH WORKS & BOOKS GIVING NEW INSIGHTS.

• THEORY Z, EMOTIONAL INTELLIGENCE, REENGINEERING, CORPORAT E CULTURES, IN SEARCH OF EXCELLENCE ETC.

Contribution of OB

• Main contribution is in the understanding and using processes, which can also be defined as the underlying behavioral dimensions of any unit of the organisation

PROCESS

• The main processes concern the – Individual( existential processes)

– Inter person (empathic processes)

– The role ( coping processes)

– The group ( collaboration processes)

– Organisation ( growth processes)

– Organisation interface ( influence processes)

– Community ( social awareness

– Society ( value processes)

OB- CHALLENGES &TRENDS

• Paradigm shift------?

• GLOBALISATION- Creating a global village• INFORMATION AGE-IT• TOTAL QUALITY MANAGEMENT• DIVERSITY & CULTURAL ISSUES• REENGINEERING

OB- CHALLENGES &TRENDS

• ENPOWERING EMPLOYEES- shift from• Management control• COPING WITH CHANGE & TEMPORARINESS-

Stability of Flexibility• STIMULATING INNOVATIVENESS & CHANGE• CORPORATE VALUES & ETHICS

OB- CHALLENGES &TRENDS

• STIMULATING INNOVATIVENESS & CHANGE.

• CORPORATE VALUES & ETHICS.• WORK FORCE DEMOGRAPHICS-Age, Gender,

Ethnic Composition.• WORK PLACE ISSUES- Employee Privacy,

Employee rights, Unionization.• Improving Employee Skills.

OB MODELSCOGNITIVE, BEHAVIORISTIC & SOCIAL LEARNING THEORETICAL FRAMEWORKS USED TO DEVELOP OB MODEL

AUTOCRATIC CUSTODIAL SUPPORTIVE SUPERLATIVE

(COLLEGIAL)

BASIS OF MODEL

Power Economic Resources

Leadership Partnership

Managerial orientation

Authority Money Support Teamwork

Employee Orientation

Obedience Security Benefits

Job Performance

Responsible Behavior

Employee psychological result

Dependence on Boss

Dependence on Organization

Participation Self Discipline

Employee need met

Performance result

Subsistence

Minimum

Security

Passive cooperation

Status & Recognition

Awakened drivers

Self Actualization

Moderate enthusiasm

Basic framework for understanding organizational behavior

INDIVIDUAL PROCESSES

•Individual differences

•Attitudes/Attitude formation

•Learning /Reinforcement

•Motivation

ENHANCING INDIVIDUAL

& INTERPERSONAL PROCESSES

Goal setting/Rewards

Job Designation/Participation

Performance Appraisal

Stress

Decision Making/ Creativity

INTERPERSONAL PROCESSES

Group Dynamics

Inter group dynamics

Leadership/Influence

Power/Politics/Conflict

Interpersonal Communication

INTEGRATING INDIVIDUALS, GROUPS & ORGANIZATIONS

•Change/development

•International Issues

•Career Dynamics

ORGANIZATIONAL PROCESSES & CHARACTERISTICS

Organization Structure

Environment/technology

Organization Design

Organization Culture

MANAGERIAL CONTEXT

Managing People & Organizations

ORGANIZATIONAL EFFECTIVENESS