Organizational BehaviourOrganizational BehaviourChapter:- 1Introduction to Organization Behaviour

What are organizations?What are organizations?Organizations are as old as human race

Organizations are sets of people who work together to achieve shared goals.

Created by individual or a group of people, who believe that they possess the necessary skills and knowledge, form an org. to produce goods and services

Why do organizations Why do organizations exist?exist?

Organizations allows

people jointly to

Increased specialization and division of

labour

Use large scale technology

Manage the external

environment

Economize on transaction

costs

Exert power and control

Which increases the value that an org. can create

Organizational BehaviorOrganizational BehaviorOB is the study of human

behaviour in organizational settings

People possess physical strength, skills of some kind, executive skills, and organizing abilities and OB helps harness these qualities and use them for achieving organizational goals.

DefinitionsDefinitions

OB refers to the behaviour of individuals and groups within organizations and the interaction between organizational members and their external environments.

OB is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness.

Features Features 1. OB is the study of human behaviour

2. The study is about behaviour in organizations and

3. Knowledge about human behaviour would be useful in improving an organization’s effectiveness

The individual –organizational interface

Human behaviour in organizational settings

The organization

Models of Models of O.B.O.B.Organization differ in the

◦ Nature of the systems they develop and maintain

◦ In the result they achieveModels constitute the belief system

that dominates Mgt.’s thoughts and affect its actions.

Different models gives different results and applicable in different situations.

Organizational ModelsOrganizational ModelsModel Autocrati

cCustodial

Supportive

Collegial System

Basis of Model

Power Economic Resources

Leadership

Partnership

Trust, Community, Meaning

Managerial Orientation

Authority Money Support Teamwork Caring and compassion

Employee Orientation

Obedience

Security and Benefits

Job performance

Responsible behaviour

Psychological Ownership

Employee psychological result

Dependence on Boss

Dependence on Organization

Participation

Self discipline

Self motivation

Employee needs met

Subsistence

Security Status and recognition

Self-actualization

Wide range

Performance result

Minimum Passive cooperation

Awakened drives

Moderate enthusiasm

Passion and commitment to org. goal

Organizational Behaviour Organizational Behaviour and Mgt. Practicesand Mgt. Practices

“That is fine in theories, but in practice it does not work”

Main objective of O.B.Study

behaviour and direct

them towards

organizational goal

Various theories

are evolved

(developed by

industrially

advanced countries)

Gap between theories

and Practice.(These

theories might not applied in

Indian context)

Why theories Fail?Why theories Fail?

1)Lack of Proper Understanding2)Lack of Specific Applicability of a Theory

3)Lack of Universal Application4)Wrong Theory5)No Consideration given for System effects

Importance of O.B.Importance of O.B.O.B provides road map to our lives

in organizationO.B. uses scientific research to help

us understand and predict orgnal life.

O.B helps us influence organizational events.

O.B. helps an individual understand him/herself and others better.

O.B will help the manager basis of motivation and what to do to motivate subordinates.

O.B. is useful in maintaining cordial industrial relations.

O.B. serves the basis for human resource management.Understand problem and behaviourPredict the behaviourMotivate people towards higher productivity

and better result.O.B. is useful in the field of

marketing.

Shortcomings of O.B.Shortcomings of O.B.It better only at workplace, it may

fail on the domestic front.O.B. is selfish and exploitative.Ideas developed in particular

condition will not give same result in other conditions.

O.B. will not totally abolish conflict and frustration.

Nothing is permanent.

Contemporary O.B.Contemporary O.B.Three very important aspects in contemporary O.B.

O.B. is interdisciplinary in focus Psychology, sociology, engineering, social

science, political scienceA particular set of concepts is

accepted as defining the scope of O.B. Individual, interpersonal, group and intergroup

behaviour.O.B. assumes that there is no ‘one

best’ answer to a problem

O.B. ChallengesO.B. Challenges

Managing DiversityManaging Diversity

Diversity:- It deals with a collective mixture of differences and similarities, it includes, age, education, function, personality etc.

Diversity has two dimensions Primary and Secondary.

Diversity DimensionsDiversity DimensionsPrimary SecondaryAgeGenderMental and physical ability and characteristicsRaceEthnic heritageSexual Orientation

Geographic locationCultural ExperienceWork experienceIncomeReligion First languageOrganizational role and levelCommunication styleFamily statusWork styleEducation

Managing Diversity:- it is a philosophy about how differences among individual are accepted, respected and how to make them work cooperatively.◦it increases moral sense as well as

business senseDiversity is built in various groups

like;◦Project teams◦Business start-up teams◦Customer response teams◦Sales force and top level mgt. etc.

Barriers to accepting Barriers to accepting DiversityDiversityPrejudiceEthnocentrism: eg. Political party,

religious institutionsStereotypesDiscriminationHarassmentSexual harassment

How to manage Diversity?How to manage Diversity?

Promoting its awareness, increasing diversity skill, encouraging cultural and gender

diversity,committed top mgt. for diversity

Changed Employee Changed Employee ExpectationExpectationTraditionally,

◦Job-Security◦Attractive remuneration◦Housing provides motivation

but nowEmployees can be attracted,

retained and motivated through ◦Empowerment and◦Quality of status

Empowerment results in to,◦Redefining jobs◦Control over jobs◦Special privilege

Quality of status demands,◦Better treatment◦Challenging assignments◦Career advancement“Expectation of equality changed the traditional relationships between employee and owners”

GlobalizationGlobalization

Impact can be seen on H. R. Management

Mgt. require to cope up;◦Unfamiliar lawsAttitude◦Language Mgt. styles◦Practices Work ethics etc.◦Competitors

Major ChallengesMajor ChallengesGlobalization affects an increasing no. of managers and professionals

Internationalization puts a premium on certain competencies ( or skills)

Managerial learning is a critical process in ◦internationalization and ◦bringing teamwork

Management of careers in context of glob. Brings peculiar difficulties

How to face this How to face this Challenges?Challenges?Management must be most flexible and proactive

Helping best-qualified people to execute company’s strategy on global scale.

Technology Technology transformationtransformationTechnology:- it refers to something

as abstract as a recipe or formula or something as a concrete.

Competitive edge comes when managers achieve a harmonious integration of their human and technological resources.

Two dimensions of technology are:◦Automation ◦Information Technology

What employer can do?What employer can do?Employer should know about

◦Potential of worker◦Plan for effects of automation whether Displacement, replacement or

retraining is required.Manger must efficiently deal and help workers to adapt and make effective use of technology

The new term emerged “Gold collar” worker having both business skill and technological expertise.

Promoting Ethical Promoting Ethical BehaviourBehaviourEvery decision and behavior in

org. should have foundation of ethics, principles, and rules.◦Ethical concepts are understood◦Principles are respected and ◦Rules are observed

What ethical businessman What ethical businessman do?do?Must draw their idea about ‘What

is desirable behaviour’Business should not try to evolve

their own principles justifying ‘What is right and What is wrong’