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    Sathyanarayana S Rao Management Consultant

    FUNDAMENTALS OFOrganizational Behaviour(O.B)

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    Chapter 1 Outline Defining Organizational Behaviour

    OB: Making Sense of Behaviour inOrganizations How Will Knowing OB Make a Difference? Todays Challenges in the Workplace

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    What Is Organizational Behaviour?

    1. What is organizational behaviour?

    2. Isn t organizational behaviour common sense? Or just like psychology?

    3. How does knowing about organizational behaviourmake work and life more understandable ?

    4. What challenges do managers and employees facein the workplace of the twenty-first century?

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    Organizational Behaviour A field of study that investigates the impact of

    individuals, groups, and structure on behaviourwithin organizations; the aim is to apply suchknowledge toward improving organizationaleffectiveness.

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    Why Do We Study OB? To learn about yourself and others To understand how the many organizations you

    encounter work. To become familiar with team work To help you think about the people issues faced by

    managers and entrepreneurs

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    What Is an Organization? A consciously coordinated social unit:

    composed of a group of people functioning on a relatively continuous basis to achieve a common goal or set of goals.

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    The Building Blocks of OB Psychology

    Sociology Social Psychology Anthropology

    Political Science

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    Exhibit 1-1Toward an OB Discipline

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    The Rigour of OB OB Looks at Consistencies

    What is common about behaviour, and helps predictability?

    OB Looks Beyond Common Sense Systematic study, based on scientific evidence

    OB Has Few Absolutes OB Takes a Contingency Approach

    Considers behaviour in context

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    Exhibit 1-2Research Methods in OB

    Source: J. R. Schermerhorn, J.G. Hunt, and R. N. Osborn, Organizational Behaviour , 9th Edition, 2005, p. 4. Copyright 2005 John Wiley & Sons, Inc. Reprintedwith the permission of John Wiley & Sons, Inc.

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    How Will Knowing OB Make aDifference? For Managers

    Knowing organizational behaviour can help youmanage well and makes for better corporations.

    Managing people well leads to greaterorganizational commitment.

    Finally, managing well may improveorganizational citizenship.

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    How Will Knowing OB Make aDifference? For Individuals

    What if Im not going to work in a large organization?

    The theories generally apply to organizations of anysize.

    What if I dont want to be a manager? To some extent, the roles of managers and employees

    are becoming blurred in many organizations. While self-employed individuals often do not act as

    managers, they certainly interact with otherindividuals and organizations as part of their work.

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    Bottom Line: OB Is For Everyone Organizational behaviour is not just for managers.

    The roles of managers and employees are becoming

    blurred in many organizations. Managers are increasingly asking employees to share in

    their decision-making processes rather than simply followorders.

    OB applies equally well to all situations in which youinteract with others: on the basketball court, at thegrocery store, in school, or in church.

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    Exhibit 1-4Basic OB Model

    Organization systems level

    Group level

    Individual level

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    Today

    s Challengesin our Workplace Challenges at the Individual Level

    Individual Differences Job Satisfaction Motivation Empowerment Behaving Ethically

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    Today

    s Challengesin our Workplace Challenges at the Group Level

    Working With Others Workforce Diversity

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    Today

    s Challengesin the our Workplace Challenges at the Organizational Level

    Productivity Developing Effective Employees Putting People First Global Competition Managing and Working in a Multicultural World

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    Today s Challengesin the our Workplace

    Challenges at the Organizational Level Productivity

    A performance measure includingeffectiveness and efficiency.

    Effectiveness

    The achievement of goals. Efficiency The ratio of effective work output to the input

    required to produce the work.

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    Developing Effective EmployeesOrganizational Citizenship Behaviour (OCB)

    Discretionary behaviour that is not part of anemployees formal job requirements, but thatnevertheless promotes the effective functioningof the organization.

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    Putting People First Putting people first generates a committed

    workforce and positively affects the bottomline.

    People will work harder when they feel theyhave more control and say in their work.

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    How to Put People First Provide employment security. Hire well. Create self-managed teams. Pay well. Provide extensive training.

    Reduce status differences. Share information about organizational

    performance.

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    Global Competition In recent years, Indian businesses have faced

    tough competition from the United States,Europe, Japan, and even China, as well asfrom other companies within our borders.

    To survive, they have had to reduce costs,

    increase productivity, and improve quality.

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    Managing and Working in aMulticultural World Managers and employees must become

    capable of working with people from differentcultures: Multinational corporations are developing

    operations worldwide. Companies are developing joint ventures with

    foreign partners. Workers are pursuing job opportunities across

    national borders.

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    Summary and Implications1. What is organizational behaviour?

    OB is a field of study that investigates the impact

    that individuals, groups, and structure have on behaviour within an organization.2. Isnt organizational behaviour common sense? Or

    just like psychology?

    OB is built on contributions from a number of behavioural disciplines, including psychology,sociology, social psychology, anthropology, and

    political science. It goes beyond common sense.

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    Summary and Implications3. How does knowing about organizational behaviour

    make work and life more understandable?

    OB helps people manage well, and managing wellcan lead to greater organizational commitment byemployees.

    4. What challenges do managers and employees face intodays workplace?

    Each level of analysis the individual, the group,and the organization presents challenges.

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    OB at Work

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    For Review1. Define organizational behaviour. 2. What is an organization? Is the family unit an organization? Explain. 3. Behaviour is generally predictable, so there is no need to formally

    study OB. Do you agree or disagree with this statement? Why?

    4. What does it mean to say that OB takes a contingency approach in itsanalysis of behaviour?5. What are the three levels of analysis in our OB model? Are they

    related? If so, how? 6. What are some of the challenges and opportunities that managers face

    in todays workplace ? 7. Why is job satisfaction an important consideration for OB? 8. What are effectiveness and efficiency, and how are they related to

    OB?

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    For Critical Thinking

    1. OB is for everyone. Build an argument to support thisstatement.

    2. Why do you think the subject of OB might be criticized as being only common sense, when we would rarely hear sucha criticism of a course in physics or statistics? Do you thinkthis criticism of OB is fair?

    3. On a scale of 1 to 10 measuring the sophistication of ascientific discipline in predicting phenomena, mathematical

    physics would probably be a 10. Where do you think OBwould fall on the scale? Why?

    4. Can empowerment lead to greater job satisfaction?

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    Learning About Yourself Exercise1. Taking initiative 2. Goal setting 3. Delegating effectively 4. Personal productivity and

    motivation 5. Motivating others 6. Time and stress management 7. Planning 8. Organizing 9. Controlling

    10. Receiving and organizinginformation

    11. Evaluating routine information 12. Responding to routine information

    13. Understanding yourself and others14. Interpersonal communication15. Developing subordinates16. Team building17. Participative decision making18. Conflict management19. Living with change20. Creative thinking21. Managing change

    22. Building and maintaining a power base

    23. Negotiating agreement andcommitment

    24. Negotiating and selling ideas

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    Learning About Yourself

    Scoring Key

    Director: 1, 2, 3 Mentor: 13, 14, 15 Producer: 4, 5, 6 Facilitator: 16, 17, 18

    Coordinator: 7, 8, 9 Innovator: 19, 20, 21

    Monitor: 10, 11, 12 Broker: 22, 23, 24

    Source: Created based on material from R. E. Qu inn, S. R. Faerman, M. P. Thompson, an d M. R. McGrath, Becoming A Master Manager: A Competency Framework (New York: John Wiley & Sons, Inc. 1990), Chapter 1.

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    Breakout Group ExercisesForm small groups to discuss the following topics: 1. Consider a group situation in which you have worked. To what extent

    did the group rely on the technical skills of the group members vs. theirinterpersonal skills? Which skills seemed most important in helping thegroup function well?

    2. Identify some examples of worst jobs. What conditions of these jobsmade them unpleasant? To what extent were these conditions related to

    behaviours of individuals?

    3. Develop a list of organizational puzzles, that is, behaviour youveobserved in organizations that seemed to make little sense. As the term

    progresses, see if you can begin to explain these puzzles, using yourknowledge of OB.

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    Working With Others Exercise

    This exercise asks you to consider the skills outlined in theCompeting Values Framework to develop an understanding ofmanagerial expertise. Steps 1 4 can be completed in 15 20minutes.

    1. Using the skills listed in Learning About Yourself, identify the 4skills that you think all managers should have.

    2. Identify the 4 skills that you think are least important for managersto have.

    3. In groups of 5 7, reach a consensus on the most-needed and least-needed skills identified in Steps 1 and 2.

    4. Using Exhibit 1-6 , determine whether your ideal managers wouldhave trouble managing in some dimensions of organizationaldemands.

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    Exhibit 1-5Competing Values Framework

    Flexibility

    Control

    I n t e

    r n a

    l F

    o c u s E

    x t er n

    al F

    o c u s

    Source: Adapted from K. Cameron and R.E. Quinn, Diagnosing and ChangingOrganizational Culture: Based on theCompeting Values Framework (Reading,MA: Addison Wesley Longman, 1999).

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    Competing Values Framework

    Internal-External Dimension Inwardly, toward employee needs and concerns and/or production

    processes and internal systems

    or Outwardly, toward such factors as the marketplace, government

    regulations, and the changing social, environmental, and technologicalconditions of the future

    Flexibility-Control Dimension Flexible and dynamic, allowing more teamwork and participation; seeking

    new opportunities for products and servicesor

    Controlling or stable, maintaining the status quo and exhibiting lesschange

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    Exhibit 1-6 Skills for Mastery in the

    New WorkplaceFlexibility

    Internal External

    Control

    Mentor Innovator

    1. Understandingyourself and others

    2. Interpersonalcommunication

    3. Developingsubordinates

    1. Team building

    2. Participativedecision making3. Conflict

    management

    1. Receiving andorganizing information

    2. Evaluatingroutine information

    3. Responding toroutine information

    1. Planning2. Organizing3. Controlling

    1. Taking initiative2. Goal setting3. Delegating effectively

    1. Personal productivityand motivation

    2. Motivating others3. Time and stress

    management

    1. Building and maintaining

    a power base2. Negotiating agreementand commitment

    3. Negotiating andselling ideas

    1. Living with change2. Creative thinking3. Managing change

    Facilitator

    Monitor

    Director

    Producer

    Broker

    Coordinator

    Source : R.E. Quinn. Beyond Rational Management. San Francisco: Jossey-Bass Inc., 1988, p. 86.

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    Supplemental Material

    Slides for activities I do in my ownclassroom

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    Exercise

    In groups of 6 Introduce yourselves.

    Pick an interviewer. Decide on questions or topics you want interviewer to ask

    me.

    The interview Introduce interviewer to me and the class. Ask one question from your list (we will go around the

    groups with one question at a time).