Organization BehaviorOrganization Behavior

Unit – 1

I.T.S – Management & IT Institute

Mohan Nagar, Ghaziabad

UnitUnit--1: 1: ContentsContents

� Concept, Nature, Importance & Characteristics of OB

� Conceptual Foundations

� Models of Organization Behavior

� Management Challenge

� A Paradigm Shift� A Paradigm Shift

� Relationship with other fields

� Organization Behavior:

– Cognitive Framework

– Behaviourastic Framework

– Social Cognitive Framework

OrganizationOrganization

� A consciously coordinated social unit,

composed of a group of people, which

functions on a relatively continuous basis tofunctions on a relatively continuous basis to

achieve a common goal or set of goals.

Why study Organization Behavior?Why study Organization Behavior?

� To learn about yourself and how to deal withothers

� You are part of an organization now, and willcontinue to be a part of various organizationscontinue to be a part of various organizations

� Organizations are increasingly expectingindividuals to be able to work in teams, at leastsome of the time

� Some of you may want to be managers orentrepreneurs

Organizations as Open Organizations as Open SystemsSystems

� Organizations are “open systems,” such that their longterm effectiveness is determined by their ability toanticipate, manage, and respond to changes in theirenvironment, with such changes resulting from externalforces and/or stakeholders.

� External forces include the labor force, the natural� External forces include the labor force, the naturalenvironment, the economy, and different cultures, whilestakeholders include shareholders, customers,competitors, suppliers, creditors, governmental agenciesand their regulations

– Note the impact of these environmental influences on individual,interpersonal, team, and organizational processes; organizationsthat do not effectively adapt to environmental change will fail

Organization BehaviorOrganization Behavior

. . . a field of study that investigates

the impact that individuals, groups and

structure have on behavior withinstructure have on behavior within

organizations, for the purpose of

applying such knowledge toward

improving an organization’s

effectiveness.

What is Organizational Behavior?What is Organizational Behavior?

� Definition: The study of human behavior,

attitudes, and performance in organizations.

� Value of OB: Helps people attain the

competencies needed to become effective

employees, team leaders/members, or managers

� Competency = an interrelated set of abilities,

behaviors, attitudes, and knowledge needed by an

individual to be effective in most professional and

managerial positions

Nature of OBNature of OB

� The field of Organization Behavior attempts to

understand human behavior in organization

settings, the organization itself, and the

individual – organization interfaces. These allindividual – organization interfaces. These all

three are interrelated.

� Thus, although, it is possible to focus on only

one of these areas at a time, a complete

understanding of organizational behavior

requires knowledge of all three areas.

Importance of OBImportance of OB� The study of OB can greatly clarify that why others in the

organization behave as they do and the factors that affects how

managers Manage.

� Hence, the field attempts to describe the complex human contexts

of the organizations and to define the opportunities, problems,

challenges, and issues associated with that realm (area).

� Typical managerial activities in the realm include motivating people� Typical managerial activities in the realm include motivating people

to work harder, ensuring that employee’s jobs are properly

designed, resolving conflicts, evaluating performance, and helping

workers to set goals to achieve rewards. The fields of OB abounds

with models and research relevant to each of these functions.

� The value of the OB is that it isolates important aspects of the

manager’s job and offers specific perspectives on the human side of

the management: viz. People as the resource, People as the organizations,

People as People.

Importance of OBImportance of OB

� In dealing with the individuals, an understanding of basic issues

related with Leadership, power, and political behavior, decision

making, organization structure and design and organization

culture can be extremely beneficial.

� Managers can also use their knowledge of OB to better

understand their own needs, motives, behaviors and feelings,understand their own needs, motives, behaviors and feelings,

which will help them improve decision making capabilities,

control stress, communicate better, and comprehend how careers

dynamics unfold.

� An understanding of attitudinal processes, individual differences,

group dynamics, intergroup dynamics, organization culture, and

power and political behavior can help managers handle such

interactions more effectively.

Characteristics of OBCharacteristics of OB� An inter-disciplinary Approach

– In many ways the field of OB synthesizes the several other fields of study.

Perhaps the greatest contribution is from psychology, especially

organizational psychology. Psychologists study human behavior whereas

organizational psychologists deal specifically with the behavior of people in

organizational settings.

– Sociology, too, has had a major impact on the field of OB. Sociologists study

social systems such as families, occupational classes, and organizations.social systems such as families, occupational classes, and organizations.

– Anthropology is concerned with the interactions with the people and their

environments, especially their cultural environment. Culture is a major

influence on the structure of the organizations and on the behavior of people

in organizations.

– Political science also interests organizational behaviorists. We usually think

of political science as the study of political systems such as governments. But

themes of interests to political scientists include how and why people acquire

power and such topics as political behavior, decision making, conflict, the

behavior of interest groups and coalition formation.

ContdContd…..…..

� Economists study the production, distribution and consumption of

goods and services. Students of OB share the economists interests

in areas such as labor market dynamics, productivity, human

resource planning and forecasting, and cost-benefit analysis.

� Engineering has also influenced the field of OB. Industrial

engineering in particular has long been concerned with work

management, productivity measurement, work flow analysis andmanagement, productivity measurement, work flow analysis and

design, job design and labor relations.

� Recently medicinal has come into play in connection with the

study of human behavior at work, specifically in the area of stress.

Increasingly, research is showing that controlling the causes and

consequences of stress in and out of organizational settings is

important for the well being of both the individual and the

organization.

Relationship with Relationship with

other fieldsother fields

� Psychology

� Sociology

� Social Psychology

Psychology

Behavioralscience

Contribution Unit ofanalysis

Output

Sociology

Learning

Motivation

Perception

Training

Leadership effectiveness

Job satisfaction

Individual decision making

Performance appraisal

Attitude measurement

Employee selection

Work design

Work stress

Group dynamics

Work teams

Communication

Power

Conflict

Intergroup behavior

Formal organization theory

Individual

� Anthropology

� Political ScienceSocial psychology

Anthropology

Political science

Study of

Organizational

Behavior

Organization

system

Formal organization theory

Organizational technology

Organizational change

Organizational culture

Conflict

Intraorganizational politics

Power

Organizational cultureOrganizational environment

Behavioral change

Attitude change

Communication

Group processes

Group decision making

Group

Comparative values

Comparative attitudes

Cross-cultural analysis

� It has the descriptive nature: The Organization

behavior is descriptive for several reasons such as:

– The immaturity of the field

– The complexities inherent in studying human

behavior

ContdContd…..…..

behavior

– Lack of valid, reliable, and accepted definitions

and measures

Evolution of Management ThoughtEvolution of Management Thought

Organizational Behavior

Human Relations

1970’s

Hawthorne Studies

Scientific Management

1900’s

1940’s

Classical Organization Theory

Conceptual FoundationsConceptual Foundations

� Management Functions

ManagementManagement

PlanningPlanning OrganizingOrganizing

ManagementManagement

FunctionsFunctions

LeadingLeadingControllingControlling

Concept of the field of OBConcept of the field of OB

� The central concept of the organization behavior can be

grouped into three basic categories:

– Individual Processes

– Interpersonal Process

– Organization Processes and characteristicsOrganization Processes and characteristics

Organization systems level

Group level

Individual level

Individual ProcessesIndividual Processes

� Foundation

� Motivation

� Stress

� Decision Making

Organizational ProcessesOrganizational Processes

� Organization Structure

� Organization Design

� Organization Culture

� Organization Change

Interpersonal ProcessesInterpersonal Processes

� Groups and Teams

� Communication

� Leadership and Power

Politics

� Conflict and Negotiation

Models of Organization BehaviorModels of Organization Behavior

� There are four major models or frameworks that

organizations operate out of, Autocratic, Custodial,

Supportive, and Collegial:

� Autocratic — The basis of this model is power with a

managerial orientation of authority. The employees in

turn are oriented towards obedience and dependence onturn 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.

� 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.

Managing Managing for Effectivenessfor Effectiveness

Productivity

Performance

Absenteeism

Turnover

Productivity

Performance

Norms

Cohesiveness

Productivity

Absenteeism

Turnover

Financial Performance

Survival

IndividualIndividual--Level Level

OutcomesOutcomes

GroupGroup--Level Level

OutcomesOutcomes

OrganizationOrganization--Level Level

OutcomesOutcomes

Turnover

Attitudes

Stress

Cohesiveness Survival

Stakeholder’s Satisfaction

Organizational Organizational

EffectivenessEffectiveness

Contextual Perspectives on Organization Contextual Perspectives on Organization

BehaviorBehavior

� Systems Perspective: The system perspective, or the theory of

systems, was first developed in the physical sciences, but it has

been extended to other areas, such as management.

� According to this perspective, an organizational system receives

four kinds of inputs from its environment: Material, Human,

Financial and Informational. The organization’s manager thenFinancial and Informational. The organization’s manager then

combine and transform these inputs and return them to the

environment in the form of products or service, employee

behaviors, profits and losses, and additional information.

Inputs OutputTransformation

Feedback

Environment

Contextual Perspectives on Organization Contextual Perspectives on Organization

BehaviorBehavior

� Situational Perspective: In the earlier days of management

studies, mangers tried to search for universal answers to

organizational questions.

� They sought prescriptions, the “one best way” that could be used in

any organization under any conditions, searching, for example, for

forms of leadership behavior that would laways lead employees toforms of leadership behavior that would laways lead employees to

be more satisfied and to work harder. Eventually, however,

researcher’s realized that the complexities of human behavior and

organizational settings make universal conclusion virtually

impossible.

� They discovered that in organizations most situations and outcomes

are contingent; that is, the precise relationship between any two

variable is likely to be situational – dependent on other variable.

Management SkillsManagement Skills

Allocation of Activities by TimeAllocation of Activities by Time

Management ChallengeManagement Challenge

� Responding to Globalization

� Managing Workforce Diversity

� Improving Quality and Productivity

� Responding to the Labor Shortage

� Improving Customer Service

� Improving People Skills

Organizational Level

• Productivity

• Developing Effective Employees

•Global Competition

•Managing in the Global Village

Group Level

� Improving People Skills

� Empowering People

� Coping with “Temporariness”

� Stimulation Innovation and Change

� Helping Employees Balance

Work/Life Conflicts

� Improving Ethical Behavior

`

Workplace•Working With Others

•Workforce Diversity

Individual Level

• Job Satisfaction

• Empowerment

•Behaving Ethically

The Challenges Facing ManagementThe Challenges Facing Management

� Although the problems with human organizations and

the solutions over the ages have not really changed that

much, the emphasis and surrounding environmental

context certainly have.

� This new environment is disruptive, discontinuous� This new environment is disruptive, discontinuous

change. It represents a new paradigm, a new way of

thinking about the workplace.

� Three challenges facing managers to day are:- Globalization and Information Technology

- Diversity

- Ethics

A Paradigm ShiftA Paradigm Shift

� A paradigm simply establishes the rules (written or

unwritten), defines the boundaries, defines a way to

understand reality, ways of thinking/framework, and tells

one how to behave within the boundaries to be successful.

� For today’s and tomorrow’s organizations and� For today’s and tomorrow’s organizations and

management, there are new rules with different boundaries

requiring new and different behaviors.

� There is considerable resistance to change and why it is

very difficult to move from the old management paradigm

to the new.

Theoretical Framework for OBTheoretical Framework for OB

� Cognitive Framework– Personality

– Satisfaction, Commitment and Absenteeism Model

– Attraction- Selection-Attrition Model

� Behavioristic Framework– Pavlov’s Dogs

– Environmental Contingencies

� Social Cognitive Framework– Allows for more complexities

– More accepted framework

Cognitive FrameworkCognitive Framework

� The cognitive theoretical approach is shown in the classic work of

Edward Tolman.

� The cognitive approach emphasizes more on people compared to

other approaches. It is based on the expectancy, demand and

incentive concepts.

� Cognition is a psychological process of recollecting information� Cognition is a psychological process of recollecting information

and past experiences.

� Cognition generally precedes behavior and serves as an input for a

person's thoughts, perception, problem solving and information

processing.

� Cognitive maps are concepts that can be used as pictures or visual

aids to comprehend a person's understanding of a particular, and

selective, elements of the thoughts (rather than thinking) of an

individual, group or organization.

Behavioristic Framework

� Ivan Pavlov and John B. Watson were the pioneers of

the behaviorist theory.

� Unlike the earlier psychologists, they focused on

observable behaviors rather than the evasive mind.

� They explained human behavior with the help of� They explained human behavior with the help of

stimulus-response experiments. A stimulus brings out a

response in an individual and results in learning.

� The stimulus- response relationship explains the

physical reflexes in human beings. For example, when a

person is pricked with a pin, he immediately flinches.

Social Cognitive (Learning) Framework

� The cognitive approach emphasizes too much on psychological

process whereas the behaviorist approach stresses on stimulus,

response and consequences.

� The social cognitive approach attempts to integrate the

contributions of both these approaches. However, the influence of

behavioral approach is higher than the cognitive approach on the

social learning approach.social learning approach.

� In social cognitive approach, behavior is considered as the

appropriate unit of analysis. It is held that people are self-aware and

make an effort towards conscientious behavior. Individuals learn

about the environment, modify and construct it in a manner favorable

to them.

� Albert Bandura made a significant contribution to the social learning

framework. He explained behavior as a continuous reciprocal

interaction among cognitive, behavioral and environmental

determinants.