Management Process and Organization Behavior MB0022 ...docshare04.docshare.tips/files/23543/235435384.pdfManagement Process and Organization Behavior MB0022 / PB 001/MH0026 Contents

Management Process and Organization Behavior MB0022/ PB 001/MH0026

Contents

Unit 1

Management Process 1 Unit 2

Organizational Behavior 17 Unit 3

Foundation of Organization behavior 33 Unit 4

Learning 41 Unit 5

Value, Ethics and Job satifaction 52 Unit 6

Personality 69 Unit 7

Emotions 83 Unit 8

Perception 96

Edition: Fall 2008

Contents

Unit 9

Motivation 114 Unit 10

Group Behavior 131 Unit 11

Power and Politics 147 Unit 12

Conflict Management 164 Unit 13 Stress management 176

Unit 14

Organization change 191 Unit 15

Organization Development 205

Edition: Fall 2008

BKID – B0665

Dr. K. Jayakumar

Vice Chancellor

Sikkim Manipal University of Health, Medical, and Technological sciences

Prof. Nandagopal V. B.

Director and Dean

Sikkim Manipal University of Health, Medical, and Technological sciences.

Board of Studies Dr. T. V. Narasimha Rao

Professor, Manipal Universal Learning

Prof. K. V. Varambally

Director, Manipal Institute of Management,

Manipal Ms. Vimala Parthasarathy

Asst. Professor,. Sikkim Manipal University of

Health,

Medical and Technological studies.

Mr. Shankar Jagannathan

Former Group Treasurer

Wipro Technologies Limited, Bangalore

Ms. Sadhana Dash

Senor Manager HR

Microsoft India corporation ( Pvt) limited

Mr. Abraham Mathews

Chief Financial Officer

Infosys BPO, Bangalore Mr. Pankaj Khanna

Director, HR, Fidelity Mutual Fund

Content Preparation Team Peer Review By

1.Dr. Nilanjan Sengupta M.S. Sadhana Dash Professor, IFIM, Bangalore HR Dept, Microsoft India ( P ) Ltd,

2. Dr. Mousumi Sengupta Bangalore Professor, IFIM, Bangalore

Edition: Fall 2008 This book is a distance education module comprising of collection of learning material for our students. All rights reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim. Printed and Published on behalf of Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd., Manipal – 576 104. Printed at Manipal Press Limited, Manipal.

INTRODUCTION

Organizations face multiple challenges and threats today – threat to effectiveness, efficiency and

profitability; challenges from turbulent environments, increased competition and constant challenge

to maintain its culture. Individuals in organizations likewise face multiple challenges – finding

satisfaction in and through work, fighting obsolescence of ones knowledge and skills, maintaining

dignity and purpose in pursuit of organizational goals.

Unit 1: Management Process This unit deals with management functions which are as follows. Planning, Organizing, Commanding,

Coordinating , Controlling. However, in recent time, management functions have been regrouped into

four categories, since the managerial tasks have become highly challenging a fluid in nature making

distinctions redundant to a certain extend. The four functions are as follows: Planning , Organizing

,Leading ,Controlling

Unit 2: Organizational Behavior This unit deals with organizational behavior. OB is a field of study that investigates the impact that

individuals, groups, and structure have on behavior within an organization, then applies that knowledge

to make organizations work more effectively. Specifically, OB focuses on how to improve productivity,

reduce absenteeism and turnover, and increase employee citizenship and job satisfaction

Unit 3: Foundation of Organization behavior This unit deals with organizational Behavior which emphasizes on intellectual capital as represented by

the sum total of knowledge, expertise, and dedication of an organization’s workforce

Unit 4:Learning This unit deals with learning that refers to a process which enhances the knowledge, skill and attitude

(KSA) of individuals, to increase his/her willingness to adopt those newly acquired KSA and to

implement them at the workplace.

Unit 5: Value, Ethics and Job satifaction This unit deals with values which represent basic convictions that a specific mode of conduct or end

state of existence is personally or socially preferable to an opposite or converse mode of conduct or

endstate of existence.

Unit 6: Personality This unit deals with the factors affecting personality development are Heredity, Environment, Culture,

Family, and Situation.

Unit 7: Emotions This unit deals with ‘Emotion’ which is used to designate "a state of consciousness having to do with

the arousal of feelings (Webster’s New World Dictionary)." It is "distinguished from other mental states,

from cognition, volition, and awareness of physical sensation." Feeling refers to "any of the subjective

reactions, pleasant or unpleasant" that one may experience in a situation.

Unit 8: Perception This unit deals with the three factors that shape perception of an individual are perceiver, target and

situation. An important element in perception is attribution process.

Unit 9: Motivation This unit deals with motivation which is “the processes that account for an individual’s intensity,

direction, and persistence of effort toward attaining a goal”..

Unit 10: Group Behavior This unit deals with formal and Informal behaviour. Formal groups come into existence for serving a

specific organizational purpose. Individuals’ behaviors in this type of group is aimed at achieving

organizational goals.

Unit 11: Power and Politics This unit deals with power which is the ability to make things happen in the way an individual wants,

either by self or by the subordinates. The essence of power is control over the behavior of others

Unit 12: Conflict Management This unit deals with conflict which occurs whenever disagreements exist in a social situation over

issues (work related or personal). Conflict is a process that begins when one party perceives that

another party has negatively affected, or is about to negatively affect, something that the first party

cares about (Thomas, 1992). Conflict can be either constructive or destructive.

Unit 13: Stress management This unit deals with stress that has been defined as a physical, mental or emotional response to events

which cause mental or bodily tension. In the modern day life stress is a part and parcel of our lives.

Unit 14: Organization change This unit deals with organizational change which may be defined as the adoption of a new idea or a

behavior by an organization. It is a way of altering an existing organization to increase organizational

effectiveness for achieving its objectives

Unit 15: Organization Development This unit deals with organization development. OD is a planned approach to improve employee and

organizational effectiveness by conscious interventions in those processes and structures that have an

immediate bearing on the human aspect of the organization.

References:

Buchanan, D. & Huczynski, A. (1997) Organizational Behaviour: An Introductory Text,

3rd ed., Prentice Hall, London.

Barnard, C.I. (1938) Functions of the Executive, Harvard University ,Press, Cambridge,

MA.

Pugh, D. (1971) Organization Theory: Selected Readings, Penguin, Harmondsworth.

Ivancevich, J. & Matteson, M. (1998) Organizational Behaviour and Management, 3rd

edn, Irwin, Chicago and London.

Wood, J. (1997) in Dickson, T. & Bickerstaffe, G. (eds.) Mastering Management: The

Definitive Guide to the Foundations and Frontiers of Finance, FT/Pitman Publishing,

London.

Management Process Unit 1

Sikkim Manipal University 1

Unit 1 Management Process

Structure

1.1 Introduction

Objectives

1.2 Management Functions

Self Assessment Questions1

1.3 Management roles and skills

Self Assessment Questions 2

1.4 Effective vs. Successful Managerial Activities


1.5 Summary

Terminal Questions

Answer to SAQ’s and TQ’s

1.1 Introduction

Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups,

and structure have on behavior within an organization, then applies that knowledge to make

organizations work more effectively (Robbins, 2003). In recent times, we notice the following

changes in the organizational set up:

1. Demise of traditional hierarchical structure 2. Emergence of workforce with different expectations form organizations 3. Advancement of information technology 4. Increasing importance on empowerment and teamwork 5. Concern for worklife balance



An affective and efficient manager therefore, should focus on two key results. The first is task

performance—the quality and quantity of the work produced or the services provided by the work unit

as a whole. The second is job satisfaction—how people feel about their work and the work setting. OB directs a manager’s attention to such matters as job satisfaction, job involvement, and

organizational commitment, as well as measures of actual task performance. OB also recognizes the

need for changing behavior, attitude and managerial styles in the context of the above. Hence,

management processes and functions are vital to organizational effectiveness. An understanding of

the basis management functions helps in comprehending the key roles managers need to play to run

organizations effectively.

Learning objectives

The learning objectives of this unit are as follows:

1. Management Functions

2. Management roles and skills

1.2 Management Functions Follett (1933) defined management as "the art of getting things done through people". [2] One can

also think of management functionally, as the action of measuring a quantity on a regular basis and

of adjusting some initial plan.

Management functions are as follows (Fayol, 1949):

1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Controlling

http://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Plan



However, in recent time, management functions have been regrouped into four categories, since the

managerial tasks have become highly challenging a fluid in nature making distinctions redundant to a

certain extend. The four functions are as follows:

1. Planning 2. Organizing 3. Leading 4. Controlling

1. Planning –

It involves the process of defining goals, establishing strategies for achieving these goals, and

developing plans to integrate and coordinate activities. Every organization needs to plan for change

in order to reach its set goal. Effective planning enables an organization adapt to change by

identifying opportunities and avoiding problems. It provides the direction for the other functions of

management and for effective teamwork. Planning also enhances the decisionmaking process. All

levels of management engage in planning in their own way for achieving their preset goals.

Planning in order to be useful must be linked to the strategic intent of an organization. Therefore,

planning is often referred to as strategic in nature and also termed as strategic planning.

Strategic Planning: Top level managers engage chiefly in strategic planning or long range planning

Strategic planning is the process of developing and analyzing the organization's mission, overall

goals, general strategies, and allocating resources.

The tasks of the strategic planning process include the following steps:

Define the mission:

A mission is the purpose of the organization. Thus, planning begins with clearly defining the mission

of the organization. The mission statement is broad, deconcise, summarizing what the organization

does. A mission statement should be short – and should be easily understood and every employee

should ideally be able to narrate it from memory. An explicit mission guides employees to work

independently and yet collectively toward the realization of the organization's potential. The mission

http://choo.fis.utoronto.ca/FIS/Courses/LIS1230/LIS1230sharma/plan1.htmhttp://www.mindtools.com/planpage.html



statement may be accompanied by an overarching statement of philosophy or strategic purpose

designed to convey a vision for the future as envisaged by top management.

Conduct a situational or SWOT analysis

A situation or SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is vital for the

creation of any strategic plan. The SWOT analysis begins with a scan of the external environment.

Organizations need to examine their business situation in order to map out the opportunities and

threats present in their environments. Sources of information may include stakeholders like,

customers (internal and external), suppliers, governments (local, state, federal, international),

professional or trade associations (conventions and exhibitions), journals and reports (scientific,

professional, and trade).

SWOT analysis provides the assumptions and facts on which a plan will be based. Analyzing

strengths and weaknesses comprises the internal assessment of the organization. For assessing the strengths of the organization the following questions are important:

1. What makes the organization distinctive? 2. How efficient is our manufacturing? 3. How skilled is our workforce? 4. What is our market share? 5. What financing is available? 6. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important:

1. What are the vulnerable areas of the organization that could be exploited? 2. Are the facilities outdated? 3. Is research and development adequate? 4. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at:

1. In which areas is the competition not meeting customer needs? 2. What are the possible new markets? 3. What is the strength of the economy? 4. Are our rivals weak?

http://telecollege.dcccd.edu/mgmt1374/book_contents/2planning/plng_process/your.htm



5. What are the emerging technologies? 6. Is there a possibility of growth of existing market?)

Identifying threats involves the following:

1. In which areas does the competition meet customer needs more effectively? 2. Are there new competitors? 3. Is there a shortage of resources? 4. Are market tastes changing? 5. What are the new regulations? 6. What substitute products exist? In general terms, the best strategy is one that fits the organization's strengths to opportunities in the

environment.

The SWOT analysis is used as a baseline for future improvement, as well as gap analysis.

Comparing the organization to external benchmarks (the best practices) is used to assess current

capabilities. Benchmarking systematically compares performance measures such as efficiency,

effectiveness, or outcomes of an organization against similar measures from other internal or

external organizations.

Set goals and objectives

Strategic goals and objectives are developed to fill the gap between current capability and the

mission. They are aligned with the mission and form the basis for the action plans of an organization.

Objectives are also called performance goals. Generally, organizations have longterm objectives for

factors such as, return on investment, earnings per share, etc. It also helps in setting minimum

acceptable standards or commonsense minimums.

Develop related strategies (tactical and operational)

Tactical plans are based on the organization's strategic plan. In turn, operational plans are based on

the organization's tactical plans. These are specific plans that are needed for each task or supportive

activity comprising the whole. Strategic, tactical, and operational planning must be accompanied by

controls to ensure proper implantation of the plans, necessary to maintain competitive advantage in

the said market.



Monitor the plan

A systematic method of monitoring the environment must be adopted to continuously improve the

strategic planning process. To develop an environmental monitoring procedure, shortterm standards

for key variables that will tend to validate and support the longrange estimates must be established.

Feedback is encouraged and incorporated to determine if goals and objectives are feasible. This

review is used for the next planning cycle and review.

2. Organizing

It involves designing, structuring, and coordinating the work components to achieve organizational

goal. It is the process of determining what tasks are to be done, who is to do, how the tasks are to

be grouped, who reports to whom, and where decisions are to be made. A key issue in

accomplishing the goals identified in the planning process is structuring the work of the organization.

Organizations are groups of people, with ideas and resources, working toward common goals. The

purpose of the organizing function is to make the best use of the organization's resources to achieve

organizational goals. Organizational structure is the formal decisionmaking framework by which job

tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is

the extent to which the units of the organization are explicitly defined and its policies, procedures,

and goals are clearly stated. It is the official organizational structure conceived and built by top

management. The formal organization can be seen and represented in chart form. An organization

chart displays the organizational structure and shows job titles, lines of authority, and relationships

between departments.

The steps in the organizing process include:

1. Review plans 2. List all tasks to be accomplished 3. Divide tasks into groups one person can accomplish a job 4. Group related jobs together in a logical and efficient manner 5. Assign work to individuals 6. Delegate authority to establish relationships between jobs and groups of jobs.

http://www.gsia.cmu.edu/bosch/bart.htmlhttp://ollie.dcccd.edu/mgmt1374/book_contents/2planning/plng_process/plng_process.htm



3. Leading

An organization has the greatest chance of being successful when all of the employees work toward

achieving its goals. Since leadership involves the exercise of influence by one person over others,

the quality of leadership exhibited by supervisors is a critical determinant of organizational success.

Supervisors can learn about leadership through research. Leadership studies can be classified as

trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary

source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits

alone cannot explain leadership effectiveness. Thus, later research focused on what the leader

actually did when dealing with employees. These behavioral theories of leadership sought to explain

the relationship between what the leader did and how the employees reacted, both emotionally and

behaviorally. Yet, behavior can't always account for leadership in different situations. Thus,

contingency theories of leadership studied leadership style in different environments. Transactional

leaders, such as those identified in contingency theories, clarify role and task requirements for

employees. Yet, contingency can't account for the inspiration and innovation that leaders need to

compete in today's global marketplace. Newer transformational leadership studies have shown that

leaders, who are charismatic and visionary, can inspire followers to transcend their own selfinterest

for the good of the organization.

Leading involves the following functions:

1.Teambuilding

Rigid department boundaries and fixed teams are giving way to ad hoc squads whose membership

changes with every project. Flexible networks of teambased structures are occurring within and

between companies, as well as across national borders. Competitive arenas require quick decisions

by knowledgeable employees who work close to the source of problems. Teams enable knowledge

based and innovative decision making. This collaboration is a revolution in the workplace.

2. Consensus Building

Top performance demands the joint effort of many people, working together toward a common goal.

When an individual works together with others, effectiveness grows, creating greater productivity for



all involved. Together, employees can do more than the collective efforts of each individual working

alone.

3. Selecting

Selecting competent, highperforming employees capable of sustaining their performance over the

long run is a competitive advantage. The selection process consists of forecasting employment

needs, recruiting candidates, interviewing applicants, and hiring employees.

4. Training

After employees are selected, they enter an orientation program to be formally introduced to their

jobs. Orientation sets a tone for new employees' work by describing jobrelated expectations and

reporting relationships. Employees are informed about benefits, policies, and procedures. Specific

duties and responsibilities and performance evaluation are clarified. During orientation, the

supervisor has the opportunity to resolve any unrealistic expectations held by the employee. Training

refers to improving an employee's knowledge, skills, and attitudes so that he or she can do the job.

All new employees (or current employees in new jobs) should be trained. Cross training prepares an

employee for a job normally handled by someone else. Also, training is advisable when new

processes, equipment or procedures are introduced into the workplace.

Training starts with an organization analysis. By focusing on strategy and examining sales

forecasts and expected changes in production, distribution and support systems, employers can

determine which skills will be needed and to what degree. A comparison with current skill levels is

used to estimate staff and training needs. Task analysis identifies the elements of current or future tasks to be done. Personal needs analysis involves asking employees and managers, either in an

interview or in a selfadministered questionnaire, to analyze their training needs. In general,

agreement between managers and employees tends to be low, so it is important that both parties

agree to decisions about the training of employees.

4. Controlling –

It involves monitoring the employees’ behavior and organizational processes and take necessary

actions to improve them, if needed. Control is the process through which standards for performance

http://telecollege.dcccd.edu/mgmt1374/book_contents/4directing/trng/orient.htmhttp://www.nssb.org/



of people and processes are set, communicated, and applied. Effective control systems use

mechanisms to monitor activities and take corrective action, if necessary.

There are four steps in the control process. They are as follows:

Step 1. Establish Performance Standards. Standards are created when objectives are set during the

planning process. A standard is any guideline established as the basis for measurement. It is a

precise, explicit statement of expected results from a product, service, machine, individual, or

organizational unit. It is usually expressed numerically and is set for quality, quantity, and time.

Tolerance is permissible deviation from the standard.

Step 2. Measure Actual Performance. Supervisors collect data to measure actual performance to

determine variation from standard. Written data might include time cards, production tallies,

inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written

reports can be used to measure performance. Management by walking around, or observation of

employees working, provides unfiltered information, extensive coverage, and the ability to read

between the lines. While providing insight, this method might be misinterpreted by employees as

mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct

access to real time, unaltered data, and information. On line systems enable supervisors to identify

problems as they occur. Database programs allow supervisors to query, spend less time gathering

facts, and be less dependent on other people.

Step 3. Compare Measured Performance Against Established Standards. Comparing results with

standards determines variation. Some variation can be expected in all activities and the range of

variation the acceptable variance has to be established. Management by exception lets operations

continue as long as they fall within the prescribed control limits. Deviations or differences that exceed

this range would alert the supervisor to a problem.

Step 4. Take Corrective Action. The supervisor must find the cause of deviation from standard. Then,

he or she takes action to remove or minimize the cause. If the source of variation in work

performance is from a deficit in activity, then a supervisor can take immediate corrective action and

get performance back on track.



Types of Control

Controls are most effective when they are applied at key places. Supervisors can implement controls

before the process begins (feed forward), during the process (concurrent), or after it ceases

(feedback).

Feed forward controls focus on operations before they begin. Their goal is to prevent anticipated

problems. An example of feed forward control is scheduled maintenance on automobiles and

machinery.

Concurrent controls apply to processes as they are happening. Concurrent controls enacted while

work is being performed include any type of steering or guiding mechanism such as direct

supervision, automated systems (such as computers programmed to inform the user when they have

issued the wrong command), and organizational quality programs.

Feedback controls focus on the results of operations. They guide future planning, inputs, and

process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual)

reports so that almost instantaneous adjustments can be made.

The following diagram represents an integrated model connecting all the abovementioned functions

of management. The management process (adopted from Terry, 1972)

Planning Organizing Directing Controlling Resources

HR, Financial, Informational etc.

Goal achievement s




1. In recent time, management functions have been regrouped into ____________ categories.

2. Training starts with an ___________________ analysis.

1.3 Management roles and skills

Managerial Roles

According to Mintzberg (1973), managerial roles are as follows:

1. Informational roles 2. Decisional roles 3. Interpersonal roles

1. Informational roles: This involves the role of assimilating and disseminating information as and

when required. Following are the main subroles, which managers often perform:

a. Monitor—collecting information from organizations, both from inside and outside of the

organization

b. Disseminator—communicating information to organizational members

c. Spokesperson—representing the organization to outsiders

2. Decisional roles: It involves decision making. Again, this role can be subdivided

in to the following:

a. Entrepreneur—initiating new ideas to improve organizational performance

b. Disturbance handlers—taking corrective action to cope with adverse situation

c. Resource allocators—allocating human, physical, and monetary resources

d. Negotiator – negotiating with trade unions, or any other stakeholders

http://www.bola.biz/mintzberg/refs.html



3. Interpersonal roles : This role involves activities with people working in the organization. This

is supportive role for informational and decisional roles. Interpersonal roles can be categorized

under three subheadings:

a. Figurehead—Ceremonial and symbolic role

b. Leadership—leading organization in terms of recruiting, motivating etc.

c. Liaison—liasoning with external bodies and public relations activities.

Management Skills

Katz (1974) has identified three essential management skills: technical, human, and conceptual.

Technical skills: The ability is to apply specialized knowledge or expertise. All jobs require some

specialized expertise, and many people develop their technical skills on the job. Vocational and on

thejob training programs can be used to develop this type of skill.

Human Skill : This is the ability to work with, understand and motivate other people (both individually

and a group). This requires sensitivity towards others issues and concerns. People, who are

proficient in technical skill, but not with interpersonal skills, may face difficulty to manage their

subordinates. To acquire the Human Skill, it is pertinent to recognize the feelings and sentiments of

others, ability to motivate others even in adverse situation, and communicate own feelings to others

in a positive and inspiring way.

Conceptual Skill : This is an ability to critically analyze, diagnose a situation and forward a feasible

solution. It requires creative thinking, generating options and choosing the best available option.


1. Ceremonial and symbolic role of a manager is called __________________.

2. Vocational and onthejob training programs can be used to develop _______________ skill.



1.4 Effective vs. Successful Managerial Activities

Luthans (1988), on the basis of his study, found that all managers engage in four managerial

activities.

1. Traditional management— This activity consists of planning, decision making, and controlling. The average manager spent 32 percent of his or her time performing this

activity, whereas successful managers spend 13% and effective managers spend 13% of

their time in this activity.

2. Communication—This activity consists of exchanging routine information and processing paperwork. The average manager spent 29 percent of his or her time performing this

activity while successful manager spends 28% and effective managers spend 44% of their

time in this activity.

3. Human resource management—This activity consists of motivating, disciplining, managing conflict, staffing, and training. The average manager spent 20 percent of his or

her time performing this activity, while successful manager spends 11% and effective

managers spend 26% of their time in this activity.

4. Networking—This activity involves socializing, politicking, and interacting with outsiders. The average manager spent 19 percent of his or her time performing this activity, while

successful manager spends 48% and successful manages spend 11% of their time in this

activity.

It was found that successful managers spent more time and effort in socializing, interacting and

networking. They did not spend much time to the traditional management activities or to the human

resource management activities (Luthans, 1988).




1. The average manager spent __________ percent of his or her time performing traditional

management.

2. Effective managers spend __________percent of their time in human resource

management.

1.4 Summary Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups,


organizations work more effectively (Robbins, 2003). An affective and efficient manager should focus

on two key results. The first is task performance—the quality and quantity of the work produced or

the services provided by the work unit as a whole. The second is job satisfaction—how people feel

about their work and the work setting. management functions have been grouped into four

categories: planning, organizing, leading and controlling. Planning involves the process of defining

goals, establishing strategies for achieving these goals, and developing plans to integrate and

coordinate activities. Every organization needs to plan for change in order to reach its set goal.

Effective planning enables an organization adapt to change by identifying opportunities and avoiding

problems. It provides the direction for the other functions of management and for effective teamwork.

Planning also enhances the decisionmaking process. All levels of management engage in planning

in their own way for achieving their preset goals. Organizing involves designing, structuring, and

coordinating the work components to achieve organizational goal. It is the process of determining

what tasks are to be done, who is to do, how the tasks are to be grouped, who reports to whom, and

where decisions are to be made. A key issue in accomplishing the goals identified in the planning

process is structuring the work of the organization. Organizations are groups of people, with ideas

and resources, working toward common goals. The purpose of the organizing function is to make the

best use of the organization's resources to achieve organizational goals. Organizational structure is

the formal decisionmaking framework by which job tasks are divided, grouped, and coordinated.

Formalization is an important aspect of structure. It is the extent to which the units of the organization

are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official

organizational structure conceived and built by top management. The formal organization can be

http://choo.fis.utoronto.ca/FIS/Courses/LIS1230/LIS1230sharma/plan1.htmhttp://www.mindtools.com/planpage.htmlhttp://www.gsia.cmu.edu/bosch/bart.html



seen and represented in chart form. An organization chart displays the organizational structure and

shows job titles, lines of authority, and relationships between departments. Leading involves team building, consensus building, selecting and training. An organization has the

greatest chance of being successful when all of the employees work toward achieving its goals.

Since leadership involves the exercise of influence by one person over others, the quality of

leadership exhibited by supervisors is a critical determinant of organizational success. Controlling

involves monitoring the employees’ behavior and organizational processes and take necessary

actions to improve them, if needed. Control is the process through which standards for performance

of people and processes are set, communicated, and applied. Effective control systems use

mechanisms to monitor activities and take corrective action, if necessary. According to Mintzberg (

1973), managerial roles are: Informational roles, Decisional roles and Interpersonal roles. Katz

(1974) has identified three essential management skills: technical, human, and conceptual. Luthans

(1988) found that all managers engage in four managerial activities: (i) Traditional management—

This activity consists of planning, decision making, and controlling, (ii) Communication—This activity

consists of exchanging routine information and processing paperwork, (iii) Human resource

management—this activity consists of motivating, disciplining, managing conflict, staffing, and

training, and (iv) Networking—this activity involves socializing, politicking, and interacting with

outsiders.

Terminal questions

1. Discuss the four management functions in brief.

2. What do you mean by SWOT analysis? Why is it required by a manager?

3. Discuss three leadership functions of a manager.

4. Based on Katz’s proposition, briefly discus the essential managerial skills.

Answer to Self Assessment Questions


1. Four

2. Organization

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1. Figurehead

2. Technical


1. 32

2. 26

Answer to Terminal Questions

1. Refer section 1.2




Organizational Behavior Unit 2


Unit 2 Organizational Behavior

Structure

2.1 Introduction

Objectives

2.2 Definitions of OB


2.3 Historical evolution of OB as a discipline


2.4 Contributing Disciplines to the OB field


2.5 Summary

Terminal Questions


2.1 Introduction In order to be effective organizations need to develop their interpersonal or people skills According to

Robbins( 2003), Organizational behavior (OB) is a field of study that investigates the impact that

individuals, groups, and structure have on behavior within an organization, then applies that

knowledge to make organizations work more effectively. Specifically, OB focuses on how to improve

productivity, reduce absenteeism and turnover, and increase employee citizenship and job

satisfaction. An organization is more than a formal arrangement of functions, more than an

organization chart, more than a vision statement, more than a set of accounts. An organization

consists of people and so it is also a social system. The field of organizational behavior (OB) draws

primarily from the behavioral science disciplines of psychology, social psychology, and cultural

anthropology. The areas on which OB focuses are individuals who will often be working within

groups, which themselves work within organizations, as well as all the interrelationships between

them. Some of the specific themes embraced by OB are personality theory, attitudes and values,

motivation and learning, interpersonal behavior, group dynamics, leadership and teamwork,

organizational structure and design, decisionmaking, power, conflict, and negotiation. Some OB



thinkers go further and suggest that the behavior within the organization has to be viewed partly in

the wider context of the outside world’s effect on the organization and its human resources, missions,

objectives, and strategies.

Learning objectives


1. Historical evolution of OB as a discipline

2. Contributing Disciplines to the OB field

2.2 Definitions Of OB Buchanan and Huczynski (1997) have defined Organizations as “social arrangements, constructed

by people who can also change them. Organizations can be repressive and stifling, but they can also

be designed to provide opportunities for selffulfillment and individual expression. The point is that

human consequences depend on how organizations are designed and run.’ Barnard (1938) defined

Organizations “as system of cooperative activities – and their coordination requires something

intangible and personal that is largely a matter of personal relationships”. There are a number of

definitions that we can draw on to illuminate and deepen our understanding of the concept of

organizational behavior. One of the earliest, and certainly one of the most succinct definitions, comes

from Pugh, (1971) for whom, OB is concerned with ‘‘the study of the structure, functioning and

performance of organizations, and the behavior of groups and individuals within them”. Ivancevich

and Matteson, (1998) in their book Organizational Behavior and Management, offers a broader

definition. They opine that OB is about ‘‘the study of human behavior, attitudes and performance

within an organizational setting; drawing on theory, methods, and principles from such disciplines as

psychology, sociology, and cultural anthropology to learn about individual perception, values,

learning capabilities, and actions while working with groups and within the total organization;

analyzing the external environment’s effect on the organization and its human resources, missions,

objectives and strategies”.



What emerges from these two definitions is a view of OB as:

1. A way of thinking 2. An interdisciplinary field

3. Having a distinctly humanistic outlook 4. Performance oriented 5. Seeing the external environment as critical 6. Using scientific method 7. Having an applications orientation

Levels of analysis:

Wood (1997) provides a useful model for exploring behavioral events. He suggests that different

levels of analysis can be applied when examining the significance of an organizational issue. He

proposes eight, namely:

1. Individual

2. Team

3. Intergroup

4. Organizational

5. Interorganizational

6. Societal

7. International

8. Global.

The basic issue is that the level of explanation that one chooses, determines the view of the causes

of an event or problem. It also affects the actions that one takes, and the solutions that one seeks. In

an organization, inappropriate intervention at the wrong level can make a problem worse rather than

better.

Three points are important in this regard:

People tend to pick their favorite level of analysis to explain events, and then behave accordingly.

This is often particularly true of external consultants brought in to perform a ‘quick fix’.



People are most familiar with, and often prefer, explanations at the individual level of behavior. Trying

to change people by sending them on a training course is simpler than changing structures or

upgrading technology. However, such explanations are often too simplistic, inaccurate, or

incomplete. It may not solve organizational problems, nor provide the base for creating self

sufficiency and sustenance, particularly in a competitive and volatile market.

As a general principle, any organizational problem can be usefully analyzed at an increasingly higher

level of abstraction. By considering a problem progressively at the individual, group, intergroup, and

organizational levels, a deeper understanding of its causes can be gained.

As a result, the tools needed to tackle the problem can be chosen more precisely, and applied more

effectively. Looking at a problem systemically will always yield a better understanding than simply

leaping in with fixed preconceptions. Therefore a contingency approach is what is now preferred

rather than any absolute solutions in OB.


1. Buchanan and Huczynski (1997) have defined Organizations as “_________. arrangements”

2. Barnard (1938) defined Organizations “as system of ________________ activities”.

3. OB is ________________ field.

2.3 Historical Evolution Of OB As A Discipline A large number of people have contributed to the growth of OB as a discipline. The most important

ones have been described below:

A. Early Theorists Adam Smith’s discussions in the Wealth of nations published in 1776 stated that organizations and

society would reap from the division of labor. He concluded that division of labor increased

productivity by raising each worker’s skill and dexterity, by saving time other wise lost in changing

tasks. The development of assembly line production process in the early 20 th century was obviously

stimulated by the economic advantages of work specialization (arising out of division of labor) as

stated in the work of Smith.



The other significant work which influenced this philosophy was that of the work of Charles Babbage

in 1832 titled On the Economy of Machinery and Manufactures. He added the following to Smith’s list

of advantages that can be accrued from division of labor:

1. It reduces the time needed to learn a job 2. Reduced wastage of material during the learning process 3. Allowed attainment of increased skill levels 4. Careful match of people’s skills and physical abilities with specific tasks

Thus in the writings of these writers the benefits of division of labor were being highlighted where the

maximum emphasis was on raising productivity and minimizing wastage of resources and time. Very

little were no consideration was given towards the human elements in the workplace.

B. The Classical Era We see this trend to continue in what is called as the classical era which covers the period between

1900 to mid 1930s. the first general theories of management began to evolve and the main

contributors during this era were Frederick Taylor, Henri Fayol, Max Weber, Mary parker Follet and

Chester Barnard.

Frederick Taylor’s main emphasis was on finding one best way of doing each job. He stressed on

selecting the right people for the job , train them to do it precisely in one best way. He favored wage

plans to motivate the workers. His scientific principles of management stressed the following

principles:

1. Shift all responsibility for the organization of work from the worker to the manager; managers should do all the thinking relating to the planning and design of work, leaving the workers with the

task of implementation.

2. Use scientific methods to determine the most efficient way of doing work; assign the worker’s task accordingly, specifying the precise way in which the work is to be done.

3. Select the best person to perform the job thus designed. 4. Train the worker to do the work efficiently.



5. Monitor worker performances to ensure that appropriate work procedures are followed and that appropriate results are achieved.

Taylor was one of the first to attempt to systematically analyze human behavior at work. He insisted

the use of timeandmotion study as a means of standardizing work activities. His scientific approach

called for detailed observation and measurement of even the most routine work, to find the optimum

mode of performance.

The results were dramatic, with productivity increasing significantly. With passing time, new

organizational functions like personnel and quality control were created. Of course, in breaking down

each task to its smallest unit to find what Taylor called ‘‘the one best way’’ to do each job, the effect

was to remove human variability. Hence he lay the ground for the mass production techniques that

dominated management thinking in the first half of the twentieth century.

Henri Fayol, a mining engineer and manager by profession, defined the nature and working patterns of the twentiethcentury organization in his book, General and Industrial Management, published in

1916. In it, he laid down what he called 14 principles of management. This theory is also called the

Administrative Theory. The principles of the theory are:

1. Division of work: tasks should be divided up with employees specializing in a limited set of tasks

so that expertise is developed and productivity increased.

2. Authority and responsibility: authority is the right to give orders and entails enforcing them with

rewards and penalties; authority should be matched with corresponding responsibility.

3. Discipline: this is essential for the smooth running of business and is dependent on good

leadership, clear and fair arguments, and the judicious application of penalties.

4. Unity of command: for any action whatsoever, an employee should receive orders from one

superior only; otherwise authority, discipline, order, and stability are threatened.

5. Unity of direction: a group of activities concerned with a single objective should be cocoordinated

by a single plan under one head.

6. Subordination of individual interest to general interest: individual or group goals must not be

allowed to override those of the business.



7. Remuneration of personnel: this may be achieved by various methods but it should be fair,

encourage effort, and not lead to overpayment.

8. Centralization: the extent to which orders should be issued only from the top of the organization is

a problem which should take into account its characteristics, such as size and the capabilities of the

personnel.

9. Scalar chain (line of authority): communications should normally flow up and down the line of

authority running from the top to the bottom of the organization, but sideways communication

between those of equivalent rank in different departments can be desirable so long as superiors are

kept informed.

10. Order: both materials and personnel must always be in their proper place; people must be suited

to their posts so there must be careful organization of work and selection of personnel.

11. Equity: personnel must be treated with kindness and justice.

12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the

time required for the development of expertise.

13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by the

requirements of authority and discipline.

14. Esprit de corps: efforts must be made to promote harmony within the organization and prevent

dissension and divisiveness.

The management function, Fayol stated, consisted of planning, organizing, commanding, co

coordinating and controlling. Many practicing managers, even today, list these functions as the core

of their activities. Fayol was also one of the first people to characterize a commercial organization’s

activities into its basic components. He suggested that organizations could be subdivided into six

main areas of activity:

1. Technical 2. Commercial 3. Financial 4. Security 5. Accounting 6. Management.



In defining the core principles governing how organizations worked and the contribution of

management to that process, Fayol laid down a blueprint that has shaped organization thinking for

almost a century.

Max Weber developed a theory based on authority relations and was he a pioneer in looking at

management and OB from a structural viewpoint. His theory is also known as bureaucratic theory in

management. he described an ideal types of organization and called it a bureaucracy. This was a

system marked by division of labor, a clearly defined hierarchy, detailed rules and regulations and

impersonal relationships. He wanted this ideal types construct to be taken as a basis for creating

organizations in real world. The detailed features of Weber’s ideal bureaucratic structure are a

follows:

1. Jurisdictional areas are clearly specified, activities are distributed as official duties (unlike traditional form where duties delegated by leader and changed at any time).

2. Organization follows hierarchical principle subordinates follow orders or superiors, but have

right of appeal (in contrast to more diffuse structure in traditional authority).

2. Intention, abstract rules govern decisions and actions. Rules are stable, exhaustive, and can be learned. Decisions are recorded in permanent files (in traditional forms few explicit rules or written

records).

3. Means of production or administration belong to office. Personal property separated from office property.

4. Officials are selected on basis of technical qualifications, appointed not elected, and compensated by salary.

5. Employment by the organization is a career. The official is a fulltime employee and looks forward to a lifelong career. After a trial period they get tenure of position and are protected from arbitrary

dismissal.

C. The Human Relations Movement

Since the industrialists of the early decades of the twentieth century followed Taylor’s lead and put

the emphasis on efficiency, it was some years before any significant attention was paid to the needs

and motivations of that other major factor involved in the work process – the workers. One of the



early pioneers of a view that actually people were central to the world of business was Mary Parker Follett. With this started the beginning of what may be termed as the Human relations Movement as

contributor to the field of OB

Follet believed that organizations should be based on a group ethic rather than on individualism. The

manager’s work was to harmonize and coordinate group efforts. Managers and workers need to look

at each other as partners. Therefore managers should rely more on workers’ expertise and

knowledge than on formal authority of their position to lead their subordinates. Thus in her writing

one can trace the importance of motivation and group togetherness , so much required in modern

day organizational situations.

Another major influence in the human relations movement came from the work of Chester Barnard.

Barnard viewed organizations as consisting of people who have interacting social relationships.

Barnard viewed organizational success in terms of fostering cooperation from various stakeholders

such as, employees and others like customers, investors, suppliers and other external

constituencies. Thus irrespective of excellent production systems, Barnard emphasized the need for

boundary spanning activities and development of skills and motivation of employees for

organizational effectiveness and success.

Elton Mayo is known as the founder of the Human Relations Movement, and is known for his

research including the Hawthorne Studies, and his book The Social Problems of an Industrialised

Civilization (1933). The research he conducted under the Hawthorne Studies of the 1930s showed

the significance of groups in affecting the behavior of individuals at work. However, it was not Mayo

who conducted the practical experiments but his employees Roethlisberger and Dickinson. This

helped him to make certain deductions about how managers should behave. He carried out a

number of investigations to look at ways of improving productivity, for example changing lighting

conditions in the workplace.

His findings were that work satisfaction depended to a large extent on the informal social pattern of

the workgroup. Where ever norms of cooperation and higher output were established it was due to a

feeling of importance. Physical conditions or financial incentives had little motivational value. People

http://en.wikipedia.org/wiki/Hawthorne_Studieshttp://en.wikipedia.org/wiki/1933



will form workgroups and this can be used by management to benefit the organization. He concluded

that people's work performance is dependent on both social issues and job content. He suggested a

tension between workers' 'logic of sentiment' and managers' 'logic of cost and efficiency' which could

lead to conflict within organizations.

Summary of Mayo's Beliefs:

Individual workers cannot be treated in isolation, but must be seen as members of a group.

Monetary incentives and good working condition are less important to the individual than the need to

belong to a group. Informal or unofficial groups formed at work have a strong influence on the

behavior of those workers in a group Managers must be aware of these 'social needs' and cater for

them to ensure that employees collaborate with the official organization rather than work against it.

Another contributor whose work revolutionized thinking about workplaces was Dale Carnegie.

His book How to Win Friends and Influence people is a classic which is referred by management

experts even today. His main theme centered on the idea that the way to success was through

winning the cooperation of people. He advised:

1. To make others feel important through a sincere appreciation of their efforts 2. Seek to make a good impression 3. Win people to your way of thinking by letting others do the talking, being sympathetic and never

telling others that they are wrong

4. Change people by praising their good traits and giving chance to others to save their face

The next contributor who influenced the human aspects of management in workplace was Abraham Maslow. Maslow proposed the need hierarchy theory (physiological, safety, social esteem and self

actualization needs) and stated that each step in the hierarchy must be satisfied before the next can

be activated and once a need was substantially satisfied, it no longer motivated an individual. Self

actualization was the ultimate goal of human existence. Managers who accepted this hierarchy

theory attempted to alter the organization and management practices to reduce barriers to

employees’ self actualization Douglas McGregor was another contributor to the human relations movement. He formulated two

sets of assumptions – Theory X and Theory Y about human nature. Theory X posited a negative



view of people stating that this category have little ambition, dislike work, want to avoid responsibility

and need to be closely directed at workplace. Theory Y category on the other hand proposed a

positive view of people stating that they can exercise self direction, assume responsibility and

considered work as a natural activity. McGregor personally believed that Theory Y described best the

nature of people at work and therefore form the basis of all management practices in organizations.

Managers should give freedom to their subordinates in order to unleash their full creative and

productive potential

D. Behavioral Science Theorists

These theorists engaged in objective research of human behavior in organizations. Some of the

major theorists who contributed to the growth of OB as a discipline are briefly given below.

B. F. Skinner His research on conditioning (classical and operant) and behavior modification

influenced the design of organization training programs and reward systems. Behavior is a function

of consequence according to Skinner and he stated that people engage in a desired behavior only if

they are rewarded for it and less likely to be repeated if an individual is not rewarded or punished for

it

David McClelland his work has helped organizations to match people with jobs and in redesigning

jobs for high achievers in order to maximize their motivation potential. For example, people who have

undergone achievement training in India, have been found to work longer hours, initiate more new

business ventures, made greater investments in productive assets than those who did not undergo

such training

Fred Fiedler work in the field of leadership has contributed immensely to the growth of OB as a

discipline. His work on the subject is important since it emphasized the situational aspects of

leadership and attempted to develop a comprehensive theory of leadership behavior

Fredrick Herzberg his primary interest was in finding out answer to the question: what do

individuals want from their jobs? He concluded from his study that people preferred jobs that

provided opportunities for recognition, achievement, responsibility and growth. Only providing the



hygiene factors were insufficient to motivate people in work places. This work is significant to OB as

it has helped in enriching jobs and the quality of work life in modern organizations.

E. OB is present times

What is realized today is that no one theory by itself can improve organizational functioning and

effectiveness. What, therefore, is suggested is a contingency approach. While the 1960s and 70s

witnessed the development of new theories the efforts since then has been on refining existing

theories, clarifying previous assumptions and identifying significant contingency variables. The

emphasis today is on understanding the situational factors and how they influence a behavior pattern

of individuals in organizational contexts.

Landmark publications on organizational behavior

» 1911: Frederick Taylor: Principles of Scientific Management » 1916: Henri Fayol: General and Industrial Management » 1924: MaxWeber: The Theory of Social and Economic Organization » 1933: Elton Mayo: Human Problems of an Industrial Civilization » 1938: Chester Barnard: The Functions of the Executive » 1954: Abraham Maslow: Motivation and Personality » 1956: William Whyte: The Organization Man » 1959: Frederick Herzberg: The Motivation to Work » 1960: Douglas McGregor: The Human Side of Enterprise » 1964: Robert Blake and Jane Mouton: The Managerial Grid » 1973: Henry Mintzberg: The Nature of Managerial Work » 1978: Chris Argyris and Donald Schon: Organizational Learning » 1979: Reg Revans: Action Learning

» 1981: Richard Pascale and Anthony Athos: The Art of Japanese Management » 1982: Tom Peters and Bob Waterman: In Search of Excellence » 1984: Meredith Belbin: Management Teams » 1985: Edgar Schein: Organizational Culture and Leadership » 1986: Gareth Morgan: Images of Organization



» 1989: Charles Handy: The Age of Unreason » 1990: Peter Senge: The Fifth Discipline » 1990: Richard Pascale: Managing on the Edge » 1993: James Champy and Mike Hammer: Reengineering the Corporation 1995: Karl Weick: Sensemaking in Organizations » 1997: Arie de Geus: The Living Company » 1997: Thomas Stewart: Intellectual Capital » 2000: Richard Pascale: Surfing the Edge of Chaos

»2001: Daniel Pink: Free Agent Nation


1. Adam Smith stated that organizations and society would reap from the __________ of labor

2. Taylor has proposed ____________ principles of management.

3. Fayol has proposed _______________ theory.

2.4 Contributing Disciplines To The OB Field Organizational behavior is an applied behavioral science that is built upon contributions from a

number of behavioral disciplines. The main areas are psychology, sociology, social psychology,

anthropology, and political science.

Psychology :

Psychology is the science that attempts to measure, explain, and at times change the behavior of

humans and other animals. Early industrial/organizational psychologists were concerned with

problems of fatigue, boredom, and other factors relevant to working conditions that could disrupt/

impede efficient work performance. More recently, their contributions have been expanded to include

learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational

forces, job satisfaction, decision making processes, performance appraisals, attitude measurement,

employee selection techniques, work design, and job stress.



Sociology

Sociologists study the social system in which individuals fill their roles; that is, sociology studies

people in relation to their fellow human beings. Their significant contribution to OB is through their

study of group behavior in organizations, particularly formal and complex organizations.

Social Psychology

Social psychology blends the concepts of psychology and sociology. It focuses on the influence of

people on one another. The major challenge deals with the issue of how to implement it and how to

reduce barriers to its acceptance.

Anthropology

Anthropology is the study of societies to learn about human beings and their activities.

Anthropologists work on cultures and environments; for example, they have aided in understanding

differences in fundamental values, attitudes, and behavior among people in different countries and

within different organizations.

Political Science

Political science studies the behavior of individuals and groups within a political environment. It

focuses on areas, such as, conflict, intraorganizational politics and power. Self Assessment Questions 3

1. _______________ is the science that attempts to measure, explain, and at times change the

behavior of humans and other animals.

2. _______________ blends the concepts of psychology and sociology.

3. Political science studies the behavior of individuals and groups within a ________________ environment.

2.5 Summary Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups,


organizations work more effectively. Specifically, OB focuses on how to improve productivity, reduce

absenteeism and turnover, and increase employee citizenship and job satisfaction. An organization



is more than a formal arrangement of functions, more than an organization chart, more than a vision

statement, more than a set of accounts. An organization consists of people and so it is also a social

system. The field of organizational behavior (OB) draws primarily from the behavioral science

disciplines of psychology, social psychology, and cultural anthropology. The areas on which OB

focuses are individuals who will often be working within groups, which themselves work within

organizations, as well as all the interrelationships between them. Some of the specific themes

embraced by OB are personality theory, attitudes and values, motivation and learning, interpersonal

behavior, group dynamics, leadership and teamwork, organizational structure and design, decision

making, power, conflict, and negotiation. OB is an interdisciplinary field, it has distinctly humanistic

outlook, it is performance oriented, it considers external environment as critical, it uses scientific

method and it has an applications orientation. Wood (1997) provides a useful model for exploring

behavioral events. He suggests that different levels of analysis can be applied when examining the

significance of an organizational issue. He proposes eight, namely: Individual, Team, Intergroup,

Organizational, Interorganizational, Societal, International, and Global. A large number of people

have contributed to the growth of OB as a discipline. Some of the most important works have been

done by Adam Smith, Frederick Taylor, Henri Fayol, Max Weber, Mary parker Follet, Abraham

Maslow, B. F. Skinner, to name a few. Organizational behavior is an applied behavioral science that

is built upon contributions from a number of behavioral disciplines. The main areas are psychology,

sociology, social psychology, anthropology, and political science.

Terminal Questions

1. Discuss Taylors’ scientific principles of management.

2. Explain Fayol’s administrative theory.

3. What is Weber’s ideal bureaucratic structure?

4. Summarize Mayo’ belief.

Answers to Self Assessment Questions Self Assessment Questions 1 1. Social

2. Cooperative

3. Interdisciplinary



Self Assessment Questions 2 1. Division

2. Scientific

3. Administrative

Self Assessment Questions 3 1. Psychology

2. Social psychology 3. Political

Answers to Terminal Questions





Foundation Of Organization Behavior Unit 3


Unit 3 Foundation Of Organizational Behavior

Structure

3.1 Introduction

Objectives

3.2 Biographic characteristics


3.3 Ability


3.4 Summary

Terminal Questions


3.1 Introduction

Organizational Behavior emphasizes on intellectual capital as represented by the sum total of

knowledge, expertise, and dedication of an organization’s workforce. It recognizes that even in the

age of high technology, people are the indispensable human resources whose knowledge and

performance advance the organization’s purpose, mission, and strategies. Only through human

efforts can the great advantages be realized from other material resources of organizations, such as,

technology, information, raw materials, and money. A Fortune survey (1998) of America’s most

admired firms reported that “the single best predictor of overall success was a company’s ability to

attract, motivate, and retain talented people.”

Learning objectives


1. Biographic Characteristics

2. Ability

Foundation Of Organization Behavior Unit 3


3.2 Biographic characteristics

Finding and analyzing the variables that have an impact on employee productivity, absence,

turnover, and satisfaction is often complicated. Many of the concepts—motivation, or power, politics

or organizational culture—are hard to assess. Other factors are more easily definable and readily

available—data that can be obtained from an employee’s personnel file and would include

characteristics, such as:

1. Gender

2. Age

3. Marital status

4. Tenure. 1. Gender

Men and women exhibit no consistent differences in their problemsolving abilities, analytical skills,

competitive drive, motivation, learning ability, or sociability. However, women are reported to be more

conforming and to have lower expectations of success than men do. And, women’s absenteeism

rates tend to be higher than those of men.

2. Age

The research findings concerning age are important given the aging of the workforce. People 50

years old and older account for 85 percent of the projected labor force growth between 1990 and

2005 (American Association of Retired Persons, 1995). Older workers are susceptible to being

stereotyped as inflexible and undesirable in other ways. In some cases, workers as young as age

forty are considered to be “old” and complain that their experience and skills are no longer valued.

On the other hand, small businesses in particular, tend to value older workers for their experience,

stability and low turnover. Research is consistent with these preferences and also shows lower

avoidable absences (Mayrand, 1992).

3. Marital Status

There are not enough st

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