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Organisation Behavior

OB Investigates impact that Individuals, Groups & Structure have on organisational functioning,in a given context

Builton contributions from

Psychology (seeks to measure, explain & sometimes change human behaviour) [Individual]

Sociology (study of people in reln to social environment/culture) [Group]

Anthropology (study of societies/cultures to learn about human behaviour) [Org System]

Political science

Study of OB

Intuition

Systematic Study Role of Theory

What Managers Do Management Functions Plan, Organise, Lead & Control

Management Roles

Imformational Monitor, Disseminator, Spokesperson

Interpersonal Figurehead, Leadership, Liaison

Decisional Entrepreneur, Disturbance Handler, Resource Allocators, Negotiator Management Skills Technical Skills(SME), Human

Skills(understand/communicate/motivate) & conceptual skills(analyse and diagnose)

Managerial Skills

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There Are Few Absolutes in Behavior

Contingency variables

that moderate the relationship between two or more other variables and improve the correlation

(People behave differently under different conditions/variables. One in a party behaves differentfrom one in a religious place)

Images of Organisation

Organizations as MachinesTerm organization derived from Greek word organon meaning tool or instrument

Efficient

ReliableControl systems

Documentation

Code of conduct

Routines & standardization to reduce uncertainty

Suppress spontaneity, innovation & change

Organizatons as Cultures Rituals, core values, stories, behavior patterns

Relationships

Decision-making

Management style

Organizatons as Psychic Prisons

Organisations stimulate & bring out pathological tendencies/neurotic impulses in an acceptable

form

White collar crime

Deceipt

Political games

Exploitation

Obedience to authority

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Organizatons as Living Systems

Show predictable sequence of growth like livingbeings

Primary goal is survival & adaptation

Must interact with environment to survive

Organizational adaptation is not automatic: moderated by cognitive acumen of itsmembers

Organizatonal EffectivenessResource-based Approach: ability to secure, manage &control scarce/ valued skills & resources

Goal Approach: productivity, efficiency, measurable goals

Internal Process Approach: ability to innovate & respond

Stakeholder Approach

Owners Financial return

Employees Satisfaction, pay, supervision

Customers Quality of goods & services

Creditors Creditworthiness

Community Social responsibility

Suppliers Abiding laws & regulationsGovt/

external agencies

Personality & Individual Behavior

I am like all other people

I am like some other people

I am like no other person

Nature vs NurtureP=f ( H x E x S)

Relevance of Understanding Personality?

Sum total of ways in which an individual reacts and interacts with others

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Personality Traits that Influence Work Behavior

Cognitive Style- Decision- Making, Taking Risk, Dogmatic, Flexibility

Emotional Stability- Self Efficacy, Secure, Balanced, Anxious, Neurotic Tendencies, Hostile

Ascendant Tendencies- Assertive, Dominating, Machiavellian, Submissive

Interpersonal Style- Sociable, Detached, Responsive, Empathetic,Team Worker, Networking

Self-Monitoring: Adjusting to external /situational factors, Ability to play Multiple (& contradictory)

Roles

Type A Personality Sense of urgency, multitasking, obsessed with nos./measuring

Psychological Processes

Self Esteem

Emotional Stability

Locus of Control

Locus of ControlExternal

Influenced by fate & others

Low self-direction

Cautious in trying new approaches

Express greater dissatisfaction with job, orgn, and superior

Use defenses to cope with inadequacies

Often feel helpless

Become cynicalInternals

Self-reliant, self-directed

Accept responsibility for own growth & career development

Confident

Higher risk- taking

Self blaming

Achievement oriented

Higher perseverance

RoleTaking vs. Role Making

Do People Change?

Strong impulse to grow

Self-fulfilling prophesy - I think I am & therefore I am

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Obstacles to Growth

Safety Growth

Captives of the Past " I have always been this way"

Tendency to rationalise, justify (Defenses)

Low self-esteem

Being a critic rather than a doer

Fear of Failure

Head Tapes

Positive I can

Ill make it work

This is my right

My needs are important

Im not old

Negative Others are better

What will others say?

I must not fail

I cant

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Emotional Intelligence & Interpersonal Relations

Anyone can be angry that is easy.

But to be angry with the right person, to the right degree,at the right time, forthe right purpose, and in the right way-that is not easy

Aristotle We hire attitudes and train for skills

Rising stars flamed out not because they lacked technical abilities, but because of interpersonal flaws

Intelligence gets you hired; relationships get you a promotion

Primary causes of executive derailment: difficulty in handling change, not working well in team & poorinterpersonal relations

CEOs may have been hired for their skills, but get fired for their personalities (India inc gives CEOs somecoaching (ET Dec. 06)

Intelligence

Logical Intelligence (IQ)

Linguistic Intelligence

Musical Intelligence

Spatial Intelligence

Interpersonal Intelligence (EQ)

Emotional Intelligence Ability to detect and manage emotional

cues and information1. Ability to u n d e r s ta n d y o ur em o tio ns - what causes them

2. Ability to e x p r e s s fe e li n g s , when & whe r e to

express & ho w they effect others

3. Ability to lis ten to ot h e r s & empathize with their emotions

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Four Competencies of Emotional Intelligence

Skills in collaboration & building relationships

Ability to take initiative

Drive to achieve results

Ability to lead teams

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Leadership1. Success of Leaders is dependent on howthey do something2. Whether they are upbeat, enthusiastic & move us or3. whether they are negative, passive, aggressive & take away our enthusiasm or cause

distress

People will forget what youSAID

People will even forget what youDIDBut they may never forget how you made them

FEEL

B.J.Wasmund

Interrelationship betwn Behavior, Attitudes & ValuesSelf concept in the centre of the circle, values, attitudes and

behaviour flowing outwards.Values Judgmental basis

Attitudes Feelings toward a person/situation

Behavior Actions/Outcome

Self Concept & BehaviorPositive Self-

conceptResilient

face setbacksOpen to criticism

Can level with authority

Likely to think well of

others Behavior

Confident, Self-assured

Comfort with new people /new situations

Long lasting positive relationships

Low Self-esteem

Defensive, Fearful,

Hesitant Self-destructive

behavior Seek approval

of others Authority

issuesBehavior

Low

initiative

Compliance

Resistance

to change

Rebellious

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Values, Attitudes & Behavior

Values: Judgmental. Basic conviction that a specific mode of conduct or end state of existence is

personally orsociallypreferable to an opposite or converse mode of existence

Attitude: Feelings towards person / event /situation

Behavior: Action, outcome

Types of Attitudes

Job Satisfaction

Feelings toward the job. Leads to improved performance & retention. Recruitment policies, placement

practices, development schemes etc. contribute to JS

Job Involvement

Identifying with job, actively participating in it & considering performance important to self-worth

Organisational Membership - acceptance & willingness to achieve values & goals of orgn

Application Attitude Surveys

Job Satisfaction

Organizational Citizenship Behavior

(OCB)

engaging in behaviors that go beyond the

normal expectations of the job

Where to Start

Simple acts of mutual acceptancePay attention to own & others feelingsTake responsibility for own emotions & behavior

Managing Superior Understand superior from his perspective Dont hide important information Dont give message of being an out- group member Dont be a rebel without a cause Help superior succeed Dont sound like a complainer Dont expect the superior to be perfect

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Perception is a personal construct

World view influenced by several factors

The eyes see but the mind evaluates

Peoples behavior is based on their perception ofreality, not on reality itself

Selective Perception

I n t e r n al F a c t o rs

Learning: past experience, background

Expectations: Self-fulfilling Prophesy

Personality: traits, attitudes, beliefs

S i t u a t ional Fa c t ors

Position in organisation

1. Attribution Theory

1. Individuals are motivated to understand the cause of their own & others behavior2. Assign different causes for success & failures for Self & for Others

3. Tendency to underestimate influence of external factors and overestimate influence of internal factors whenmaking judgments about others failures

4. Tendency to attribute own success to internal factors & place blame for failures on external factors

2. Stereotyping (Judge on the basis of our perception)[shortcut perception]

3. Halo Effect (Drawing a general impression on the basis of a single characteristic)

4. Contrast Effect (In entertainment Never follow an act that has kids or animals)

(Necessary for economy of perception, but if not cautious , often leads to

preconceived ideas & biases)

Reducing Perceptual Errors Not jump to conclusions Collect more information / data / facts Analyse own assumptions & biases while making decision

Applications in Organizations

Decision Making during

Interviews

Performance Appraisal / Rewards

Managing Impressions

Self

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Organisation

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Rational Decision-Making Model

1. Recognise & define problem

2. Identify & weigh criteria

3. Search for information

4. Generate alternatives

5. Take optimal decision

Assumptions of Rational Decision-Making

Problem clarity

Option are known Individuals have clear preferences Preferences are constant No time or cost constraints while making a decision

How Decisions Are Actually Made

Limited perspectiveJudgmental biases - past experience, shortcuts to reduce demands of processing information Individuals make decisions by simplifying the process Extract essential features of a problem/issue without capturing all its complexity

Outcome?

Choosing a decision that is good enough Satisficing

Bounded Rationalitythe idea that in decision-making, rationality of individuals is limited by theinformation they have, the cognitive limitations of their minds, and the finiteamount of time they have to make a decision.

Common Errors in Making Decisions

Overconfidence- Believing too much in own decision taking capabilities

Anchoring- Fixating on early, first received informationConfirmation - Using only the facts that support our decisionAvailability - Using information that is most readily at handEscalation of Commitment- Increasing commitment to a previous decisionin spite of negative information

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Group Dynamics

Types of Groups

Formal group (defined by org structur with dedicated

work assignments establishing tasks. E.g. flight crew of

an airplane

Informal group (natural formation e.g. 3 emploeees

from diff depts.)

- Command group determined by org chart

- Task group people working together to complete a task

- Interest group people working together to attain aspecific objective which all are concerned with

- Friendship group share one or more common

characteristics

SOCIAL IDENTITY THEORY Perspective that considers

when and why individuals consider themselves members of a

group.

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Analysing Structure of Groups

Content vs. Process

Leadership

Rules

Norms

Roles

Cohesiveness

Groups Influence Individual Behavior & Judgment

Social Facilitation

Social Inhibition

Social Loafing

Self Handicapping

Conformity

Group Decision Making - Assets

Greater knowledge and facts

Broader perspective/alternatives on issues

Greater satisfaction with & support of decisions

Better problem comprehension

Increased communication

Group Decision Making - Liabilities

Less speed

Individual domination

Compromise may damage quality of decision

Ambiguous responsibility/Premature decisions

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i

Power & Influence

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c

Organisational iceberg

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Individual & Organisation

Individuals need to respond not only to formal, rational organisation but also to informal, irrational &political aspects of organisation

Organisation does not change itself for each individual

Individual has more control over self than over the organsiation

Power & Influence

Authority is the Right to seek compliance

Power is the Ability to secure compliance

Sources of Power

Legitimate Power Reward Power

Coercive Power

Information Power

Expert Power

Charismatic Power

Symbols of Power

Get work done on own terms

Access to early information

Ability to intercede for someone in trouble

Ability to get favors for employees Exceed budget limits

Procure above-average raises for employees

Seniors seek their opinion

Formal authority to control and use organisational resources

based on structural chan es

. Someone who distributes rewards(raise/bonus)

. A lication/threat of a of h sical sanctions

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.

Influence: An Interplay of

Reputation

Credibility Capability Professional Standing Eminence

Recognition

Networking Managing Relationship Affiliations Membership Associations

Recognition and Reputation

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Managing Politics

Reduce uncertainty

Open communication

Setting objective criteria for rewards

Awareness of causes & consequences of political behavior

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