ORGANIZATIONAL BEHAVIOR

OBPrescribed book

Organizational Behavior9th Edition Fred Luthans

Syllabus Ch 1,2

4-912-1417

Internal Marks 50

> Quizzes 10 > Assignments 10 > Class participation / attendance 05 > Mid term Test 25

External 50

Total 100

Pass percentage 50

Semester Work load Quizzes 6 ( 3 each before & after mid term ) Assignments 2 ( 1 each before & after mid term ) Midterm Test 1 ( in 7th week ) Terminal Exam 1 ( in 15th week )

Attendance A minimum of 11 classes must be attended

Evaluation

Mid Term Test Will be of one hours duration, and will be fallowed

by lecture. Result will be announced next week.

Sessional MarksWill be announced in the last class before

terminal exams. Terminal Exam Paper

Will be of 3 hours duration canting approx 14 question of which at least 9 will have to be attempted.Exam will be held according to date sheet from 2 to 5 pm.

ORGANIZATIONAL BEHAVIOR

is defined as:-

The understanding , estimation and management of human behavior in organization.

MANAGEMENT The process of getting activities completed efficiently and effectively with and through

other people.

It is manipulation of resources to achieve objectives.

resources men

money

material

machine

man is the most important resource.

BEHAVIOR

A manner of acting or conducting.

The way one conducts oneself.

ORGANIZATION

A formal intentional structure of positions, roles and functions to achieve organizational objectives.

Why Study OBStudy of OB provides specific, necessary

background and skills to make managers effective with the human dimension of management.

BEHAVIOR CHANGE CAUSES

Change in Working Conditions / surroundingPersonalityAttitude PerceptionEthics, values, beliefs, norms,MotivationNeedsStress Anger Happiness

METHODOLOGY FOR STUDY

• Experimental Studies– Hawthorne Studies

• Scientific Perspective– Starting with theory– Use of research– Validity of studies

THEORETICAL FRAMEWORKS

• Cognitive

• Behavioristic

• Social cognitive

COGNITIVE FRAMEWORK

• Cognition is the act of knowing an item of information.

• Knowing, perceiving, conceiving as an act distinct from emotion and sentiments.

BEHAVIORISTIC FRAMEWORK

• Use of conditioning experiments to formulate

• This method is environmentally based.

SOCIAL FRAMEWORK

People are self-aware and engage purposeful behavior

People learn about their environment, and then alter behavior.

ORGANIZATIONIt is a formalized intentional structure of roles and position.

It is a structure or network of relationships among individuals and position in a work setting, and the processes by which the structure is created, maintained and used

It is a deliberate arrangement of people to accomplish some specific purpose.

Characteristics of Org.

1. Distinct purpose

2. Deliberate structure

3. People

Org. System

System : is a set or inter–related and inter-department parts arranged in a manner that produces a unified whole.

• Open system• Close system

Open System

A system that is dynamic and interacts with its environment.

Closed System

A system that is not influenced by or does not interact with its environment.

ORG. STRUCTURE

A frame work of an org. expressed by its degree of complexity, formalization and centralization.

ORG. DESIGN

The development or changing of an organizational structure.

FORMALIZATION

The degree to which an organization relies on rules and procedures to direct the behavior and work of its employees.

CENTERALIZATION

The concentration of decision –making authority in upper management.

DECENTERALIZATION

The handing down of decision – making authority to lower levels in an organization.

DEPARTMENTALIZATION

The process of grouping individuals into separate units or departments to accomplish organizational objectives.

DEPARTMENT

A Department designates a distinct area, division or branch of an organization over which a manager has authority for the performance of specified activities.

PROCESS OF ORG.STEPS1. Establishing objective2. Formulating supporting plans & policies3. Identifying activities necessary to accomplish these

(1&2 above)4. Grouping these activities in the light of human and

material resources available and to the best way of using them.

5. Delegating to the head of each group the authority necessary to perform the activities.

6. Tying the groups together vertically and horizontally through chain of command and flow of communication.

PURPOSES OF ORG.

• Divide work to be done into specific jobs & departments

• Assign tasks and responsibilities associated with individual jobs

• Coordinate diverse organizational tasks • Clusters jobs into units• Establish relationships among individuals ,

groups and departments• Establish formal lines of authority • Allocate and deploy organizational resources.

TYPES OF ORG.

• Mechanistic

• Organic

• Team-based

• Boundary-less

• Matrix

• Strategic Business Unit

MECHANISTIC ORG.(Bureaucracy)

A structure that is high in complexity, formalization and centralization

• Permanent

• Shared responsibility

• Work by the book

ORGANIC ORG. (Adhocracy)

A structure that is low in complexity , formalization and centralization .

• Transient

• Adhocism

• Creative

TEAM-BASED ORG.

A set up made of work groups or teams that perform organization’s work.

BOUNDARY – LESS ORG.

A set up whose design is not defined or limited to boundaries imposed by a pre- defined structure

Also knows as Network org, modular or virtual org.

MATRIX ORG.

A set up that assigns specialists from different functional departments to work on one or more projects that are led by a project manager.

STRATEGIC BUSINESS UNIT(SBU)

A set up for a single business that is independent of main organization and formulates its own strategy.

• Unique mission

• Specialized competitors

• Separate plans / resources

SET UP OR ORG. Vertical

Horizontal

Vertical

• Many tiers (levels)

• No of subordinates three or less than three

Horizontal

• Few tiers

• No of subordinates six or more than six

Vertical Set up

Advantages• Close supervision• Close control• Fast communication

Disadvantages• Many level of management• Excessive distance between the top & lowest level• Close involvement by superiors in work of subordinate• High cost due to many levels

Horizontal Set upAdvantages• Superiors are obliged to delegate• Clear policies are made• Subordinates are carefully selected

Disadvantages• Overloaded superiors become decision

bottlenecks• Superiors may lose control• Over all work suffers

Culture

Culture is the general pattern of behavior, shared beliefs, values, and norms among members of a society.

Org. Culture

It pertains to the values and beliefs shared by employees of an org. and the general pattern or their behavior.

Manifestation of Org. Culture

• Formal rules and procedures

• Formal code of behavior

• Rituals, traditions, customs

• Jargon, jokes

• Formal dress code

• Pay & benefit systems

Creating Org. Culture

• Birth of a new enterprise

• Creation of a core management group

• Sharing of common vision amongst the CMG

• CMG begins to act in concert and develop dominant values, philosophy norms and org. climate etc.

Maintenance of Org. Culture

Steps of Socializations

• Selection of entry – level personnel

• Placement on the job

• Job mastery

• Measuring and rewarding performance

• Adherence to important values

• Recognition and promotion

Changing of Org. Culture

Requirement

• External environment has drastically changed

• Merger

• Internal environment changes

Guidelines for changes

• Assess the current culture.• Set realistic goals that impact an bottom line.• Recruit outside personnel with appropriate

industry experience.• Make changes from the top down.• Include employees in change process.• Removal all old cultural reminders.• Anticipate problems and take care of them.• Move quickly to bring changes.• Pe persuasive and persistent.

ORGANIZATIONAL REWARD SYSTEM

Money is the positive reinforcer•Money as a reward•Effectiveness of pay•Method of Administering of pay•Pay for performance•Now pay techniques•Organizational recognition

Effectiveness of Pay

Basic need Pay and morale Pay vrs efficiency Pay vrs power & status Pay vrs expected outcomes

Method of Administering Pay

• Base pay• Merit pay• Pay for performance

Base pay : determined by market condition

Merit pay : tied to some pre – determined criteria

Pay for performance : Individual performanceGroup performance

New Pay techniques

Standard pay technique provides for minimum compensation for a particular job. It does not reward above – average performance nor does penalize below average performance.

Commissions beyond targets Rewarding leadership effectiveness Rewarding new goals Pay for knowledge Skill pay Competency pay Broadbanding

NON – FINANCIAL REWARD

Social rewards Feed back as a reward Job related rewards

Social Rewards

Consumables Manipulatables Visual and auditory Socialability

Feed back as a Reward

Feed backup enhances individual performance

Positive Immediate Graphic

Job Related Rewards

More responsibility New title Special assignments Authority to schedule own work Flexible hours Participation in decision making Knowledge training

Recognition as an organizational Reward

Recognition Vrs Money More important Not time bound / anytime Many forms

• Formal Recognition

• Social recognition

Traditional Benefits

• Required by law• Organization given

• Old age benefits• Disability insurance• work compensation• Medical cover• Pension / gratuaty• Paid leave• Life insurance / group insurance

Newer Benefits• Wellness program• Life-cycle benefits• Flexible cafeteria-style benefits• Shopping benefits• Legal services• Schooling (in org / company run schools)• Jobs (in above, for wives/ sons/ daughters)• Recreational benefits• Home / auto loans