Organizational Behaviour2

7/30/2019 Organizational Behaviour2

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ORGANIZATIONAL

BEHAVIOUR

Dr. Pramod M



What is mgmt

Management knowing exactly what u want to do

it is done in the cheapest and best way.

4 aspect-

economic performance-

Directing people-

Decision making-

Executive functions-

high operation efficiency

making people work

making decisions

POSDC

Art of

Seeing

that

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Nature and characteristics of

mgmt-

Nature and

characteristics

of mgmt-

It is an abstract phenomenon- cannot beseen or touched

Mgmt is a process- series of interrelated

activities in sequence-POSDC

Integrates activities

Goal oriented- achieves goals with givenresources and time

Working with and through people-leading and motivating people

Decision making- success depends onquality and timeliness of decisions

Universal and multi disciplinary

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Is mgmt an art or science?

ART

SCIENCE

practical knowhow

Needs experience

Needs creativity

Personal element knowledge developedsystematically

Fact based

Impersonal and unbiasedresults

Clarity of concepts

Empirical evidence

Universal

Cause and effectrelationship

ARTFUL

SCIENCE

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Levels in mgmt

Top level

BOD, CHAIRMAN,CEO’S:- Determine objectives, policies, rulesand procedures , Analyses and evaluate businessenvironment and responses , Finalize strategic decisions ,Decide structure , Deal with legal , financial and tech issues

Middle level

upper middle level and lower middle level:- Dept heads-efficient functioning of their respective dept, they planoperations, guide employees, coordinate efforts, manageresources, maintain relations , Deputy mgrs- they assist UML

Bottom level

Supervisor, sales officer :- more relevant to production/operation and marketing activities , Prepare and implementplans for day to day activities , Maintain discipline , Managematerials and facilities , Report performance and problems

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Classification of mgmt functions-Planning-

planning function,thinking process,

determines what to do,why to do, when to do,how to do, who to do,best solution amongalternatives, forecastingand DM

Organizing-

depends on the type ofplan, defines thestructure, people, task,responsibility, authorityof a particular plan.Determines theactivities, groups.prepares the

organization charts andmanualsStaffing-

filling the positionscreated by organizing,acquiring , maintainingand developing HR for

the smooth function ofvarious operations,manpower planning,selection andrecruitment, T and D,wage and salarydetermination,

promotion and transfer,performance apprise.

Directing-instructing, guiding,inspiring, supervisingpeople to make themwork, leadershipqualities, motivation,communication ,supervising arenecessar .

Controlling-

critical/ regulatoryfunction, ensures theplan has beenimplementedsuccessfully and the

objectivesaccomplished.Corrective actions aretaken. Planning ismeaningless without aproper control andcontrolling is notpossible without a good

lan.9/2/2013 6



Mgmt objectives and roles

Mgmt objectives

Social,

national.

human

economic

Managerial roles views of MINTZBERG

10 rolesin 3 sets

Decisional

Informational

Interpersonal

entrepreneur,disturbance handler,resource allocator,

negotiator

monitor, disseminator,spokesperson

figurehead, leader,liaison

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Schools of mgmt thought

The different views on mgmt given by experts are known as

mgmt thought and the teams of persons who develop thesethoughts are known as schools of mgmt

Classification of

SMT

Modern school

Neo classical school

Classical school

scientific mgmt, administrativemgmt

behavioral and humanrelations school

system school, social systemand social tech system school,contingency school

Others

empirical, mgmt process,decision theory ,

mathematical, HR school9/2/2013 8



Classical School

Contributors-

FW Taylor, Henri Feyol, Gilberth, Gantt

Scientific mgmt

Classical school-

FW Taylor considered as thefather of scientificmgmt

Gantt chart by Gantt- graphicalrepresentation of duration oftasks against time.

Work study and psychology ofwork by gilberth,

division of labor, time studytechniques, quality control bycharles baggage,

importance of productivity andway to improve it by FW tylor.

FW tylor was the first to definemanagerial problem in ascientific way.

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Elements of SMSeparation of planning anddoing-

Elements

of SM

Job analysis- best way ofdoing a job

Differential wage system-

Cooperation , not chaotic individualism

Harmony in group not discord

Standardization

Scientific selection andtraining

Mutual revolution-

Financial incentives

Economic perspective-

Replacing rule of thumb with science

functional foremanship

Time study, motion study,method study, rest andfatigue study

associate wages with

productivity

mutual cooperation betweenmgmt and workers

increase efficiency bydecreasing cost and wastage

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Administrative Mgmt

Administrative

mgmt

Henry fyol is consideredthe father ofadministrative mgmt

He classified adm. Mgmt into 4 groups-

Managerial qualities:-

elements of mgmt:-

classification of business activities:-

general principles of mgmt:-

:- technical, accounting, commercial, financial,managerial, security

physical, mental, moral, educational, technical,experience

division of labor, authority and responsibility,discipline, unity of command, unity of direction,subordination of individual to general interest,remuneration, centralization, scalar principle,

order, equity, stability, initiative, esprit de corps

planning, organizing, commanding, coordinatingand controlling

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Neoclassical school

Very similar tobehavioral school ofmgmt

Neoclassical school pioneered by Elton

mayo and team-hawthorn experiments

Highlights the importance of human factors in

organization, the complex nature of humans atwork, the balance between inducements andcontributions

Main areas ofneoclassical school

Learning,

perception, attitude ,personality elements

Interpersonalrelations and inter group behavior

Leadership, motivation, communication

and supervision elements (LMCS)

Work design and org climate

Group dynamics

Change and conflictmgmt

Transactional analysisand ego state

also known as human

relation school

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Main points

M a i n p o i n t s

Directing techniques- LMCS- are veryimportant

Informal groups are very powerful anduncontrollable- they affect performance andrelations, informal communications andinformal relations are very necessary.

Solve human problems; make workers happy-which increases productivity.

Authority if not accepted, cannot makepeople work- participation, decentralization,recognition, and acceptance.

Makes mgrs to treat humans as valuableassets

Proper work climate is essential.

Behavior can be generated, studied, shaped,modified, and controlled. Mgr shouldsincerely try these to increase productivity.

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Modern school

Modern school focuses on more contemporary situations- problems,environmental forces and opportunities.

contingency schoolsystem school social system andsocial technicalsystem school

What is a system?

set of interrelated, interconnected and interdependentelements interacting continually both internally andexternally to form a complex entity

combination of many subsystems, and viewsorganization s a unified and purposeful system ofinterrelated parts

Classical school failed because it had a narrow vision, inability for integrationand inability to view mgmt as a whole.

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Modern school

Main highlights

Systems and subsystems interactcontinuously.

System generates synergy- partsworking as a system contributemore than if each of them worksindependently

System needs to be open, dynamic,

multi dimensional, amultidisciplinary

System is highly probabilistic

Pioneer of system school is Chester

Bernard

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Social / Social tech. system school-

Social systems school

Social technical

system school-

considers mgmt as a social system

gives importance to sociological

studies rather than psychological

studies as in behavioral school

More emphasis to social and cultural

relations and cooperation based

mgmt system

Need for formal and informal

communication is highlighted importance to informal groups is duly

noted.

- here mgmt study and practice are

not limited to social issues

The technology and production methods

affect the social system thereby affecting

the attitudes, satisfaction and behavior of

the workers.

Chester Bernard and vilfredo pareto

are the pioneers

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Contingency school

Implies that mgmt practices arepurely situational.

understand the environment andmake required adjustments oncontinues basis to develop and excel

most relevant and modern thought

Mgr is to identify which technique isthe beat for a particular situation ata given time

Best fit approach in one situationmay not be valid for another situation.

Joan woodward, mintzberg are themain contributors

The main situational factors areenvironmental, organizational andindividual..

Contingency school-

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Organizing

a systematic attempt

to divide work into activities

to group these activities

to assign activities and delegateauthority

to define and establish relationshipamong groups

to harmonize and coordinateefforts of people to achieve desiredresults effectively

Organization

that provides a basis for the implementation of plansand achievement of desired goals.

Organizing is a processwhereas

organization is a structure

is a structure of complexinterrelatedinterconnected parts

Organizing v/s organization

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Organizing process:-

Specifying objectives

Grouping activities

Determining activities to beperformed

Delaying authority

Assigning responsibilities

Establishing interrelationships

Preparing organizational chartsand manuals

Organizing

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Significance of an organization

Significance

Tool for mgmt action

Provision for all activities

Achievement of objectivesefficiently

Delegation of authority /

effective work assignment

Specialization

Clarity and reduced conflicts

Promotion of healthy relationsand creativity

Optimum use of resources

Reputation and good will

Better coordinating, satisfactionand morale

Flexibility and balance9/2/2013 20



effective organization

M a i n f e a t u r e s

Simplicitystructure should be simple tounderstand and free from

complications

Flexibility

capable of coping with the ever changing business environment.Easily able to make the necessarychanges both internal and external

Stability basic structure must be permanent

Suitabilitystructure should be suitable to theoverall conditions of the business

unit

Provision for topmgmt

top mgmt should be present toguide, supervise coordinate andcontrol the efforts of all dept

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M a i n f e a t u r e s

Human element

should be capable to meet humanneeds, motivate them and controltheir behavior to get things done in

an efficient manner

Specialization

similar types of activities performedunder one function which results inincreased efficiency

Scalar chain

clear and unbroken line of authorityfrom top to bottom which facilitatesspeedy action and better coordination

Unity of direction every subordinate should get

orders, direction and guidelinesfrom one superior and isresponsible to only that superior.Balance

there should be a balanced approachbetween responsibility andauthority.

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ff i i i




M a i n f e

a t u r e s

Absoluteness ultimate responsibility should befixed for the final outcome

Staff function proper use of staff members

Minimum levels

as far as possible there should beminimum levels which facilitatesmooth communication and lesscomplications

Span of control optimum span of control should be

maintained.

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O i ti t t



It is an effective mechanism that helps coordinate employee’s efforts for

accomplishing goals

K e y e l e m e n t s -

Vision and goal, Objectivesand targets

Span of control, Organizationclimate

Decision making, Formalrelation

Communication, Delegatingand decentralization

Leadership styles, Physicalfacilities, Human resources

Organization structure

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O i ti t t T



Types of organizationalstructures

Matrix

Entrepreneurial

Line

Line and staff

Functional

Project

Organization structure:- Types

Management by objectives

Management by exception

Management by participation

Management by situations Assignment

1

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O i ti l B h i



O r g a n i z

a t i o n a l

b e h a

v i o r

organizational- relatedto organization

behavior- observable /measurable responseand reaction.

Consists of two words

Systematic study of human behavior in anorganization for improving managerial decisionmaking and productivity

Its multidisciplinary psychology, anthropology,sociology, politics, economics.

Organizational Behavior

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Obj ti f OB



Objectives of OB

Objectives:-

To describe humanbehavior

To understand behavior

To predict behavior

To modify and control

behavior

OB is concerned with describing, understanding, predicting,shaping, modifying, identifying and controlling human behavior-individual or group- in an organization

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Ch t i ti f OB



Characteristics of OB

Characteristics-It’s a major part of mgmt,

Studies the relationship betweenbehavioral causes and resultingoutcomes

Multidisciplinary and universal

Input to decision making and not adirect solution to any humanproblems

Can study, shape, describe, predict,modify, control human behavior

Performance oriented

Systematic and scientific study of

humans at work

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Wh t i h t ?



What is human nature?

It refers to the distinguishing

characteristics which include

ways of thinking, feeling andcaring. It is always unpredictable

and difficult to comprehend.

Similarities and

dissimilarities in

individuals:-

Physical features-

Culture-

Psychologicalfactors

Sensation andinterpretation

Needs

Human virtues

Same type of organs

and systems

Different in looks and

strengths

Same culture

Different values

Same virtues

Different intensity and

meanings

Attitudes, motivation,

perception

Different according to

nature and situation

Same senses

Different interpretation

Same needs-

physiological, safety,

esteemIntensity and ways to

satisfy these needs vary

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I t f OB



Importance of OB

Importance of OB

Contributing disciplines

Most organizational problems are humanproblems and can be brought to an end by

understanding humans.

Helps analyze complex nature of humansat work, understands workforce andcultural diversity to improve performance

Avoids assumptions about people andsuggest right approach to manage them

Prevents/minimizes unexpected events,improves productivity, reduces wastages

Easily exercises motivation, leadershipcommunication and supervision activities.

Anthropology, psychology, sociology,social psychology, political science,

economics, IT9/2/2013 30

Diff t d l f t k



Different models of men at work

D

i f f e r e n t m o d e l s

o f

m

e n a t w o r k

Economic man- works for money,evaluates his effort, contribution andcommitment against money

Social man-likes to built, improve andmaintain social relations for satisfyingsocial needs like affiliation,belongingness, acceptance etc

Organization man- prioritizesorganizational needs over personalneeds. Committed and loyal to org,extends cooperation, involves ininteractions with others and keepsassociation with organizational

members

Self actualizing man- attempts to dosomething better, something differentand something special to remain selfsatisfied. Achievement is a source ofsatisfaction

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Diff t d l f t k



Different models of men at work

Man models at work—human behavior-----------------------------

group influence, mgmt influence, organization influence-----OB

Each successive model is an

extension of the previous onand not a replacement.

Emotional/ impulsive man- reacts immediately. Notcalculated or rational. Emotional or passionate

behavior

Compulsive man- exerts most desirable behavior,behaves deliberately and consciously to satisfyothers expectations. His behavior is regulated byoriginal policies, rules and personality aspects.

Behavior seems calculated t influence others

Complex man- difficult to understand or predict.Anytime a mix of above models. Behavior do not takeplace in a predetermined cause and effect manner.

D i f f e r e n

t m o d e l s o f

m e n a t w

o r k

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O i ti l lt



Organizational culture

Org culture It is a pattern of beliefs and expectations

shared by the members of the org.

The beliefs and expectations produce normsthat powerfully shape thebehavior of individuals and groups in an org.

Org culture includes:- Routine behaviors when people interact(rituals , ceremonies and languages)

Philosophy that guides the org

Dominant values held by the org(profit/service/quality etc)

Norms that are shared by the teamsthroughout the org(guidelines)

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Le els of organi ational c lt re



Levels of organizational culture

Exist in

different

levels,

which differ in visibility

and resistance tochange

Least visible or deepest level isshared assumptions:-

Next level is that of culturalvalues:-

Next level is that of shared

behavior:-

Most superficial level is that ofsymbols / artifacts :-

represents belief about the org

represents collective beliefs ,feelings and assumptions whichtend to persist over time

represents norms , easier to changeand visible

words, symbols, pic or gesturesthat have a particular meaning

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Developing Org culture



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Developing Org. culture

Formed inresponse totwo

challengesthatconfrontevery org

External adaptation andsurvival:-

Internal integration:-

how the org finds aupper hand in this ever changing competitivebusiness environmentMission and strategy, goals,

means and measurement

establishment andmaintenance of effectiveworking relationships

Language and concepts,group and team boundaries,power and status, rewardsand punishments

Members share knowledge and assumptions as they discover and develop way ofcoping with issues of external adaptation and internal integration.

Factors that shape org culture



12 casual factors which shape a company’s culture

Influence of a dominant leader History and tradition Technology products and services Industry and competition

Customers Expectations Information and control system Legislation and company environment Procedures and policies Reward and measurement system Org and resources Goals values and beliefs

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Factors that shape org. culture

maintaining Org Culture



Methods of maintaining org culture

What managers and teams pay attention to: - process andbehaviors, events that gets noticed and commented upon.

Reactions to incidents and crisis;-manner in which crisis aredealt with can either reinforce a culture or bring out a newone.

Role modeling, teaching and coaching:- incorporatingcultural aspects into training programs and day to daycoaching

Allocation of rewards and status:- what is rewarded andwhat is punished convey the priorities and values of theorg

Recruitment , selection, promotion and removal:-

Rites, ceremonies and stories:-

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maintaining Org. Culture

Changing Org Culture



Changing org culture

Very difficult as assessing the existing culture is complex,difficult and time consuming

Some org have more than one culture.. These multiplecultures are called subcultures

Mainly 3 types----operating culture, engineering culture andexecutive culture

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Changing Org. Culture

How to change Org Culture



How to change an org culture

Understand old culture thoroughly

Set realistic goals

Find the most effective subculture and use as an example

Make changes from top down

Include employees

Execute in small steps and not attacking head on

Resistance to cultural change = magnitudeof change * strength of prevailing culture

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How to change Org. Culture

Types of Org Culture



Org culture have some common characteristics,

Vertical axis reflects the relative control orientation:- stableto flexible,

Horizontal axis reflects the relative focus of attention:-internal functioning to external functioning,

Within these there are 4 pure types of org culture:-

Bureaucratic

Clan

Entrepreneurial

Market

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Types of Org. Culture




Bureaucratic:-

org that values formality, rules, std operating proceduresand hierarchical coordination

Long term concerns like predictability, efficiency andstability

Formal behavioral norms Managers will be good coordinators, organizers and

enforcers of written rules and standards

Clearly defined tasks, responsibilities and authorities

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Clan:-

Org values tradition, loyalty, personal commitment,socialization, teamwork, self management,

Workers understand that contributions to the org exceedbeyond contractual agreement or salary

Hold themselves accountable to the org Members take pride in their clan membership , strong

sense of identification and interdependence

Depending on the type of norms , this may or may notfoster risk taking behavior or innovation

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Entrepreneurial:-

It values risk taking, dynamism, creativity Always committed to experimentation, innovation

Creates change and quickly adapts to it

Effectiveness is measured by new and improved

products/services and growth Individual initiative, flexibility and freedom create growth

and are well rewarded

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Market:-

Org values achievement of measurable and demandinggoals especially those which are financial and marketbased

High competition and profit orientations prevail

Relationship between individual and org is contractual

Here org does not promise security and the individual doesnot promise loyalty

Absence of long term commitment – weak socializing

Superiors interaction – highly negotiating Often tied to monthly, yearly performance goals based on

profit

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Performance & Org Culture



Good culture can enhance org effectiveness, individualsatisfaction, and problem solving but if culture gets out ofhand effectiveness can be hindered.

Seen that culture and performance are directly related

Strong org culture

facilitates goal alignment:- few problems of coordination

and control, good communication, effective resourceallocation

High levels of employee motivation:-strong cultureencourages people to identify with it and incorporates

practices which make working for them rewarding. Helps effective problem solving:- due to strong norms ,

rituals ceremonies and stories, people can easily interpretissues and events and problems based on past experience

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Performance & Org. Culture

Managing Cultural Diversity



Org becoming very divers in terms of gender, race, ethnicityand nationality

This diversity can lead to improved DM, creativity andinnovation

These also bring great costs and concerns ***

Main guidelines:-

People should understand that diversity will bring in differentperspective and approaches to work- value the variety ofopinion and insights

Leader should recognize both the learning opportunities andchallenges this diversity represent

Should create an expectation for high performance

Should stimulate personal development , openness,importance,

Org should have a non bureaucratic structure

Managing Cultural Diversity

Documents

Organizational Behaviour2