Unit 2 Organizational Behavior

Unit 2Organizational Behavior

Smita Choudhary Faculty HR/OB

1 Organizational Behavior

Contents

IntroductionDefinitions of OBHistorical evolution

of OB as a disciplineContributing

disciplines to the OB field


Introduction Organizations need to develop their

interpersonal or people skills for being effective.Organizational behavior 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)OB concentrates on how to

Improve productivityReduce absenteeism and turnover Increase employee citizenship Increase employee job satisfaction


The field of organizational behavior takes extracts from the behavioral science disciplines like psychology, social psychology, and cultural anthropology.

Some basic ideas included in 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.


Learning Objectives

After this unit, you will be able to understand-----

Historical evolution of OB as a discipline

Contributing disciplines to the OB field


Definitions of OB

Organizations are defined as social arrangements, constructed by people, who can also change them.

----Buchanan and Huczynski (1997)Organizations are a system of cooperative activities

- and their coordination requires something intangible and personal that is largely a matter of personal relationships.

---- Barnard (1938)OB is concerned with “the study of the structure,

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

---- Pugh (1971)


OB is about----1. “the study of human behavior, attitudes and performance

within an organizational setting;

2. drawing on theory, methods and principles from such disciplines---

3. as psychology, sociology, and cultural anthropology to learn about individual perception, values, learning capabilities, and actions

4. while working with groups and within the total organization;

5. analyzing the external environment’s effect on the organization

6. and its human resources, missions, objectives and strategies.”

Organizational behavior is defines as “The understanding, prediction and management of human behavior in organizations.”

Fred Luthans


Contd.From the above definitions, OB can be seen

as----A way of thinkingAn interdisciplinary fieldHaving a distinctly humanistic outlookPerformance orientedSeeing the external environment as criticalUsing scientific methodHaving an application orientation


Levels of Analysis

Wood (1997) suggested that different levels of analysis can be applied when judging the importance of an organizational issue. He proposed eight levels----IndividualTeamInter-groupOrganizationalInter-organizationalSocietalInternationalGlobal


Historical Evolution of OB as a DisciplineMany people have contributed to the growth of

OB. Some important contributions are-

A) Early Theorists1. Adam Smith’s contributionIn the Wealth of Nations published in 1776,

Adam Smith stated that organizations and society would benefit if they practice division of labor.

Division of labor increased productivity by improving workers’ skills and expertise and by saving time.


2. Work of Charles Babbage

He added some more advantages to the list of advantages of division of labor proposed by Adam Smith:

It decreases the time needed to learn a job.It reduces wastage of material during the learning

process.Improves skill levels.It matches people’s skills and physical abilities

with specific tasks.


B) The Classical Era

Classical era covers the period from 1900 to mid 1930s.

The main contributors during this period wereFrederick TaylorHenri FayolMax WeberMary Parker FolletChester Barnard


1.Frederick Taylor

His main focus was on finding one best way of doing a job. He gave importance on selecting the right people for the

right job and train them to do the job in one best way.His scientific principles of management highlighted the

following principles Shift all responsibility for the organizational work from worker to

manager. Use scientific methods to find the most efficient way of doing work. Select the best person to do the job. Train the worker to do the work effectively. Observe the performance of workers to make sure that proper

work methods are used and correct results are obtained.


2.Henri Fayol He was a mining engineer and a manager by profession. He defined the nature and working patterns of twentieth

century organizations in his book, General and Industrial Management, published in 1916.

In this book 14 principles of management are defined. They are----

1. Division of work – Tasks should be divided among employees.

2. Authority and responsibility – Authority is the right to give orders. It should match with responsibility.

3. Discipline – It is necessary for proper functioning of business.

4. Unity of command – An employee should receive orders from one superior only.

5. Unity of direction – Activities related to a single objective should be coordinated by a single plan.


6. Subordinates of individual interest to general interest – Individual or group goals must not take priority over business goals.

7. Remuneration of personnel – It should be fair, encourage effort and there should be no overpayment.

8. Centralization – The extent of centralization of power of issuing orders at the top depends on size of the organization and the skills of its personnel.

9. Scalar chain (line of authority) – Flow of communication should be up and down the line of authority.

10. Order – Material and personnel should be at proper place.11. Equity – People should be treated with kindness and

justice.12. Stability of tenure of personnel – Quick turnover of people

should be avoided because it takes time to develop expertise.

13. Initiative – Employees should be encouraged to take initiatives.

14. Esprit de corps – All efforts should be made to maintain peace and harmony within the organization.


3.Max Weber His theory is also known as bureaucratic theory in

management. He described an ideal kind of organization and called it

bureaucracy.

The features of Weber’s bureaucratic structure are------- Areas of authority should be clearly specified. Organizations follow principle of hierarchy where

subordinates follow instructions of superiors but have a right to appeal.

Abstract rules guide decisions and actions. Officials are selected on the basis of technical qualifications. Employment by the organization is a career.


C) The Human Relations Movement

1. Mary Parker Follet------The view that people are important to the world of

business was given by Mary Parker Follet. With this the concept of human relations movement started.

Follet believed that organizations should be based on collectivism (group ethics) rather than individualism.

The manager’s task was to coordinate group efforts.

Managers and workers should be like partners.


2. Chester Barnard

Barnard believed that organizations consist of people who have interacting social relationships.

He believed that organizations can be successful if they cooperate with various stakeholders such as employees, customers, investors, suppliers, etc.

He emphasized on the need for development of skills and motivation of employees for the success of organization.


3. Elton MayoHe is known as the founder of human relations movement.He is also known for his research including the Hawthorne

Studies and his book ‘The Social Problems of an Industrialized Civilization (1933)’.

The research conducted under the Hawthorne Studies showed the importance of groups in affecting the behavior of individuals at work.

He found that work satisfaction depended on the social relationship of the workgroup.

Physical conditions and financial incentives have very low motivational value.

He concluded that performance depends on both social issues and job content.


4. Dale Carnegie

His book How to Win Friends and Influence People is used by management experts even today.

He believed that to succeed, an organization should win the cooperation of its people.

He advised------Make others feel important by appreciating their

efforts.Try to make a good impression.Win people by being sympathetic and never telling

that they are wrong.Change people by praising their good qualities.


5. Abraham Maslow

He proposed the need hierarchy theory (physiological, safety, social, esteem and self actualization needs).

Each step in the hierarchy must be satisfied before moving on to the next step.

After a need is satisfied, it does not motivate an individual.

The final goal of human existence is self actualization.

Managers who accepted this theory tried to change organization and management practices to reduce hurdles that prevent employees from reaching self actualization.21 Organizational Behavior

Maslow’sMaslow’sHierarchyHierarchyof Needsof Needs

SelfSelf

EsteemEsteem

SocialSocial

SafetySafety

PhysiologicalPhysiological

Be where you want to be

Need for respect from others

Need to be in a group, be loved

Need for stability and consistency

Basic needs like food, water

6. Douglas McGregor

He gave two statements about human nature – Theory X and Theory Y.

Theory X put forward a negative view of people stating that this category has Little ambition Dislike work Want to avoid responsibility Need close supervision at work

Theory Y put forward a positive view of people stating that this category has Self direction Take responsibility Consider work as a natural activity

McGregor believed that managers should give freedom to their subordinates to utilize their creativity and potential.


D) Behavioral Science Theorists1. B.F. Skinner-His research on classical and operant

conditioning and behavior modification affected the design of organization’s training programs and reward systems.

According to Skinner, behavior depends on results.

He stated that people show a desired behavior only if they are rewarded for it.

A behavior is not repeated if an individual is not rewarded or punished for it.


2.David McClelland

His work has helped organizations to match people with jobs and in redesigning jobs for high achievers to motivate them.

For example, people who have received achievement training in India, work for longer hours, initiate more new business ventures, make greater investments in productive assets as compared to people who did not receive such training.


3.Fred Fiedler

His work in the field of leadership has a big contribution to the growth of OB as a discipline.

He highlighted the situational aspects of leadership and tried to develop a complete theory of leadership behavior.


4.Frederick HerzbergHe tried to find answer to

the question: What individuals want from their jobs?

By his study, he reached a conclusion that people preferred jobs that provided recognition, achievement, responsibility and growth.

Only hygiene factors were not sufficient to motivate people at workplace.

This work is important in OB because it helped in enriching jobs and the quality of work life in modern organizations.


Motivational FactorsHygiene Factors

•Company policies

• Quality of supervision

• Relations with others

• Personal life

• Rate of pay

• Job security

• Working conditions

• Achievement

• Career advancement

• Personal growth

• Job interest

• Recognition

• Responsibility

E) OB in Present TimesOnly a single theory cannot improve

organizational functioning and effectiveness.

Therefore a contingency approach is suggested.

Today, the focus is on understanding the situational factors and how they affect a behavior pattern of individuals.


Contributing Disciplines to the OB Field

Organizational behavior is a behavioral science that takes contributions from various behavioral disciplines like----Psychology SociologySocial psychologyAnthropologyPolitical science


Psychology It is the science that tries to measure, explain and

change the behavior of humans and other animals.Early industrial or organizational psychologists were

concerned with problems of tiredness, boredom and other factors that affect performance.

But now, they are concerned with learning, perception, personality, training, leadership effectiveness, etc.

SociologyIt is the study of the social system in which the

individual lives.It studies people with respect to their colleagues.Sociologists make an important contribution to OB

through their study of group behavior in organizations.


Social Psychology It mixes the concepts of psychology and sociology. It focuses on influence of people on one another.

Anthropology It is the study of societies to learn about human beings and

their activities.Anthropologists work on culture and environments.They help in understanding differences in fundamental

values, attitudes and behavior of people in different countries and different organizations.

Political Science It studies behavior of individuals and groups within a

political environment. It focuses on areas like conflict, intra-organizational politics

and power.31 Organizational Behavior


Documents

Unit 2 Organizational Behavior