Understanding Organisational Behaviour

Why Do We Study OB?

• To learn about yourself and how to deal with others?

• You are part of an organization now, and will continue to be apart of various organizations…

• Organizations are increasingly expecting individuals to beable to work in teams, at least some of the time

• Some of you may want to be managers or entrepreneurs

WHAT IS AN ORGANIZATION?• An organization is a collection of people who

work together to achieve a wide variety ofgoals.

• Organizations exist to provide goods andservices that people want.

• These goods and services are the products ofthe behaviors of workers.

Jayant Isaac,Asso.Profesor

Organization

Organization - collection of people, work together toachieve

-Individual goals*-Organizational goals*


*Goals: An observable andmeasurable end result having one ormore objectives to be achieved withina more or less fixed timeframe.

MANAGEMENT FUNCTIONS

• Managing is a process of getting things done through and with people in an organization.

• So, Management functions are:

Organizing

Staffing

Directing

Controlling

Planning


Management Roles

• Role is a pattern of behavior which is definedfor different positions.(Mintzberg)

• It(role) refers to the expected behavior of theoccupant of a position.

• There are three(3) broad categories of roles amanager performs in an organization:

1. Interpersonal Roles

2. Informational Roles

3. Decisional Roles


FUNCTIONAL APPROACH & ROLE APPROACH

PLANNING

ORGANIZING

DIRECTING

CONTROLLING

INTERPERSONAL ROLES

INFORMATIONAL ROLES

DECISIONAL ROLES


Organisational Behaviour -Meaning

• Organizational behavior (OB) is a field of studythat investigates the impact that individuals,groups, and structure have on behaviorwithin an organization, and then applies thatknowledge to make organizations work moreeffectively.

• Specifically, OB focuses on how to improveproductivity, reduce absenteeism andturnover, and increase employee citizenshipand job satisfaction.


• Organizational behavior is the study of themany factors that have an impact on howindividuals and groups respond to and act inorganizations and how organizations managetheir environments.


NATURE OF ORGANIZATIONAL BEHAVIOUR

1. OB is a field of study and not a discipline

2. OB is an interdisciplinary approach

3. OB is an applied science

4. OB Is normative Science

5. Humanistic and Optimistic Nature

6. Oriented towards organizational objectives

7. Total system approach


Importance of OB

1. Understanding human behaviour• Individual behaviour• Group behaviour• Intergroup behaviour

2. Influencing human behaviour• Leadership• Motivation• Communication• Organisational change and development• Organisational climate


Psychology seeks to measure, explain,

and change behavior

Sociology studies people in relation to their

fellow human beings

Social psychologyfocuses on the

influence of peopleon one another

Anthropology is thestudy of societies

to learn about humanbeings and their activities

Political science is the study of the

behavior of individuals and groups within

a political environment

Contributing Disciplines

Historical Development of OB &Theories of Organisation

• Classical Theory

– Max Weber’s Ideal Bureaucracy

– Taylor’s Theory

– Fayol, Gulik and Urwick

• Neo-Classical Theory

– Hawthorne experiments and human relations

• Modern Organisational Theory

– Social systems approach

– Human Behavior approach

– Systems and contingency approachJayant Isaac,Asso.Profesor

THEORIES OF OB

1. Scientific Management

2. Fayol’s Administrative management

3. Bureaucracy

4. Hawthorne experiments and human relations

5. Social systems approach

6. Human Behavior approach

7. Systems and contingency approach


(1)Scientific Management(beg. of 20th Century)

• Introduced by Frederic Winslow Taylor in USA.

• “Scientific management is concerned withknowing exactly what you want men to doand then see in that they do it in the best andcheapest way.”

• It described management as a science withemployers having specific but differentresponsibilities.

• It encouraged the scientific selection, training,and development of workers and the equaldivision of work between workers andmanagement.


Elements & Tools of Scientific Management

1. Separation of planning & doing

2. Functional foremanship

3. Job analysis

4. Standardization

5. Scientific selection and training of workers

6. Financial incentives

7. Economy

8. Mental Revolution


The following can be summarized in Taylor’s theory

• Mental Revolution

• Productivity

• Organisational Function

• Worker Level

• Motivation


Principles of SM

1. Replacing rule of thumb with science

2. Harmony in group action

3. Cooperation

4. Maximum output

5. Development of workers


(2)FAYOL’S Administrative Management

• Given by Henry Fayol, a French miningengineer an industrialist, looked at theproblems of managing an organization fromtop management point of view.

• He was also regarded as the father ofManagement Theory

• The General and Industrial Administration waswritten by him in 1916.


1. Managerial Qualities :(physical, mental,educational, technical & experience)

2. Elements of Management:(Planning,organizing, commanding, coordination,&Controlling)

3. General Principals of Management: Fayolshas given Fourteen Principals(14)ofmanagement, which is as follows


His approach of study dividedmanagement into three(3) parts:

General Principals of Management:1. DIVISION OF WORK 8. CENTRALIZATION

2.AUTHORITY & RESPONSIBILITY 9.SCALAR CHAIN: Each communicationgoing up or coming down must flowthrough each position in the line ofauthority.

3.DISCIPLINE 10.ORDER

4.UNITY OF COMMAND: Person shouldget orders & instructions from only onesuperior

11. EQUITY

5. UNITY OF DIRECTION: Each group ofactivities with the same objectives musthave one head & one plan.

12.STABILITY OF TENURE

6.SUBORDINATION OF INDIVIDUALINTEREST TO GENERAL INTEREST

13.INITIATIVE

7.REMUNERATION OF PERSONNEL 14.ESPRIT DE CORPS: union is strength


Gulik and Urvik edited the papers on ‘Science ofAdministration’ published by Institute of Publicadministration at Columbia University in 1937 and gavethe following principles of Organisational Theories

• Fitting people to the Organisational structure

• Recognizing one top executive as source of authority

• Unity of Command

• Line and Staff

• Departmental

• Delegating and utilizing the exception principle

• Responsibility

• Span of ControlJayant Isaac,Asso.Profesor

Difference between Taylor & Fayol

BASIS OF DIFFERENCE TAYLOR FAYOL

Perspective Shop floor level Higher Management Level

Focus Efficiency through work simplification & standardization

Overall efficiency by observing certain principals

Orientation Production & Engineering Managerial Functions

Results Scientific observation & measurement

Personal experiences translated into universaltruths

Overall Contributions Basis for the accomplishment on the production line

Systematic theory of management.


Span of Control• The span of control is the number of subordinates for whom

a manager is directly responsible. The two diagrams belowillustrate two different spans of control:

1) Wide Span of control: A span of control of 7would be considered to be quite wide.


Span of Control

2) Narrow Span of Control:


Is there an ideal span of control?

• The answer is generally NO – a suitable span ofcontrol will depend upon a number of factors:– The experience and personality of the manager– The nature of the business. If being a line manager

requires a great deal of close supervision, then anarrower span might be appropriate

– The skills and attitudes of the employees. Highlyskilled, professional employees might flourish in abusiness adopting wide spans of control.

– The tradition and culture of the organisation. Abusiness with a tradition of democratic managementand empowered workers may operate wider spans ofcontrol


Should spans of control be wide or narrow?

• Here is a summary of the relative advantagesand disadvantages of each:


(3)BUREAUCRACY• The term "bureaucracy" was created from words:

‘bureau’ means “desk or office” and “cracy orkratos” which means– rule or political power

• Bureaucracy is an administrative system designed toaccomplish large-scale administrative task bysystematically coordinating the work of manyindividuals.

• Given by Max Weber(1864-1920), and he observedthree types of power in the organizations:

1. Traditional

2. Charismatic (attractive or magnetic)

3. BureaucraticJayant Isaac,Asso.Profesor

Features of Bureaucracy

• Ten (10) features of Bureaucracy are:1. Administrative Class2. Hierarchy3. Promotion4. Expert training5. Selection based on technical competence6. Division of Work7. Official Rules8. Interpersonal Relationships9. Official Records10.Specialization


4.HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS

• It is based on the approach of “ human relationsapproach of management.”

• In this Organizational situations should be viewed insocial terms as well as in economic and technicalterms.

• The social process of group behavior can beunderstood in terms of clinical approach.

• This approach was basically headed by Elton Mayo(psychologist) and conducted analysis in Hawthorneplant of Western Electric Company Chicago in theyear 1924


Phases of the Experiment

• ILLUMINATION Experiments

• Relay Assembly & Test Room Experiments

• Mass Interviewing Programme

• Bank wiring observation room experiments


5.Social System Approach

• This approach was introduced by VilfredoPareto.His ideas were later developed byChester Barnard.

• As per this approach an organization isessentially a cultural system composed ofpeople who work in cooperation.


6.HUMAN BEHAVIOUR APPROACH

• It is an outcome of the thoughts developed bythe behavioral scientist who looked at theorganization as collectively of people forcertain specified objectives.

• The approach emphasizes human resources inan organization more as compared tophysical and financial resources.


7.Systems and Contingency Approach

• The System is a complex whole composed ofparts and subparts in orderly arrangementaccording to some scheme or plan.

SYSTEM

NATURAL SYSTEM MANMADE SYSTEM

PHYSICAL SYSTEM MECHANICAL SYSTEM SOCIAL SYSTEM

a road system, railway system a machine An Organization


• Contingency Approach may be treated as anextension of systems approach.

• The basic idea for this approach is that therecannot be a particular action of managinghuman behavior which will be suitable for allsituations.

• This is the reason why a particular action ofmanaging human behavior becomessuccessful in one organization but fails inother organization.


MODELS IN OB

• Models are developed in different fields toguide activities in those fields.

• Every organization develops a particularmodel in which behavior of the people takesplace.

• “Davis” has described four(4) OB modelswhich are as follows:

1. Autocratic

2. Custodial

3. Supportive

4. CollegialJayant Isaac,Asso.Profesor

THE AUTOCRATIC MODEL

• The autocratic model is based on power. Under thismodel, the person who holds power has the authorityto demand work from workers.

• This model was widely popular during the IndustrialRevolution.

• It is based on the assumption that work can only beextracted by means of pushing, directing, andpersuading the employees.


THE AUTOCRATIC MODEL• This model empowers managers with authority which

might be used for unfair practices such as suspendingthe employees for not obeying the orders, giving lowpay, etc.

• Such a work environment motivates very fewemployees to exhibit higher productivity.

• However, the autocratic model works well undercertain conditions, particularly in times of anorganizational crisis.


THE CUSTODIAL MODEL• In the custodial model, the emphasis is laid on

providing job security to the employees. It has beenobserved that employees generally prefer jobs thatpromise job security.

• Therefore, employers offer fringe benefits tostrengthen the employee’s confidence in job security.

• While this helps in retaining the employees,knowing that they are going to get incentivesirrespective of their job performance might causethe employees to be more laid back in theirapproach toward work.


THE SUPPORTIVE MODEL• The supportive model emphasizes leadership rather than

power or money.

• Under this approach, leaders promote an environment for theemployees to grow while they help in achieving theorganization’s objectives.

• Also the support extended by the management motivates theemployees to work. The employees are self motivated toenhance their performance and are not compelled to do so.

• This model might not be effective for employees whose lowerlevel needs are not satisfied.

• Nevertheless, the supportive model enhances therelationships between the employee and the employer.Jayant Isaac,Asso.Profesor

THE COLLEGIAL MODEL• In the collegial model, employees are self-

disciplined, self-satisfied, and have specific goalswhich motivate them to improve theirperformance.

• In this approach, the superior acts more like a leaderwho leads the way and motivates employees that toperform at their best.

• The term ‘collegial’ refers to a group of personsworking for a common purpose. This approach is anextension of the supportive model.


Model of OBAUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL

Basis of model

Power Economic Resources

Leadership Partnership

Managerial orientation

Authority Money Supportive Teamwork

Employee orientation

Obedience Security & Benefits

Job Performance

Responsible Behavior

Employee psychologicalresult

Dependence on boss

Dependenceon organization

Participation Self-discipline

Employees need met

Subsistence Security Status & recognition

Selfactualization

Performance result

Minimum Passive Cooperation

Awakened drives

Moderate enthusiasm


S-O-B-C Model

• The OB model based on the social learningapproach is termed as the SOBC model, where“S” stands for stimulus, “O” for organism, “B”for behavior, and “C” for consequence.

• The S-O-B-C model gives the basic framework rather than a complete explanation of OB.


A Model of Organizational Behavior• S – Stimulus: is an environmental variable that

depicts the environmental situation, bothcontextual and organizational.

• O – Organism: is a cognitive variable that understandsorganizational participants which link the environmentalsituation and the resulting organizational behavior.

• B – Represents the organizational behavior.

• C – Consequence: is an environmental variable that depictsorganizational and group dynamics and the consequencesof previous interactions between environmental, personaland behavioral variables.


Organization as a Social System,Socio technical System

• Social System Approach

• Systems and Contingency Approach


Factors Influencing OB

• There are many factors here, but they can be broadly categorized into 4 groups:

– The individual

– The group

– The organization

– The environment


Environmental factors and its Constraints over organization &

management performance


Environmental Factors

Many factors can be included in the category ofenvironment factors – Social , Economic ,Cultural , Geographical , Technological ,Political Legal and Ecological factors ; inaddition to government policies , labour factors, competitive market conditions , locationalfactors , emerging globalization and so on.Although there are many factors , the mostimportant of the factors are socio- economic ,technological , suppliers and government.

Social Factors

o There are many social factors which affect thepolicy and strategy of corporate management.Culture , values , tastes and preferences ,social integration, and disintegration and soon must be part of the agenda of everybusiness organization.

o While social institutions are closely linked withbusiness organizations, business itself is asocial institution.

Economic Factors

• Economic factors such as per capita income ,national income , resource mobilization ,exploitation of natural resources ,infrastructure development , capital formation,employment generation, industrialdevelopment and so on, influence thebusiness environment.

Cultural Factors

• The cultural factors of a business environmentshould also be taken into consideration whilescanning the environment and during the policyformulation.

• Managers and policymakers in global businesscan not be disregard cultural variables like socialand religious practices , education, knowledge ,rural community norms and beliefs and so onwith special reference to India.

Geographical Factors

• In a global business environment , geographicallocations , seasonal variations , climaticconditions and so on , considerably affect thetastes and preferences of customers and alsoprospects and the labor forces.

• The policies of the government regardingindustrial locations are considerably influencedby the pace of development in variousgeographical locations.

Political Factors

• The philosophy and approach of the politicalparty in power substantially influences thebusiness environment. For example , thecommunist –ruled state of West Bengal hadthe largest number of industrial disputes.

Legal Factors

• Every aspect of the business is regulated by a lawin India. Hence , the legal environment plays avery vital role in the business.

• Laws relating to industrial licensing,companyinformation, factory administration, Industrialdisputes , payment of wages , trade unionism ,monopoly control , foreign exchange regulations ,shops and establishments and so on are examplesof what forms the legal business environment inIndia.

Ecological Factors

• Ecology deals with the study of the environment , bioticfactors (plants, animals , and micro organisms ) abioticfactors (water , air , sunlight, soil,) and their interactionswith each other. Industrial activities , automobiles ,emission of fumes or smoke and influents and so on ,result in an environmental degradation.

• Hence , environmental protection and preservation mustbe the responsibility of every organization. Pollution freeindustrial activity is , therefore , considered to be anecessary condition of industrial organizations.

The Government Policies

• The government policies provide the basicenvironment of the business. For instance , thegovernment’s policy to open up the Indian economy tointegrate it with the global economy has resulted inliberalization.

• Industrial policy resolutions , and licensing policies ,trade policies , labor policies , locational policies ,export-import policies , foreign exchange policies ,monetary policies, taxation policies and so on , pavethe way for business environment.

Labor Policies

• Although labor within the organization constitutes itsinternal environment, general labor policies andclimate may from a part of the external environment.

• If militant trade unionism is widespread in a particularindustrial location , Such militancy would become thelabor climate and would make external element.

• At the same time , a specific organizations may have acommitted labor forces , which could be the strengthof the internal environment of the organization.

Education

Understanding Organisational Behaviour