Understanding Organizational Behaviour

1. Understanding Organizational Behaviour Prof. (Dr.) Ritu Gandhi Arora Prof. (Dr.) Ritu Gandhi Arora

2. Organizational behaviorobjective of the study:- • To understand the nature of organizational behaviour • To evaluate the relative importance of theory and practice. • To understand the different OB models and the situation in which they can be applied. • To identify the research foundation of OB Prof. (Dr.) Ritu Gandhi Arora

3. ORGANIZATIONAL BEHAVIOUR Before understanding the concept of organization Behaviour , it is important to know the related concept, Management , Managers and Organization. Management is the art of getting things done through and with the efforts of others to achieve the organizational Goals. Managers are the individuals who practice the art of Management. Organization is the place where managers practice the art of management. Prof. (Dr.) Ritu Gandhi Arora

4. ORGANIZATION Formal Informal So,it is a consciously coordinated social unit composed of two or more people, that functions on a relatively continuous basis to achieve a common goals or set of goals. In an organization various management function are Performed. • Planning • Organizing • Leading • Controlling Prof. (Dr.) Ritu Gandhi Arora

5. And to carry these , functions, a manager has toperform several roles: INTERPERSONAL ROLES • Figure head • Leadership • Liaison INFORMATIONAL ROLES • Monitor • Disseminator • Spokesperson DECISIONAL ROLES • Entrepreneur • Disturbancehandler • Resources Allocators • Negotiator Prof. (Dr.) Ritu Gandhi Arora

6. And for this purpose , the managers need • Technical skills • Human skills • Conceptual skills One thread which runs through the functions, roles,skills and approaches to management is: the importance of managing people. One discipline that emphasizes the important of people skills is ORGANIZATION Prof. (Dr.) Ritu Gandhi Arora

7. ORGANISATIONAL BEHAVIOUR “Organisational Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.” Robbins 1998,99 Prof. (Dr.) Ritu Gandhi Arora

8. ORGANIZATIONAL BEHAVIOUR “Organizational Behaviour is a field of study that Investigates the impact that individuals, groups and Structure have on behaviour within organizations for the Purpose of applying such knowledge towards improving an Organizations effectiveness.’’ It consists of three main factors • Human behaviour in organizational settings • The individual- Organizational interface • The organization Prof. (Dr.) Ritu Gandhi Arora

9. ORGANISATION BEHAVIOUR The study of Organisational Behaviour involves: • consideration of the interaction among the formal structure (organisational context in which the process of management takes place) • the tasks to be undertaken • the technology employed and the methods of carrying out work • the behaviour of people • the process of management • the external environment Prof. (Dr.) Ritu Gandhi Arora

10. ORGANISATION BEHAVIOUR Interrelated dimensions influencing behaviour: • The Individual - working environment should satisfy individual needs as well as attainment of organisational goals. • The Group - formal and informal. Understanding of groups complements a knowledge of individual behaviour. • The Organisation - impact of organisation structure and design, and patterns of management, on behaviour. • The Environment - technological and scientific development, economic activity, governmental actions. Prof. (Dr.) Ritu Gandhi Arora

11. Fundamental Concepts of OB The subject OB is based on a few fundamental concepts Which revolve around the nature of people and Organizations. ( These are quite common in social science or physical science) • There are differences between individuals. • A whole person. • Behaviour of an individual is caused. • Organizations are social systems. • Mutuality of interest among organizational members. • Holistic organizational behaviour. Prof. (Dr.) Ritu Gandhi Arora

12. Features of OB • OB is the study of human behaviour. • The study is about behaviour in organization. • Knowledge about human behaviour would be useful in improving an organization’s effectiveness. • The environment plays a crucial role between the interface of individuals and the organization. Prof. (Dr.) Ritu Gandhi Arora

13. Prof. (Dr.) Ritu Gandhi Arora

14. Various Approaches to OB : • Scientific Management • Bureaucracy • Human Relation Approach • Social System Approach Prof. (Dr.) Ritu Gandhi Arora

15. SCIENTIFIC MANAGEMENT “Scientific management is concerned with knowing exactly what you want men to do and then see in that they do it in the best & cheapest way.” • Emphasis on obtaining increased productivity from individual workers through the technical structuring of the work organisation and the provision of monetary incentives as the motivator for higher levels of output. • Major Contributor - FW TAYLOR (1856 - 1917) – held the view that there was a best working method by which people should undertake their jobs. Prof. (Dr.) Ritu Gandhi Arora

16. Features Of Bureaucracy Job Specialisation Authority Hierarchy Division of Work Formal Rules and Regulations Impersonal Relationships Official Records Criticisms of Bureaucracy Lack of attention to the informal organisation. Restriction of psychological growth Bureaucratic dysfunction Weber’s Bureaucracy Weber proposed a bureaucratic form of structure that he believed would work for all organisations. *Embraced logic, rationality, efficiency. Prof. (Dr.) Ritu Gandhi Arora

17. HUMAN RELATIONS APPROACH • During the 1920s, attention began to focus on social factors at work, groups, leadership, the informal organisation and behaviour of people. Also known as ‘Behavioural’ or ‘informal’ approach. • Turning point came with the famous Hawthorne experiments at the Western Electric Company in America (1924-32) Four Main Phases to the Hawthorne Experiments: • The Illumination Experiments - level of production was influenced by factors other than changes in physical conditions of work. • The Relay Assembly Test Room - attention and interest by management reason for higher productivity. • The Interviewing Programme -20,000 interviews. Highlighted the need for management to listen to workers. • The Bank Wiring Observation Room - Piecework Incentive Scheme. Group pressures stronger than financial incentives offered by management. Prof. (Dr.) Ritu Gandhi Arora

18. HUMAN RELATIONS APPROACH(contd.) Four Main Phases to the Hawthorne Experiments • The Illumination Experiments - level of production was influenced by factors other than changes in physical conditions of work. • The Relay Assembly Test Room - attention and interest by management reason for higher productivity. • The Interviewing Programme -20,000 interviews. Highlighted the need for management to listen to workers. • The Bank Wiring Observation Room - Piecework Incentive Scheme. Group pressures stronger than financial incentives offered by management. Prof. (Dr.) Ritu Gandhi Arora

19. Social System Approach • Organisation is a social system, a system of cultural relationships. • Relationships exist among the external as well as internal environment of the organisation. • Cooperation among group members is necessary for the achievement of organisational objectives. • For effective management, efforts should be made for establishing harmony between goals of the organisation & the various groups therein. Prof. (Dr.) Ritu Gandhi Arora

20. Disciplines contributing to OB • Psychology: Learning; Motivation; Personality; Emotions; Perception; Training; Work Stress etc. (Deals with individuals) • Social Psychology: Behavioral & Attitude Change Communication Group process & Decision making etc. (Deals with groups) Prof. (Dr.) Ritu Gandhi Arora

21. Disciplines contributing to OB • Sociology: Communication; Power; Conflict; Inter Group Behaviour; Formal Organisation Theory; Organisation Culture and Change. (Deals with groups & Orgn. System) • Anthropology: Orgn. Culture & Env. Power (Deals with Organisation) Prof. (Dr.) Ritu Gandhi Arora

22. Importance of Organizational behaviour for the managers • Organizational behavior provides a useful set of tools at five levels of analysis. • It helps managers to look at the behavior of individuals within an organization. • It aids their understanding of the complexities involved in interpersonal relations, when two people (two coworkers or a superior-subordinate pair) interact. • Organizational Behaviour is valuable for examining the dynamics of relationships within small groups, both formal teams and informal groups. • When two or more groups need to coordinate their efforts, managers become interested in the intergroup relations that emerge. • Organizations can also be viewed and managed as whole systems that have inter organizational relationships. Prof. (Dr.) Ritu Gandhi Arora

23. Foundations of OB Organizational Behavior is based on the knowledge Generated through systematic research. Industrial revolution Scientific management Hawthorne studies Human relations movement Organizational behaviour Prof. (Dr.) Ritu Gandhi Arora

24. Challenges for OB • Changing Profiles of Employees and Customers • Globalization: Uniting the World • Managing Employees from different backgrounds—work-force diversity. • Improving quality and productivity. • Empowering people. • Privacy • Stimulation innovation and change • Corporate Social Responsibility • Trends in working arrangements • Managing through knowledge- Development of learning organisations; Prof. (Dr.) Ritu Gandhi Arora

25. Limitations of Organizational Behaviour • Behavioral Bias- A narrow viewpoint that emphasizes satisfying employee experiences while overlooking the broader system of the organization in relation to all its public. Sound OB should recognize a social system in which many types of human needs are served in many ways. • The Law of diminishing returns- More of a good thing is not necessarily good. For any situation there is an optimum amount of desirable practice. Organizational effectiveness is achieved not by maximizing human variable but by combining all system variables together in a balanced way. • Unethical Manipulation of people-Knowledgeand techniques can be used to manipulate people unethically. • The subject of OB has not contributed to improved industrial relations. • The dual personalities of managers is a harsh reality. • OB is selfish and exploitative. • A serious related problem is the expectation of quick solutions. Prof. (Dr.) Ritu Gandhi Arora

26. O.B PROCESS ORGA NISA TION AL EFFE CTIV ENES S • Personality • Perception • Learning • Attitude • Motivation Individual Behaviour • Group Dynamics • Leadership • Power & politics • Communications • Conflict Group Behaviour • Org. Culture • HR Policies & Practice • Work stress • Org. changes & • Development Organization Prof. (Dr.) Ritu Gandhi Arora

27. Organization level Outcomes Individual level Outcomes • Group level • Outcomes • Productivity • Performance • Norms • Cohesiveness • Group satisfaction • Group Identity • Productivity • Performance • Turnover • Survivor • constituent • satisfaction • Productivity • Performance • Absenteeism • Attitude • Turnover • Stress Organizational Effectiveness Prof. (Dr.) Ritu Gandhi Arora

28. Changing nature of managerial work/role Planning and Organizing Leading Controlling Decision-making Interpersonal Roles Informational roles Decisional roles Monitor Entrepreneur Figurehead Disseminator Disturbance Handler Leader Spokesperson Resource Allocator Liaison Negotiator Prof. (Dr.) Ritu Gandhi Arora

29. A model of ethical behaviour in the workplace Culture Influences 1) Family 2) Education 3) Religion 4) Media/Entertainment Organisational Influences Individual Influences 1) Ethical codes 1) Personality 2) Organisation culture 2) Values 3) Moral principles 4) Perceived pressure for result 3) Role Expectations 5) Reward/punishment system reinforcement Political/Legal/ Economics Influences Prof. (Dr.) Ritu Gandhi Arora

30. Scope of organizational behaviour INTRA – PERSONAL ( INDIVIDUAL) INTER – PERSONAL ORGANIZATIONAL Prof. (Dr.) Ritu Gandhi Arora

31. Foundations of individual behaviour Organizations are composed of individuals. Each individuals is an island in himself / herself, each subject to particular motives, aspirations, perceptions and abilities. The behavior of each individuals is influenced by several factors. So,the study of these factor is useful to understand the subject of OB better. As; performance = individual attributes*work efforts* organizational support. Prof. (Dr.) Ritu Gandhi Arora

32. ( I ) environmental factors Economic factors Employment job technological Opportunities change Cultural factors Political factors Prof. (Dr.) Ritu Gandhi Arora

33. ( II ) personal factors Every individual brings to the work place a variety of personal characteristics and attributes. Age – related to productivity and turnover also experience Gender-changing composition of work-force Education-the level of education too affects individual’s behavior Abilities-intellectual and physical abilities of a person Marital status-No. of dependents creativity- ( cognitive ability ) Prof. (Dr.) Ritu Gandhi Arora

34. ( III ) organization system and resources: Physical facilities Organization structure and design Leadership Reward system Prof. (Dr.) Ritu Gandhi Arora

35. ( IV ) psychological factors: Personality (sum total of trait’s ) Perception ( a process of individuals interpretation ) Learning ( a permanent change in behavior through experience. ) Values ( a concept of desirable and undesirable objects in life ) Attitude ( refers to feelings and beliefs of individuals ) Prof. (Dr.) Ritu Gandhi Arora

36. EMOTIONAL INTELLIGENCE An assortment of non-cognitive skills, capabilities, and competencies that influence a person’s ability to succeed in coping with environmental demands and pressures. It’s composed of five dimensions: • Self awareness: The ability to be aware of what you are feeling; • Self Management: The ability to manage one’s own emotions and impulses; • Self Motivation: The ability to persist in the face of setbacks and failures; • Empathy: The ability to sense how others are feeling; • Social Skills: The ability to handle the emotions of other. Prof. (Dr.) Ritu Gandhi Arora

37. Applications of E.I • Selection; • Job Performance; • Leadership. Prof. (Dr.) Ritu Gandhi Arora

38. VALUES Values are generally used in two different ways. As a characteristic of an object As an attribute possessed by an individual and thought desirable. A value is defined as a “ concept of desirable an internalized criterion or standard of evaluation a person possesses. Such concepts and standards are relatively few and determine or guide an individual’s evaluations of the many objects encountered in everyday life”. Prof. (Dr.) Ritu Gandhi Arora

39. Features of values • They provide standard of competence and morality. • Are fewer in number than attitudes. • Transcend specific objects , situations or persons. • Are relatively permanent and resistant to change. • Are most central to the core of a person. Prof. (Dr.) Ritu Gandhi Arora

40. Types of values Milton Rokeach has identified two basic type of values-terminal and instrumental a terminal value is an ultimate goal in a desired status or outcome. An instrumental value, on the other hand, is a tool or means for acquiring a terminal value. For example:- a person may desire or strive to achieve happiness (a terminal value ) by being ambitions, independent, and responsible (instrumental values). The different values an individual has, both terminal and instrumental, combine to create an enduring cluster of value system. Prof. (Dr.) Ritu Gandhi Arora

41. Formation of values:- Values are learned and acquired primarily through experience with people and institutions. For ex: parents have substantial influence on their children values. A parent’s reaction to everyday events demonstrate what is good and bad, acceptable and unacceptable, Values are also taught and reinforced in schools, religious organizations and social group. Cultural mores have influence on the formation of values basic convictions of what is good or bad are derived from one’s own culture. Prof. (Dr.) Ritu Gandhi Arora

42. Values and organizational behaviour • They lay the foundation for the understanding of attitudes and motivation as well as influencing our perceptions. • Values generally influence and behaviour. • The challenge and re-examination of established work values constitute important conversations of the current management revolution all over the world. • Values differ across cultures. Prof. (Dr.) Ritu Gandhi Arora

43. Attitude Attitude is an important variable in human behaviour Attitudes are evaluative statements------------- Either favorable and unfavorable -------------- Concerning objects, people or events; They reflect how one feels about something. Attitudes consist of three components. • COGNITION (The opinion or belief segment of an attitude) • AFFECT (The emotional or feeling segment of an attitude) • BEHAVIOUR (An intention to behave in a certain way toward someone or something) Prof. (Dr.) Ritu Gandhi Arora

44. Salient features • Attitude refers to feelings and beliefs of individuals or groups of individuals. • The feelings and beliefs are directed towards others people, objects, or ideas. • Attitude tend to result in behaviour or action. • Attitude can fall anywhere along a continuum from very favorable to very unfavorable. • Attitude endures. • All people, irrespective of their status or intelligence hold attitude. Prof. (Dr.) Ritu Gandhi Arora

45. “The word attitude describes a persistent tendency to feel and behave in a particular way toward some object.” Formation of attitudes: Individuals acquires attitudes from several sources but the point to be stressed is that the attitudes are acquired but not inherited. But the important sources are:- • Direct experience with the object. • Classical conditioning • Vicarious learning. • Family & Peer Groups. • Neighborhood. • Economic status and occupations • Mass communication. Prof. (Dr.) Ritu Gandhi Arora

46. Functions of attitudes: • Utilitarian. • Ego – defense. • Value expressive. • Knowledge. Prof. (Dr.) Ritu Gandhi Arora

47. Types of attitudes • Job satisfaction :- This refers to an individual general attitude toward his/her job. • Job involvement :- The degree to which a person identifies with his or her job, actively participates in it • Organizational Commitment :- The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization. Prof. (Dr.) Ritu Gandhi Arora

48. Changing attitudes:- Attitudes of employees can be changed and its is in the best interest of the organization to try for the change. Barriers to change • Attitude theory of balance and consistency (people prefer to maintain consistency in their attitude and in this regard festinger’s Theory of COGNITIVE DISSONANCE is there, It states that dissonance makes an individual feel uncomfortable) • Prior commitments. • Insufficient information. Prof. (Dr.) Ritu Gandhi Arora

49. Ways of changing attitude. Providing new information. Use of fear. Influence of friends and peers The co-opting approach Prof. (Dr.) Ritu Gandhi Arora