organizational behaviour

Contents

IntroductionDefinitions of OBHistorical evolution of

OB as a disciplineContributing disciplines

to the OB field

1 Organizational Behavior

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 productivity Reduce 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 actions4. while working with groups and within the total organization; 5. analyzing the external environment’s effect on the organization6. 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 Mayo

He 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.


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 Herzberg He 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.

Sociology It 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.30 Organizational Behavior

Motivation and Job SatisfactionWhy is this important?

Are you tired of unmotivated, uninterested, and inept workers?

One-third to one-half your life is spent at work!!

Theories of MotivationContent Theories: Focus on the importance

of the work (e.g., challenges and responsibilities) Specific needs that motivate human behavior

Process Theories: Deal with the cognitive processes used in making decisions about our work

Content Theories Achievement Motivation Theory: David

McClelland. Emphasizes need to accomplish something. Linked to successful managersFavor environment where they can assume

responsibilityTake calculated risks and set attainable goalsNeed continuing recognition and feedback

Managers high in achievement motivation show more respect for subordinates and use more participatory systems

Need Hierarchy Theory Abraham Maslow: proposed that we have a

hierarchy of needs. Once one is fulfilled we can move on to the nextPhysiologicalSafetyBelonging and LoveEsteemSelf-Actualization

ERG TheoryAlderferSimilar to Maslow. We have needs, but in

this case they are not hierarchically arranged

Satisfying a need may increase its strengthExistence NeedsRelatedness NeedsGrowth Needs

Motivator-Hygiene (Two Factor) TheoryMotivator Needs: internal to work itself. If

conditions are met, job satisfaction occursJob enrichment: expand a job to give

employee a greater role in planning, performing, and evaluating their work

Hygiene Needs: Features of work environment. If not met, job dissatisfaction occurs

Job Characteristics Theory

If employees have a high need for growth, specific job characteristics lead to psychological conditions that lead to increased motivation, performance, and satisfaction.Skill varietyUnity of a jobTask significanceAutonomyFeedback

Process Theories Valence-Instrumentality-Expectancy (VIE)

Theory: people will work hard if they expect their effort to lead to reward

Importance of outcome determines its strength as a motivator – supported by research

Equity Theory Motivation is influenced by how fairly we

feel we are treated at workBenevolent Workers: martyrs. Feel guilt

when rewardedEquity Workers: Sensitive to fairness. NormalEntitled Workers

Goal-Setting TheoryIdea that our primary motivation on the job

is defined in terms of our desire to achieve a particular goalResearch shows that having goals leads to

better performance than not having goalsSpecific goals are more motivating than

generalModerately difficult goals are most

motivating

High Performance CycleExpands on Goal Setting TheorySpecific, attainable goals influenced by Moderators (commitment to goal, self-

efficacy, task difficulty, feedback) andMediating Mechanisms (universal task

strategies such as direction of attention, effort and persistence)

Job Satisfaction

Overall measures of satisfaction may be too broad: current measures address different facets of job satisfaction

Overall job satisfaction rate has remained the same for over 50 years

Rates are much lower for government workers

When people say they are satisfied, they often mean they are not dissatisfied!!

Personal Characteristics and Job Satisfaction

Age: in general, increases with ageMalcontents have stopped workingOlder workers have greater chance of

fulfillmentGender: inconclusive resultsRace: whites are happierCognitive Ability: slight negative relationship

between level of education and satisfaction

Personal Characteristics, Cont.Use of SkillsJob CongruencePersonality: less alienation and internal

locus of control lead to higher satisfactionOccupational Level: the higher the status

level the greater the satisfaction

Low Satisfaction and Job BehaviorAbsenteeism: any given day 16-20% of

workers miss work. Costs businesses $30 billion dollars a yearYounger have higher absence ratesRates are influenced by economic conditions

Turnover: Not always a bad thing!Functional Turnover: when bad workers leaveDysfunctional Turnover

LEADERSHIP & SUPERVISION

LEADERSHIPLeadership

Leadership involves qualities related to a person's character and behaviors, as well as roles within a group or organization. It requires that a person have the ability to guide and influence another person, group, or both to think in a certain way, achieve common goals, or provide inspiration for change. Marquis and Huston (2003) state that leaders:Often do not have delegated authority, but

obtain their power through other means, such as influence.

Have a wider variety of roles than do managers.

May not be part of the formal organization.

Leadership Styles

AutocraticDemocratic

Laissez-faireSituational

Autocratic LeadershipA leadership style characterized by

specific instructions to employees regarding what, how, and when work should be done.

•Micro-management style

•The leader plans, organizes, controls, and coordinates.

•Emphasis is on getting the job done without regard for input from others.

Autocratic Leadership (cont.)

AdvantagesEfficiencyEmployees know the manager’s

expectations.Disadvantages

Discourages employees from thinking about process improvements

Employee dissatisfactionDecline in worker performanceDoes not prepare employees for promotion

or possible advancement

Autocratic Leadership (cont.)

When to use the autocratic styleDuring an

emergencyManaging

temporary employees

Managing new employees

Democratic LeadershipA leadership style characterized by

encouragement for employees to share in the decision-making and problem-solving processes.

•General management style

•Considers everyone’s viewpoint in decision making

•Utilizes team concept in goal setting

Democratic Leadership (cont.)Advantages

Employees actively involved in decision making

Higher employee moraleStronger employee commitment to

established goalsDisadvantages

Time consumingNot everyone likes to participate in

decision making.

Democratic Leadership (cont.)

When to use the democratic styleManaging employees

who are committed to their jobs

Managing employees who are interested in more responsibility

Managing experienced and well-trained employees

Laissez-faire LeadershipA leadership style in which minimal

direction and supervision is given to workers.

•Open management style

•Management shares information

•Team (or individual employee) is completely responsible for the workload.

Laissez-faire Leadership (cont.)

AdvantagesEasy management style to administerComplete empowerment for employees

DisadvantagesPoor decision making may result.Some employees do not perform well

without direction and supervision.

Laissez-faire Leadership (cont.)

When to use laissez-faireManaging

experienced, well-trained, and highly- motivated workers

Managing home-based employees, outside salespersons

Situational LeadershipLeadership characterized by shifts in

management style as appropriate for individual employees.

•The management style applied depends on the needs of each employee.

Situational Leadership (cont.)

AdvantagesManagement style personalized for

each employeeImproved communicationHigh employee moraleImproved production

DisadvantagesTime consumingDifficult to manage

Situational Leadership (cont.)

When to use situational managementHighly experienced

managerManager highly skilled in

human relationsEmployees with range of

needs for supervision

Supervision

The Art & Craft of Supervision

The Art The Craft

Interpersonal and Conceptual Skills

Technical Skills

Making the TransitionFind out what management expects of you. Establish your authority. Get to know your operation. Get to know your people. Communicate your expectations.

DON'T DO IT! Playing favorites. Doing the work. Let your employees be the technical

workers. Being emotional. Lying your way out of things. Trying to be "One of the Gang." Taking credit for your employee's successes. Blaming management for problems. Selling out your employees. Refusing to make a proper commitment to the job. Neglecting to grow into the job.

Qualities of SupervisorsGoal orientedBottom line orientedCommunicates and enforces standards Initiative – seeks opportunities to solve

problemsSkillful use of influenceCommunicates confidence

in people

Qualities of Supervisors (continued) Interpersonal sensitivityDevelops and coaches othersGives performance feedbackCollaboration and team buildingConceptual skills and systematic

problem solvingConcern for image and

reputation

Supervisor DefinitionSupervisor has its roots in Latin, where it

means “Looks Over”

Super which means Very Good and Vision which means Detailed Focus.

What Is Supervision?Supervision is the first level of

management in an organization

Supervisors do not do operative work, but see that it is accomplished through the effort of others

Who are Supervisors?A supervisor is the manager who serves as

the link between operative employees and all other managers

Five Attitudes for Successful Supervision I'm

A member of managementResponsible for the performance of my entire

team Easy to work for Easy to get along with Able to forgive myself for mistakes

The Functions of Supervision

Planning

Organizing

Staffing

Leading

Controlling

Determining how well the work is being done compared to what was planned

Directing & channeling

employee behavior

Obtaining & developing good people

Distributing the work & arrangingit so that it flows smoothly

Determining the most effective means for achieving the work

The Functions of Supervision3 types of skills required of supervisors:

Technical: Knowledge about machines, processes, and

methods of productionHuman relations:

Knowledge about human behavior and the ability to work well with people

Administrative: Knowledge about the organization and how it works

Skills & Levels of Management

What Factors Affect Behavior?

PoliciesPeer groupMediaDifference of ethics taught and ethics observedExternal influences

FamilyReligiousCulturalPolitical

Supervisor’s ResponsibilityKnow and understand values of the

department, subordinates, self.

Demonstrate integrity.

Instruct, monitor, correct behaviors in subordinates.

Ethics In The WorkplaceEmployees’ ideas of what is acceptable and

not acceptable are based on the supervisor’s actions

The supervisor’s failure to take corrective action in certain situations can also affect the behavior of the employees

Areas Requiring Ethical ConductLoyalty

Supervisors who are viewed as being interested only in themselves and their future will have difficulty in getting the full cooperation of employees

Human relationsThis category centers on the supervisor’s concept of

fairness, particularly in the treatment of subordinatesOvert personal actions

This category includes the supervisor’s behavior within the company and how they handle themselves in the community

Dealing with Dishonest EmployeesA. Dealing with dishonest subordinates

1. Recognize the problem, get the facts, and document the case

2. Confront the employee

3. Follow the established disciplinary system

B. Dealing with dishonest peers or other managers

1. You may not be able to deal directly with the problem

2. In most cases, report your suspicions and findings to your boss and let them confront those involved

C. Whistle blowing

1. Whistle blower places himself or herself at risk

organizational behaviour

Technology