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UNIT- II

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SUBJECT – MANAGEMENT

SUBJECT CODE – 17

UNIT – II

9935977317

0522-4006074

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[Part- A]

Sl.No. CONTENTS

1. Organisational Behaviour

2. Individual Behaviour

3. Perception

4. Learning

5. Attitude

6. Motivation

7. Interpersonal Behaviour

8. Group Dynamics

9. Leadership

10. Stress Management

11. Organisational Change & Development

[Part- B]

Sl. No. CONTENTS

1. Human Resource Management (Personnel

Management)

2. Human Resource Planning

3. Job Analysis

4. Recruitment and Selection

5. Induction and Placement

6. Training and Development

7 Job Evaluation

8 Compensation Management

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CHAPTER-1

ORGANISATIONAL BEHAVIOUR

Concept and Definition of Organisational Behaviour

Organisational behaviour (OB) is concerned with the understanding, prediction and

control of human behaviour in organisations. It is the study and application of knowledge

about how people – as individuals and groups – act within organisations. It strives to identify

ways in which people can act more effectively.

“It is the field of study that investigates the impact that individual groups and

organization structure have on behaviour within the organization for the purpose of

applying such knowledge towards improving organisational efficiency– Stephen Robbins.

“Organisational behaviour is a branch of social sciences that seeks to build theories that

can be applied to predicting, understanding and controlling behaviour in a work

organisation” – Aldag and Brief.

“Organisational Behaviour is an academic discipline concerned with understanding and

describing human behaviour in an organisational environment.” – Keith Davis

Features of Organisational Behaviour

It tries to explain the complex human factors in the organisational by identifying

cause and effect relationship of the behaviour. The features are as follows:

1. A Field of Study: -

Organisational Behaviour is a field of study backed by a body of theory, research and

application associated with a growing concern for people at the workplace. Its study

helps in understanding the human behaviour in work organisations.

2. Levels of Analysis:

Organisational Behaviour involves three levels of analysis of behaviour–individual

behaviour, group behaviour and behaviour of the organisation itself.

3. Concern for Effectiveness:

The major goal of organisational behaviour is to understand, explain and predict human

behaviour in the organisational context so that it may be moulded into result-yielding

situations so as to improve organisational effectiveness.

4. Human Tool:

Organisational Behaviour is a human tool for human benefit. It helps in understanding

and predicting the behaviour of individuals. It provides generalizations that managers can

use to anticipate the effects of certain actions on human behaviour.

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5. Inter-Disciplinary Approach:

The field of organisational behaviour is heavily influenced by several other behavioural

sciences and social sciences. The prominent among these are psychology, sociology and

anthropology.

6. Science and Art:

OB is both a science as well as an art. The systematic knowledge about human behaviour

is a science. The application of behavioural knowledge and skills clearly leans towards

being an art.

Nature and Scope of Organisational Behaviour

Organisational behaviour is concerned with understanding and describing human

behaviour in an organisational setting. It seeks to shed light on the complex human factor in

organisations by identifying causes and effects of human behaviour. It is called a social

science because its main concern is people and their behaviour. It is the field of study that

integrates behavioural sciences like psychology, sociology and anthropology for the study of

human behaviour in and around organisations.

Levels of Analysis

Organisational behaviour focuses on three levels of analysis, viz.,

(i) Individual Behaviour,

(ii) Group Behaviour

(iii) Organisation Behaviour

1. Behaviour at the Individual Level:

The behaviour of individuals is a complex phenomenon and is affected by a large number

of factors such as personality, attitudes, perception, learning, and motivation, social,

cultural and other factors. OB integrates these factors to provide simplicity in

understanding human behaviour. The study of behaviour of an individual working in the

organisation is also known as micro organisational behaviour.

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2. Behaviour at the Group Level:

Several research studies have shown people behave differently in groups than as

individuals. Several factors influence the behaviour of groups such as group goals,

norms, communication, leadership, cohesiveness, etc. Understanding of group dynamics

is essential to reduce conflicts and improve morale and productivity. This is also known

as meso organisation behaviour.

3. Behaviour at the Organisation Level:

An organization is a system composed of several interdependent individuals and groups.

Individuals and groups operate within the structure of formal organisation. They

participate in shaping the culture of the organisation and also in organisation

development.

The study of behaviour from the perspective of the whole organisation is also referred to

as macro-organisational behaviour.

Inter-Disciplinary Approach

Organisational behaviour is of integrating nature. It tries to synthesize knowledge

drawn from various behavioural and social sciences such as psychology, sociology, social

psychology, anthropology, political science, economics, industrial engineering etc.

Organisational Behaviour is an applied behavioural science

1. Psychology :

It is the study of human behaviour covering individual traits and membership of small

social groups. (personality, perception, emotion, attitude, and learning.)

2. Sociology :

The study of social behaviour (group dynamics, leadership, communication, formal and

informal groups, organisational changes and developments and organisational structure)

3. Social Psychology:

It is interpersonal behaviour, group decision making, effect and change on behaviour,

responsive and integration of group activities with individual needs.

4. Anthropology:

(Science of Mankind) study of relating of human activities in various culture and

organisational frameworks (cross culture analysis, individual culture, organisational

environment, comparative values and comparative attitudes.)

5. Political Science:

Politics dominate human behaviour at large extend (power and politics, network, conflict

resolution)

6. Semantics:

The communication network in the organization.

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Determinants of Organisational Behaviour

1. People :

(Individuals and Groups) all organizations are made up of individuals. People are

dynamic in nature; they interact with each other and also influence each other. They form

change and disbanned organizations. The basic problem of management is to understand

this behaviour so that individuals are motivated in a better way to contribute their

maximum to the organisational goals.

2. Structure:

It defines the roles and relationship of people. It leads to division of labor as well

authority – responsibility relationship. The entire structure within the organization leads

to interaction between individuals. The structural design must be based on other 3

determinants, that is, requirements of organization member or individuals, the external

environment and the technology used.

3. Technology:

It impacts the physical and economic conditions within which people work in an

organization. This includes tools, methods and resources. It influences the working

condition and also put restrictions on the freedom of individuals.

4. Environment:

Organizations are influenced by external environment which includes social, cultural,

political, economic, legal and geographical and demographic forces. These influence

attitude, motive and perceptions of people in organizations.

Models of Organisational Behaviour

Since the dawn of industrial revolution, four models of organisational behaviour have

been followed by managers of different organisations at different times. These are:

autocratic, custodial, supportive and collegial.

a. Autocratic Model:

1. This model depends on the power of the boss

2. Managerial orientation is authority and right to command over the people to whom it

applies

3. Employees have to be directed, persuaded and pushed into performance

4. Employees simply follow order

5. The employees psychological effect is dependent on host

6. Employee only gives what is required or the minimum performance and is

compensated by minimum wages. The employees are insecure and frustrated.

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b. Custodial Model:

1. This model depends on economic resources.

2. Managerial orientation is toward money to pay wages.

3. In this model money is the motivating factor since physical needs are already met.

4. It is the security factors that motivate employees.

5. Employees are satisfied and happy but not fully motivated there is only passive co-

operation from the.

c. Supportive Model:

1. This model depends on leadership

2. Management‟s Orientation is to provide support to the employee‟s performance that

is, providing a climate to help employees grow and accomplished the interest of the

organization under their compatibilities.

3. Employees‟ Orientation is job performance. They feel a sense of security and act a

status and recognisation in the society as well as in nation.

d. Collegial Model:

1. Depends on common interest. It is an extension of supportive model.

2. This model is based on partnership.

3. Managerial orientation is towards team work and employees‟ orientation is towards

maintaining standard and quality of work.

4. Moderate enthusiasm in performance and largely satisfies the self actualization.

Model Summary

Model Autocratic Custodial Supportive Collegial

Basis of model Power Economic

resources Leadership Partnership

Managerial

Orientation Authority Money Support Teamwork

Employee

Orientation Obedience

Security and

benefits

Job

performance

Responsible

behaviour

Employee

Psychological result

Dependence

on boss

Dependence on

organisation Participation Self-discipline

Employee needs met Subsistence Security Status and

recognition Self-actualisation

Performance result Minimum Passive co-

operation

Awakened

drives

Moderate

enthusiasm

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Management’s assumptions about people

These models are based upon management’s assumptions about people. These are as

follows:

McGregor’s Theory ‘X’ and Theory ‘Y’:

Douglas McGregor was a known psychologist. He propounded two contrasting

theories of human behaviour which he called theory „X‟ and theory „Y‟. These theories

contain two pairs of assumptions about human beings which McGregor thought were implied

by the actions of autocratic and permissive managers. It may be noted that these sets of

assumptions are merely intuitive deductions; they are not based on any research studies.

a) Theory ‘X’:

In this McGregor said that with respect to people, management is a process of directing

their efforts, motivating them, controlling their actions, modifying their behaviour to fit

the needs of the organisation. Without this active intervention by management, people

would be passive – even resistant to organisational needs. They must, therefore, be

persuaded, rewarded, punished, controlled – their activities must be directed.

b) Theory ‘Y’:

After challenging the validity of Theory „X‟, McGregor developed an alternative theory

of human behaviour which is known as Theory „Y‟. This theory assumes that people are

not unreliable and lazy by nature. If they are properly motivated, they could really be

creative. The main task of management is to unleash the potential in the employees. An

employee who is properly motivated can achieve his goals by directing his own efforts

and, thus, he can help in accomplishing the organisational goals.

Comparison of Theory ‘X’ and Theory ‘Y’

Theory ‘X’ Theory ‘Y’

1. Based on the assumption that people are

basically lazy and so shirk work

1. Based on the assumption that people like work

as children like play

2. People do not take initiative. They like

to be directed.

2. People like to take initiative. They seek self-

direction

3. People avoid responsibility whenever

possible

3. People assume responsibility gladly if

conditions are favorable.

4. For getting things done, people must be

supervised strictly.

4. People do not require close and strict

supervision for properly performing their jobs.

5. Autocratic style of Leadership is likely

to be more effective

5. Democratic or participative style of leadership

is likely to be more effective

6. Applicable to illiterate, unskilled and

lower-level workers

6. Applicable to educated and skilled employees

who occupy higher positions in the

organisation

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7. Believes in mental sickness and so

negative motivation of employees

7. Believes in mental health and so positive and

intrinsic motivation of employees

Appraisal of McGregor’s Contribution

These theories are important tools in understanding the behaviour of human beings

and in designing the incentive schemes to motivate the employees. Neither of the two

theories is fully applicable in all the situations and to all types of human beings. However,

Theory X is more applicable to unskilled and uneducated low level workers, whereas Theory

Y is more applicable to skilled and educated employees who are mature enough and

understand the responsibility.

Chris Argyris’ Immaturity – Maturity Theory

The frame work of maturity-immaturity characteristics suggested by Chris Argyris

describes the multi-dimensional development process along which an individual in an

organisation grows. He identified seven basic changes that take place in the people over the

years. These changes reveal that people have a tendency:

i. To develop from a state of being passive as an infant to a state of increased activity as an

adult.

ii. To develop from a state of dependence on others as an infant to a state of relative

independence as an adult.

iii. To develop from being capable of behaving in only a few ways as an infant to being

capable of behaving in many different ways as an adult.

iv. To develop from having erratic, casual and shallow interests as an infant to a deepening of

interests as an adult.

v. To develop from having a short-term perspective as an infant to a much longer time

perspective as a mature adult.

vi. To develop from being in a subordinate position in the family and society as an infant to an

equal or superior position to others as an adult.

vii. To develop from the state of lack of self-awareness of self as an infant to a state of

awareness and control over self as an adult.

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Immaturity-Maturity Continua

Immaturity Characteristics

(Pattern A)

Maturity Characteristics

(Pattern B)

1. Passive 1. Active

2. Dependence 2. Independence

3. Capable of behaving only in a few ways 3. Capable of behaving in a variety of ways

4. Shallow interest 4. Deepening interest

5. Short-time perspective 5. Long-time perspective

6. Subordinate position 6. Superordinate or equal position

7. Lack of awareness of self 7. Awareness of and control over self

The continua of seven changes show the general tendency of people in organisation to

develop from immaturity (Pattern A) to maturity (Pattern B). The matured state is

characterized by an endless series of challenges in which the reward comes from doing

something for its own sake.

Theory ‘Z’: A Hybrid Model given by William Ouchi

Made a comparative study of American and Japanese management practices. He came to

the conclusion that many of the Japanese management practices can be adapted in

American context. He suggested the adoption of Theory Z which represents an

integration of American and Japanese management practices.

Theory Z represents the adoption of Japanese management practices by the American

companies. The „hybrid‟ type of system incorporates the strengths of Japanese

management (group decision-making, social cohesion, job security, holistic concern for

employees, etc), and American management (quick decision-making, individual freedom,

risk-taking by individuals etc.

This theory provides a complete transformation of motivational aspect of employees as

compared to Theory X and Theory Y. Theory Z has been followed successfully by the

Japanese firms operating in the U.S.A.

Organisational Theory

Organisational theory is the study of structure, functioning, and performance of

organisations and of the behaviour of groups and individuals working in organisations.

According to S.P. Robbins, “Organisation theory is the discipline that studies the

structure and design of organisations. It explains how organisations are actually designed

and offer suggestions on how they can be constructed to improve organisational

effectiveness”.

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Challenges for Organisational Behaviour

The field of organisational behaviour is dynamic and not static. Behavioural scientists

are continuously engaged in updating and sharpening behavioural skills to cope up with the

emerging changes in the external environment of the organisations.

1. Globalisation of Business:

There is no denying the fact that, the world economy is becoming increasingly global in

character. Barriers to trade between different countries have been reduced to a great

extent. Globalisation has posed both challenges and opportunities for the managers.

The global managers must work to understand the local culture and the behavioural

forces that affect the workforce in order to manage the workers more effectively.

2. Workforce Diversity:

Another serious challenge that managers face involves workforce diversity, i.e., the

increasing heterogeneity of organisations with the inclusion of workers from different

groups such as women, physically disabled persons, retired defence personnel, backward

classes, ethnic groups etc. The managements followed melting pot approach to

differences in workforce. It was assumed that people who were different would

somehow assimilate with the majority groups. But it is now recognized that employees

don‟t set aside their values, beliefs, lifestyle preference, etc., when they come to work.

Therefore, it is desirable to recognize and value such differences by adapting

management practices to different life and work styles, etc. of the diverse groups.

3. Satisfaction of Aspirations of Workforce:

The workers are becoming more aware of their higher level needs and this awareness

would intensify further among the future workers. The managers would be required to

evolve appropriate techniques to satisfy the higher level needs of workers in order to

motivate them.

4. Empowerment of Employees:

Various techniques of empowerment range from participation in decision-making to the

use of self-managed teams. In future, organisations will follow team structures which

will pave the way for empowerment of lower levels. Empowerment would be all the

more necessary to speed up the process of decision-making, make use of environmental

opportunities and to serve the customers and society better.

5. Improvement of Productivity and Quality:

In the era of global competition, improvement of productivity and quality is essential to

satisfy customers. Productivity and quality could be improved through not only better

technology but also trained human resources. Programmes like Total Quality

Management (TQM) and Business Process Reengineering (developed by Michael

Hammer and James Champy) which require extensive employee involvement can be

implemented to meet the challenges of quality and productivity.

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6. Management of Innovation and Change:

In today‟s environment, organisations must foster innovation and manage change

successfully. Success comes to those organisations that maintain their flexibility,

continually improve their quality and outbeat their competitors with innovative products

and services. Employees are key to innovation and change. The challenge for managers

is to stimulate employee creativity and tolerance for change.

7. Facilitating Work-life Balance:

Organisations must recognise that transitions in personal life often accompany career

transitions. Therefore, they must be concerned with the consequences of major career

moves within the organisation and help individuals to develop strategies for managing

the accompanying changes in their personal lives.

8. Promoting Ethical Behaviour:

Many organisations today are taking steps to enhance the ethical standards of their

employees and to avoid legal and / or public opinion problems. There is also increased

concern for carrying out social responsibility by the managements of business

organisations.

OB Modification

OB Mod is widely used in modern organisations, it is also surrounded by the

controversy that it is manipulative and so it is unethical. The steps in OB Mod and various

issues involved in its application are the theme of this chapter.

Concept & Definition of OB Mod

OB Mod or Behaviour Modification has its root in modern behaviorism which draws

heavily on the work of B.F. Skinner. It is based on the operant conditioning approach to

learning which advocates that desirable behaviour should be reinforced. In simple words, OB

Mod represents the application of reinforcement theory relies on positive reinforcement,

shaping and recognizing the impact of different schedules of reinforcement on behaviour. OB

Mod uses these concepts to provide managers with a powerful means for changing the

behaviour of employees.

OB Mod can be applied for motivating the employees and also for enhancing

organisational effectiveness. In the words of Stephen P. Robbins, “OB Mod is a programme

where managers identify performance-related employee behaviours and then implement an

intervention strategy to strengthen desirable behaviours and weaken undesirable

behaviours.”

Managing OB Mod at work

According to Schermerhorn, Hunt and Osborn, “OB Mod is the systematic

reinforcement of desirable work behaviour and the non-reinforcement or punishment of

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unwanted work behaviour. It includes four basic reinforcement strategies: positive

reinforcement, negative reinforcement, punishment, and extinction.

When the employee treats the customer politely while handling returns, the supervisor

uses positive or negative reinforcement depending upon the past experience. But if the

employee deals with the customer rudely, the supervisor uses extinction or punishment

strategies based upon the past experience to direct employee behaviour towards desirable

practice. It should be noted that both positive and negative reinforcements are used to

strengthen desirable behaviour when it occurs; both punishment and extinction are applied to

undesirable behaviour in an attempt to decrease the frequency of its occurrence.

Steps in OB Mod

As suggested by Luthans and Kreitner, OB Mod in organisation involves the

following five steps: (1) Identification of performance-related behaviours; (2) measurement

of the behaviours; (3) identification of behavioural contingencies; (4) development and

implementation of an intervention strategy; and (5) evaluation of performance improvement.

These steps are as follows.

Steps in OB Mod

1. Identification of performance-related behaviours

The manager should try to identify behaviours that are desirable and undesirable from

the point of view of the organisation. The critical behaviours that have significant impact on

the employee's performance must be given due attention because they get repeated time and

again. If such behaviours are modified, good results could be expected afterwards.

Some of the behaviours which greatly influence job performance include absenteeism

or attendance, tardiness or promptness, complaints or constructive criticisms, and doing or

not doing a particular task.

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2. Measurement of the behaviours

This step requires the manager to develop some baseline performance data. The

manager records the frequency of the critical behaviour over time. This allows die manager to

determine his success in changing the subordinate's behaviour. It may also provide insight

into the circumstances associated with each critical behaviour.

3. Identification of behavioural contingencies

It is necessary to analyse patterns of continued behaviour that require modification.

This may require insight and evaluation of individual differences in behaviour. If through this

process an inventory of positive reinforcers can be developed, the next step of intervention is

greatly simplified. Since only contingent consequences of behaviour have an impact on

subsequent behaviour, functional analysis must make sure that the contingent consequences

are identified. Further, functional analysis often reveals that there are many competing

contingencies for every organisational behaviour, therefore, the analysis must not be deluded

by the contingent consequences mat on the surface appear to be affecting the critical

behaviour.

4. Development and implementation of an intervention strategy

Identification of critical behaviour to change and the factors that cause such

behaviours will determine the action step to the development of an appropriate intervention

strategy. For the successful implementation of OB Mod, this stage involves (a) developing a

strategy for changing the behaviour, (b) implementing the strategy, and (c) measuring the

frequency of the resulting behaviour. A record is kept of how often the problem behaviour is

repeated. If a behaviour change has occurred in the desired direction, the manager selects a

reinforcement schedule that will maintain the desired behaviour.

There are several strategies that can be used at this stage. These include positive

reinforcement, negative reinforcement, extinction and punishment. The use of a particular

strategy will depend upon the type of situation faced as discussed in the previous chapter.

5. Evaluation of performance improvement.

The purpose of evaluation of strategies of OB Mod is to know their effectiveness.

This would reveal whether the undesirable behaviours have been substituted by desirable

behaviours or not. This would also reveal if the employees have undergone a permanent

change in behaviours. Lastly, the manager should appraise the improvement in performance

which is the basic purpose of OB Mod. Measures like quality and quantity, turnover,

absenteeism, grievances, tardiness, etc. may be used to evaluate the success of the OB Mod

programme.

Benefits of OB Mod

Behaviour modification concentrates on a person's external behaviour and this allows

a manager to realistically observe and deal with outward manifestations of behaviour.

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Behaviour modification is basically built around the use of rewards for observable behaviour.

Since it deals with observed behaviour, it can also be put to testing.

OB Mod can be used as a technique of developing the employees. OB Mod strategies

can be used to make the people learn new behaviours and substitute undesirable behaviours

by desirable behaviours. Social learning theory can be of great use in the effective

implementation of any training programme for the employees. Besides positive

reinforcement could be used to encourage desirable behaviour by the employees.

Problems of OB Mod

Some people say that OB Mod is manipulative in character and so it should not be

used by the managers to regulate the behaviour of others. They raise the following objections

against OB Mod :

1. Behaviour modification tends to equate rats with human beings. Skinner's operant

conditioning principles were developed after a series of experiments on white rats. But

"organisations are more complex than Skinner's boxies".

2. Operant conditioning techniques ignore the individuality of person and constitute a threat

to the concept of personal autonomy. These techniques are employed by managers to

manipulate and control the behaviour of the subordinates.

3. Reinforcement under OB Mod seems to be in conformity with the traditional thinking that

people need to be directed to get the work done. It challenges the integrity of people as

being self-motivated and also their wisdom.

4. Behaviour modification restricts freedom of choice and utilisation of personal capabilities

of individuals. It tries to exaggerate the power of behavioural control by psychological

methods.

5. External awards are emphasised by OB Mod. Thus, rewards are controlled by others and

not the employee himself. But intrinsic pleasure of job is most important for some

employees. OB Mod ignores the internal causes of behaviour.