ORGANIZATIONAL BEHAVIORA presentation by Indranil Mutsuddi

Organizational Behavior

Nature of Organizational Behavior

Human Behavior inOrganizational settings

The Organization

The individual-Organization interface

Environment

Environment

Simple Relationships Among Problems,Methodology, And Knowledge

Body of Knowledge

ResearchMethodology

Problems and Questionsabout Organizational Behavior

The Relationship Of Organizational Behavior ToOther Closely Related Disciplines

OrganizationTheory(OT)

OrganizationalBehavior

(OB)

OrganizationDevelopment

(OD)

Human ResourceManagement

(HRM)

Theoretical

Applied

Macro Micro

Foundations of Organizational Behavior

Individual Differences

Whole Individual

Causedbehavior

Human dignity

SocialSystems

Mutuality ofInterests

HolisticConcept

OB

Importance of Organizational Behavior

• To provide a roadmap to the life of an individual in an organization.

• The field of OB uses scientific research in order to help to understand & predict organizational life.

• OB helps to influence organizational events.

• OB helps an individual to understand himself/herself and others better.

Importance of Organizational Behavior

• A manager in a business organization is concerned with getting things done through delegation, knowledge of OB facilitates effective management of the same.

• The field of OB is useful for maintaining cordial IR.

• The subject of OB is also useful to understand the behavior of the consumers (Consumer Behavior).

The Basic Process of Organizational Behavior

How Strong areThey?

How do theyInterrelate?

Understanding

What patterns ofBehavior arepresent?

What is the cause-effectrelationship?

Prediction

What solutions arepossible?

Which variablescan beinfluenced?

Understanding

Problem prevention

A Social Learning Approach ToOrganizational Behavior

Much of complex behavioris acquired by directly

observing and imitatingothers in the surrounding

environment

ORGANIZATIONALPARTICIPANTS

ORGANIZATIONALBEHAVIOR

Cognitiverepresentations ofreality help guide

organizational behavior

ORGANIZATIONALENVIRONMENT

Participants control theirown behavior to the extent that they rely

on cognitive supports andmanage relevant environmental

cues and consequences

Contributing Disciplines to the OB Field

Selected Topics in Psychology

Biology & Behavior Sensation & perception Learning & conditioning Behavior in social &

cultural context Thinking & intelligence Memory Emotion Motivation Theory of personality Health, stress, & coping Psychological disorder

Contributing Disciplines to the OB Field (cont’d)

Selected Topics in Sociology Culture & Society Socialization Social interaction Groups & organizations Deviance Sexuality Social stratification Family Religion Health & medicine Collective behavior &

social movement

Contributing Disciplines to the OB Field

Selected Topics in Social Psychology

Social perception Social cognitions Attitudes Aspects of social identity Prejudice & discrimination Interpersonal attraction Intimate relations Social influence Pro-social behaviors Individual & group

behaviors Aggression

Contributing Disciplines to the OB Field

Selected Topics in Anthropology

Discovering the past The origins of culture Origins of cities and states Human variation &

adaptation The concept of culture Communication &

language sex, gender, & culture Marriage & the family The arts Culture change

Contributing Disciplines to the OB Field (cont’d)

Challenges and Opportunities (1)Challenges and Opportunities (1)

• Responding to Globalization

• Managing Workforce Diversity– Major diversity categories

Gender (2/5 of nursing school students in US are men)

RaceNational originAgeDisabilityDomestic partners

– Melting pot approach vs. values differences

VeteransBaby

BoomersXers Nexters

after 19791965-19791946-1964before 1946

Multigenerational WorkforceMultigenerational Workforce

Comparison of Xers and Boomers

Task accomplished within workday

Use Internet to compare prices

Work with flexible hours

Not necessarily secured

Task accomplished in several days

Use telephone to compare prices

Work with regular scheduled hours

Secured with retirement plan

Fulfillment

Fluency withtechnology

JobSecurity

Workschedule

X generation Baby boomers

X Generation1965-1979

Baby Boomers1946-1964

Challenges and Opportunities (2)Challenges and Opportunities (2)

• Improving Quality and Productivity– TQM is still in– Quality Circle is out

• Responding to the Labor Shortage– Low birth rate

• Total Fertility Rate: 2.1 (1983) 1.1 (2005)– Low labor participation rates

• 60.93 (1987) 57.78 (2005)– Aging workforce

• Improving Customer Service– % of Service workers

• 35.61 (1978) 58.27 (2005)

Challenges and Opportunity (3)

• Improving People Skills

• Empowering People– McKnight Principles at 3M– Saturn’s self-managed teams

• Coping with “Temporariness”

• Stimulating Innovation and Change

• Helping Employees Balance Work/Life Conflicts

• Improving Ethical Behavior

W. L. McKnight3M Chairman

1949-1966

Contextual Perspective of

Organizational Behavior

OB: Emerging Implications

McKnight Principles at (1948)

Delegate responsibility and encourage men and women to exercise their initiative

Good people want to do their jobs their own way Mistakes will be made. The mistakes he or she

makes are not as serious in the long run as the mistakes management will make if it undertakes to tell those in authority exactly how they must do their jobs. 

Management that is destructively critical when mistakes are made kills initiative. And it's essential that we have many people with initiative if we are to continue to grow

3M

HR Highlights• Team structure

– Blue-collar work force are organized into self-directed work teams (6-15 people)

• Training– Minimum of 92 hours of training annually– Teambuilding, quality measurement, job skills

• Empowered Teams– Decisions on job design, selecting new team

members, providing replacement for absentees, budget preparation

• Collective Decision Making (70% consensus)– Decision-rings, business unit committees, Strategic

Action Council

Risk & Reward Pay System

• Base Pay/Benefits– 12% lower than the average GM workers

• At-risk pay (12%)– 5% meeting training requirement– 5% meeting quality requirements– 2% meeting team skills requirement

• Bonus/Reward (Quarterly review)– Based on profitability– $10,000 in 1995, 1996– $2,100 in 1997– $2,105 in 1998

Approaches to the study of OB

HRApproach

(supportive approach)

ContingencyApproach

SystemsApproach

ProductivityApproach

InteractionalismApproach

OB

Universal vs Contingency Approach of OB

OrganizationalProblems or Situations

determine

Elements of theSituation, which then

Suggest…

Organizational problemsOr situations must beEvaluated in terms of

The one best way of Responding

Contingency ways ofResponding

Universal approach

Contingency approach

Systems Approach to Organizations

Inputs:

HumanMaterialFinancial

Information

Outputs:

Products/ServicesProfit/Losses

Employee behaviorAdditional

Information

Product &Production

OrderFulfilment

Product &Production

Organization

Imports from theEnvironment

Exports to theEnvironment

Information

Feedback

Money

Interactionalist Approach to OB

Individual

Situation

Behaviour

A Conceptual Framework For The StudyOf Organizational Behavior

Environmental Context 2. Info. Tech & Globalization 3. Diversity & EthicsOrganizational Context 4. Design & Culture 5. Reward System

Cognitive Processes 6. Perception & Attribution 7. Personality & Attitudes 8. Motivational Needs & Processes 9. Emotional Intelligence, Optimism & Self-Efficacy

SocialCognitiveTheory

Managing andLeading for High Performance

15. Goals & Job Design16. Behavioral Management17. Leadership Processes & Skills18. Great Leaders Really Do

Dynamics

10. Communication11. Decision Making12. Stress & Conflict13. Power & Politics14. Groups & Teams

OrganizationalBehavior

Basic OB Model, Stage I

The OB Model • Personality• Perceptions• Learning• Attitudes & Attribution• Motivation

Individual Behavior

• Group Dynamics• Team Dynamics• Leadership• Power & Politics• Communication• Conflict

• Organization Culture• HR Policies/Practices• Work Stress• Organization Change• Organization Development

Group Behavior

Organization

OrganizationalEffectiveness

OB Depends on…

• Dependent variables

• Independent variables

The Dependent Variables

x

y

The Dependent Variables (cont’d)

The Dependent Variables (cont’d)

The Dependent Variables (cont’d)

The Dependent Variables (cont’d)

There Are Few Absolutes in OB

ContingencyContingencyVariablesVariablesx y

The Independent Variables

IndependentIndependentVariablesVariables

IndependentIndependentVariablesVariables

Individual-Level Individual-Level VariablesVariables

Individual-Level Individual-Level VariablesVariables

OrganizationOrganizationSystem-LevelSystem-Level

VariablesVariables

OrganizationOrganizationSystem-LevelSystem-Level

VariablesVariables

Group-LevelGroup-LevelVariablesVariables

Group-LevelGroup-LevelVariablesVariables

Learning Organizations

What is a Learning Organization

A Learning Organization is an organization that purposefully designs & constructs its structure, culture and strategies with the capacity to learn so that it can continuously adapt and change as needed

Case: Wal-Mart’s Global Learning

• When Wal-Mart’s U.S. market became saturated, it needed International markets for its expansion.

• By 2006 its International sales accounted for some 20% of the total sales.

• But the expansion abroad into some 15 countries was not without problems

• In Germany, Wal-Mart had problems with employees, customers & the low-price competitor Aldi Einkauf GmbH.

• In UK, Wal-Mart’s subsidiary Asda, fared because the company was recognised for its low prices.

• Since 2002, Wal-Mart operated in Japan where it invested in Seiyu Ltd, a chain selling groceries & apparels, Its competitor Aeon Co., apparently was impressed by the Wal-Mart business model that it sent its employees to China & South Korea to study the operation.

Case: Wal-Mart’s Global Learning

Case: Wal-Mart’s Global Learning

• The “Super-centre Model” of Wal-Mart did not work in Brazil where consumers preferred the local market.

• In China, where many consumers had limited transportation choices, Wal-Mart offered free shuttle services & home delivery for heavy items such as refrigerators etc.

Conclusion:• Wal-Mart is learning from its mistakes because

International customers are vital for its vision of global growth

Characteristics of a Learning Organization

• System Thinking: To be aware of the open linkages b/w managerial actions & those around them, within & outside the organization.

• Personal mastery: Organizations need to encourage their employees to continually learn & improve their own skills & abilities.

• Mental Models: They are deeply embedded assumptions & generalizations which managers carry regarding how the world works & their own actions.

Characteristics of a Learning Organization

• Building shared Visions: There is an important difference b/w a vision built around a charismatic leader-which is often transitory, and that built around shared goals.

• Team Learning: Working and sharing information among team members is a vital element of the learning organization.

Creating the Learning Organization

• Capabilities of scanning is necessary for exposing the organizations to new information, crated internally or acquired externally.

• Capabilities of self-reflection & problem-solving to enable the firm to interpret new information and redefine business knowledge is critical.

Creating the Learning Organization

• Capabilities to disseminate the new knowledge throughout the organization is important to ensure collective learning.

• Capabilities to act and experiment in order to enable the organization to practice the new responses it has learnt is essential.

• Facilitating the shift in People’s Mindsets.

Facilitating the shift in People’s Mindsets

• Managers must be receptive to the new ideas and overcome the desire to closely monitor & control operations

• Systems thinking among managers in the organization needs to be cultivated.

• It is necessary to keep the organization in a state of constant change.

Facilitating the shift in People’s Mindsets

• Diversities need to be cultivated in the functioning of the organization.

• Creating a mechanism to unlearn old & obsolete knowledge & practices.

• Disseminate learning throughout the organization systematically.

• Develop a sense of personal efficiency (efficacy) among the organizational members.

Need for Learning Organizations

• To survive in the tomorrow’s knowledge-based economy.

• To manage tomorrow’s intense Global competition.

• To cope with tomorrow’s rapid fire technological changes.

• To handle tomorrow’s demanding and fragmented markets.

• To build a people based work system in the organization.

Traditional vs Learning Organizations

Function Traditional Organization Learning Organization

1. Determination of

overall direction

Vision provided by top

management

Shared vision

2. Formulation &

implementation of

ideas

Top management decides what

is to be done ; rest of the

organization acts on these

ideas

Formulation &

implementation of ideas

take place at all level of

the organization.

3. Nature of

organizational

thinking

Each person is responsible for

his own job responsibilities

The focus is on developing

individual competence

Personnel understanding

their own jobs as well as

the way in which their

own work interrelates with

& influences that of

others

Traditional vs Learning Organizations

Function Traditional Organization Learning Organization

4. Conflict Resolution They are resolved through use

of power & hierarchical

influences.

They are resolved through

the use of collaborative

learning & the integration

of the diverse viewpoints.

5. Leadership &

Motivation

The role of the leader is to

establish the organization’s

vision, provide rewards &

punishment & maintain overall

control of employee activities.

The role of the leader is to

build a shared vision,

empower personnel,

inspire commitments, &

encourage effective

collaborative decision

making