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Do Organisations Behave?

o What is an organisation?

o Exist in an environment

o Also have an internal environment

o Studies the impact of behviour of Behaviour at the level of:

o Individuals

o Teams

o Organisation

On OE

Isn’t it just common sense? 

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How does it help… 

Predict

Manage

Control Behaviour 

Through Systematic Studies - Not Just Intuition•Cause effect

•Draw conclusions based on scientific evidence

Each Person is Different -  Yet Behaviour is generally

predictable… 

The reality in the workplace… 

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Economic Times – Mumbai – July 23, 2010

I finished my PGDM in 2008. I got placement in a large private sector bank

as an assistant manager with an annual 3,57,000 CTC package. I was asked

to leave the organisation due to poor feedback given by my subordinatesduring the half-yearly performance review. I resigned in November 2009. I

have not got a job matching my earlier profile, nor have I attended any

interviews. Kindly help me get my career back on track.

Many skills related to people – yourself and other

people

ANALYSIS

Our understanding about Organisations

and their Evolution

N Shantaprasad – Batch of 2004 Heinz India Ltd

‘ Many say that practical experience … things into place

 but then I have seen a lot of people who do not

 manage these things even with years of experience and 

 some who manage it much better even with lesser

experience ‘ 

These things – aka – interpersonal skills, how to manage

 subordinates

 – eg keeping distance, yet remaining open, managing their

compensation in a fixed budget… 

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Evolution of Organisational Behaviour (Organisation

Theory)

o

Early Approaches – Adam Smith and Company

o Classical Management – Scientific Management /Max

Weber / Henry Fayol’s 14 principles 

o Human Relations / Behavioural Sciences view – Hawthorne

Experiments

o Open Systems view of organisations

o Contingency Approach… 

The syllabus

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OB Syllabus

o

Introduction – Relevance

o Personality

o Perception / Values and Attitudes, Motivation

o Group Behaviour / Dynamics

o Organisational Design

o Leadership Concepts, Power and Politics

o Organisation Development / change/ culture

Systematic Study – leads to theory (generalisations)

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What is Theory ?

a set of statements about interrelationshipsamong concepts / variables

that allow us to predict and explain

various processes and events

Dependent and independent variable – eg AGE

and Productivity

Independent Variables may be at the level of

Individual, Group, Organisation …

The tools used for this systematic study…Example Survey 

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Testing Theories - Tools of OB Research

Survey Research

o Identify variables of interest – eg communication apprehension and gender /likely area of specialisation

o Using questionnaires - Decide how to measure these

variables

o analyse data . Compare results to the hypothesis

o Any two variables that increase together are

positively correlated.

Eg communication apprehension… 

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Excerpts from Personal Report of Communication Apprehension

This instrument is composed of twenty-four statements ….applies to you by

marking whether you: Strongly Disagree = 1; Disagree = 2; are Neutral = 3;

Agree = 4; Strongly Agree = 5

_____1. I dislike participating in group discussions.

_____2. Generally, I am comfortable while participating in group discussions.

_____6. I am calm and relaxed while participating in group discussions.

_____7. Generally, I am nervous when I have to participate in a meeting.

_____8. Usually, I am comfortable when I have to participate in a meeting.

_____9. I am very calm and relaxed when I am called upon to express anopinion at a meeting.

_____11. Communicating at meetings usually makes me uncomfortable.

_____12. I am very relaxed when answering questions at a meeting.

____24. While giving a speech, I get so nervous I forget facts I really know.

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Gender – Independent Variable / Communication

Apprehension- Dependent Variable

GD Meeting Inter -

personal

Public

Speaking

2007 14.8 15.4 14.3 18.3

2008 12.6 14 12.9 16.8

Influenced by???

•Girls had little higher apprehension than boys

•Difference max in GDs and Public speaking

•In Interpersonal and Meeting – girls less apprehensive than boys

Experiments… 

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Experimental Research

 ascertain causal connections

Independent Variable - Systematically manipulated

to determine its effect eg - LIGHTING

Dependent variable - Variable that is measured –  

behaviour of interest eg PRODUCTIVITY

If the Independent variable does influence behaviour,

then people exposed to different amounts of it should

behave differently. 

Increasing relevance of OB today

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Why OB is so relevant today

o Globalisation – global work force, more expatriates,

cultures, overseeing movements of work from high cost

centres to low cost centres

o Managing Workforce Diversity embracing diversity

o Improving quality and productivity

o Improving Customer Service

o Empowering people

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Why OB is so relevant today

o Stimulating innovation and change

o Coping with temporariness

o Helping employees balance work / life conflicts

o Improving ethical behaviour…. 

EI – the marshmallow test

video

http://www.youtube.com/watch

?v=QX_oy9614HQ&feature=channel

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Analysis – Group Exercise 

Establishing causation – experimental research

First semester marks and Exercise Performance -0.20

Earn While you learn and Exercise Performance – 0.38

Group Performing best had Maximum Variation infirst semester marks

Group Performing worst had Minimum Variation infirst semester marks

Foundations of Individual Behaviour

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Foundations of Individual Behaviour Robbins, 11th Edition, Chapter 2

IndividualBehavior

PersonalCharacteristicsAge / genderEducationAbilities – intellectual, Physical

Family

EI etc

Environmental Factors

Economic conditions

Social normsCultural values

Ethics and social

Responsibility

Political

PsychologicalFactors

PersonalityPerceptionAttitudes / valuesLearning – classical 

Conditioning, Operant Condi- Itioning, Social Learning  

Organisational Factors

ResourcesFacilitesRewardsLeadershipStructure etc

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How people differ…(some differences) 

Appearance

How they deal with others

Thinking / intelligence

Values / Attitudes / Emotions

Likes and dislikes / preferences motivation

Behaviour and responses

How they view a particular situation… & learn