Understanding Organizations & Human

Behavior

CONTENTS Definition of Organizational Behavior Management Roles: Interpersonal Roles; Informational Roles; Decision

Roles Management Skills: Technical Skills; Human Skills; Conceptual Skills Generalization about Behavior Consistency Vs Individual Differences Theoretical Framework: Cognitive Framework; Behaviorist Framework;

Social Learning Framework; A Model of Organization Behavior Challenges and Opportunities for Organizational Behavior Environmental Challenges Models of Organizational Behavior: The Autocratic Model; The Custodial

Model; The Supportive Model; The Collegial Model

WHY STUDY OB?

In a worldwide survey managers admit that “People” are the toughest to handle and people-related problems are on the top of the agenda.

People-related problems – poor communication skills, employees lack motivation, conflicts between team members, overcoming employees’ resistance to organizational changes etc.

Management Terminologies

A NUMBER OF DIFFERENT APPROACHES ARE BEING TRIED - We are still pissing in the wind.

EXTENSIVE REPORT IS BEING PREPARED ON A FRESH APPROACH TO THE PROBLEM - We just hired three kids fresh out of college.

CLOSE PROJECT COORDINATION - We know who to blame.

MAJOR TECHNOLOGICAL BREAKTHROUGH - It works OK, but looks very hi-tech.

TEST RESULTS WERE EXTREMELY GRATIFYING - We are so surprised that the stupid thing works.

THE ENTIRE CONCEPT WILL HAVE TO BE ABANDONED - The only person who understood the thing quit.

WHY STUDY OB?

Influence Organizational Events Predict Organizational Events

Understand Organizational Events

Organizational Behavior Research

WHAT IS AN ORGANIZATION?

The Pioneer Company with 345 employees in its 11 departments, is bustling with activity. Some of the staff are walking from one department to another exchanging information, teams are working together, telephones are constantly ringing and managers are talking to their supervisors, who are planning the day’s activities with their subordinates. In the midst of all this, clients are waiting to be served and suppliers are seeking clarifications.

Organizational Behavior - Why it has emerged?

Shifting paradigms of organizational behavior. Demise of “command-and-control.” Emergence of new workplace expectations. Critical role of information technologies. Belief in empowerment. Emphasis on teamwork. Concern for work-life balance. Emphasizes high performance organizations. Occurs in a global context.

Organizations – The ShiftTrust in Subordinates Non-existent Complete

Motivation Accomplished By Fear and Threats Group Participation and Involvement

Communication Limited Widespread

Interpersonal Interaction Limited Extensive

Decision Making Centralized Decentralized

Goal Setting Centralized Participation Allowed

Control Centralized Extensive Delegation

Informal Organization Developed in opposition to the organization

Same as the Formal Organization

What are organizationslike as work settings?

Organizations as open systems. Organizations obtain resource inputs from the

environment. Organizations transform resource inputs. Organizations return transformed inputs to the

environment as outputs in the form of goods and services.

DEFINITIONS

Organization – It is a purposeful system with several subsystems in which individuals are organized to achieve certain predetermined goals through the division of labor and coordination of activities.

Management – It refers to the process through which the goals of the organization are attained by channeling the efforts of employees. (POSCORB)

DEFINITION

Organizational Behavior is defined as the systematic study of the actions and attitudes that people exhibit within organizations.

(or) Organizational Behavior is the systematic study of

the actions and reactions of individuals, groups and subsystems.

(or) Organizational Behavior is the study of what

people think, feel and do in and around organizations.

Relationship of OB to Other Related Disciplines

Micro OB HRM

Macro OT OD

Theoretical Applied

What is the nature of managerial work?

The management process. An effective manager is one whose organizational

unit, group, or team consistently achieves its goals while its members remain capable, committed, and enthusiastic.

Key results of effective management:Task performance.Job satisfaction.

Management SkillsTechnical skillsThe ability to apply specialized knowledge or expertise. (entry)

Human skillsThe ability to work with, understand, and motivate other people, both individually and in groups. (managerial)

Conceptual SkillsThe mental ability to analyze and diagnose complex situations. (top management)

Technical skills

Technical skills. An ability to perform specialized tasks. Derives from knowledge of expertise gained from

education or experience. Proficiency at using select methods, processes, and

procedures to accomplish tasks.

Human Skills

Human skills

An ability to work well with other people. Emerges as a spirit of trust, enthusiasm, and genuine

involvement in interpersonal relationships. Self-awareness. Capacity for understanding and empathizing. Engages in persuasive communication. Deals successfully with conflicts.

Conceptual skills

Conceptual skills. An ability to see and understand how the system

works, and how the parts are interrelated. Used to:

Identify problems and opportunities. Gather and interpret relevant information. Make good problem-solving decisions.

Managerial Roles

Interpersonal roles. Figurehead. Leader. Liaison.

Informational roles. Monitor. Disseminator. Spokesperson.

Decisional roles. Entrepreneur. Disturbance handler. Resource allocator. Negotiator.

Managerial Networks

Task networks. Specific job-related contacts.

Career networks. Career guidance and opportunity resources.

Social networks. Trustworthy friends and peers.

Generalization about Behavior

Happy workers are productive When boss is friendly & reliable, employees are

more productive Good leaders are consistent under all situations. Money motivates all. People are concerned more about their salaries

than others. Employees work best in a no-goal environment. CONSISTENCY vs. INDIVIDUAL DIFFERENCES

Theoretical Frameworks

Cognitive Framework – Cognition (act or process of knowing / perception). Based on expectancy, demand and incentive concepts.

Edward Tolman – Dog and bell experiment. Conclusion was that learning consists of the expectancy that a particular event would lead to a particular consequence.

Behavioristic Framework – Based on the environment and S-R relations (pin pricking). Ivan Pavlov, Watson & Skinner were contributors.

Social Learning Framework – Combination of both. People are self-aware and make an effort towards conscientious behavior. Albert Bandura – Individual + environment interact.

SOBC Model – Stimulus, Organism, Behavior & Consequence. S and C are environmental variables.

Models of OB

Autocratic – pushing, directing and persuading the employees (industrial revolution)

Custodial – paternalism through welfare programs (early retirement, job transfer)

Supportive – based on leadership than on power and money

Collegial – extension of supportive. Collegial means “group of persons working for a common purpose”. Employees are self-disciplined and self-motivated.

Challenges and Opportunities for OB

Responding to Globalization Increased foreign assignments Working with people from different cultures Overseeing movement of jobs to countries with

low-cost labor Managing Workforce Diversity

Embracing diversity Changing U.S. demographics Implications for managers

Recognizing and responding to differences

Challenges and Opportunities for OB (cont’d)

Improving Quality and Productivity Quality management (QM) Process reengineering

Responding to the Labor Shortage Changing work force demographics Fewer skilled laborers Early retirements and older workers

Improving Customer Service Increased expectation of service quality Customer-responsive cultures

Challenges and Opportunities for OB (cont’d)

Improving People Skills Management control to Empowerment Stability to Flexibility Improving Ethical behavior e.g. pushing the

products in the market

Challenges and Opportunity for OB (cont’d)

Improving People Skills Empowering People Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees Balance Work/Life

Conflicts Improving Ethical Behavior

Terminologies

ProductivityA performance measure that includes effectiveness and efficiency.EffectivenessAchievement of goals.EfficiencyThe ratio of effective output to the input required to achieve it.

TerminologiesAbsenteeism

The failure to report to work.Turnover

The voluntary and involuntary permanent withdrawal from an organization.

Organizational citizenship behavior (OCB)

Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization

Terminologies

Job satisfaction

A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

Knowledge * Skill = Ability

Attitude * Situation = Motivation

Ability * Motivation = Potential Performance

Human Performance * Resources = Organizational Performance

Terminologies

Baby Boomers

People born between 1946 & 1964

Generation XPeople born between 1964 & 1980

Generation YPeople born between 1981 & 1995

Builders (1920-1945) Boomers (1946-1964) Gen X (1965-1979) Gen Y (1980-1994)

The lucky generation The baby-boomers The options generation The millennials

The veterans Generation Jones Post-boomers Net generation

Pre-boomers The stress generation Baby-busters Dot.com generation

The greatest generationThe sandwich

generation Slackers Echo boomers

The silent generation The new generation Whiners iGeneration

The frugal generation The me generation MTV generation Google generation

The pre-war generation The love generationThe twenty/thirty

somethings Myspace generation

The Depression generation The lost generation The back-end boomers Mypod generation

The beat generation War babies The doom generation Nintendo generation

The GI generation Leading-edge boomers X-er The cynical generation

The seniors Trailing-edge boomers The generation afterThe connected

generation