Ob 1(importance, nature and framework)

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ORGANIZATIONAL BEHAVIORAND MANAGEMENT

CHAPTER 1 Organizational Behavior and Management

Copyright © 2002 Prentice-Hall

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What is an Organization?

An organization is a collection of people who work together to achieve individual and organizational goals.



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What is Organizational Behavior?

Organizational behavior (OB) is the study of factors that affect how individuals and groups act in organizations and how organizations manage their environments.



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Insert Figure 1.1 here



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Insert Figure 1.2 here



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What is Management?

Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness.



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Managerial Roles• Manager: Any person who supervises one or more

subordinates.• Role: A set of behaviors or tasks a person is

expected to perform because of the position he or she holds in a group or organization.

• Managerial roles identified by Mintzberg (see Table 1.1):

Figurehead LeaderLiaison MonitorDisseminator SpokespersonEntrepreneur Disturbance handlerResource allocator Negotiator



• Organizational Behaviour studies encompass the study of organizations from multiple viewpoints, methods, and levels of analysis. Provides a set of useful tools;-At the individual level- interpersonal relations,- At the group level – group dynamics – formal teams and informal groups – inter-group relations,- At the organisational level – inter-organisational gps – M&As. 9



Why Study Organizational Behavior

OrganizationalOrganizationalBehaviorBehaviorResearchResearch

UnderstandUnderstandorganizationalorganizational

eventsevents

PredictPredictorganizationalorganizational

eventsevents

InfluenceInfluenceorganizationalorganizational

eventsevents

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Goals

• Describe how people behave under a variety of conditions

• Understand why people behave as they do

• Predict future employee behaviour

• Control and develop human activity at work to improve productivity, skill improvement, team effort, etc

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Forces

• People- individuals and groups

• Structure- jobs and relationships

• Technology-machinery, computers

• Environment-govt, competition, social pressures.

All the above forces interact on each other resulting in OB.

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Managerial Skills• Conceptual Skills: The

ability to analyze and diagnose a situation and distinguish between cause and effect.

• Human Skills: The ability to understand, work with, lead, and control the behavior of other people and groups.

• Technical Skills: Job-specific knowledge and techniques.



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Challenges for Organizational Behaviorand Management

Using new information technology to enhance creativity and organizational learning.

Managing human resources to increase competitive advantage.

Developing organizational ethics and well-being.

Managing a diverse work force. Managing the global environment.



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• Information technology: The computer systems and software that organizations use to speed the flow of information around an organization and to better link people and subunits within it.

• Creativity: The decision-making process that produces novel and useful ideas that lead to new or improved goods and services or to improvements in the way they are produced.

Challenge 1:Using New Information Technology to

Enhance Creativity and Organizational Learning



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New Ways to Increase Performance• Reengineering: A complete rethinking and

redesign of business processes to increase efficiency, quality, innovation, or responsiveness to customers.

• Restructuring: Altering an organization’s structure (e.g., by eliminating a department) to streamline the organization’s operations and reduce costs.

• Outsourcing: Acquiring goods or services from sources outside the organization.

• Freelancers: Independent individuals who contract with an organization to perform specific services.



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Challenge 3Developing Organizational Ethics and Well-Being

• Ethics: Rules, beliefs, and values that outline the ways in which managers and workers should behave when confronted with a situation in which their actions may help or harm other people inside of or outside an organization.

• Well-being: The condition of being happy, healthy, and prosperous.

• Social responsibility: An organization’s moral responsibility toward individuals or groups outside the organization that are affected by its actions.



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Diversity Challenges

Decision Makingand

PerformanceFlexibility

Fairnessand

Justice



• In the 1890s, with F W Taylor representing the peak of this movement. Proponents of scientific management held that rationalizing the organization with precise sets of instructions and time-motion studies would lead to increased productivity.

• Studies of different Compensation systems were carried out.



• Soon after, Frederic Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees.

• In the 1920s, Australian-born Harvard professor Elton mayo and his colleagues conducted productivity studies at Western Electric's Hawthorne plant in the United States.

• They discovered the importance of formal and informal group dynamics in the work place, resulting in a dramatic shift towards the ‘human relations’ school of thought.

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• After the First World War, the focus of organizational studies shifted to analysis of how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne effect . This Human relations Movement focused on teams, Motivation and the actualization of the goals of individuals within organizations.

• Prominent early scholars included Chester Barnard, Henry fayol, Frederick Herzberg, Abraham Maslow, David McClelland and Victor Vroom

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Four Principles of Scientific Management

1. Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed.

2. Codify the new methods of performing tasks into written rules and standard operating procedures.

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Four Principles of Scientific Management

3. Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures.

4. Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level.

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The Hawthorne Studies• Hawthorne Works of the Western Electric Company

near Chicago; 1924-1932 – these studies mark the starting point of the field of Organisational Behaviour

• Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting).(Illumination experiment)

• Found that productivity increased regardless of whether illumination was raised or lowered.

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• Started in 1924– to examine the relationship between light intensity and employee productivity – a test group and a control group were used – the test group initially did not show any increase or decrease in output in proportion to the increase/decrease in illumination.

• The control group with unchanged illumination increased output by the same amount overall by the test group. Subsequent phases brought the level of light down to moonlight intensity: the workers could barely see what they were doing, but productivity increased.

• The results baffled the researchers. Obviously, something besides the level of illumination was causing the change in productivity – the complex human variable. 26



The results of these experiments provided the impetus for the further study of human behaviour in the work place.Subsequent phase – Relay room assembly test , where operators assembled relay switches – test specific variables, such as length of workday, rest breaks, and method of payment. – basically the same results –Each test period yielded higher productivity than the earlier one. Even when the workers were subjected to the original conditions of experiment, productivity increased–that was causing the change in the output.

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• Conclusion – the independent variables (rest pauses, etc.,) were not by themselves causing the change in the dependent variable (output). Something was still not being controlled.

• The bank wiring room study: the bank wirers were placed in a separate test room. No experimental changes during the study – an observer and an interviewer gathered objective data – department’s regular supervisors were used to maintain order and control.28



Implications• Workers’ preference to work in the relay

room, because of:i. Small groupii. Type of supervisioniii Earningsiv Novelty of the situationv. Interest in the experimentvi. Attention received in the test

room The last 3 associated with “Hawthorne Effect”

– special attention paid to them 29



• The end

Ob 1(importance, nature and framework)

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