Organization Organization is a collection of people who work together to achieve

a variety of goals both goals of various individuals in the org and goals of organization as a whole.

Examples: Manufacturing firms and companies Service firms Schools Hospitals etc

What managers do?

Managers The people who over see the activities of others

and who are responsible for attaining goals in the organizations are managers.

Managerial Activities•Make decisions• Allocate resources• Direct activities of

others to attain goals

Management skills

Technical skills:The ability to apply specialized knowledge and expertise.

Human skills The ability to work with, understand & motivate other people,

both individually and in groups.

Conceptual skills The mental ability to analyse and diagnose complex situations.

Management skills

Evolution of the 21st-Century Manager Past Managers Today’s Managers

Primary Role Order giver, privileged Facilitator, team elite, controller member, teacher, advocate

Learning & Periodic learning Continuous life-longKnowledge learning

Compensation Time, effort, rank Skills, resultsCriteria

Cultural Monoculture, Multicultural, Orientation monolingual multilingual

Allocation of Activities by Time

Why should we study OB?

In order to know How to deal with others How to perform in teams How to motivate and coordinate employees

What is OB? A field of study that investigates the impact that individuals,

groups and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness.

Benefits: Improve quality and employee productivity. Guides managers in creating an ethically healthy work

environment. Focuses on how to improve productivity, reduce absenteeism

and turnover and increase employee citizenship and job satisfaction.

Value of systematic study of OB:Intuition:

A gut feeling not necessarily supported by research.

Systematic study: Looking at relationships, attempting to attribute causes &

effects, and drawing conclusions based on scientific evidences.

EBM (evidence-based management): The basing of management decisions on the best available

scientific evidence.

Management should use evidence as much as possible to complement intuition and experience.

Contributing Disciplines to the OB Field Psychology: Psychology is the science that seeks to measure, explain, and

sometimes change the behavior of humans and other animals.

Psychology

Learning Motivation Personality Emotions Perception Training

Leadership effectiveness Job satisfaction

Individual decision makingPerformance appraisal Attitude measurement Employee selection

Work design Work stress

individual

Sociology Sociologists study the social system in which individuals

fill their roles; that is, sociology studies people in relation to their fellow human beings.

Formal organization theoryOrganizational technologyOrganization changeOrganizational culture

Group

Sociology

Group dynamicsWork teamsCommunicationPowerConflictInter-group behavior

Organization system

Social Psychology An area within psychology that blends concepts from

psychology and sociology and that focuses on the influence of people on one another.

Behavioral changeAttitude changeCommunicationGroup processesGroup decision making

GroupSocial psychology

Anthropology The study of societies to learn about human beings and their

activities.

Comparative valuesComparative attitudesCross-cultural analysis

Organizational cultureOrganizational environment Organization system

Group

Anthropology

Political Science The study of the behavior of individuals and groups within

a political environment

Political ScienceConflict Intra-organizational politicsPower

Organization system

Organization Behavior

Psychology

Sociology

Social psychology

Anthropology

Political Science

Group

Organization system

Individuals

Study of Organizational

Behavior

Challenges and Opportunity for managers to use OB Responding to economic pressuresEffective management is essentially required in difficult economic conditions

Responding to GlobalizationGlobalization: The organizations are no longer constrained by national boundaries.Managers face difficulties due to:1. Working in different countries as a part of multinational company.2. Working with people from different cultures3.Movement of jobs to low-cost labor countries.

Managing Workforce DiversityDiversity: organizations are becoming more heterogeneous in terms

of age, gender, religion, race and ethnic groups.

Challenges and Opportunity (cont’d) Improving Quality and ProductivityTQM: The constant attainment of customers satisfaction through the continuous improvement

of all organizational processes.Process reengineering: Reconsidering how work would be done and an organization

structured if it were starting over.Empowering employees: Putting employees in charge of what they do.

Improving Customer Service Employees should be friendly, courteous, knowledgeable, accessible and prompt in

responding to customer needs & willing to do what is necessary to please the customer.

Stimulating Innovation and change Managers should stimulate employees’ creativity and tolerance for change Change is necessary for improvement but should rest on a solid founda tion of reason, rather

than be part of an experimental approach, along the lines of a “trial and error method”. People, who will be affected by the change, should be informed of its significance in advance of implementation, thus minimizing or eliminating emotional or other disturbances. Managers should ensure that employees and trade unions understand and appreciate the need for the required change and co-operate, accordingly.

Challenges and Opportunity (cont’d) Coping with “Temporariness” Temporariness exists in the organizations due to globalization and

advancement in technology.

Working in networked organizations Motivating & leading people and making collaborative decisions online

requires different techniques than when individuals are physically present in a single location.

Helping Employees Balance Work/Life Conflicts The line b/w work and non work time is blurred which creates personal

conflicts and stress. Reasons are: Global organizations Information technology Long job hours

Challenges and Opportunity (cont’d)

Creating positive work environment Management should motivate employees to donate some time and talent to

some voluntary work.Positive Organizational scholarship: An area of OB research that concerns

how organizations develop human strength, foster vitality and resilience, and unlock potential.

Improving Ethical Behavior Managers use the following practices to improve ethical behavior.

1. Code of ethics to guide employees,2. Offer seminars, work shops and training programs3. Give protection to the employees who reveal unethical practices

Basic OB Model, Stage I

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)

The Independent Variables

IndependentIndependentVariablesVariables

Individual-Level Individual-Level VariablesVariables

OrganizationOrganizationSystem-LevelSystem-Level

VariablesVariables

Group-LevelGroup-LevelVariablesVariables

Need for a contingency approach to the study of organizational behavior?

When ever a manager encounters a problem or situation, (motivating employees to increase the output ), a universal rule cannot be applied (hike in pay), because no two individuals are the same and different people posses different ideologies .Pay hike may work for some employees but in some other cases fringe benefits , promotion , more facilities for employees etc may be more important. So it is better to follow a situational approach for the study of OB .