Organisational Gndu

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    Why Do We Study OB?

    To learn about yourself and how to deal withothers

    You are part of an organization now, and will

    continue to be a part of various organizations Organizations are increasingly expectingindividuals to be able to work in teams, at leastsome of the time

    Some of you may want to be managers orentrepreneurs

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    2

    What is an Organization?An organization is acollection of peoplewho work togetherto achieveindividual andorganizational goals.

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    3

    What is Organizational Behavior?

    Organizationalbehavior (OB) is the

    study of factors thataffect howindividuals andgroups act inorganizations andhow organizationsmanage their

    environments.

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    Figure 1.3 Components ofOrganizational Behavior

    Understandingorganizational behavior

    requires studying

    Individuals in Organizations

    Group and Team Processes

    Organizational Processes

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    Organizational BehaviourGoals of Organizational Behaviour Describe

    Understand

    Predict

    Control

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    4

    Insert Figure 1.1 here

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    Nature of OB

    OB studies three determinants of behavior inorganizations: individuals, groups, and structure.

    OB applies the knowledge gained about individuals,

    groups, and the effect of structure on behavior in order tomake organizations work more effectively.

    OB is concerned with the study of what people do in anorganization and how that behavior affects theperformance of the organization.

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    Factors of Organizational Behaviour People

    Individuals and Groups

    StructureJobs and Relationships

    Technology

    Machinery and computer EnvironmentGovernment,Social and Competitive

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    Individuals (People)

    Are a central feature of OB Are a necessary part of any behavioural set Bring to the organisation their personality, skills

    and attributes, values, needs and expectations Can create conflict if their needs and the

    demands of the organisation are incompatible

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    Groups

    Exist in all organisations

    Are essential to organisational working andperformance

    Comprise a range of different individuals

    Can develop their own hierarchies and leaders

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    The organisation Individuals & groups interact within the

    structure of the formal organisation Organisational structure is created by

    management to:- establish a relationship between individuals &groups

    - provide order and systems to direct efforts ofthe organisation into goal seeking activities

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    Environment

    The environment affects the organisation through:

    technological & scientific development

    economic activity social & cultural influences government activities

    Example: globalisation has placed greater emphasis on organisational

    processes rather than organisational functions

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    Figure 1.2 Levels of Analysis

    Group Level

    IndividualLevel

    Organizational Level

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    Important Concepts: The Nature of People:1. Individual Differences2. Perception3. A Whole Person4. Motivated Behaviour5. Desire for Involvement6. Value of the Person

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    Important Concepts (cont): The Nature of Organizations1. Social systems

    2. Mutual interest

    3. Ethics

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    Exhibit 1-1 Challenges Facingthe Workplace

    Workplace

    Organizational Level

    Productivity Developing Effective Employees Global Competition Managing in the Global Village

    Group Level

    Working With Others Workforce Diversity

    Individual Level

    Job Satisfaction Empowerment Behaving Ethically

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    Productivity

    Productivity A performance measure including

    effectiveness and efficiency

    Effectiveness Achievement of goals

    Efficiency

    The ratio of effective work output to the inputrequired to produce the work

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    Effective Employees

    Absenteeism Failure to report to work

    Turnover Voluntary and involuntary permanent withdrawal from

    the organization

    Organizational citizenship behaviour Discretionary behaviour that is not part of an

    employee s formal job requirements, but is helpful tothe organization

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    Today s Challenges at theWorkplace

    Challenges at the Individual Level Job Satisfaction Empowerment Behaving Ethically

    Challenges at the Group Level Working With Others Workforce Diversity

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    1. Employees are increasingly demanding job satisfaction out of their jobs.In a recent Financial Post survey, 75 percent of the public deemed itextremely important for managers to make employees happy and satisfied.

    2. Managers are empowering employees. They are putting employees incharge of what they do. And, in the process, managers are learning how togive up control, and employees are learning how to take responsibility fortheir work and make appropriate decisions.

    3. In addition to the more obvious groups women, First Nations peoples,Asian Canadians, African Canadians, Indo-Canadians the workplace alsoincludes people with disabilities, and the elderly.

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    Today s Challenges at theWorkplace

    Challenges at the Organizational Level Productivity Developing Effective Employees

    Absenteeism Turnover Organizational Citizenship

    Competition From the Global Environment Managing and Working in a Global Village

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    1. Absences in 2001 resulted in the loss of 3.4% of weekly work time.Absenteeisms annual cost has been estimated at over $18 billion for Canadianfirms and $60 billion for U.S. organizations.2. In recent years, Canadian businesses have faced tough competition from theUnited States, Europe, Japan, and even China. To survive, they have had to cut fat,

    increase productivity, and improve quality. 3. As multinational corporations develop operations worldwide, as companies

    develop joint ventures with foreign partners, and as workers increasingly pursue jobopportunities across national borders, managers and employees must becomecapable of working with people from different cultures.

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    The changing face of India: Theglobal workforce

    Indian companies are hiring global managers and workers. Tata Motors-Global employees 950 out of a total employee strength of

    22,000; reportedly trying to hire over 1000 people for a development centerin the UK from all over the globe.

    Asian Paints-Global employees 1400 out of a total employee strength of 4600;reportedly trying to repatriate 50 Indian managers on Globalassignments in the near future

    Ranabaxy laboratories-Global employees 1600 out of a total employeestrength of 9000; one forth of its managerial talent, including CEO Brain

    tempest, is either of international origin or is based across 45 countries. Apart companies with a reputation for offering excellent opportunities fordiverse employees are Avon, Prudential, MCDonalds fedEX, EastmanKodak,ToysR Us.

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    Challenges forOrganizational Behavior

    1: Changing Social/ Cultural Environment

    2: Evolving Global Environment 3: Advancing Information Technology

    4: Shifting Work/ EmploymentRelationships

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    Challenges forOrganizational Behavior

    Changing Social/ Cultural Environment National culture

    Organizational ethics and well-being Social responsibility

    Diverse work force

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    The first challenge is the changing socialand cultural environment. Forces in thesocial and cultural environment are thosethat are due to changes in the way peoplelive and work changes in values,attitudes, and beliefs brought about by

    changes in a nation s culture and thecharacteristics of its people.

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    Contributing Disciplines to theOB Field

    Psychology Sociology

    Social Psychology Anthropology Political Science

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    Prentice Hall, 2001 Chapter 1 29

    The Study of Organizational Behavior

    Individual

    Group

    Organization

    Study ofOrganizational

    BehaviorSocial Psychology

    Political Science

    Anthropology

    Psychology

    Sociology

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    Contributing Disciplines to theOB Field

    E X H I B I T 1 3 (contd)

    PsychologyThe science that seeks to measure, explain, andsometimes change the behavior of humans and otheranimals

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    Contributing Disciplines to the OBField (cont d)

    E X H I B I T 1 3 (contd)

    SociologyThe study of people in relation to their fellow humanbeings

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    Contributing Disciplines to the OBField (cont d)

    E X H I B I T 1 3 (contd)

    Social PsychologyAn area within psychology that blends concepts frompsychology and sociology and that focuses on the influenceof people on one another

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    Contributing Disciplines to the OBField (cont d)

    E X H I B I T 1 3 (contd)

    AnthropologyThe study of societies to learn about human beings andtheir activities

    Basic OB Model Stage I An abstraction of

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    Basic OB Model, Stage I An abstraction ofreality. simplified representation of somereal-world phenomenon

    E X H I B I T 1-6

    ModelThe three basic levels are analogousto building blocks; each level is

    constructed upon the previous level.

    Group concepts grow out ofthe foundation laid in theindividual section; weoverlay structural constraints

    on the individual and groupin order to arrive atorganizational behavior.

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    Prentice Hall, 2001 Chapter 1 37

    Independent Variables

    Individual Group Organization

    Biographical Traits

    Personality

    Values & Attitudes

    Ability

    Perception

    Motivation

    Individual Learning

    Decision Making

    Communication

    Other Groups

    Conflict

    Power & Politics

    Group Structure

    Work Teams

    Leadership

    Decision Making

    Culture

    Structure

    Design

    Technology

    Work Processes

    Selection Processes

    Training Programs

    Appraisal Practices

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    Prentice Hall, 2001 Chapter 1 38

    TheDependent Variables

    Productivity

    Absenteeism

    Job Satisfaction

    Organizational

    Citizenship

    Turnover

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    MODELS OF OB

    Autocratic Model Custodial Model

    Supportive Model Collegial Model

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    AUTOCRATIC MODEL

    Power of boss Official authority

    Management gives orders employee tofollow them Theory X employees have to be directed

    and pushed Conventional thinking tight control over

    employees

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    AUTOCRATIC MODEL

    Hire or Fire Policy Employees depend upon boss and are

    paid minimum wages for minimumperformance.

    Negative Leadership Employees uninformed, insecure and

    afraid.

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    AUTOCRATIC MODEL

    Workers are lazy

    Time bound Threat can be used to get the work done Limited applicability in present time???

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    CUSTODIAL MODEL

    Overcome the shortcomings of autocraticmodel Features: Emphasis on economic rewards & benefits Physiological + Security Needs Employees depend upon organization rather

    than their boss. Employees satisfied & happy; not strongly

    motivated. (Passive co operation) Security felt by employees

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    SUPPORTIVE MODEL

    Depends upon Leadership instead ofpower or money.

    Theory Y assumptions about workers Apart from wages, management must

    support employees job performance. Focus on psychological needs in addition

    to their subsistence and security needs.

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    SUPPORTIVE MODEL

    Improvement over earlier models Creates friendly superior subordinate

    interactions High degree of confidence and trust Effective in affluent countries where

    workers are concerned aboutpsychological needs.

    Limited application in developing countries

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    COLLEGIAL MODEL

    Extension of supportive model Based upon partnership b/w employees

    and management.

    Creates a favorable climate partners Acceptance and respect from both sides Team spirit Self discipline Employees have job satisfaction, job

    involvement and job commitment.

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    Comparative View of OBModels

    S.no

    BASIS AUTOCARTIC CUSTODIAL SUPPORTIVE COLLEGIAL

    1 Basis ofmodel

    Power Economicresources

    Leadership Partnership

    2 ManagerialOrientation

    Authority Money Support Teamwork

    3 EmployeeOrientation

    Obedience Security &benefits

    JobPerformance

    ResponsibleBehaviour

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    Comparative View of OBModels

    S.no

    BASIS AUTOCARTIC CUSTODIAL SUPPORTIVE COLLEGIAL

    4 EmployeePsychological Result

    Dependenceon the boss

    Dependence on org.

    Participation Self discipline

    5 EmployeeNeeds

    SubsistenceNeeds

    SecurityNeeds

    Status andrecognition

    Self -actualization

    6 PerformanceResults

    Minimum Passive co operation

    Awakeneddrives

    Enthusiasm

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    Basic OBModel, Stage

    II

    E X H I B I T 1-7

    Wh I O i i l

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    What Is OrganizationalBehaviour?

    What is organizational behavior?

    What challenges do managers andemployees face in the workplace of the21st century?

    How will knowledge of organizationalbehavior make a difference for you?

    Questions for Consideration

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    THAT S IT

    16

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    Diversity Challenges

    Decision Making

    andPerformance Flexibility

    Fairnessand

    Justice

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    The organisational iceberg Figure 2.3

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    The organisational iceberg

    Source : Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior,

    Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

    g

    What sinks a ship isnt alwayswhat sailors can see, but what they cant see.

    The role of management as an integrating activity

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    The role of management as an integrating activity

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    ORGANIZATIONAL PRACTICES

    lt

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    culture A model of culture

    Source : Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture ,Second edition, Nicholas Brealey (1999), p.22.

    Figure 2.6

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    Formula for balancing unwritten

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    Formula for balancing unwrittenneeds of employees with the needs

    of the organisation Caring demonstrating genuine concern forindividuals

    Communicating really talking about what the

    company hopes to achieve Listening hearing not only the words but also

    what lies behind the words Knowing - those who work for you, their families,

    personal wishes, desires & ambitions Rewarding money is not always necessary

    Stalker

    Challenges and Opportunities

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    Challenges and Opportunitiesfor OB (cont d)

    Improving Quality and Productivity* Intense focus on the customer

    * Concern for continuous improvement

    *Improvement in the quality of everything the organization does

    *Empowerment of employees 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 Opportunity for

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    Challenges and Opportunity forOB (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 Managing people during the war on terrorism