DR.ANJU CHAWLAANJU.CHAWLA1@GMAIL.COM

INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

Objective is to understand

Nature & determinants of OBNeed for studying OB

The Dynamics of people and organizations

A primary goal of management education is to develop students into managers who can think ahead, exercise good judgment, make

ethical decisions, and take into consideration the implications of their

proposed actions – Jane Schmidt-Wilk

Why OB for Managers

Managers need an understanding of organizational behavior because a large part of their job has to do with exactly that.  Organizational behavior is the study of how people behave while in groups and as individuals.  Much of what a manager does has to do with trying to get people to work as effectively as possible.  It can involve trying to motivate an individual worker or it can involve trying to understand how to get workers who are part of a team to interact with one another in such a way that they are able to work more efficiently and effectively.

Food For Thought

 Regardless of the size or type of organization you may work for, people are the common denominator of how work is accomplished within organizations.

Together, we will examine people at work both as individuals and within work groups and how they impact and are impacted by the organizations where they work. Before we can understand these three levels of organizational behavior, we need to agree on a definition of organizational behavior.

What Is Organizational Behavior? Organizational behavior (OB) is defined as the systematic study and

application of knowledge about how individuals and groups act within the organizations where they work. As you will see throughout this book, definitions are important. They are important because they tell us what something is as well as what it is not. For example, we will not be addressing childhood development in this course—that concept is often covered in psychology—but we might draw on research about twins raised apart to understand whether job attitudes are affected by genetics.

The Individual The Group The OrganizationInputs:DiversityPersonality & values

Inputs:Group StructuresGroup RolesTeam responsibilities

Inputs: StructureCulture

Processes: Emotions and modelsMotivationPerception and decision Making

Processes: CommunicationLeadershipPower and Politics Conflict & Negotiation

Processes:HRMChange Practices

Outcomes:Attitudes & StressTask PerformanceCitizenship BehaviorWithdrawal Behavior

Outcomes:Group CollesionGroup Functioning

Outcomes:ProfitabilitySurvival

Five questions that employer ask to know your personality

What would your best friend say is the best part about being your friend? The question is to bring out a sense of candour in a

candidate.

'Learning what makes an applicant a good friend allows employers to get a feel of whether or not they would fit in with the company culture,' Edward Fleischman, chief executive officer of Executive Search says.

If you were an animal, what would you be and why.

This inquiry is a favourite amongst hiring managers because it allows them to not only evaluate how quickly someone can think on their feet, but it also requires candidates to exercise some degree of creativity in a relatively short amount of time, he says.

What drives you in your professional life?

4. What drives you in your professional life? Employers ask this question to gain insight into what motivates a candidate both in their career and as a potential employee. 

'As cultural fit becomes more important to employers and their business as a whole, many look for candidates whose goals align with theirs, and asking this question allows them to assess what exactly a candidate's goals are,' Fleischman says.

If you could change one thing in your approach towards challenge, what would it be

This question allows hiring managers to evaluate a candidate's self-awareness and ability to admit there are some aspects of their professional life they would like to improve, Fleischman explains. 

'Since humility is an important quality to many employers, a response to this question is something they listen closely to.'

Premises(Assumptions for basis of OB)

  Organizations are complex systems.

Need to understand how the system operates esp. in a socio technical system – humanity and technology.

Human behavior in organizations is sometimes unpredictable Behaviors may come from deep-seated needs, lifetime experiences and personal

value systems Human behavior in a organization can be partially understood

Applying the frameworks of behavioral science, management and other disciplines. There are no perfect solutions to organizational problems

Increase the understanding and skills – work relationships can substantially upgraded

We do not have the luxury of not working with or relate to other people. Learn human behavior. Explore how to improve he interpersonal skills Begin to mange ones relationships with others at work.

Understanding human behavior

Definition of OB systematic study and careful application of knowledge

about how people – as individuals and as groups – act within organizations.

Strive to identify ways in which people can act more efficiently

A large number of research studies and conceptual developments constantly adds up to its knowledge base.

An applied science Provides useful set of tools at many levels of analysis

from individual, interpersonal relations, intergroup,and whole system

Describe how people behave under a variety of conditions.

Understand Why people behave behave as they do. Probe for underlying explanations

Predict Predict future employee behavior (tardiness, productive &

unproductive etc.) Provide preventive actions

Control At least partially and develop some human activity at work.

Managers need to remember that organizational behavior is a tool for human benefit

Goals of OB

Flip side of fat pay cheque: Executives under a lot of pressure 

MUMBAI/NEW DELHI: Sunil Sharma (name changed), a senior vice president at a large multinational FMCG company, recently met with a road accident, which later turned out to be an attempt to kill himself. With two housing loans and a car loan hanging on his head, and the education of his kids studying at an international school at risk, he fell into depression when he was let go as a division of his company was shutting down.

"He was extremely worried and the entire layoff issue had adve .. 

In today's competitive environment, stress has become an inevitable component of our lives — both personal and professional," said Sanjay Rishi, president, American Express, South Asia.

"There has been an overall increase in stress on the one hand due to work pressure and on the other due to the lifestyle we lead. All added up, life is becoming more stressful," said Sameer Wadhawan, vice president-human resources & services, Coca-Cola India.

Employee assistance provider 1to1help.net, which works with several top Indian conglomerates and global corporations, said it counselled about 2,000 corporate executives who reached out to the company with suicidal thoughts this year.

Most people do not have a buffer against stress as increasing work demand does not leave them with the time to have interests outside of work to strike a balance, say doctors and counsellors.

"Work pressure is definitely on the rise. Jobs are more .. 

"Companies are paying a high cost for top talent. As salaries go up, pressure is also mounting," said Karuna Bhaskar, a counseling psychologist at 1to1help.net.

Amit Singh (name changed), a senior manager at a large information technology company, reached out to a counselling service provider for help when he was unable to cope with excessive stress at work when he was given the unpleasant task of terminating a senior team member, who was one the top performers a year earlier but whose performance had since slowed down drastically due to personal issues. Singh, who was finding it difficult to get sleep for several nights and was suffering from excruciating backache, told the counsellor that he felt extremely insecure in his own role as well.

There are many cases where tremendous pressure to perform and remain on top of the game is affecting productivity and personal life for senior a .. 

 

Increased stress at work is further leading to more cases of marital discord and relationship issues as well.

However, with the stigma around counselling fading, employers are actively encouraging people to use these services. At Citibank, over 3,600 registrations have been received from employees seeking to access articles, psychometric assessments and avail of counselling services.

Citi launched a programme, Find Your Balance, last year which focused on mindfulness, meditation. 

Key forces – complex set of forces affects the nature of organizations

Key Forces

• People Make up the internal social system of an organization Melting pot of diversity – talents, background and perspectives to their

jobs Managers need to be tuned in to these diverse patterns and trends.

Changes in the labor force• Decline in work ethic and rise in emphasis on leisure, self expression,

fulfillment and personal growth• Decreased automatic acceptance of authority and increase in the desire for

participation, autonomy and control.• Skills become obsolete due to rapid technological advances – retrain or be

displaced• Security needs are prime concern and loyalty diminishes because of

downsizing and outsourcing• Absence of meaningful salary growth has placed renewed emphasis on

money as a motivator Companies address diversity by becoming compassionate and caring,

building pride without de-valuing others, empowering some without exploiting, demonstrating openness, confidence, authentic compassion and vulnerability.

• Structure Defines the formal relationship and use of people in organizations. Effective coordination of work Create complex problems of cooperation, negotiation and decision making

• Technology Provides he resources with which people work and affects the tasks they

perform Benefit of technology – does more and better work however it restricts people in

various ways OB’s challenge is to maintain the delicate balance between technical and social

systems.• Environment

Internal or external Organizations are part of a larger system and factors influence them like:

Citizens expect organizations to be socially responsible New products and competition for customers come from around the globe

(globalization) The direct impact of unions diminishes Dramatic pace of change in society.

The external environment influences the attitudes of people, affects working conditions, and provides competitions for resources and power.

Positive Characteristics of OB

• Interdisciplinary in nature – integrates behavioral sciences, social sciences and other disciplines

• Emerging knowledge, theories, models and conceptual frameworks.

• Increasing acceptance of theory and research by practicing managers. Willingness of managers to explore new ideas More receptive to new models Support related research Hungrily experiment with new ideas

Contributing Disciplines to the OB Field

PsychologySociologySocial PsychologyAnthropologyPolitical Science

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Contributing Disciplines to the OB Field (cont’d)

Fundamental Concepts of OB

Nature of people Individual differences

Nature vs.nurture Perception

The unique way in which each person sees, organizes and interprets things. Selective perception cause misinterpretation

A whole person We employ the whole person not just their brains or skills Ergonomics is the science of fitting workplace conditions and job demands to

the capabilities of the working population Motivated behavior

A path towards increased need fulfillment is a better approach Desire for involvement

Hunger for a change to chare what they know and to learn from the experience.

Organizations need to provide opportunities for meaningful involvement – employee empowerment

Value of the person Worth before the word meal before the message they want to be treated differently from other factors of production

Nature of organization Social systems

or social structure in general refer to entities or groups in definite relation to each other, to relatively enduring patterns of behavior and relationship within social systems, or to social institutions and norms becoming embedded into social systems in such a way that they shape the behavior of actors within those social systems. Social systems can be said to be the patterns of behavior of a group of people possessing similar characteristics due to their existence in same society.

Formal and informal social systems The idea of a social system provides a framework for analyzing

organizational behavior issues. It helps make OB problems understandable and manageable

Mutual interest Symbiotic relationship between organizations and people Provides a superordinate goal – one that can attained only through the

integral effort of individuals and their employers. Ethics

Treatment of employees in an ethical fashion Establish code of ethics, publicized statements of wthical values, provide

ethics trainings, reward employees for notable ethical behaviors, set up internal procedure to handle misconduct.

Models of Organizational Behavior

Model of OB

Social Systems and Organizational Culture

A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have boundaries...it exchanges goods, ideas, culture, etc. with the environment around it.

Culture is the conventional behavior of an organization that encompasses beliefs, customs, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability to respond to a given situation. This is why people fear change. They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations.

HOW AN ORGANIZATION's CULTURE CAN BE KNOWN ?

Organization culture can be a set of key values , assumptions,understandings and norms that is shared by members of anorganization.

Organization values are fundamental beliefs that an organizationconsiders to be important , that are relatively stable over time,and they have an impact on employees behaviors and attitudes.

Organization Norms are shared standards that define what behaviors are acceptable and desirable within organization.

Shared assumptions are about how things are donein an organization.

Understandings are coping with internal / external problemsuniformly.

LEVELS OF ORGANIZATION CULTURE

LEVEL 1---VISIBLE, that can be seen at the surface level-dress codes-office layout [ open office]-symbols-slogans-ceremonies[ monthly / annual awards/long service/birthdays etc.etc

LEVEL 2- INVISIBLE , that can be cannot be seen but only felt.-stories about people performance-symbols [ flag, trademark, logos, etc]-corporate mission statements-recruitment/selection [ methods used]-fairness in treatment-social equality-risk taking in business deals-formality in approach-discipline-autonomy for departments-responsiveness to communication -empowerment of staff.

Limitations of OB

People who lack system understanding and become superficially infatuated with OB may develop Behavioral bias – narrow viewpoint that emphasized satisfying employee experiences while overlooking the broader system of the organization in relation to all its publics.

The law of diminishing return – the tendency for a continuing application of effort or skill toward a

particular project or goal to decline in effectiveness after a certain level of result has been achieved.

Overemphasis on as valid organizational behavior practice may produce negative results

At some point increase of a desirable practice produce declining returns, eventually negative returns

Unethical manipulation of people Knowledge and techniques can be used to manipulate

people unethically People who lack ethical values could use people in

unethical ways. The philosophy of OB is supportive and oriented

toward human resources. Seeks to improve human environment and help people grow toward their potential.

Ethical leadership principles such as: social responsibility, open communication, cost-benefit analysis.

Continuing Challenges

Seeking Quick Fixes Are we tempted when pressured to seed rapid

solutions?Varying Environments

Can the ideas that have been developed and tested endure with equal success under new conditions?

Definition Confusion Considered as relatively new discipline, can OB in

clearly define its field of student and application?

Summary

OB is a multidisciplinary social science which is important to be understood by all managers as it gives the right insight into what people are doing, why are the doing and what can be done to tackle their such behavior(both good or bad).

Its determinants Individual->Group->Processes

Few Quick Questions

What is OB?What are the major behavioral science

disciplines that contribute to OB?What are the challenges and opportunities

for managers in using OB concepts?

Discussion Question

What are some of the things managers can learn by walking around and having daily contact with line employees that they might not be able to learn from looking at data and reports?

Is Ability-Job fit bare minimum requirement to savour the job?

What are some of the major challenges facing today’s and tomorrow’s organizations and management? Briefly describe these developments.

How does a course in OB differ from courses in fields such as accounting, finance or marketing?

The organization is above all social. It is people.”

Peter Drucker

Thank You.

Next Topic- Foundations of Individual Behavior