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chapter
1ORGANIZATIONAL BEHAVIOR
H. V. Kothari
Email:[email protected]
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Behavior is a mirror in whichevery one displays his own image
We are all serving a life sentence,and good behaviour is our only
hope for a pardon.Doug Horton
BEHAVIOR is what a man does, notwhat he thinks, feels, or believes
Quotations
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What is an Organization?An organization is acollection of peoplewho work together toachieve individual andorganizational goals.
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The study of organisational behaviour (OB)
embraces an understanding of -
The behaviour of people The process of management The organisational context of management Organisational processes and the execution of
work
Interactions with the external environment of which the organisation is part
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The meaning of OB
OB is a convenient shorthand that refers to the numerous interrelated influences on, and patterns of behaviour of people within organisations
Porter, Lawler and Hackman
The study and understanding of the individual and group behaviour and patterns of structure in order to help to improve organizational performance and effectiveness
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Components of OrganizationalBehavior Understanding
organizationalbehavior
requires studying
Individuals in
Organizations
Group and TeamProcesses
OrganizationalProcesses
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Influences on OB
Individuals
Groups
The organisation itself
The environment
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Individuals
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 demandsof the organisation are incompatible
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Management and the individual
Managements task is to integrate the individual &
the organisation, providing a workingenvironment that permits the satisfaction of individual needs & attainment of organisationgoals
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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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Groups
Can have a major influence on behaviour andperformance of individual members
Have their own structures and functions, rolerelationships and influences and pressure
An understanding of group structure and behaviour complements a knowledge of individual behaviour
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The organisation
Individuals & groups interact within thestructure of the formal organisation
Organisational structure is created bymanagement to:- establish a relationship between individuals &groups- provide order and systems to direct efforts of the organisation into goal seeking activities
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The organisation
The formal structure allows people/groups tocarry out organisational activities to achieve aims& objectives
Behaviour is affected by patterns of organisationalstructure
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Environment
The environment affects the organisation through:
technological & scientific development economic activity
social & cultural influences government activities
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Environment
The effects of the operation of the organisation
within its environment are reflected in the:
management of opportunities & risks
successful achievement of organisational aims &objectives
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Environment its rate of change
The increasing rate of change in environmentalfactors highlights the need to study the totalorganisation & the processes used to adapt toexternal demands
Example: globalisation has placed greater emphasis onorganisational processes rather than organisationalfunctions
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The organisational iceberg
What sinks a ship isnt alwayswhat sailors can see, but what they cant see.
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The organisational icebergFormal (overt) aspects
Customers
Technology Formal goals Organisational design Financial resources Physical facilities Rules & regulations Surface competencies & skills
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Contributing Disciplines to the OBField
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Contributing Disciplines to the OBField (contd)
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Contributing Disciplines to the OBField (contd)
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Contributing Disciplines to the OBField (contd)
.
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Basic OB Model, Stage I
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The Dependent Variables
x
y
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The Dependent Variables (contd)
.
.
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The Dependent Variables (contd)
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The Dependent Variables (contd)
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The Independent Variables
Independent Variables
Individual-Level Variables
OrganizationSystem-Level
Variables
Group-Level Variables
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Basic OBModel,
Stage II
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Goals of Organizational Behavior
Prediction ControlExplanation
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Challenges for Organizational Behavior
Using new information technology toenhance creativity and organizationallearning.
Managing human resources to increasecompetitive advantage.Developing organizational ethics and well-
being.Managing a diverse work force.Managing the global environment.
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Information technology : Thecomputer systems and softwarethat organizations use to speed theflow of information around anorganization and to better link people and subunits within it.
Creativity : The decision-makingprocess that produces novel anduseful ideas that lead to new orimproved goods and services or toimprovements in the way they areproduced.
Challenge 1:Using New Information Technology toEnhance Creativity and Organizational Learning
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New Ways to Increase Performance
Reengineering : A complete rethinking andredesign of business processes to increaseefficiency, quality, innovation, or responsiveness tocustomers.
Restructuring : Altering an organizationsstructure (e.g., by eliminating a department) tostreamline the organizations operations andreduce costs.
Outsourcing : Acquiring goods or services fromsources outside the organization.
Freelancers : Independent individuals whocontract with an organization to perform specificservices.
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Challenge 3Developing Organizational Ethics and Well-Being
Ethics : Rules, beliefs, and values that outline theways in which managers and workers shouldbehave when confronted with a situation in whichtheir actions may help or harm other people insideof or outside an organization.
Well-being : The condition of being happy, healthy,and prosperous.
Social responsibility : An organizations moralresponsibility toward individuals or groups outsidethe organization that are affected by its actions.
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Diversity Challenges
Decision Making
andPerformance Flexibility
Fairnessand
Justice
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Some Other Challenges
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The Challengeof Globalization
Working inForeign
Countries
Working withMulticultural
Diversity
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Empoweringthe Workforce
Managers Are GivingUp Controls
Workers Are Accepting
Responsibility
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Coping with Temporariness
The Natureof Work IsChanging
Organizations Are AlsoChanging
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DecliningEmployee Loyalty
Workforce
Motivation
Global
Competition
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ImprovingEthical Behavior
Provide in-house advisers
Create protection mechanisms
Write and distribute codes of ethicsOffer seminars, workshops, and training
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Expectations of individual andOrganization
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