By Dr Rosy Walia. “Organisation Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance.

ORGANISATION BEHAVIOUR

By Dr Rosy Walia

ORGANISATION BEHAVIOUR

“Organisation Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.”

(Robbins: 1998,9)

ORGANISATION BEHAVIOUR

The study of Organisational Behaviour involves: consideration of the interaction among the formal structure

(organisational context in which the process of management takes place)

the tasks to be undertaken the technology employed and the methods of carrying out

work the behaviour of people the process of management the external environment

ORGANISATION BEHAVIOUR

Interrelated dimensions influencing behaviour: The Individual - working environment should satisfy

individual needs as well as attainment of organisational goals.

The Group - formal and informal. Understanding of groups complements a knowledge of individual behaviour.

The Organisation - impact of organisation structure and design, and patterns of management, on behaviour.

The Environment - technological and scientific development, economic activity, governmental actions.

LEVELS OF ANALYSISOrganizational level

Group level

Individual level

Individual level

COMPONENTS OF ORGANIZATIONAL BEHAVIOR

Understanding organisation behaviour requires studying

Individuals in organisations

Groups and team processes

Organisational processes

Understanding organisational Behaviour

requires studying

Contributing Disciplines to the OB Field

From where does OB draw its expertise?

Introduction

◦ Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines.

◦ The predominant areas are psychology, sociology, social psychology, anthropology, and political science. Exhibit 1-3 overviews the major

contributions to the study of organizational behavior.

Psychology

Psychology is the science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. ◦ Early industrial/organizational

fatigue, boredom, and other factors relevant to working conditions that could impede efficient work performance.

◦ More recently, learning, perception, personality, emotions, training,

leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee selection techniques, work design, and job stress

Sociology

Sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to their fellow human beings. ◦ Their greatest contribution to OB is through

their study of group behavior in organizations, particularly formal and complex organizations

Social Psychology

Social psychology blends the concepts of psychology and sociology.

It focuses on the influence of people on one another. ◦ Major area—how to implement it and how to

reduce barriers to its acceptance.

Anthropology

Anthropology is the study of societies to learn about human beings and their activities.

Anthropologists work on cultures and environments; for instance, they have helped us understand differences in fundamental values, attitudes, and behavior among people in different countries and within different organizations.

Political Science

Frequently overlooked Political science studies the behavior of

individuals and groups within a political environment.

Why is the study of organization behavior important?

Why is the study of organization behavior important?

Viewing organizations as closed systems is no longer valid

Components are no longer homogeneous – Work Place diversity

Globalization makes hierarchical communications too slow

Information Technology gives power and information to the one who can use it best.

Why is the study of organization behavior important?

The environment is changing rapidly making adaptation and change crucial to survival- organizations as closed systems isn’t a valid model.

Improving Quality and Productivity Improving ethical behavior

Challenges and Opportunity for OB Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service

Challenges and Opportunity for OB (cont’d) Improving People Skills Empowering People Coping with “Temporariness” Stimulation Innovation and Change Helping Employees Balance Work/Life

Conflicts Improving Ethical Behavior

Classical approach to management (scientific management and administrative management)

Hawthorne studies (workers respond to attention)

Human relations movement (treat workers well to boost productivity)

contd.

A BRIEF HISTORY OF OB

The contingency approach (examine individual and situational differences before taking action)

Positive organizational behavior (focus on measurable strengths of workers to improve performance)

A BRIEF HISTORY OF OB

  The focus of scientific management was the

application of scientific methods to increase individual worker's productivity.

According to the principles of scientific management, there is a division of work 

between managers and workers.

THE CLASSICAL APPROACH

TAYLOR’S PRINCIPLES the development of a true science for each person's

work

the scientific selection, training and development of the workers

cooperation with the workers to ensure work is carried out in the prescribed way 

the division of work and responsibility between management and the workers

THE CLASSICAL APPROACH

Administrative management was concerned primarily with how organizations should be managed and structured.

The core of management knowledge lies within the classical school, including the framework of planning, organizing, and 

controlling.

THE CLASSICAL APPROACH

Henry Fayol classified all the business activities into six functions:

Technical activities

Commercial activities

Financial activities

Security activities

Accounting activities

Managerial activities

THE CLASSICAL APPROACH

During the 1920s, attention began to focus on social factors at work, groups, leadership, the informal organisation and behaviour of people.

‘Behavioural’ and ’informal’ are alternative headings sometimes given to this approach.

Turning point came with the famous Hawthorne experiments at the Western Electric Company in America (1924-32)

One of the researchers (leader) was ELTON MAYO(1880-1949)

THE HAWTHORNE STUDIES

Four main phases to the Hawthorn experiments:

The Illumination Experiments- level of production was influenced by factors other than changes in physical conditions of work

The Relay Assembly Test Room- attention and interest by management reason for higher productivity

The Interviewing Programme- 20000interviews.  Gave impetus to present day personnel management and use of counselling interviews.  Highlighted the need for management to listen to workers.

The Bank Wiring Observation Room- group incentives stronger than financial incentives offered by management.

THE HAWTHORNE STUDIES

A major conclusion from these studies was the workers reacted positively because management cared about them (the Hawthorne effect)

  The Hawthorne effect is the tendency of people to behave

differently when they receive attention because they respond to the demands of the situation.

The Hawthorne studies also led to many other conclusions, such as the fact that effective communication with workers is critical to managerial success

THE HAWTHORNE STUDIES

The human relations movement was based on the belief that an important link exists among managerial practices, morale, and productivity

Key points of the movement are that satisfied workers are more productive and that, given the proper working environment, virtually all workers would be highly productive.

THE HUMAN RELATIONS MOVEMENT

Writers in the 1950s and 1960s who adopted a more psychological orientation

Major focus was the personal adjustment of the individual within the work organisation and the effects of group relationships and leadership styles

Main contributors were Maslow’s Hierarchy of Human Needs , Herzberg’s hygiene Maintenance factors and McGregor’s Theory X and Theory Y.

THE CONTINGENCY APPROACH

The contingency approach to management emphasizes there is no one best way to manage

people or work The contingency approach is derived from the

study of leadership styles. The strength of the contingency approach is that

it encourages managers and professionals to examine individual and situational differences before deciding on a course of action.

THE CONTIGENCY APPROACH

Industrial revolution Robert Owen, Andrew Ure and J.N.Tata provided certain welfare activities. The ideas degenerated into paternalistic approach

Scientific Management Taylor believed in rationalising production.

Human Relations Movement Great depression, labour movement and between 1920s and1940s Hawthorne led the movement.

The movement became a fad organisational behaviour in

1950s

Contingency Approach 1960s onwards. It encourages managers to examine individual and situations before

deciding any courses of action.

Milestones in the History of Organization Behaviour

THE MODELS ARE UNCONSCIOUS BUT

POWERFUL GUIDE TO MANAGERIAL

BEHAVIOUR, THAT IS WHY THESE MODELS

ARE VERY SIGNIFICANT IN THE STUDY OF

ORGANISATIONAL BEHAVIOUR.

MODELS OF OB

THE AUTOCRATIC MODEL

THE CUSTODIAL MODEL

THE SUPPORTIVE MODEL

THE COLLEGIAL MODEL

FOUR MODELS OF OB

Organisation with an autocratic environment is authority oriented. Management does the thinking and the employees obey the orders. The bosses have absolute power to hire, fire and perspire employees.

This model is no longer applicable in strict sense since the employees are educated and organised, hence, cannot be dictated to by the managers all the time.

THE AUTOCRATIC MODEL

The custodial model was used by the progressive managers. The model emphasises the economic rewards and incentives.

The main drawback of this model is that it depends upon material rewards only for motivating the employees, thereby ignoring their psychological needs.

THE CUSTODIAL MODEL

The supportive model depends upon leadership instead of power or money. This model takes care of the psychological needs of the employees in addition to their subsistence and security needs.

This model has limited application in a country like India where majority of workers are below the poverty line and , thus, are more concerned with monetary rewards.

THE SUPPORTIVE MODEL

The collegial model is based upon the partnership between the employees and the management. In collegial work environment , the employees have job satisfaction, job involvement, job commitment and to some extent job fulfillment. This model is generally used in research laboratories and similar work situations.

THE COLLEGIAL MODEL