Organizational Behavior

The Challenges Facing Management

• In the 1980s and 1990s managers were preoccupied with restructuring their organizations to improve Productivity and meet the competitive challenges in the international marketplace and Quality Expectations of customers.Thus the resulting organizations offered short-run benefits in terms of lowered costs and Improved Technology.

Now-a-days it is very tough time for managers. The reason is “ the increasing danger of Disruptive Change”.

Consider the following Changes in the Nature of Work:

• The Blending of Tech and Human components of work• Jobs are less tightly Defined • Contingent workers• Customers Influence the work that is performed within the

organization• Teams rather than Individuals

• All of the above points represent the Disruptive Change and require new thinking and new ways of managing. For example; “Disappearance of Tightly defined and programmed jobs”;

The nature of work is changing so rapidly that Rigid Job Structure impede the work to be done now, and that drastically change in the following year, month or even week times.

Following are the near future workplace environment;

1. Knowledge workers will not have a Traditional Contractual Relationship with employers. Instead they will Rent their services to different companies at different

• Corporate Headquarters- Heart Centers- Downsizing, Rightsizing….. …….welcome form of Sizing companies

• Productivity……driven by Speed and Efficiency • Internet workplace…..Irregular Schedules and

Work/Life balance

ORGANIZATIONAL BEHAVIOR

1. MANAGERS • Get things done through others• Make Decisions, Allocate Resources

Direct the Activities of Others to Attain Goals.• The people who Oversee the Activities of others and who are

Responsible to Achieve a Common Goal are Managers2. ORGANIZATION • Consciously Coordinated Social Unit,• Composed of two or more people, • Function on a relatively Continuous Basis

to Achieve a Common Goal or Set of Goals.

• 2. WHAT MANAGERS DO? • 2.1. MANAGEMENT FUNCTIONS:

i. Planning ii. Organizing

• iii. Leading • iv Controlling

ORGANIZATIONAL BEHAVIOR• 2.2. MANAGEMENT ROLES

A. InterpersonalB. Informational C. Decisional

• 2.3. MANAGEMENT SKILLSA. Technical B. Human C. Conceptual

• 3. ORGANIZATIONAL BEHAVIOR

ORGANIZATIONAL BEHAVIOR

• It investigates the Impact that

Individuals, Groups, and Structure have on Behavior within Organizations,

for the Purpose of Applying such Knowledge toward Improving an organization’s Effectiveness.

Complementing Intuition with Systematic Study

• Improving the Predictive Ability by Supplementing Intuition by using more Systematic Approach

• Through Systematic Approach More Accurate Predictions of Behavior can be Made

• Fundamental Consistencies underlying the Behavior of all Individuals that can be Identified and Modified


• Thus Behavior is generally Predictableand the Systematic Study of Behavioris a Means to making reasonably Accurate Predictions.SYSTEMATIC STUDY:-Looking at the Relationships, Causes and Effects-Conclusions on the basis of Scientific Evidence


• Systematic Study adds to Intuition aboutWhy I do? What I do? What makes others do something?

• One’s Intuitive views of behavior can be enhanced with a systematic analysis, consequently it will Improve Accuracy in Explaining and Predicting Behavior

CONTRIBUTING DISCIPLINES TO THE OB

• PSYCHOLOGY:Psychology’ contribution mainly at the Individual or Micro Level of Analysis

-Studying and Attempting to Understand Behavior

-Measure, Explain and Change Behavior -Learning, Perception, Personality, Counseling Emotions

-Motivation, Leadership Effectiveness, Performance Appraisal


Understanding of Macro concepts – Group processes and Organization

• Social Psychology: It Focuses on People’s Influence on One Another.

Change; how to implement it and How to reduce Barriers to its Acceptance.


• Sociology: “Study of Group Behavior in Organizations”

It has contributed to Research on; Organizational Culture, Formal Organization Theory & Structure, Communications, Power,Conflict.

ABSOLUTES IN OB• Humans are Complex creatures

- Anybody’s Ability to Make Simple and Accurate Generalizations about Humans is Limited.

-People act differently in the Same Situation

-OB was developed by taking general Concepts and applying them to a Situation, Person or Group.

-Thus it has become possible to offer reasonably Accurate Explanations of Human Behavior and to Make Valid Predictions

CHALLENGES AND OPPERTUNITIES FOR OB

• Changes are taking place in the Organizations at a rapid pace:-more and more women at workplace

-people of different color, race, nationalities have to work together-increasing use of temporary workers


-downsizing has become a common activity

-global competition

-learning to adapt changes by employees has become a necessity for the survival of company


• Critical Issues for which OB offers Solutions:1.Responding to Globalization

i. Increased Foreign Assignments ii. Working with people from different Cultures iii. Overseeing Movement of Jobs to Low- Cost Labor Countries


2. Managing Workforce Diversity

Categories of Workforce Diversity-

i. Minoritiesii. Local Populationiii. Ex-Defense Personneliv. Disabled Personsv. Displaced Personsvi. Gender Issuesvii. Age Factorviii. Temporary/ Contracts


Implications of Workforce Diversity• Workforce Diversity is Inevitable

-in order to cope with it one must Learn to Value and Respect Culture and ways of Behaving that are Different from one’s own

• Managing Workforce Diversity- a Priority -penetration in new markets - Diverse Teams Enhance Creativity, Flexibility, Response to Change

• Workforce Potential Maximization -Link Concerns for diversity to every Business Strategy


• Embracing Diversity: -Organizations must Accommodate Diverse groups of people by addressing their different Lifestyles, Work styles, Needs

-Managers should recognize Individual Differences and respond to those Differences in ways that ensure employee Retention, and greater Productivity without any Discrimination. -Positive management of Diversity Increase Creativity, Innovation and Effective Decision making by providing different Perspectives on Problems.


• Improving Quality and Productivity-Any Effort at Improving Quality and Productivity must include their Employees. OB helps in Planning Changes, Carrying out Changes

• Responding to Labor Shortage-In tight labor markets those Managers who do not understand Human Behavior Fails to treat employees properly


• IMPROVING CUSTOMER SERVICE--ORGANIZATIONS and CUSTOMERS-Organizations can’t Exist without Customers. Management Needs to Ensure that employees Do What it takes to Please Customers.

--EMPLOYEE BEHAVIOR and CUSTOMER SATISFACTION OB helps managers achieve this purpose and thus Contribute to Improving an organization's Performance by Showing managers How employees Behavior is Associated with Customer Satisfaction.


--EMPLOYEE BEHAVIOR and CUSTOMER SATISFACTION

OB helps managers achieve this purpose and thus Contribute to Improving an organization's Performance by Showing managers How employees Behavior is Associated with Customer Satisfaction.


• Improving People Skills-gaining insights into specific people skills: designing motivating jobs, techniques for improving communication skills, Creating more effective Teams

• Empowering People -Putting employees in charge of what they do. Managers give up Control, and Employees take Responsibilities

• Stimulating Innovation and Change- Employees can be the Front runners for Innovation and Change or they can be the greatest Hurdle. OB provides techniques for the attainment of these goals through employees

• Coping with Temporariness: Managers have to learn to live with Flexibility, Spontaneity and Unpredictability prevalent in the present Business Environment which has given rise to the temporary nature of Work Assignments.


• Working in Networked Organizations-Communication technology Now it is possible to work from non Office Locations in

a Networked organization • Helping Employees Balance Work-Life

ConflictsBalancing Work Life with Personal Life has become Priority of today’s Employees

• Improving Ethical Behavior

OB MODEL• Three Levels of Analysis in OB

Each Level is constructed on the Previous Level

• Dependant Variables: Productivity, Absenteeism, Turnover, Job Satisfaction, Deviant Workplace Behavior Organizational Citizenship Behavior Factors to be Explained and are Influenced/ Affected by other Factor (s).

OB MODEL Dependant Variables• PRODUCTIVITY

It is Concerned with Effectiveness and Efficiency

-OB Concern: Any organization must know what elements INFLUENCE/ will INFLUENCE the Effectiveness and the Efficiency of the INDIVIDUAL, GROUP, ORGANIZATION

OB MODEL• ABSENTEEISM:

-It causes Disruption in the Production Cycle/ Value Creation and has direct Impact on the Effectiveness and Efficiency of the Organization.

-Is there any condition where Absence benefits the Organization?

OB MODEL• TURNOVER:

The permanent Withdrawal of Employees from an Organization.

-Higher rate of Turnover has negative implications for the efficiency and effectiveness in an Organization

-It facilitates Organizational Flexibility and Employee Independence

OB MODEL• DEVIANT WORK PLACE BEHAVIOR

(ANTISOCIAL BEHAVIOR)-Deliberate Insult, Teasing, Acts of Sabotage, Gossips, Stealing, and so on. - It is a Voluntary Behavior that Violates the Organizational Norms and consequently inflict Harm to the Organization. -In most case It is a Response due to Dissatisfaction

-Managers must address the problems by Eliminatingits Root Causes

OB MODEL• ORGANIZATIONAL CITIZENSHIP BEHAVIOR:

-Discretionary Behavior e.g., volunteering for Extra work

• JOB SATISFACTION: -Satisfied employees are more Productive than the Dissatisfied ones, thus it has direct impact on the Organizational Efficiency & Effectiveness

OB MODEL INDEPENDENT VARIABLES

(Causes of Change in Dependent Variables)

1. Individual-Level Variables

-People enter organizations having certain Characteristics that Influence their Behavior -They have great Impact on employee Behavior

INDEPENDENT VARIABLES Individual-Level Variables

• BIOGRAPHICAL Characteristics: -AGE, GENDER, MARITAL STATUS, RACE, NATIONALITY

• ABILITY • ATTITUDES • PERSONALITY • VALUES• EMOTIONS• PERCEPTION• INDIVIDUAL DECISION MAKING• LEARNING• MOTIVATION


Individual-Level -People enter the organizations carrying

with them Certain Characteristics

- These Characteristics are not easy to Alter/Change for any organization

-These Characteristics have great Impact on Employee Behavior


• GROUP-LEVEL VARIABLES The Behavior of people in Group is more

than the Sum of the total of all the Individuals acting in their Own way.

• ORGANIZATION SYSTEM LEVEL VARIABLES Organization Culture and Design, HR Policies/ Practices INFLUENCE dependant behavior.

FOUNDATIONS OF INDIVIDUAL BEHAVIOR

Now we look at How Basic Individual Differences Affect Employee Performance and Satisfaction.

Employee’s Performance and Satisfaction is Affected by his/her ABILITIES and BIOGRAPHICAL CHARACTERISTICS


ABILITY An Individual’s Capacity to Perform the various Tasks in a Job. -What one can do at this point of time

• INTELECTUAL ABILITY• PHYSICAL ABILITY

INTELECTUAL ABILITY-Mental Activities-

THINKING- REASONING- PROBLEM SOLVING


INTELECTUAL ABILITY

-SMART PEOPL: LEADERS OF GROUPS

-IQ TESTS: Tools for measurement for Intellectual Ability SAT, GMAT, GRE etc.


INTELECTUAL ABILITY Seven (7) Dimensions

1. NUMBER APTITUDE Speedy, Accurate Arithmetic

2. VERBAL COMPREHENSION Understand – What is HEARD & READ

3. Perceptual Speed Identify Visual Similarities & Differences Quickly and Accurately


INTELECTUAL ABILITY Seven (7) Dimensions4. INDUCTIVE REASONING Identify Logical Sequence in Problem Solving5. DEDUCTIVE RESONING Use Logic for Implications of Argument6. SPATIAL VISUALIZATION Ability to visualize Changed Position of an Object7. MEMORY Retaining, Recall : PAST EXPERIENCES


INTELECTUAL ABILITY- Different Jobs require different Intellectual Abilities Thus, High IQ may not be required for all jobs.- But people having Intellectual Abilities Perform Better in their Jobs

INTELLIGENCE IS BETTER PREDICTOR OF PERFORMANCE Because:-Intelligent People- Learn Quickly More Adaptable to Change Invent Solutions to Problems


INTELECTUAL ABILITY

-Intelligent People Better Performers BUT Not Satisfied with the Job and More Critical in Evaluating Job Conditions

THEY EXPECT MORE


INTELECTUAL ABILITY Another way of looking at Intelligence

1. Cognitive : Aptitudes- Traditional Intelligence Tests

2. Social : Ability to Relate to Others3. Emotional : Identify- Understand-Manage

EMOTIONS4. Cultural : Awareness of and Function

in Cross Cultural Word


INTELECTUAL ABILITYAnother way of looking at Intelligence

LIMITATIONS

-Measurement of Intelligence other than Cognitive NOT EASY

-But all of these Factors Affect Person’sIntelligence Level


PHYSICAL ABILITIES


ABILITY-JOB FIT

• Performance enhances with the increase in Ability-Job Fit

• Ability Requirements of Jobs, e.g., Pilot- Spatial Visualization

• Limitations of Job frustrates an able person


BIOGRAPHICAL CHARACTERISTICS

• OB is concerned with Finding and Analyzing the Variables that have an Impact on Employee PRODUCTIVITY, ABSENCE, TURNOVER, DEVIANCE, CITIZENSHIP, SATISFACTION


DATA about Biographical Characteristics is easily Definable and Readily Available

in comparison to other Variables

BIOGRAPHICAL CHARACTERISTICS

• AGE :• GENDER:• RACE:• TENURE:


LEARNING

In order to Explain and Predict Behavior one needs to know HOW PEOPLE LEARN

Definition: “ RELATIVE PERMANENT CHANGE IN

BEHAVIOR THAT OCCURS AS A RESULT OF EXPERIENCE”


LEARNING • If an individual behaves, reacts, responds as a

result of EXPERIENE in a manner different from previous behavior- Then LEARNING has Taken Place

• Learning involves 1. CHANGE 2. PERMANENCY 3. EXPERIENCE


1. CHANGE : (A) Favorable Behaviors (B) Unfavorable Behaviors

2. PERMANENCY: Long-lasting effect

3. EXPERIENCE: (A) Direct - Observation or Practice (B) Indirect - Reading


THEORIES OF LEARNING

1. CLASSICAL CONDITIONING

2. OPERANT CONDITIONING

3. SOCIAL LEARNING

THEORIES OF LEARNING

CLASSICAL CONDITIONING

• Russian Physiologist- Ivan Pavlov- 1900s

Unconditioned Stimulus

Unconditioned Response Conditioned Stimulus

Conditioned Response


CLASSICAL CONDITIONING• When the Stimuli, One Unconditioned (Compelling) Other Neutral are PAIRED the Neutral Stimulus becomes CONDITIONED and thus,

adapts the Properties of the Unconditioned StimulusLearning a Conditioned Response involves building up

ASSOCIATION between a Conditioned Stimulus and An Unconditioned Stimulus


CLASSICAL CONDITIONING • It is PASSIVE:

--Classical Conditioning explains Simple Reflexive behavior.--Something HAPPENS and we REACT in a Specific Way--It is Elicited in Response to a specific Identifiable Event


OPERANT CONDITIONING• BEVIOR IS A FUNCTION OF ITS CONSEQUENCES --People learn to Behave to Get something they

Want or To Avoid something they Don’t Want--It is a Voluntary Behavior

--Tendencies to Repeat such behavior; -Reinforcement -Lack of Reinforcement


SOCIAL LEARNING

Learning through OBSERVATION and DIRECT EXPERIENCE• Learning by Observing What Happens to

Others - learning from Watching Models which

may be: Showbiz personalities, Political Leaders, Film or TV Performers, Teachers, Parents


SOCIAL LEARNING INFLUENCE OF MODELSFollowing processes determine

the Influence of Models on the Individuals

1. ATTENTION PROCESS2. RETENTION PROCESS3. MOTOR REPRODUCTION PROCESS4. REINFORCEMENT PROCESS


LEARNING

SHAPING BEHAVIOR Molding Individuals by Guiding their

Learning in Gradual Steps

• Positive Reinforcement• Negative Reinforcement• Punishment• Extinction

ATTITUDES and JOB SATISFACTION

EVALUATIVE STATEMENTS FAVORABLE or UNFAVORABLE CONCERNING; PEOPLE, OBJECTS, EVENTS

COMPONENTS OF ATTITUDE 1. COGNITIVE COMPONENT 2. AFFECTIVE COMPONENT 3. BEHAVIORAL COMPONENT

Organizational Behavior

Documents

systematic study of

study of group behavior

behavior measure

change behaviorlearning

ob psychology

systematic approach

ob changes

systematic analysis