Top Banner
ORGANIZATIONAL BEHAVIOUR
161

Organizational+behavior

Sep 21, 2014

Download

Business

Organizational+behavior
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Organizational+behavior

ORGANIZATIONAL BEHAVIOUR

Page 2: Organizational+behavior

WHAT IS AN ORGANIZATION?

They are groups of people who work independently towards some purpose.

They have structured patterns of interactions, meaning that they expect each other to complete certain tasks in an organized way.

Eg : People who have lot of money may invest jointly to build a resort at Lonavala. A group of people with similar beliefs may build a place of workship.

Page 3: Organizational+behavior

WHAT IS ORGANIZATIONAL BEHAVIOUR?

Concerned with the study of how people- individuals and groups act in an organization.

It is a combination of different disciplines (psychology, sociology, social psychology, anthropology, political science and economics.

It attempts to understand human behavior in organizational settings (ability, biographical characteristics), the organization itself (work specialization, departmentalization)the individual –organization interface (conflict, leadership).

Page 4: Organizational+behavior

WHAT IS ORGANIZATIONAL BEHAVIOUR?

Organizational Behaviour is a field of study that investigates the impact that individuals, groups and organizational structure have on behaviour

within an organization, for the purpose of applying such knowledge towards improving on

organizational effectiveness

Page 5: Organizational+behavior

WHAT IS ORGANIZATIONAL BEHAVIOUR?

The above definition has three main elements :

Study of individuals and group

Impact of organizational structure on human behaviour

Application of knowledge to achieve organizational effectiveness

Page 6: Organizational+behavior

WHAT IS ORGANIZATIONAL BEHAVIOUR?

It is a combination of different disciplines (psychology, sociology, social psychology, anthropology, political science and economics.

a.Psychology – It is the study of individual human behavior. Psychologists study the perceptions , personality, emotions of human behavior.

a.Sociology – It is the study of individuals in relation to their fellow human beings. Some areas that sociologists study are conflicts, group dynamics, teamwork etc.

Page 7: Organizational+behavior

WHAT IS ORGANIZATIONAL BEHAVIOUR?

c. Social Psychology – It is a blend of Psychology and Sociology. It focuses on influence of people on one another. Some of their areas of study are understanding and changing attitudes, building trust etc.

d. Anthropology – It is the study of societies to learn about human beings and their activities. It focuses on understanding differences in fundamental values, attitudes and behaviors between people in different countries and organizations.

e. Political Science – It studies the behavior of individuals and groups within a political environment. Topics such as structuring of conflict, how people manipulate power for individual interests.

Page 8: Organizational+behavior

FOUNDATIONS OF ORGANIZATIONAL BEHAVIOUR?

Basic assumptions distinct to the discipline are:

1.Individual differences –

Each person in the world is individually different in several ways (intelligence, personality, etc)

From the day of birth each person is unique and individual experiences after birth make people even more different.

If there were no individual differences a standard way of dealing with employees could be adopted.

Page 9: Organizational+behavior

FOUNDATIONS OF ORGANIZATIONAL BEHAVIOUR?

2. A whole person

When an individual is hired their social background, likes and dislikes , pride are also hired.

Hence managers must try to develop a better employee out of a worker and also a better person

Page 10: Organizational+behavior

FOUNDATIONS OF ORGANIZATIONAL BEHAVIOUR?

3. Caused behavior

There is a cause behind a persons behaviour. This behaviour is directed towards some one that the employee believes, (whether right or wrong).

Egs: when a person throws a stone at a bus, comes late to work, creates conflicts with colleagues there is a cause behind it.

Managers must realize this principle and tackle the issue accordingly.

Page 11: Organizational+behavior

FOUNDATIONS OF ORGANIZATIONAL BEHAVIOUR?

4. Organizations are social systems

Behaviour of people in organizations are influenced by their groups as well as their individual drives.

Two types of social systems exist in an organization – formal and informal

All parts of the system are interdependent and are subject to influence by any other part.

Page 12: Organizational+behavior

FOUNDATIONS OF ORGANIZATIONAL BEHAVIOUR?

5. Mutuality of interest

Organizations need people and people also need organizations.

People see organizations as a means to help them reach their goals, while at the same time organization need people to help attain organizational objectives.

Page 13: Organizational+behavior

CHALLENGES FACED BY OB SPECIALIST

OB CHALLENGES

MANAGING DIVERSITY

ETHICAL BEHAVIOR

TECHNOLOGY

CHANGED EMPLOYEE

EXPECTATIONS

GLOBALISATION

DEMOGRAPHICS OF WORKFORCE

Page 14: Organizational+behavior

GLOBALIZATION

1. Increased foreign assignments – manage workforce with different needs, aspirations and attitudes.

2. Working with people from different cultures – Even in our own country we get an opportunity to work with bosses, seniors who are raised in other countries.

3. Overseeing movement of jobs to countries with low cost labour – Jobs tend to flow to places with relatively low labor costs.

Eg: Samsung

CHALLENGES FACED BY OB SPECIALIST

Page 15: Organizational+behavior

MANAGING WORKFORCE DIVERSITY – NO LONGER A CHOICE TODAY

•heterogeneous mix of people (age, gender, race, national origin, disability ,educational, mindsets etc) .

•It should be comprehensive process for managing differences in 2 dimensions, primary (age, disability, national origin, education, gender etc ) and secondary (mindsets, values systems, ethics etc)

• Eg : Pepsico features job posting only for women on the site jobstreet.com , Titan, Mphasis

CHALLENGES FACED BY OB SPECIALIST

Page 16: Organizational+behavior

IMPROVING QUALITY AND PRODUCTIVITY

1.Increased competition is forcing managers to improve their organizations productivity and the quality of products and services they offer.

2. Intense focus on customers

3. Concern for continuous improvement

4. Improvement in the quality of everything the organization does.

5. Accurate measurements

Eg: Revival of TATA Engineering

CHALLENGES FACED BY OB SPECIALIST

Page 17: Organizational+behavior

IMPROVING CUSTOMER SERVICE

1. The companies leaders decide to make customer service as their priority. They need to demonstrate the same in their actions and words.

2. An employees behavior and attitude significantly contribute in customer satisfaction. A lot of companies have failed because they failed to please their customers.

3. Management needs to create a customer- responsive culture.

CHALLENGES FACED BY OB SPECIALIST

Page 18: Organizational+behavior

IMPROVING PEOPLE SKILLS

1.People skills are the ability to understand and communicate with others. They are the most important drivers of leadership success.

2.A lot changes with the way we interact personally with people.

3.Some of the people skills required by managers at work would be ways to motivating people, maintaining rapport with management and team members.

CHALLENGES FACED BY OB SPECIALIST

Page 19: Organizational+behavior

EMPOWERING PEOPLE

1.Traditional allurements such as job security and attractive remuneration are not the only benefits that attract, retain or motivate employees

2. Employees today demand empowerment and expect quality of status with the management.

3. Managers must learn how to give up control and employees must learn to take up responsibility for their work.

CHALLENGES FACED BY OB SPECIALIST

Page 20: Organizational+behavior

PROMOTING ETHICAL BEHAVIOR

•Members of organizations are increasingly finding themselves facing ethical dilemmas- situation in which they are required to define right and wrong conduct.

•What constitutes ethical behavior has never been clearly defined . It depends on certain factors such as person’s characteristics, cultural influences, and external factors .

Eg: Wipro Ombuds, TATA

CHALLENGES FACED BY OB SPECIALIST

Page 21: Organizational+behavior

ETHICAL DILEMMA

SAM WORKS FOR YOU.. HE IS TECHNICALLY CAPABLE AND A GOOD

WORKER… BUT HE DOES NOT GET ALONG WELL WITH OTHERS IN THE

TEAM… WHEN SAM HAS AN OPPORTUNITY TO GET A TRANSFER, YOU

ENCOURAGE HIM TO TAKE IT… WHAT WOULD YOU SAY TO SAM’S

POTENTIAL SUPERVISOR WHEN HE ASKS ABOUT SAM??

CHALLENGES FACED BY OB SPECIALIST

Page 22: Organizational+behavior
Page 23: Organizational+behavior

TIGER PRIDE

SHEEP LOVE

COW WORK

PIG MONEY

HORSE FAMILY

Page 24: Organizational+behavior

PERSONALITY

Its beauty that captures your attention….

Personality that captures your

heart!!

Page 25: Organizational+behavior

PERSONALITY

Personality refers to the set of traits and behaviour that characterize an individual.

It has both internal and external elements. The external traits are the observable behaviours that we notice in an individuals personality. Eg: Aggression, being an introvert, being an extrovert etc.

Internal traits represent the thoughts, values and genetic characteristics that we infer from the behaviours.

The characteristics that are exhibited in a large number of situations are called personality traits.

Page 26: Organizational+behavior

DETERMINANTS OF PERSONALITY

Personality

Heredity

Social

Family

Situational

Environmen

t

Page 27: Organizational+behavior

DETERMINANTS OF PERSONALITY

Heredity

•Heredity refers to those factors that were determined at conception.

•Physical attributes like height, weight, skin colour, facial attractiveness, temperament, energy level, intelligence etc are some of the characteristics that are generally considered to be imported either completely or partially from one’s parents.

Page 28: Organizational+behavior

DETERMINANTS OF PERSONALITY

Social

•Socialization process begins with the intial contact between a mother and her infant, thereafter other members of the family followed by the social groups (school, college, friends, colleagues etc)

•They play a very important role in personality development of an individual.

Page 29: Organizational+behavior

DETERMINANTS OF PERSONALITY

Environment

•Environment includes culture which influences norms, attitudes and values that are passed along from one generation to the next.

•While growing the child learns to behave in ways expected by the culture of the family in which he/she is born.

•Qualities such as aggression, cleanliness, moral values etc are determined by culture.

Page 30: Organizational+behavior

DETERMINANTS OF PERSONALITY

Family

•Family (parents and siblings )has considerable influence on personality development of an individual particularly in the early stages.

•Family is the first characteristic affecting an individuals personality after hereditary characteristics.

•For Eg: Children may develop negative personalities if their parents don’t have a good relation.

Page 31: Organizational+behavior

DETERMINANTS OF PERSONALITY

Situational Considerations

•It is the immediate situation which may finally dominate the personality of an individual.

•The different demands of different situations call forth different aspects of ones personality.

•For eg: while at a job interview or a temple some behaviours may be constrained while at a party or picnic it may be constrained less.

Page 32: Organizational+behavior

PERSONALITY

THE BIG FIVE MODEL OF PERSONALITY

A few personality experts tried to condense the many personality traits described over years into 5 abstract personality dimensions known as ‘THE BIG 5’ personality dimension.

EXTROVERSION

AGREEABLENESS

CONSCIENTIOUSNESS

EMOTIONAL STABILITY

OPENNESS TO EXPERIENCE

Page 33: Organizational+behavior

PERSONALITY

THE BIG FIVE MODEL OF PERSONALITY

EXTROVERSION

This dimension captures one’s comfort level with relationships.

Characteristics of a person with an extrovert personality include outgoing, talkative, assertive etc.

Introverts tend to be reserved, timid and quiet.

Page 34: Organizational+behavior

PERSONALITY

THE BIG FIVE MODEL OF PERSONALITY

AGREEABLENESS

This refers to a persons ability to get along with others.

Highly agreeable persons value harmony more than they value having their say or their way.

People who score more on agreeableness focus more on their own needs then the needs of others.

Eg: Trusting, good natured, cooperative, softhearted

Page 35: Organizational+behavior

PERSONALITY

THE BIG FIVE MODEL OF PERSONALITY

CONSCIENTIOUSNESS

This dimension refers to the number of goals that a person focuses on.

A highly conscientious person focuses on relatively few goals at one time.

Since a person with low conscientious person nature tends to focus on too many goals at one time, the individual is more disorganized, careless and irresponsible.

Eg: Dependable, responsible, persistent, achievement oriented

Page 36: Organizational+behavior

PERSONALITY

THE BIG FIVE MODEL OF PERSONALITY

EMOTIONAL STABILITY

This dimension focuses on an individual’s ability to cope with stress.

Individual with positive emotional stability tends to be more calm, enthusiastic and secure.

A person with low emotional stability tends to be nervous, depressed and insecure.

Eg: relaxed, worried, calm, secure

Page 37: Organizational+behavior

PERSONALITY

THE BIG FIVE MODEL OF PERSONALITY

OPENNESS TO EXPERIENCE

Extremely open people are fascinated by novelty and innovation.

They are willing to listen to new ideas and to change their own ideas, beliefs and attitudes in response to new information.

People with low levels of openness tend to be less receptive to new ideas and less willing to change their minds.

Eg: broadminded, imaginative, sensitive

Page 38: Organizational+behavior

PERSONALITY

MATCHING PERSONALITIES WITH JOBS

Holland’s Typology of personality

•Realistic - Prefers physical activities that require skill, strength and coordination. Eg: farmer, mechanic

•Investigative – Prefers activities that involve thinking, organizing and understanding. Eg: economist, mathematician

•Social – Prefers activities that involve helping and developing others. Eg : Counselor, social worker

Page 39: Organizational+behavior

PERSONALITY

MATCHING PERSONALITIES WITH JOBS

Holland’s Typology of personality

•Conventional – Prefers rule regulated, orderly and unambiguous activities. Eg : accountant, file clerk

•Enterprising – Prefers verbal activities where there are opportunities to influence others and attain power. Eg : Lawyer, real estate agent, sales person

•Artistic – Prefers ambiguous and unsystematic activities that allow creative expression . Eg: Painter, musician, interior decorator

Page 40: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Certain personality attributes are more powerful in an organization.

Locus of Control

The belief that events are either within one’s control or not. i.e a persons perception of the source of their fate is termed as locus of control.

Strong internal locus of control consists of people who believe that they control their destinies.

Strong external locus of control consists of people who believe that their lives are being controlled by outside forces.

Page 41: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Introversion and Extroversion

They are the most common descriptions of personality traits.

These terms are mostly associated with an individuals sociability and interpersonal orientation.

Extroverts are gregarious and sociable while introverts are shy, quiet and retiring.

Page 42: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Characteristics of internal locus of control :

•More control on their behavior

•Active in seeking information before taking decisions

•Socially more active

•More satisfied with their jobs

•More reliant on own judgement

•Prefer achievement in skill than chance

Page 43: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Self- Esteem

Feeling of like or dislike of oneself.

It is crucial and is a cornerstone of positive attitude.

Directly related to the desire for success

Individuals with high self esteem are likely to choose unconventional jobs Low Self esteem individuals are more susceptible to external influence

Page 44: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Risk taking

People differ in their willingness to take chances.

Managers in larger organizations tend to be risk averse , especially in contrast to growth oriented entrepreneurs

It makes sense to align risk taking propensity with specific job demands.

Page 45: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Self monitoring

•.Self monitoring refers to an individuals ability to adjust his or her behaviour to external or situational factors.

•Individuals high in self monitoring can show considerable adaptability in adjusting their behaviour.

•People with low self monitoring tend to display their true dispositions and attitudes in every situation

Page 46: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Proactive

Proactiveness is an individuals propensity to take actions / initiative to improve their current circumstances or create new ones

They identify opportunities, show initiative, take action and persevere until meaningful change occurs.

They are more likely to be seen as leaders and more likely to act as a change agent.

Actions of pro-actives can be positive or negative.

Page 47: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Type A personality

Are always walking, moving and eating rapidly.

Feel impatient with the rate at which most events take place

Strive to think or do many things at once

Cannot cope with leisure time

Are obsessed with measuring their success in terms of how many or how much of everything they acquire.

Page 48: Organizational+behavior

PERSONALITY ATTRIBUTES INFLUENCING OB

Type B personality

Never suffer from a sense of time urgency with its accompanying impatience

Feel no need to display or discuss either their achievements or accomplishments unless such exposure is demanded by the situation.

Play for fun and relaxation, rather than to exhibit their superiority at any cost.

Can relax without guilt

Page 49: Organizational+behavior
Page 50: Organizational+behavior
Page 51: Organizational+behavior
Page 52: Organizational+behavior
Page 53: Organizational+behavior

EXERCISE

Below is a list of characteristics that are often used to indicate gender differences. If u believe that a characteristic is more like a male mark an M. Mark an F if you believe a characteristic is more like a typical

female…. Mark N if you believe there is no difference

1. _____________ Aggressive

2. _____________ Dominant

3. _____________ Excitable in a major crisis

4. _____________ home oriented

5. _____________ high mechanical aptitude

6._____________ feelings easily hurt

7._____________ never cries

Page 54: Organizational+behavior

8. ___________ strong need for security

9. ___________ Indifferent to others approval

10. __________ Likes maths and science

11. __________ Emotional

12. ___________ Has difficulty making decisions.

Page 55: Organizational+behavior
Page 56: Organizational+behavior

SENSATION & PERCEPTION

People use sensory organs to sense – eyes to see, nose to smell, tongue to taste, skin to feel and ears to hear. Thus sensation deals with the basic behaviour of an individual caused by his physiological functions.

Perception is when an individual takes in the raw data through his senses and then refines, modifies or completely alters it by his thought process.

Eg : Bad smell , taste of the food, seeing 60 students in a class

Page 57: Organizational+behavior

PERCEPTION

Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

In simple terms perception is the ability to see and hear things through the senses.

It is our interpretation of reality.

People’s behaviour is influenced by their perception of reality rather than the actual reality.

Page 58: Organizational+behavior

FACTORS INFLUENCING PERCEPTION

PERCEIVER-

When an individual looks at a target and attempts to interpret what he or she sees .

This interpretation is heavily influenced by the personal characteristics of an individual perceiver.

Page 59: Organizational+behavior

FACTORS INFLUENCING PERCEPTION

TARGET-

Characteristics of the target being observed can affect what is perceived.

Because targets are not looked at in isolation, the relationship of a target to its background influences perception.

Page 60: Organizational+behavior

FACTORS INFLUENCING PERCEPTION

SITUATION-

The context in which we see events is also important.

Eg: A 22 year old in a evening party vis-a –vis a lecture on Monday morning.

Eg: The boss may perceive young people to be lazy in office

Eg: I lose a match. I thought ‘we have been a bad team’

Page 61: Organizational+behavior

THE PERCEPTUAL PROCESS

1.RECEIVING STIMULI –

We are constantly bombarded with various stimuli..

These stimuli enter our organism through the sensory organs- vision, touch, smell, hearing, taste

Stimuli can be internal and external .

Page 62: Organizational+behavior

THE PERCEPTUAL PROCESS

2. SELECTING STIMULI –

Not all the stimuli received by the human organism are accepted by it.

The process of filtering information received by our senses is called selecting stimuli or selective attention.

Several internal and external factors influence selecting stimuli

Page 63: Organizational+behavior

THE PERCEPTUAL PROCESS

External factors seeking attention:

a.Locationb.Colourc.Sized.Contraste.Motionf.Repetitiong.Familiarity

Page 64: Organizational+behavior

THE PERCEPTUAL PROCESS

Internal factors seeking attention:

a.Learningb. Age differencec. Interestd. Ambivalencee. Paranoid perception

Page 65: Organizational+behavior

THE PERCEPTUAL PROCESS

3. THE PROCESS OF INTERPRETING

After the data has been received and organized, the perceiver interprets or assigns meaning to the information.

In fact perception is said to have taken place only after the data has been interpreted.

There are some factors that contribute towards interpretation of data.

Page 66: Organizational+behavior

THE PERCEPTUAL PROCESS

Important factors contributing to the interpretation are:

a.PERCEPTUAL SET – Previously held beliefs about objects/ situations

Eg: A manager may have developed a general belief that workers are lazy

Page 67: Organizational+behavior

THE PERCEPTUAL PROCESS

b. ATTRIBUTION – Process by which an individual assigns causes to the behaviour he or she conceives.

Eg: A nurse drops a tray of medicines will be excused if the incident is perceived as cause of slippery floor.

A manager decides an employee who performs a task poorly is a bad worker.

I failed the CET twice, may be I was not lucky.

Page 68: Organizational+behavior

THE PERCEPTUAL PROCESS

c. STEREOTYPING – Tendency to assign attributes to someone solely on the basis of category of people to which that person belongs.

Eg: Men cannot be good HR Managers

Men are dominant

Women are emotional

Japanese are hard working.

Page 69: Organizational+behavior

THE PERCEPTUAL PROCESS

d. HALO EFFECT – When we consider a person good (or bad) in one category we are likely to make similar evaluations in other categories too.

Eg: If the manager of a restaurant is good at customer service, it doesn’t mean the food is tasty, the ambience is good.

Page 70: Organizational+behavior

THE PERCEPTUAL PROCESS

e. PERCEPTUAL CONSTANCY – According to this principle, the perception of elements like size, shape, colour, brightness of an object remains constant and does not change from one individual to another.

Eg: if a photograph of a person is printed in a newspaper and although the photograph measures only 2-3 inches in length, we still perceive the individual to be between 5 to 6 feet in height

We tend to identify an apple just by the sight of it. It doesn’t matter whether we see a picture of a fruit or the fruit itself.

Page 71: Organizational+behavior

THE PERCEPTUAL PROCESS

f. PROJECTION – Under certain conditions, people tend to see in another person traits that they themselves possess.

Eg: An individual who is himself not very energetic may see others as lazy.

One who is dishonest may be suspicious of others may perceive dishonest intentions in others.

Page 72: Organizational+behavior

THE PERCEPTUAL PROCESS

4. Checking-

After data has been received and interpreted the perceiver tends to check whether his interpretations are right or wrong.

It is checked either by putting a series of questions to himself or checking with others.

Page 73: Organizational+behavior

THE PERCEPTUAL PROCESS

4. Reacting-

The last phase in perception is reaction.

The perceiver will indulge in some action in relation to his /her perception

The action is positive when the perception is favourable and negative when the perception is unfavourable.

Eg: A worker responds to a manager positively provided his or her understanding about the boss is favourable.

Page 74: Organizational+behavior

MANAGING PERCEPTION

1.Seek information from various sources to confirm or disconfirm personal impressions of a decision situation.

2.Be empathetic- be able to view the situation as it is perceived by other people.

3.Influence perceptions of other people when they are drawing incorrect or incomplete impressions of events.

4.Avoid common perceptual distortions

Page 75: Organizational+behavior

MANAGING PERCEPTION

5. Avoid inappropriate attributions

6. Diversity Management programs

7. Know yourself

Page 76: Organizational+behavior

INTUITION

Intuitive decision making is an unconscious process created out of experience.

Intuition can be a powerful force in decision making.

People most likely use the intuition process when:

• a high level of uncertainty exists.• when variables are less scientifically predictable• when facts are limited• when time is limited and there is pressure to come up with the right decision

Page 77: Organizational+behavior

0 10 20 30 40 50 60 70 80 90 100

VERY IMPORTANTNOT IMPORTANT

SOMEWHAT IMPORTANT

1. __________ An enjoyable , satisfying job

2. ___________ A high paying job

3. ___________ A good marriage

4. ___________ meeting new people, social events

5. __________ involvement in community activities.

6. __________ my relationship with GOD

Page 78: Organizational+behavior

7. __________Exercising, playing sports

8. __________ Intellectual development

9. __________ A career with challenging opportunities

10.___________ Nice cars, clothes, home etc

11. ___________ Spending time with family.

12. _____________having several close friends.

13. __________volunteer work for non profit organ izations.

14. __________Meditation, quite time to think, pray etc

15. __________A healthy balanced diet

16. __________ Educational reading, TV, self improvement programs

Page 79: Organizational+behavior

ASSESSMENT

Questions 1,2,3,4,5 A-1 F-2 O-3 N -4

Questions 6,7A-4 F-3 O-2 N- 1

Questions 8,9 and 10A-1 F-2 O-3 N -4

Page 80: Organizational+behavior

ASSESSMENT

32-40

Congrats! You have a winners attitude. Take pride in your approach to life and you will enjoy success

23-31

You have a tendency to feel dissatisfied with your achievements. Put in a little conscious effort and you will emerge as a winner

10-22

There is a need for a change in attitude. Gradually try to change your mindset. You should make a conscious effort to remain optimistic if you want a successful life

Page 81: Organizational+behavior

ATTITUDES AND VALUES

Page 82: Organizational+behavior

ATTITUDES AND VALUES

Attitudes are tendencies to feel and behave in a particular way towards people, objects, ideas or events.

Attitudes endure, unless something happens.

Attitudes are evaluative statements that can either be favourable or unfavorable.

All people, irrespective of their status or intelligence, hold attitudes

An attitude may involve a prejudice- in which we prejudge an issue without giving unbiased considerations to all the evidence.

Page 83: Organizational+behavior

ATTITUDES AND VALUES

VALUES

Values represent stable, long lasting beliefs about what is important

Values are general beliefs about about life whereas attitudes are directed towards specific events or people.

Values are judgemental in nature since they convey an individuals ideas regarding what is right, good or desirable.

Page 84: Organizational+behavior

ATTITUDES AND VALUES

VALUES

There are two types of values :

a.Terminal Values – They are desired states of existence that we think are worth striving.

Egs : A world of comfortable life, no bribe

b. Instrumental Values – They are desirable modes of behaviour that help us reach the objectives of terminal values.

Eg: Polite

Page 85: Organizational+behavior

COMPONENTS OF ATTITUDES

AFFECTIVE

BEHAVIOUR

ATTITUDE

COGNITIVE

Page 86: Organizational+behavior

ABC MODEL

The 3 components of attitude together form the ABC Model where

A = AffectB = BehaviourC = Cognition

Eg : Assess one employees attitudes towards flexitime at work. We would determine :

•How they feel about flexitime ? (affect)•Whether they would use flexitime ? (behaviour)•What they think about the policy ? (cognitive)

Page 87: Organizational+behavior

COMPONENTS OF ATTITUDES

AFFECTIVE COMPONENT

The feelings, sentiments, moods and emotions about some idea, person, event or object.

COGNITIVE COMPONENT

The beliefs, opinion, knowledge or information held by the individual.

BEHAVIOURAL COMPONENT

The dispositions to get on a favorable or unfavorable actions.

Page 88: Organizational+behavior

FORMATION OF ATTITUDE

ATTITUDES ARE ACQUIRED BUT NOT INHERITED

Direct experience with the object

Attitudes can develop from a personally rewarding or punishing experience with an object.

Employees form attitudes about jobs on their previous experiences.

Attitudes based on experience are difficult to change.

Page 89: Organizational+behavior

FORMATION OF ATTITUDE

ATTITUDES ARE ACQUIRED BUT NOT INHERITED

Vicarious learning

This refers to formation of attitudes by observing behaviour of others and consequences of that behaviour.

We could also learn vicariously through television, films and other media.

Page 90: Organizational+behavior

FORMATION OF ATTITUDE

ATTITUDES ARE ACQUIRED BUT NOT INHERITED

Family and peer groups

A person may learn attitudes through imitation of parents.

If parents have a positive attitude towards an object, the child is likely to adopt a similar attitude.

Egs: Attitudes regarding occupations, tolerance, education etc

Page 91: Organizational+behavior

FORMATION OF ATTITUDE

ATTITUDES ARE ACQUIRED BUT NOT INHERITED

Neighborhood

The neighborhood we live in has a certain structure in terms of its having cultural facilities, religious grouping etc.

The neighbors tolerate or deny certain attitudes and behavior and as a result we may either northerners or southerners.

The conformity or rebel in some respects is the evidence of the attitudes we hold.

Page 92: Organizational+behavior

FORMATION OF ATTITUDE

ATTITUDES ARE ACQUIRED BUT NOT INHERITED

Mass communications

All varieties of mass communication – television, radio, newspapers feed their audiences large quantities of information.

The presentation of news or information is constructed so as to cater to the attitude of the audience.

Page 93: Organizational+behavior

TYPES OF ATTITUDE

Job related attitudes at work can be discussed as :

1.JOB SATISFAC TION

Job satisfaction refers to an individual’s general attitude towards his or her job.

It results when an individual perceives that his job provides him with what is important to him.

It is an emotional response to a job. This response can be seen.

Page 94: Organizational+behavior

TYPES OF ATTITUDE

The job satisfaction that an individual derives from is job depends on the extent to which outcomes meet his expectations.

There are 6 important characteristics of a job that elicit favorable or unfavorable responses from employees:

a.The work itselfb.Payc.Promotion opportunitiesd.Supervisione.Coworkersf.Working conditions

Page 95: Organizational+behavior

FORMATION OF ATTITUDE

JOB SATISFACTION AND PRODUCTIVITY

There is no strong relation between job satisfaction and productivity.

There are other mediating relationships like rewards that lead to an increase in productivity.

Job satisfaction does contribute in an overall improvement in organizational performance.

Page 96: Organizational+behavior

FORMATION OF ATTITUDE

JOB SATISFACTION AND TURNOVER

There exists a moderate relationship between satisfaction and turnover.

High job satisfaction will not eliminate employee turnover but will only help to reduce the rate of turnover.

Job dissatisfaction will encourage employees to switch organizations at the slightest opportunity for better prospects.

A country’s economy and the employment scenario also influences turnover.

Page 97: Organizational+behavior

FORMATION OF ATTITUDE

JOB SATISFACTION AND ABSENTEEISM

Job satisfaction and absenteeism have an inverse relationship.

A high level of job satisfaction leads to low absenteeism and a low level of job satisfaction results in high absenteeism.

The extent to which people consider their jobs important, also have an impact on absenteeism.

Page 98: Organizational+behavior

ORGANIZATIONAL COMMITMENT

Organizational commitment refers to an employees satisfaction with a particular organization and its goals.

A person with a high level of organizational commitment is a strong supporter of the values of the organization.

Personal variables include - his tenure in the organization, his attitude towards the job

Organizational variables include – leadership style of the supervisor.

Non organizational factors include – state of job market.

Page 99: Organizational+behavior

FUNCTIONS OF ATTITUDES

ATTITUDE

ADJUSTMENT

KNOWLEDGE

EGO DEFENSIVE

VALUE EXPRESSION

Page 100: Organizational+behavior

FUNCTIONS OF ATTITUDES

ADJUSTMENT FUNCTION-

People modify their attitudes to adjust to their work environment.

When superiors treat employees fairly, the employees tend to develop positive attitude but if management fails to treat them well they develop a negative attitude.

Page 101: Organizational+behavior

FUNCTIONS OF ATTITUDES

EGO-DEFENSIVE FUNCTION-

Attitudes help employees defend their self image and protect their ego.

Example: A manager who is poor at decision making process.

VALUE-EXPRESSIVE FUNCTION –

People may express their values through their attitudes.

Page 102: Organizational+behavior

FUNCTIONS OF ATTITUDES

KNOWLEDGE FUNCTION-

Attitudes provide a standard of reference which allows people to understand and explain their environment.

Eg: Union leader

Page 103: Organizational+behavior

SITUATION

SUPPOSE YOU HAVE AN EMPLOYEE WHOSE LACK OF

COMMITMENT IS AFFECTING OTHERS IN THE WORK GROUP

SUGGEST 3 BEST WAYS YOU WOULD CHOOSE TO CHANGE HIS

ATTITUDE?

Page 104: Organizational+behavior

MOTIVATION

Motivation can be defined as :

“the inner force that drives individuals to accomplish

personal and organizational Goals”.

Page 105: Organizational+behavior

MOTIVATION

I started my life as a brew master looking to brew beer,

your journey can take you anywhere, but your life

should be an inspiring hope

Page 106: Organizational+behavior

MOTIVATION

Motivation in simple terms may be understood as the set of forces that cause people to behave in certain ways.

Every individual has different motivational drives but the situation also plays an important role in determining a persons motivational level.

Motivation consists of 3 interacting and interdependent elements – needs, drives and incentives

Needs – An imbalance leads to the creation of a need. For Eg : The need for water arises when a person is thirsty.

Page 107: Organizational+behavior

MOTIVATION

Drives– Drives or motives are two terms that can be used interchangeably.

Drive is a condition which causes a person to work in a particular direction.

These motives push an individual towards achieving a certain goal or accomplishing a certain task.

Drives constitute the core element in motivation.

Page 108: Organizational+behavior

MOTIVATION

Incentives– Anything that can decrease the intensity of a drive is called an incentive.

When a person obtains the incentive, the strength of that drive is reduced.

For eg: drinking water helps in achieving balance.

Page 109: Organizational+behavior

MOTIVATION

Employee Motivation

Intrinsic Motivation

Extrinsic Motivation

Page 110: Organizational+behavior

MOTIVATION

Intrinsic Motivation

Intrinsic motivation is when an individual is motivated by internal factors.

It is a process of satisfaction in which the rewards come from carrying out an activity than a result of an activity.

It holds no promise of rewards.

Intrinsic motivation however does not mean that a person will not seek rewards.

Page 111: Organizational+behavior

MOTIVATION

Intrinsic Motivation

It is a sense of achievement, commitment ,responsibility, job satisfaction, purpose, involvement, empowerment and ownership - all the things that make an employee feel that what they’re doing makes a big difference in their lives and in the organisation itself.

Those who are intrinsically motivated derive satisfaction from the value of their work.

Praise, training programs, creation of informal leadership roles helps an employee to be intrinsically motivated.

Page 112: Organizational+behavior

MOTIVATION

Extrinsic Motivation

Extrinsic motivation refers to motivation that comes from external factors.

These rewards may provide satisfaction and pleasure that the task itself may not provide.

An extrinsically motivated person will work on the task even if they have little interest in it because of the anticipated satisfaction they will get from the reward.

Eg: A student not interested in OB… however could be motivated due to grades.

Page 113: Organizational+behavior

MOTIVATION

The Over justification Effect

The over justification effect occurs when an external incentive such as money decreases a persons intrinsic motivation to perform a task.

In an over justified effect I contribute my behavior to an extrinsic factor than to intrinsic reasons.

Page 114: Organizational+behavior

THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY

Unsatisfied needs can influence behavior. Satisfied needs do not act as motivators.

Since needs are many, they are arranged in an order of importance.- hence need- hierarchy theory of motivation.

The person advances to the next level of hierarchy , or from basic to complex only when the lower level need is satisfied.

As the person moves up the hierarchy the more humanness he will display.

Page 115: Organizational+behavior

THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY

Physiological need -

The most basic, powerful and obvious of all human needs is the need for physical survival.

Need for food, water, oxygen, sleep are included in this group.

In an organization, physiological needs are represented by employees concern for salary and basic working conditions.

Page 116: Organizational+behavior

THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY

Safety need –

Once physiological needs are met, another set of motives called safety or security needs become motivators.

These needs are most readily observed in young children because of their dependence on adults.

The acquisition of insurance, medical policies, owning of a house are included in this group.

In an organization, safety needs are represented by the preference for secured income, safe working conditions, job security, provident funds etc.

Page 117: Organizational+behavior

THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY

Social need –

Social needs arise when physiological and safety needs are satisfied.

An individual motivated on this level longs for affectionate relationship with others, crave to acquire a place in the family.

In an organization context, social needs represent the need for a compatible work group, peer acceptance and friendly supervision.

Page 118: Organizational+behavior

THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY

Self Esteem need –

Self Esteem need has been categorized into two subsidiary sets : self respect and self esteem from others- self respect and esteem from others.

Self respect includes things as desire for competence, independence, confidence and freedom. (self efficacy)

Esteem from others include prestige, attention, status, reputation and appreciation

In the workplace self esteem needs correspond to job title, recognition from supervisor and publicity in company publications.

Page 119: Organizational+behavior

THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY

Self Actualization need –

Once all the 4 needs are met, the need for self actualization comes in the forefront.

Self actualization is the desire to become everything that one is capable of becoming.

It is to become the total kind of person that one wants to become to reach the peak of ones potential.

In an organization self actualization needs to correlate to desire for excelling oneself in ones job..

Page 120: Organizational+behavior

THEORIES OF MOTIVATION

EXPECTANCY THEORYEXPECTANCY THEORY

Expectancy theory suggests that a person's behaviour is based on Expectancy theory suggests that a person's behaviour is based on 3factors – Expectancy, Instrumentality and Valence3factors – Expectancy, Instrumentality and Valence

Expectancy is similar to self efficacy. Beliefs about the link between Expectancy is similar to self efficacy. Beliefs about the link between trying to perform a behavior and actually performing well are called trying to perform a behavior and actually performing well are called expectancies.expectancies.

A belief that performing a given behavior is associated with a particular A belief that performing a given behavior is associated with a particular outcome is called instrumentality.outcome is called instrumentality.

Valence is the value that a person places on an outcome.Valence is the value that a person places on an outcome.

.

Page 121: Organizational+behavior

THEORIES OF MOTIVATION

.

EXPECTANCY INSTRUMENTALITY VALENCEX X

MOTIVATION

Page 122: Organizational+behavior

LEADERSHIP

•Leadership refers to the ability of one individual to influence others.

•The influence is exercised to change the behavior of others.

•The person influencing others possesses a set of qualities which he/she uses to influence others.

•It is a group phenomenon. It involves interaction between two or more people.

.

Page 123: Organizational+behavior

LEADERSHIP

3 TYPES OF INFLUENCE PATTERNS

Compliance – It occurs when people are influenced to do something against their will because they are forced into doing that.

People may obey because the repercussions of failure to do so may have serious consequences.

Compliant behaviors get easily extinguished when the leader is out of sight.

.

Page 124: Organizational+behavior

LEADERSHIP

3 TYPES OF INFLUENCE PATTERNS

Identification –It relates to the situation when people perform what the leader wants them to because they like him / her.

People want to put forth the effort to please the person.

This liking may be either because the leader is attractive, likeable, acts a role model.

Such a leader has charisma and people voluntarily obey him.

.

Page 125: Organizational+behavior

LEADERSHIP

3 TYPES OF INFLUENCE PATTERNS

Internalization– It occurs when followers are convinced that acting as per leaders directions serves their interests best.

In such cases the followers pay heed to the managers wishes, trusting her judgement and advice.

.

Page 126: Organizational+behavior

Interpersonal role

Informational role

Decisional role

Communication

Traditional Management

Human Resource Management

Networking

.

Page 127: Organizational+behavior

.

LEADERSHIP STYLES

•Leadership style is the typical approach a particular person uses to lead people.

•The behavior a leader exhibits during supervision of subordinates is known as leadership style.

•This study focuses in what the leader actually does in getting work accomplished through people.

•A leader should change his style to suit the situation.

Page 128: Organizational+behavior

LEADERSHIP STYLES

.

AUTOCRATIC LEADERSHIP

•Leaders who adopt this style retain all the authority and decision making power.

•They do not consider employees’ suggestions, opinions or views.

•They instruct the subordinates on ‘what to do’ as well as ‘how to do’ a job

•It is useful only when decision has to be made immediately and the time and situation does not permit consultation and discussion.

•Eg : Adolph Hitler , Saddam Hussain

Page 129: Organizational+behavior

LEADERSHIP STYLES

.

CONSULTATIVE or PARTICIPATIVE LEADERSHIP

•Consultative leaders encourage employees to participate in decision making.

•The leader listens to subordinates ideas and opinions, but takes the final decision himself.

•They allow both upward and downward communication.

•He encourages his subordinates to express their suggestions, ideas and feelings

Page 130: Organizational+behavior

LEADERSHIP STYLES

.

BUREAUCRATIC LEADERSHIP

•In this style of leadership leaders set certain rigid rules and regulations and procedures. Both leaders and their subordinates follow these rules.

•They carry out their tasks in a mechanical way, without a sense of commitment towards the organization.

•Leaders are empowered on the basis of the position they hold.

•Followers are promoted based on their ability to conform to the rules.

Page 131: Organizational+behavior

LEADERSHIP STYLES

.

MUSHROOM MANAGEMENT

•In the mushroom management style you get to do all the work that the leader does not want to do.

•They do not communicate so you are not aware of their plans or anything that might be going on in an organization.

•Mushroom managers are often too concerned about their own career and image.

•Anyone appearing as a threat to them will be easily held back.

Page 132: Organizational+behavior

LEADERSHIP STYLES

.

MICRO MANAGEMENT

•The manager in question acts as if the subordinate is incapable of doing the job, giving close instructions and checking everything the person does.

•They seldom praise and often criticize.

•A minor error is normally taken as an evidence of the persons total incompetence.

Page 133: Organizational+behavior

LEADERSHIP STYLES

.

•SITUATIONAL LEADERSHIP

•There is no one right way to lead and manage all situations.

•A good leader will find themselves switching between styles according to the people and work they are dealing with.

•To choose the most effective leadership style, one must consider:

•The skill levels and experience of the members of your team•The work involved , Organizational environment.

Page 134: Organizational+behavior

LEADERSHIP STYLES

.

Transformational leadership is a leadership when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality.

- Narayan Murthy

Page 135: Organizational+behavior

LEADERSHIP STYLES

.

TRANSFORMATIONAL LEADERSHIP

•Transformational leadership is the ability is to get people to want to change, to improve and be led.

•While this leader seeks to transform the organization , there is a promise to the followers too.

•They inspire the team with a shared vision of the future.

•They are highly visible and spend a lot of time communicating.

Page 136: Organizational+behavior

LEADERSHIP STYLES

.

•Transformational leaders do accept that they there will be failures along the way.

•They are happy as long as progress is made.

•They are very careful on building trust and their personal integrity is a part of the package.

•They are good at expressing complicated goals and objectives in simple terms.

•They appreciate and encourage careful problem solving among their followers.

Page 137: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

.

FIEDLER’S CONTINGENCY MODEL

According to this model leadership requirements depend on the situation facing the leader.

The choice of the most appropriate style of leadership depends on whether the overall situation is favorable or unfavorable to the leader.

The favorability is analyzed based on the following parameters:

Leader- Member relationships – This parameter depends on the extent to which a leader is accepted by his subordinates.

Page 138: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

.

Degree of task structure – This refers to the degree to which the task on hand can be performed efficiently.

The leaders position - This refers to the power that the leader is bestowed within the organization.

A situation is considered to be favorable to the leader if the scores on all the three dimensions are high.

Page 139: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

.

LPC score (64 and above) ------ Relationship motivated

LPC score ( 57 or lower) ------------ Task oriented

Page 140: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

.

HERSEY AND BLANCHARD’S SITUATIONAL THEORY

According to the situational theory, the maturity level of the subordinates plays a major role in influencing the leadership style of the superior.

The ability of an employee to carry out a particular task and the extent to which he is motivated to perform the task constitutes the maturity of an individual.

If the manager gives appropriate guidance to an employee, he is likely to develop the necessary job related abilities in a short time.

Page 141: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

.

Since all employees do not have the same level of competency and commitment leaders have to adopt different leadership styles.

According to this model, leadership styles can be categorized into four types – telling, selling, participating, delegating

Telling- When an employee is low in his ability to perform as well as willingness to perform, the manager needs to adopt the telling style i.e he must constantly give directions to the employee. (low ability-low willingness)

Selling - When an employee is low in ability but high in willingness to perform. (low ability- high willingness)

Page 142: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

.

Participating- When an employee is capable of performing but not willing to perform the task. (High ability – low willingness)

Delegate –If an employee is capable, and is also willing to carry out the task then the manager can simply delegate. (High ability – high willingness)

Page 143: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

LEADER- MEMBER EXCHANGE THEORY

The fact that leaders act very differently towards different subordinates has given rise to the LMX theory of leadership.

According to George Green and associates, leaders establish a special relationship with a small group of subordinates.

This small group of subordinates is referred to as the in-group while the rest are referred to as out group.

The leaders trust the subordinates, who belong to in groups, give them more attention, interact with them frequently and offer them special privileges.

.

Page 144: Organizational+behavior

CONTINGENCY APPROACHES TO LEADERSHIP

LEADER- MEMBER EXCHANGE THEORY

The out group people get less of the leaders time and attention. Also their interactions are less frequent.

Research has indicated that generally leaders favor the people who have attitudes and personality characteristics that are similar to their own.

This theory suggests that the in group people receive high performance ratings and thus obtain rewards and promotions quickly.

Research has supported the theory by proving that leaders do differentiate among subordinates not randomly but on the basis of their performance.

.

Page 145: Organizational+behavior

ORGANIZATIONAL STRUCTURE

Organizational structure indicates the organization’s hierarchy and authority structure.

It is a formal allocation of work roles and administrative mechanisms to control and integrate work activities.

It defines how job tasks are formally divided, grouped and coordinated.

It is an established pattern of relationships among various components or parts of the organization.

Page 146: Organizational+behavior

ORGANIZATIONAL STRUCTURE

Organization structure requires to respond to two basic issues: Division of labour among its members Coordination of what has been divided

Organizational structure needs five elements to be addressed: Division of labour Span of control Delegation of authority Departmentalization Centralization Decentralization

Page 147: Organizational+behavior

WHY ORGANIZATIONAL STRUCTURE?

Facilitates management Encourages growth and diversification Facilitates the optimum use of technological

improvement Encourages proper use of human resources Stimulates creativity

Page 148: Organizational+behavior

DIVISION OF LABOUR

Division of labour refers to the process of dividing the total task of an organization into successively smaller jobs.

Job Specialization is an0ther term for division of labor.

Rather than doing the entire job by one individual it is broken down into steps, each step being completed by a separate individual.

Individuals tend to perform better and specialize in doing part of an activity than the entire activity.

Page 149: Organizational+behavior

DIVISION OF LABOUR

While analyzing the results of a division of labour, a distinction is made between line and staff activities.

Examples of line activities : painting, engineering, etc

Examples of staff activities : Legal, Accounting, HR etc

Page 150: Organizational+behavior

SPAN OF CONTROL

Span of control is also termed as span of authority.

It refers to the number of subordinates a manager can effectively supervise.

Knowing span of control is necessary because managers / executives have limited time and ability.

HOW MANY SUBORDINATES CAN A MANAGER EFFICIENTLY AND EFFECTIVELY SUPERVISE?

Page 151: Organizational+behavior

SPAN OF CONTROL

When the span becomes too large, subordinate performance suffers.

Also when the span is small, it suffers from problems like increased levels of management, complexity in the vertical communication, and discouraging subordinate / employee autonomy.

Experts vary on the ideal size of span of control.

According to Hamilton’s thesis, “ An average human brain finds it effective scope in handling from three to six other brains”

Page 152: Organizational+behavior

DELEGATION OF AUTHORITY

Delegation of authority answers questions for employees such as “ Who do I go if I have a problem” or “ Who is my reporting manager”

Technically it refers to the sharing of power with another for the performance of certain tasks.

A manager- superior delegates authority to his subordinates. However the superior at the same time still retains authority.

An unbroken line of authority that extends from the top of the organization to the lowest is called the ‘chain of command’

Page 153: Organizational+behavior

It comprises of 3 elements: Entrustment of work to another for performance Grant of power ro be exercised to perform the work. Creation of an obligation on the part of the person

accepting delegation.

Page 154: Organizational+behavior

CENTRALIZATION

The term centralization refers to the degree to which decision making is concentrated at a single point in the organization.

Top management makes the organization’s key decisions with little or no input from lower level personnel.

In other words centralization is the reservation of authority by individual managers with themselves.

Absolute centralization is impossible in any organization.

Page 155: Organizational+behavior

DECENTRALIZATION

It is a systematic effort to delegate authority to the lower levels of organization.

The lower level personnel provide input or are actually given the discretion to make decision.

Thus the essence of decentralization is the transference of authority from a higher level to a lower level.

Decentralization respects individual employees for their worth.

Absolute decentralization is impossible.

Page 156: Organizational+behavior

DEPARTMENTALIZATION

The basis by which jobs are grouped together is called departmentalization.

The central issue regarding departmentalization is the degree of similarity among the jobs within the department.

Functional departmentalization – This is the most popular way to group activities.

Product departmentalization – Here the departments are created on basis of products produced by the organization.

Process departmentalization – In this method various manufacturing processes are taken as basis for dividing the activities.

Page 157: Organizational+behavior

Territorial departmentalization – Territorial departmentalization takes place when an enterprise is organized into a number of divisions located in different areas.

Customer departmentalization – A final type of departmentalization is to on the basis of particular type of customer the organization seeks to cater.

Page 158: Organizational+behavior

LIFE CYCLE OF ORGANIZATION

Quinn and Cameron have proposed 4 major stages to describe an organization’s life cycle.

Entrepreneurial stage

Every organization starts with the entrepreneurial stage.

The entrepreneur devotes his/her energy in producing and marketing the product.

At this stage size of the organization is too small.

This stage is also called as ‘One man show’ stage

Page 159: Organizational+behavior

Collectivity Stage

At this stage organization tends to take a formal shape.

Departmentalization starts based on division of labour following a hierarchy of authority.

A strong leadership motivates employees to contribute their maximum for accomplishing organizational goals.

Page 160: Organizational+behavior

Formalization Stage

At this stage policies, procedures and rules are finalized to formalize the whole organization.

Who will report to whom will be clarified at this stage.

These help managers exercise control over system and coordinate the organizational activities effectively.

Page 161: Organizational+behavior

Elaboration Stage

The elaboration stage is marked by extensive control systems, rules and procedures.

Individual employees often focus on maintaining the organizational activities.

In order not to allow organization to decline or die this stage needs to be periodically revitalized.

The organization that fails to revitalize itself treads to decline and ultimately dies.