Introduction to Human Behaviour in Organization

People are Important for organizations

• Motivated employees can make a significant difference to the company's bottom line in terms of bringing in new orders, meeting customer needs, developing new products and performing heroic efforts to achieve a company goal," 

• According to the American Society for Training and Development (ASTD): “A high-knowledge, multi-skilled workforce is the most important competitive resource available to organizations today”

Putting People First• People are the key….. Sam Walton• People are the greatest asset….Jack Welch• Employee first, customer second…Vineet Nayar• The inventory, the value of my company, walks

out the door every evening…. Bill gates• People are definitely a company’s greatest asset. It

doesn’t make any difference whether the product is cell phones or cars or cosmetics. A company is only as good as the people it keeps…..Anil Ambani

Putting People First

Successful organizations put their people first …..

• Google, Federal Express, HP, TATA Group • Federal Express, from its inception, has put its people first

both because it is right to do so and because it is good for business as well……. Frederick W. Smith Founder, Chairman & CEO, FedEx Corporation

Over the years, FedEx had established its reputation as being one of the most employee-friendly companies in the world and is also credited for introducing many innovative HR practices. The people-service-profit (PSP) philosophy which FedEx introduced since its inception in 1973 was one-of-its-kind at the time. The formal HR policy linked employees directly to profitability and long-term growth.

2016- India's Best Companies to Work For

• As a part of the India’s Best Companies to Work for 2016 study, about 800 organisations across industries, employee strength and revenue brackets applied to be assessed. Over 155,119 employees were surveyed, making it the largest survey of workplace cultures in corporate India. As a part of this programme, the organisations were studied under two dimensions.

• First, being a unique employee-centric framework that measures the levels of Trust, Pride and Camaraderie prevalent in an organisation.

• Second, through a questionnaire seeking to understand the people practices, philosophy and values of an organisation. In the 13th year of assessment, Great Place To Work® Institute, India has recognised the 100 best workplaces that comprise of organisations across 16 industries, with employee strength varying from less than 500 to more than 10,000, shattering the myth that organisations of certain legacy, size or revenue are more likely to become great workplaces.

2016- India's Best Companies to Work For

RANK ORGANISATION INDUSTRYNO OF EMPLOYEES

1 Google India Pvt. Ltd. Information Technology | Software 1,683

2 American Express India Financial Services & Insurance | Banking/Credit Services

10,498

3 Ujjivan Financial Services Pvt. Ltd.

Financial Services & Insurance 7,853

4 Teleperformance India Information Technology 4,6385 Godrej Consumer Products

Ltd.Manufacturing & Production | Fast Moving Consumer Goods

2,284

6 Marriott Hotels India Pvt. Ltd.

Hospitality | Food and Beverage Service 8,200

7 SAP Labs India Pvt. Ltd. Information Technology | Software 5,339

8 The Oberoi Group Hospitality | Hotel/Resort 4,0009 Lemon Tree Hotels Ltd. Hospitality | Hotel/Resort 2,76810 Intuit India Product

Development Centre Pvt. Ltd.

Information Technology | Software 943

• Companies that offer good employee benefits and that have friendly conditions are more profitable than those that are less people oriented.

• An organization that applies good people management practices can have-– A Strong Reputation That Attracts Talent – Higher Employee Engagement – Better Retention of Key Talent – Customer Satisfaction– Better Financial Results

Outcomes

• People who are satisfied with the way they are treated on their jobs generally are more pleasant to their co-workers and bosses and are less likely to quit than those who are dissatisfied with the way others treat them.

• People who are carefully trained to work together in teams tend to be happier and more productive than those who are simply thrown together without any definite organizational support .

Research Findings

Where Managers Work

OrganizationA consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

Management Functions

PlanningPlanning OrganizingOrganizing

LeadingLeadingControllingControlling

ManagementManagementFunctionsFunctions

Management Functions (cont’d)

PlanningA process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

Management Functions (cont’d)

OrganizingDetermining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

Management Functions (cont’d)

LeadingA function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

Management Functions (cont’d)

ControllingMonitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Management Skills

Technical skillsThe ability to apply specialized knowledge or expertise.

Human skillsThe ability to work with, understand, and motivate other people, both individually and in groups.Conceptual SkillsThe mental ability to analyze and diagnose complex situations.

ESSENTIAL MANAGERIAL SKILLS

Lower-levelManagers

Middle-levelManagers

Upper-levelManagers

TECHNICAL SKILLSThe ability to perform specific tasks

HUMAN SKILLSThe ability to work well with people

CONCEPTUAL SKILLSThe ability to solve complex problems

Effective Versus Successful Managerial Activities (Luthans)

1. Traditional management• Decision making, planning, and controlling

2. Communication• Exchanging routine information and processing

paperwork

3. Human resource management• Motivating, disciplining, managing conflict, staffing,

and training

4. Networking• Socializing, politicking, and interacting with others

Allocation of Activities by Time

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• OB is the study of individual and group dynamics in organizations

It investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge towards improving an organization's effectiveness .

What is Organizational Behaviour?

OB : It’s Basic Nature

• OB applies the scientific method to practical managerial problems.

• It focuses on three-level analysis• It is multidisciplinary in nature• Complements intuition with systematic study• One needs to take a contingency approach in

OB

Components of Organizational Behaviour

The three-level analysis

The Organization

NegotiationConflictCommunicationGroups and teams

Power and politics

The Group

EmotionsValues and attitudesPerceptionPersonality

Motivating self and others

The Individual

ChangeOrganizational cultureDecision makingLeadership

Groups and teams

Basic OB Model

Contributing Disciplines

Complements intuition with systematic study

• Intuition- A gut feeling not necessarily supported by research

• Systematic study-looking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence.

• Evidence- based management(EBM) complements systematic study by basing managerial decisions on best available scientific evidence.

There Are Few Absolutes in OB

Contingency variables: "It Depends!!!"Situational factors that make the main relationship between two variables change---e.g., the relationship may hold for one condition but not another.

X leads to Y under Z situation

Fundamental Assumptions• Individuals are different• Behaviour of an individual is caused not random• Largely individual behavior is predictable• OB believes in a whole person approach• Individuals like to be treated fairly and respectfully• There exists mutuality of interest between organisation and

people• Organisations are part of the social systems• OB has few absolutes

Emerging Challenges in OB

• Responding to economic pressure• Responding to globalization• Managing diversified workforce• Improving people skills• Customer focus• Stimulating innovation and change• Structuring organizations and work arrangements• Working in Networked organizations • Helping Employees to Balance Work &Life• Empowering people• Developing Ethical organizations• Coping with temporariness

A Downside to Empowerment?

Discuss

• How can the field of OB contribute to both the effective functioning of organizations and to the well being of individuals? Are these goals inconsistent? Why or why not?

• What is contingency approach and why it is so popular in the field of OB?

• Discuss the Challenges for OB