ion Behaviour - TheORY1

8/8/2019 ion Behaviour - TheORY1

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ORGANIZATION THEORY

&

BEHAVIOR


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FOUNDATION OF

ORGANIZATION BEHAVIORDEFINITION OF AN ORGANIZATION

DEFINITION OF ORGANIZATION BEHAVIOR

ASSUMPTIONS

ITS SIGNIFICANCE FOR EFFECTIVENESS

TRENDS

FRAMEWORKFOR OB


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ORGANIZATION???


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DEFINITION OF ORGANIZATION

CONSCIOUSLY COORDINATED

SOCIAL UNIT

COMPOSED OF 2 0R MORE PEOPLE

CONTINUITY

COMMON GOAL


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What is an Organization?

A structured social system consisting of groups

and individuals working together to meet some

agreed-upon objectives.


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Organizational BehaviorThe field that seeks increased knowledge of all

aspects of behavior in organizational settings

through the use of the scientific method.Characteristics of the field: OB applies the scientific method to practical managerial problems.

OB focuses on three levels of analysis.

OB is multidisciplinary in nature. OB seeks to improve organizational effectiveness and the quality

of life at work.


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DEF

INITION ORGANIZATION BEHAVIORCAN BE

DEFINED AS A FIELD OF STUDY THAT

INVESTIGATES THE IMPACT THATINDIVIDUALS , GROUPS AND STRUCTURE

HAVE ON BEHAVIOR WITHIN

ORGANISATION, TO ENABLE APPLYING

THIS KNOWLEDGE TOWARDS IMPROVINGORGANIZATIONAL EFFECTIVENESS


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DEF

INTION-OB STUDY OFBEHAVIOROF INDIVIDUALS

WITHIN WORKGROUPS , INCLUDING AN

ANALYSIS OF THE NATURE OF GROUPS,THE DEVELOPMENT OFSTRUCTURES

BETWEEN AND WITHIN WORKGROUPS

AND THE PROCESS OF IMPLEMENTING

CHANGE


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Levels of Analysis in OB


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ORGANIZATIONAL

GOALS

INDIVIDUAL

TASKSTEAM ROLES


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GOAL

CULTURE

SYSTEMS STRUCTURE

STRATEGIES

FUNCTIONS-

TASKS/ACTIVITIES-

WHAT &WHY?

PROCEDURES-

HOW?

ROLES & RESPONSIBILITIES

WHO?

CORE VALUES

VISION -MISION


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HOW ORGANIZATION ACHIEVES ITS

GOAL?

MANPOWER MACHINES MONEY

ORG GOAL

ANNUAL PLAN

ORGANIZATIONAL PROCESSES


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ELEMENTS OF

OB The organization's base rests on management's philosophy, values,

vision and goals. This in turn drives the organizational culture which iscomposed :

formal organization,

informal organization, and

the social environment

The culture determines the type of leadership, communication, andgroup dynamics within the organization.

The workers perceive this as the quality of work life which directstheir degree of motivation

The final outcome are performance, individual satisfaction, andpersonal growth and development. All these elementscombine to build the model or framework that theorganization operates from.

..


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MANAGING FOR EFFECTIVENESS

INDIVIDUAL LEVEL

OUTCOMES

ORG LEVEL

OUTCOMESTEAM LEVEL OUTCOMES

PRODUCTIVITYPERFORMANCE

ABSENTEEISM

TURNOVER

ATTITUDES

STRESS

PRODUCTIVITYPERFORMANCE

NORMS

COHESIVENESS

PRODUCTIVITY

ABSENTEEISM

TURNOVER

FINANCIAL PERFORMANCE

SURVIVAL

CONSTITUENT SATISFACTION


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AN ORGANIZATION WOULDTHEREFORE HAVE

A GOAL-OBJECTIVE

STRUCTURE-BOUNDARIES & ROLE STRATEGIES & SYSTEMS

CULTURE, CUSTOMS, VALUES-

DETERMINING BEHAVIOR


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? ? ? ? Is ORGANIZATION nothing but an aggregate of

individuals?

If so then is ORGANIZATIONbehavior all about

individual differences?- Differences in values, beliefs,perception, personality, motivation

What about differences in goals, strategies, systems ,

structure in an ORGANIZATION-do these bring about a

distinctive ORGANIZATIONbehavior


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ORGANIZATION

HUMAN BEHAVIOR IN ORGANIZATION

SETTINGS

INDIVIDUAL ORGANIZATION

INTERFACE

ENVIRONMENT

ENVIRONMENT


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ORGANIZATIONAL PARTICIPANTS

ORGANIZATIONAL BEHAVIOR ORGANIZATIONAL ENVIRONMENT

COGNITIVE REPRESENTATION OF

REALITY HELPS GUIDE OBPARTICIPANTS CONTROL THEIR OWN BEHAVIOR

TO THE EXTENT THAT THEY RELY ON COGNITIVE

SUPPORTS & MANAGE RELEVANT

ENVIRONMENTAL CUES & CONSEQUENCES

MOST COMPLEX BEHAVIOR ACQUIRED BY DIRECTLY OBSERVING

& IMITATING OTHERS IN SURROUNDING ENVIRONMENT


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Multidisciplinary Roots


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Why is OB Important?Companies whose managers accurately appraise the work of their

subordinates enjoy lower costs and higher productivity.

People who are satisfied with the way they are treated on their jobs are more

pleasant to work with and less likely to quit.

People who are trained to work together tend to be happier and more

productive.

Employees who believe they have been treated unfairly are more likely to

steal and reject the policies of their organizations.

People who are mistreated by their supervisors have more mental andphysical illnesses than those who are treated with kindness, dignity, and

respect.

Organizations that offer good employee benefits and have friendly conditions

are more profitable than those that are less people oriented.


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MANAGEMENT FOR ORG

EFFECTIVENESS MANAGERIAL FUNCTIONS- Planning, Organizing, Leading &

Controlling

MANAGERIAL ROLES-Interpersonal , Information, Decisional

MANGERIAL SKILLS-Technical, Human & Conceptual

Org Effectiveness

O B

Generalization of

human behavior

Certain consistencies in human

behavior


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SIGNIF

ICANCE OF

OB

INDIVIDUAL BEHAVIOR &

PERFORMANCE AT WORK

GROUP WORKING-NORMS & BEHAVIOR

STRUCTURE OF ORGANIZATION

ORGANIZATION DESIGN MANAGING CHANGE


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OB EMPHASIS BEHAVIOR AS RELATED TO

JOBS & COMPETENCIES

WORK JOB DESIGN

PERFORMANCE & PRODUCTIVITY

ABSENTEEISM

EMPLOYMENT TURNOVER


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OB LINKAGES TO ORG GOAL

PERSONALITY, PERCEPTION, SKILL & ATTITUDE

DEVELOPMENT

LEARNING

MOTIVATION

LEADER BEHAVIOR & POWER

INTERPERSONAL COMMUNICATION

GROUP STRUCTURE & PROCESSES WORK DESIGN, CONFLICTS & STRESS

CHANGE PROCESSES


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F

undamental AssumptionsMOB recognizes the dynamic nature of organizations.

Open SystemsOpen Systems: Self-sustaining systems that transform inputfrom the external environment into output, which the system

then returns to the environment.

NOB assumes there is no one best approach

Contingency ApproachContingency Approach: A perspective suggesting thatorganizational behavior is affected by a large number ofinteracting factors. How someone will behave is said to be

contingent upon many different variables at once.


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The Open Systems Model


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The History of OB The Early Days: Scientific

Management and theHawthorne Studies

Classical OrganizationalTheory

Late Twentieth Century:Organizational Behavior as a

Social Science OB Today: The Infotech Age


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The Early DaysScientific ManagementScientific Management: An early approach to

management and organizational behavior

emphasizing the importance of designing jobs asefficiently as possible.

Human Relations MovementHuman Relations Movement: A perspective on

organizational behavior that rejects the primarily

economic orientation of scientific managementand recognizes, instead, the importance of social

processes and work settings.


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Classical Organizational TheoryAn early approach to the study of management thatfocused on the most efficient way of structuringorganizations.

Division of LaborDivision of Labor: The practice of dividing work intospecialized tasks that enable people to specialize in whatthey do best.

BureaucracyBureaucracy: An organizational design developed by

Max Weber that attempts to make organizations operateefficiently by having a clear hierarchy of authority inwhich people are required to perform well-defined jobs.


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TRACING HISTORY OF

ORGANIZATIONAL RESEARCH

CONCEPT PIONEERS PHILOSOPHY OB ATTRIBUTES

SCIENTIFIC

MANAGEMENT

FREDERICK TAYLOR

(1911)

Time & Motion Studies.

Finding most efficient way

Maximize Cost , Task

specialization, maximize

output

PRINCIPLES OFMANAGEMENT

HENRI FAYOL ( 1916-25) Management PrinciplesTraining in use of Principles

Order, Equity, Division ofwork, Discipline

HUMAN RELATIONS ELTON MAYO (1933) Psychological factors-Job

Satisfaction, Team work

Paying attention to worker

needs & satisfaction

DECISION MAKING HERBERT SIMON (1947) Bounded Rationality

Optimization of Goals

Hierarchy o Goals ,

Effective use of resources

SOCIO-TECHNICAL E L TRIST & K W

BAMFORTH (1951)

Social Systems view means

that organization is an open

system

Fit between social &

technological factors

BEHAVIOR DOUGLAS Mc GREGOR

(1961) RENSIS LIKERT

(19670

Individual needs &

importance of participative

management

Cohesiveness, Loyalty,

commitment & Employer

Management system

STRATEGIC

MANAGEMENT

ALFRED CHANDLER

(1962)

Establish Strategy , then

Structure is established

Strategy/Structure fit need

to adapt to environmental

changes


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TRACING HISTORY OF

ORGANIZATIONAL RESEARCH-ContdCONCEPT PIONEERS PHILOSOPHY OB ATTRIBUTES

CONTINGENCY P R LAWRENCE & J W

LORSCH ( 1967)

Structure firm to meet

environmental demands

Integration fit

QUALITY DEMING(1971)& JURAN ( 1974)

How to detect & eliminatedefects

Instill pride in qualityFocus on customer

satisfaction

ENPOWERNMENT 1984

PROACTIVE

PERFORMANCE

1987 Responsiveness to change ,

Need for Social Support


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EMERGING PERSPECTIVES IN OB

SYSTEMS APPROACH

CONTINGENCY PERSPECTIVE

INTERACTIONALISM


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SYSTEMS APPROACH VIEWS ORGANIZATION AS A SET OF

INTERRELATED ELEMENTS FUNCTIONING

AS A WHOLE

TRANSFORMATION

TECHNOLOGY

INPUTS-

material,human,

financial,

international

OUTPUTS

Product/Service

Profit/Losses

Employee behavior

FEEDBACK


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CONTINGENCY APPROACH SUGGESTS THAT IN MOST ORGANIZATIONS SITUATIONS &

OUTCOMES ARE CONTINGENT ON , OR INFLUENCED BY,

OTHER VARIABLES

ORG PROBLEMS/

SITUATIONS

CONTINGENT WAYS

OF RESPONDINGORG PROBLEMS EVALUATE IN TERMSOF THE SITUATION,

WHICH THEN SUGGEST

CAUSE & EFFECT

WAY

OF RESPONDING

UNIVERSAL

APPROACH

CONTINGENCY APPROACH


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INTERACTIONALISM

INDIVIDUALS AND SITUATIONS INTERACT

CONTINUOSLY TO DETERMINE

INDIVIDUALS BEHAVIOR

INDIVIDUALS

SITUATIONS

BEHAVIOR


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POPULAR PRESS

ARTICLES, RESEARCH WORKS &

BOOKS GIVING NEW INSIGHTS.

THEORYZ, EMOTIONAL INTELLIGENCE, REENGINEERING,

CORPORATECULTURES, INSEARCHOFEXCELLENCEETC.


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4 BASIC MODELS OR

FRAMEWORK

Autocratic - The basis of this model is

power with a managerial orientation of

authority. The employees in turn areoriented towards obedience and dependence

on the boss. The employee need that is met

is subsistence. The performance result isminimal.


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4 BASIC MODELS OR

FRAMEWORK

Custodial - The basis of this model is

economic resources with a managerial

orientation of money. The employees inturn are oriented towards security and

benefits and dependence on the

organization. The employee need that is metis security. The performance result is

passive cooperation.


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4 BASIC MODELS OR

FRAMEWORK Supportive - The basis of this model is

leadership with a managerial orientation of

support. The employees in turn are orientedtowards job performance and participation.

The employee need that is met is status and

recognition. The performance result isawakened drives.


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4 BASIC MODELS OR

FRAMEWORK Collegial - The basis of this model is

partnership with a managerial orientation of

teamwork. The employees in turn areoriented towards responsible behavior and

self-discipline. The employee need that is

met is self-actualization. The performanceresult is moderate enthusiasm.


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Although there are four separate models, almostno organization operates exclusively in one. There

will usually be a predominate one, with one ormore areas over-lapping in the other models.

The first model, autocratic, has its roots in theindustrial revolution. The managers of this type oforganization operate out of McGregor's Theory X.

The next three models begin to build onMcGregor's Theory Y. They have each evolvedover a period of time and there is no one "best"model.

The collegial model should not be thought as thelast or best model, but the beginning of a newmodel or paradigm


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OB- CHALLENGES &TRENDS Paradigm shift------?

GLOBALISATION- Creating a global village

INFORMATION AGE-IT

TOTAL QUALITY MANAGEMENT

DIVERSITY & CULTURAL ISSUES

REENGINEERING


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OB- CHALLENGES &TRENDS ENPOWERING EMPLOYEES- shift from

Management control

COPING WITH CHANGE &TEMPORARINESS-Stability ofFlexibility

STIMULATING INNOVATIVENESS &CHANGE

CORPORATE VALUES & ETHICS


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OB- CHALLENGES &TRENDS STIMULATING INNOVATIVENESS &

CHANGE.

CORPORATE VALUES & ETHICS. WORKFORCE DEMOGRAPHICS-Age, Gender,

Ethnic Composition.

WORK PLACE ISSUES- Employee Privacy,

Employee rights, Unionization.

Improving Employee Skills.


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Prominent Trends The rise of global

businesses with

culturally diverseworkforces.

Rapid advances in

technology.

The rising

expectations of people

in general.


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Globalization The process of interconnecting the worlds

people with respect to the cultural,

economic, political, technological, andenvironmental aspects of their lives.

Multinational EnterprisesMultinational Enterprises: Organizations

that have significant operations spread

throughout various nations but areheadquartered in a single country.


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Working Abroad ExpatriatesExpatriates: People who are citizens of one country but

who are living and working in another country.

C

ultureC

ulture: The set of values, customs, and beliefs thatpeople have in common with other members of a social

unit (e.g., a nation).

Culture shockCulture shock: The tendency for people to become

confused and disoriented as they attempt to adjust to a new

culture.

RepatriationRepatriation: The process of readjusting to ones own

culture after spending time away from it.


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Working Abroad


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Management Perspectives

Convergence HypothesisConvergence Hypothesis: A biased approach tothe study of management, which assumes thatprinciples of good management are universal, andthat ones that work well in the United States willapply equally well in other nations.

Divergence HypothesisDivergence Hypothesis: The approach to thestudy of management that recognizes that knowinghow to manage most effectively requires clearunderstanding of the culture in which peoplework.


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Shifting Demographics

More women are in

the workforce than

ever before.

Racial and ethnic

diversity is reality.

People are living andworking longer than

ever before.


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Responding to Changes in Technology

Creating Leaner OrganizationsCreating Leaner Organizations

Downsizing/RightsizingDownsizing/Rightsizing: The process of adjusting the number of

employees needed to work in newly designed organizations.

OutsourcingOutsourcing: The process of eliminating those parts of organizations thatfocus on noncore sectors of the business and hiring outside firms to

perform these functions instead.

Creating Virtual OrganizationsCreating Virtual Organizations

Highly flexible, temporary organizations formed by a group of companies

that join forces to exploit a specific opportunity.

Increasing the Use of TelecommutingIncreasing the Use of Telecommuting

The practice of using communications technology so as to enable work to

be performed from remote locations.


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Responding to Changes in Expectations

Increasing Flexibility

in Response to

Employees Needs

The Quality

Revolution

Corporate Social

Responsibility


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Increasing Flexibility

Flextime ProgramsFlextime Programs: Policies that give employees some discretion overwhen they can arrive and leave work, thereby making it easier to adapttheir work schedules to the demands of their personal lives.

The Contingent WorkforceThe Contingent Workforce: People hired by organizations temporarilyto work as needed for finite periods of time.

Compressed WorkweeksCompressed Workweeks: The practice of working fewer days eachweek but longer hours each day.

Job SharingJob Sharing: A form of regular part-time work in which pairs ofemployees assume the duties of a single job, splitting its

responsibilities, salary, and benefits in proportion to the time worked.Voluntary Reduced WorkTime ProgramsVoluntary Reduced WorkTime Programs: Programs that allowemployees to reduce the amount of time they work by a certainamount, with a proportional reduction in pay.


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The Quality Revolution

Total Quality ManagementTotal Quality Management: An organizational strategy ofcommitment to improving customer satisfaction bydeveloping techniques to carefully manage output quality.

BenchmarkingBenchmarking: The process of comparing ones ownproducts or services with the best from others.

Malcolm Baldridge Quality AwardMalcolm Baldridge Quality Award: An award givenannually to American companies that practice effectivequality management and make significant improvements in

the quality of their goods and services.


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Corporate Social Responsibility

Business decision making

linked to ethical values,

compliance with legal

requirements, and respect forindividuals, the community at

large, and the environment. It

involves operating a business

in a manner that meets or

exceeds the ethical, legal, andpublic expectations that

society has of business


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Ethics in Organizations

Good ethics is good businessGood ethics is good business

Improved financial performance

Reduced operating costs

Enhanced corporate reputation Increased ability to attract and retain employees

Code ofEthicsCode ofEthics: A document describing what an organization standsfor and the general rules of conduct it expects of its employees.

Ethics OfficersEthics Officers: Individuals (usually at the vice presidential level)

who oversee the ethics of a companys operations.Ethics AuditEthics Audit: The process of actively investigating and documentingincidents of dubious ethical value within a company.


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Ethical Guidelines

1. Does the behavior violatethe obvious shall nots?

2. Will anyone get hurt?

3. What if you did it 100times?

4. How would you feel if

someone did it to you?

5. Whats your gut feeling?

6. Would the behavior passthe front page test?


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OB MODELSCOGNITIVE, BEHAVIORISTIC & SOCIAL LEARNING THEORETICAL

FRAMEWORKS USED TO DEVELOP OB MODEL

AUTOCRATIC CUSTODIAL SUPPORTIVE SUPERLATIVE

(COLLEGIAL)

BASIS OF

MODEL

Power Economic

Resources

Leadership Partnership

Managerialorientation

Authority Money Support Teamwork

Employee

Orientation

Obedience Security

Benefits

Job

Performance

Responsible

Behavior

Employee

psychological

result

Dependence

on Boss

Dependence

on

Organization

Participation Self

Discipline

Employeeneed met

Performance

result

Subsistence

Minimum

Security

Passive

cooperation

Status &Recognition

Awakened

drivers

SelfActualization

Moderate

enthusiasm


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Basic framework for understanding organizational behavior

INDIVIDUALPROCESSES

Individual

differences

Attitudes/Attitude

formation

Learning

/Reinforcement

Motivation

ENHANCING INDIVIDUAL& INTERPERSONAL PROCESSES

Goal setting/Rewards

Job Designation/Participation

Performance Appraisal

Stress

Decision Making/ Creativity

INTERPERSONAL PROCESSESGroup Dynamics

Inter group dynamics

Leadership/Influence

Power/Politics/Conflict

Interpersonal Communication

INTEGRATING INDIVIDUALS,

GROUPS & ORGANIZATIONS

Change/development

International Issues

Career Dynamics

ORGANIZATIONAL PROCESSES &

CHARACTERISTICS

Organization Structure

Environment/technology

Organization Design

Organization Culture

MANAGERIAL CONTEXT

Managing People &

Organizations

ORGANIZATIONAL EFFECTIVENESS

Documents

ion Behaviour - TheORY1