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1
UNIT- II
2
SUBJECT – MANAGEMENT
SUBJECT CODE – 17
UNIT – II
9935977317
0522-4006074
3
[Part- A]
Sl.No. CONTENTS
1. Organisational Behaviour
2. Individual Behaviour
3. Perception
4. Learning
5. Attitude
6. Motivation
7. Interpersonal Behaviour
8. Group Dynamics
9. Leadership
10. Stress Management
11. Organisational Change & Development
[Part- B]
Sl. No. CONTENTS
1. Human Resource Management (Personnel
Management)
2. Human Resource Planning
3. Job Analysis
4. Recruitment and Selection
5. Induction and Placement
6. Training and Development
7 Job Evaluation
8 Compensation Management
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CHAPTER-1
ORGANISATIONAL BEHAVIOUR
Concept and Definition of Organisational Behaviour
Organisational behaviour (OB) is concerned with the understanding, prediction and
control of human behaviour in organisations. It is the study and application of knowledge
about how people – as individuals and groups – act within organisations. It strives to identify
ways in which people can act more effectively.
“It is the field of study that investigates the impact that individual groups and
organization structure have on behaviour within the organization for the purpose of
applying such knowledge towards improving organisational efficiency– Stephen Robbins.
“Organisational behaviour is a branch of social sciences that seeks to build theories that
can be applied to predicting, understanding and controlling behaviour in a work
organisation” – Aldag and Brief.
“Organisational Behaviour is an academic discipline concerned with understanding and
describing human behaviour in an organisational environment.” – Keith Davis
Features of Organisational Behaviour
It tries to explain the complex human factors in the organisational by identifying
cause and effect relationship of the behaviour. The features are as follows:
1. A Field of Study: -
Organisational Behaviour is a field of study backed by a body of theory, research and
application associated with a growing concern for people at the workplace. Its study
helps in understanding the human behaviour in work organisations.
2. Levels of Analysis:
Organisational Behaviour involves three levels of analysis of behaviour–individual
behaviour, group behaviour and behaviour of the organisation itself.
3. Concern for Effectiveness:
The major goal of organisational behaviour is to understand, explain and predict human
behaviour in the organisational context so that it may be moulded into result-yielding
situations so as to improve organisational effectiveness.
4. Human Tool:
Organisational Behaviour is a human tool for human benefit. It helps in understanding
and predicting the behaviour of individuals. It provides generalizations that managers can
use to anticipate the effects of certain actions on human behaviour.
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5. Inter-Disciplinary Approach:
The field of organisational behaviour is heavily influenced by several other behavioural
sciences and social sciences. The prominent among these are psychology, sociology and
anthropology.
6. Science and Art:
OB is both a science as well as an art. The systematic knowledge about human behaviour
is a science. The application of behavioural knowledge and skills clearly leans towards
being an art.
Nature and Scope of Organisational Behaviour
Organisational behaviour is concerned with understanding and describing human
behaviour in an organisational setting. It seeks to shed light on the complex human factor in
organisations by identifying causes and effects of human behaviour. It is called a social
science because its main concern is people and their behaviour. It is the field of study that
integrates behavioural sciences like psychology, sociology and anthropology for the study of
human behaviour in and around organisations.
Levels of Analysis
Organisational behaviour focuses on three levels of analysis, viz.,
(i) Individual Behaviour,
(ii) Group Behaviour
(iii) Organisation Behaviour
1. Behaviour at the Individual Level:
The behaviour of individuals is a complex phenomenon and is affected by a large number
of factors such as personality, attitudes, perception, learning, and motivation, social,
cultural and other factors. OB integrates these factors to provide simplicity in
understanding human behaviour. The study of behaviour of an individual working in the
organisation is also known as micro organisational behaviour.
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2. Behaviour at the Group Level:
Several research studies have shown people behave differently in groups than as
individuals. Several factors influence the behaviour of groups such as group goals,
norms, communication, leadership, cohesiveness, etc. Understanding of group dynamics
is essential to reduce conflicts and improve morale and productivity. This is also known
as meso organisation behaviour.
3. Behaviour at the Organisation Level:
An organization is a system composed of several interdependent individuals and groups.
Individuals and groups operate within the structure of formal organisation. They
participate in shaping the culture of the organisation and also in organisation
development.
The study of behaviour from the perspective of the whole organisation is also referred to
as macro-organisational behaviour.
Inter-Disciplinary Approach
Organisational behaviour is of integrating nature. It tries to synthesize knowledge
drawn from various behavioural and social sciences such as psychology, sociology, social
psychology, anthropology, political science, economics, industrial engineering etc.
Organisational Behaviour is an applied behavioural science
1. Psychology :
It is the study of human behaviour covering individual traits and membership of small
social groups. (personality, perception, emotion, attitude, and learning.)
2. Sociology :
The study of social behaviour (group dynamics, leadership, communication, formal and
informal groups, organisational changes and developments and organisational structure)
3. Social Psychology:
It is interpersonal behaviour, group decision making, effect and change on behaviour,
responsive and integration of group activities with individual needs.
4. Anthropology:
(Science of Mankind) study of relating of human activities in various culture and
organisational frameworks (cross culture analysis, individual culture, organisational
environment, comparative values and comparative attitudes.)
5. Political Science:
Politics dominate human behaviour at large extend (power and politics, network, conflict
resolution)
6. Semantics:
The communication network in the organization.
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Determinants of Organisational Behaviour
1. People :
(Individuals and Groups) all organizations are made up of individuals. People are
dynamic in nature; they interact with each other and also influence each other. They form
change and disbanned organizations. The basic problem of management is to understand
this behaviour so that individuals are motivated in a better way to contribute their
maximum to the organisational goals.
2. Structure:
It defines the roles and relationship of people. It leads to division of labor as well
authority – responsibility relationship. The entire structure within the organization leads
to interaction between individuals. The structural design must be based on other 3
determinants, that is, requirements of organization member or individuals, the external
environment and the technology used.
3. Technology:
It impacts the physical and economic conditions within which people work in an
organization. This includes tools, methods and resources. It influences the working
condition and also put restrictions on the freedom of individuals.
4. Environment:
Organizations are influenced by external environment which includes social, cultural,
political, economic, legal and geographical and demographic forces. These influence
attitude, motive and perceptions of people in organizations.
Models of Organisational Behaviour
Since the dawn of industrial revolution, four models of organisational behaviour have
been followed by managers of different organisations at different times. These are:
autocratic, custodial, supportive and collegial.
a. Autocratic Model:
1. This model depends on the power of the boss
2. Managerial orientation is authority and right to command over the people to whom it
applies
3. Employees have to be directed, persuaded and pushed into performance
4. Employees simply follow order
5. The employees psychological effect is dependent on host
6. Employee only gives what is required or the minimum performance and is
compensated by minimum wages. The employees are insecure and frustrated.
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b. Custodial Model:
1. This model depends on economic resources.
2. Managerial orientation is toward money to pay wages.
3. In this model money is the motivating factor since physical needs are already met.
4. It is the security factors that motivate employees.
5. Employees are satisfied and happy but not fully motivated there is only passive co-
operation from the.
c. Supportive Model:
1. This model depends on leadership
2. Management‟s Orientation is to provide support to the employee‟s performance that
is, providing a climate to help employees grow and accomplished the interest of the
organization under their compatibilities.
3. Employees‟ Orientation is job performance. They feel a sense of security and act a
status and recognisation in the society as well as in nation.
d. Collegial Model:
1. Depends on common interest. It is an extension of supportive model.
2. This model is based on partnership.
3. Managerial orientation is towards team work and employees‟ orientation is towards
maintaining standard and quality of work.
4. Moderate enthusiasm in performance and largely satisfies the self actualization.
Model Summary
Model Autocratic Custodial Supportive Collegial
Basis of model Power Economic
resources Leadership Partnership
Managerial
Orientation Authority Money Support Teamwork
Employee
Orientation Obedience
Security and
benefits
Job
performance
Responsible
behaviour
Employee
Psychological result
Dependence
on boss
Dependence on
organisation Participation Self-discipline
Employee needs met Subsistence Security Status and
recognition Self-actualisation
Performance result Minimum Passive co-
operation
Awakened
drives
Moderate
enthusiasm
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Management’s assumptions about people
These models are based upon management’s assumptions about people. These are as
follows:
McGregor’s Theory ‘X’ and Theory ‘Y’:
Douglas McGregor was a known psychologist. He propounded two contrasting
theories of human behaviour which he called theory „X‟ and theory „Y‟. These theories
contain two pairs of assumptions about human beings which McGregor thought were implied
by the actions of autocratic and permissive managers. It may be noted that these sets of
assumptions are merely intuitive deductions; they are not based on any research studies.
a) Theory ‘X’:
In this McGregor said that with respect to people, management is a process of directing
their efforts, motivating them, controlling their actions, modifying their behaviour to fit
the needs of the organisation. Without this active intervention by management, people
would be passive – even resistant to organisational needs. They must, therefore, be
persuaded, rewarded, punished, controlled – their activities must be directed.
b) Theory ‘Y’:
After challenging the validity of Theory „X‟, McGregor developed an alternative theory
of human behaviour which is known as Theory „Y‟. This theory assumes that people are
not unreliable and lazy by nature. If they are properly motivated, they could really be
creative. The main task of management is to unleash the potential in the employees. An
employee who is properly motivated can achieve his goals by directing his own efforts
and, thus, he can help in accomplishing the organisational goals.
Comparison of Theory ‘X’ and Theory ‘Y’
Theory ‘X’ Theory ‘Y’
1. Based on the assumption that people are
basically lazy and so shirk work
1. Based on the assumption that people like work
as children like play
2. People do not take initiative. They like
to be directed.
2. People like to take initiative. They seek self-
direction
3. People avoid responsibility whenever
possible
3. People assume responsibility gladly if
conditions are favorable.
4. For getting things done, people must be
supervised strictly.
4. People do not require close and strict
supervision for properly performing their jobs.
5. Autocratic style of Leadership is likely
to be more effective
5. Democratic or participative style of leadership
is likely to be more effective
6. Applicable to illiterate, unskilled and
lower-level workers
6. Applicable to educated and skilled employees
who occupy higher positions in the
organisation
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7. Believes in mental sickness and so
negative motivation of employees
7. Believes in mental health and so positive and
intrinsic motivation of employees
Appraisal of McGregor’s Contribution
These theories are important tools in understanding the behaviour of human beings
and in designing the incentive schemes to motivate the employees. Neither of the two
theories is fully applicable in all the situations and to all types of human beings. However,
Theory X is more applicable to unskilled and uneducated low level workers, whereas Theory
Y is more applicable to skilled and educated employees who are mature enough and
understand the responsibility.
Chris Argyris’ Immaturity – Maturity Theory
The frame work of maturity-immaturity characteristics suggested by Chris Argyris
describes the multi-dimensional development process along which an individual in an
organisation grows. He identified seven basic changes that take place in the people over the
years. These changes reveal that people have a tendency:
i. To develop from a state of being passive as an infant to a state of increased activity as an
adult.
ii. To develop from a state of dependence on others as an infant to a state of relative
independence as an adult.
iii. To develop from being capable of behaving in only a few ways as an infant to being
capable of behaving in many different ways as an adult.
iv. To develop from having erratic, casual and shallow interests as an infant to a deepening of
interests as an adult.
v. To develop from having a short-term perspective as an infant to a much longer time
perspective as a mature adult.
vi. To develop from being in a subordinate position in the family and society as an infant to an
equal or superior position to others as an adult.
vii. To develop from the state of lack of self-awareness of self as an infant to a state of
awareness and control over self as an adult.
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Immaturity-Maturity Continua
Immaturity Characteristics
(Pattern A)
Maturity Characteristics
(Pattern B)
1. Passive 1. Active
2. Dependence 2. Independence
3. Capable of behaving only in a few ways 3. Capable of behaving in a variety of ways
4. Shallow interest 4. Deepening interest
5. Short-time perspective 5. Long-time perspective
6. Subordinate position 6. Superordinate or equal position
7. Lack of awareness of self 7. Awareness of and control over self
The continua of seven changes show the general tendency of people in organisation to
develop from immaturity (Pattern A) to maturity (Pattern B). The matured state is
characterized by an endless series of challenges in which the reward comes from doing
something for its own sake.
Theory ‘Z’: A Hybrid Model given by William Ouchi
Made a comparative study of American and Japanese management practices. He came to
the conclusion that many of the Japanese management practices can be adapted in
American context. He suggested the adoption of Theory Z which represents an
integration of American and Japanese management practices.
Theory Z represents the adoption of Japanese management practices by the American
companies. The „hybrid‟ type of system incorporates the strengths of Japanese
management (group decision-making, social cohesion, job security, holistic concern for
employees, etc), and American management (quick decision-making, individual freedom,
risk-taking by individuals etc.
This theory provides a complete transformation of motivational aspect of employees as
compared to Theory X and Theory Y. Theory Z has been followed successfully by the
Japanese firms operating in the U.S.A.
Organisational Theory
Organisational theory is the study of structure, functioning, and performance of
organisations and of the behaviour of groups and individuals working in organisations.
According to S.P. Robbins, “Organisation theory is the discipline that studies the
structure and design of organisations. It explains how organisations are actually designed
and offer suggestions on how they can be constructed to improve organisational
effectiveness”.
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Challenges for Organisational Behaviour
The field of organisational behaviour is dynamic and not static. Behavioural scientists
are continuously engaged in updating and sharpening behavioural skills to cope up with the
emerging changes in the external environment of the organisations.
1. Globalisation of Business:
There is no denying the fact that, the world economy is becoming increasingly global in
character. Barriers to trade between different countries have been reduced to a great
extent. Globalisation has posed both challenges and opportunities for the managers.
The global managers must work to understand the local culture and the behavioural
forces that affect the workforce in order to manage the workers more effectively.
2. Workforce Diversity:
Another serious challenge that managers face involves workforce diversity, i.e., the
increasing heterogeneity of organisations with the inclusion of workers from different
groups such as women, physically disabled persons, retired defence personnel, backward
classes, ethnic groups etc. The managements followed melting pot approach to
differences in workforce. It was assumed that people who were different would
somehow assimilate with the majority groups. But it is now recognized that employees
don‟t set aside their values, beliefs, lifestyle preference, etc., when they come to work.
Therefore, it is desirable to recognize and value such differences by adapting
management practices to different life and work styles, etc. of the diverse groups.
3. Satisfaction of Aspirations of Workforce:
The workers are becoming more aware of their higher level needs and this awareness
would intensify further among the future workers. The managers would be required to
evolve appropriate techniques to satisfy the higher level needs of workers in order to
motivate them.
4. Empowerment of Employees:
Various techniques of empowerment range from participation in decision-making to the
use of self-managed teams. In future, organisations will follow team structures which
will pave the way for empowerment of lower levels. Empowerment would be all the
more necessary to speed up the process of decision-making, make use of environmental
opportunities and to serve the customers and society better.
5. Improvement of Productivity and Quality:
In the era of global competition, improvement of productivity and quality is essential to
satisfy customers. Productivity and quality could be improved through not only better
technology but also trained human resources. Programmes like Total Quality
Management (TQM) and Business Process Reengineering (developed by Michael
Hammer and James Champy) which require extensive employee involvement can be
implemented to meet the challenges of quality and productivity.
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6. Management of Innovation and Change:
In today‟s environment, organisations must foster innovation and manage change
successfully. Success comes to those organisations that maintain their flexibility,
continually improve their quality and outbeat their competitors with innovative products
and services. Employees are key to innovation and change. The challenge for managers
is to stimulate employee creativity and tolerance for change.
7. Facilitating Work-life Balance:
Organisations must recognise that transitions in personal life often accompany career
transitions. Therefore, they must be concerned with the consequences of major career
moves within the organisation and help individuals to develop strategies for managing
the accompanying changes in their personal lives.
8. Promoting Ethical Behaviour:
Many organisations today are taking steps to enhance the ethical standards of their
employees and to avoid legal and / or public opinion problems. There is also increased
concern for carrying out social responsibility by the managements of business
organisations.
OB Modification
OB Mod is widely used in modern organisations, it is also surrounded by the
controversy that it is manipulative and so it is unethical. The steps in OB Mod and various
issues involved in its application are the theme of this chapter.
Concept & Definition of OB Mod
OB Mod or Behaviour Modification has its root in modern behaviorism which draws
heavily on the work of B.F. Skinner. It is based on the operant conditioning approach to
learning which advocates that desirable behaviour should be reinforced. In simple words, OB
Mod represents the application of reinforcement theory relies on positive reinforcement,
shaping and recognizing the impact of different schedules of reinforcement on behaviour. OB
Mod uses these concepts to provide managers with a powerful means for changing the
behaviour of employees.
OB Mod can be applied for motivating the employees and also for enhancing
organisational effectiveness. In the words of Stephen P. Robbins, “OB Mod is a programme
where managers identify performance-related employee behaviours and then implement an
intervention strategy to strengthen desirable behaviours and weaken undesirable
behaviours.”
Managing OB Mod at work
According to Schermerhorn, Hunt and Osborn, “OB Mod is the systematic
reinforcement of desirable work behaviour and the non-reinforcement or punishment of
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unwanted work behaviour. It includes four basic reinforcement strategies: positive
reinforcement, negative reinforcement, punishment, and extinction.
When the employee treats the customer politely while handling returns, the supervisor
uses positive or negative reinforcement depending upon the past experience. But if the
employee deals with the customer rudely, the supervisor uses extinction or punishment
strategies based upon the past experience to direct employee behaviour towards desirable
practice. It should be noted that both positive and negative reinforcements are used to
strengthen desirable behaviour when it occurs; both punishment and extinction are applied to
undesirable behaviour in an attempt to decrease the frequency of its occurrence.
Steps in OB Mod
As suggested by Luthans and Kreitner, OB Mod in organisation involves the
following five steps: (1) Identification of performance-related behaviours; (2) measurement
of the behaviours; (3) identification of behavioural contingencies; (4) development and
implementation of an intervention strategy; and (5) evaluation of performance improvement.
These steps are as follows.
Steps in OB Mod
1. Identification of performance-related behaviours
The manager should try to identify behaviours that are desirable and undesirable from
the point of view of the organisation. The critical behaviours that have significant impact on
the employee's performance must be given due attention because they get repeated time and
again. If such behaviours are modified, good results could be expected afterwards.
Some of the behaviours which greatly influence job performance include absenteeism
or attendance, tardiness or promptness, complaints or constructive criticisms, and doing or
not doing a particular task.
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2. Measurement of the behaviours
This step requires the manager to develop some baseline performance data. The
manager records the frequency of the critical behaviour over time. This allows die manager to
determine his success in changing the subordinate's behaviour. It may also provide insight
into the circumstances associated with each critical behaviour.
3. Identification of behavioural contingencies
It is necessary to analyse patterns of continued behaviour that require modification.
This may require insight and evaluation of individual differences in behaviour. If through this
process an inventory of positive reinforcers can be developed, the next step of intervention is
greatly simplified. Since only contingent consequences of behaviour have an impact on
subsequent behaviour, functional analysis must make sure that the contingent consequences
are identified. Further, functional analysis often reveals that there are many competing
contingencies for every organisational behaviour, therefore, the analysis must not be deluded
by the contingent consequences mat on the surface appear to be affecting the critical
behaviour.
4. Development and implementation of an intervention strategy
Identification of critical behaviour to change and the factors that cause such
behaviours will determine the action step to the development of an appropriate intervention
strategy. For the successful implementation of OB Mod, this stage involves (a) developing a
strategy for changing the behaviour, (b) implementing the strategy, and (c) measuring the
frequency of the resulting behaviour. A record is kept of how often the problem behaviour is
repeated. If a behaviour change has occurred in the desired direction, the manager selects a
reinforcement schedule that will maintain the desired behaviour.
There are several strategies that can be used at this stage. These include positive
reinforcement, negative reinforcement, extinction and punishment. The use of a particular
strategy will depend upon the type of situation faced as discussed in the previous chapter.
5. Evaluation of performance improvement.
The purpose of evaluation of strategies of OB Mod is to know their effectiveness.
This would reveal whether the undesirable behaviours have been substituted by desirable
behaviours or not. This would also reveal if the employees have undergone a permanent
change in behaviours. Lastly, the manager should appraise the improvement in performance
which is the basic purpose of OB Mod. Measures like quality and quantity, turnover,
absenteeism, grievances, tardiness, etc. may be used to evaluate the success of the OB Mod
programme.
Benefits of OB Mod
Behaviour modification concentrates on a person's external behaviour and this allows
a manager to realistically observe and deal with outward manifestations of behaviour.
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Behaviour modification is basically built around the use of rewards for observable behaviour.
Since it deals with observed behaviour, it can also be put to testing.
OB Mod can be used as a technique of developing the employees. OB Mod strategies
can be used to make the people learn new behaviours and substitute undesirable behaviours
by desirable behaviours. Social learning theory can be of great use in the effective
implementation of any training programme for the employees. Besides positive
reinforcement could be used to encourage desirable behaviour by the employees.
Problems of OB Mod
Some people say that OB Mod is manipulative in character and so it should not be
used by the managers to regulate the behaviour of others. They raise the following objections
against OB Mod :
1. Behaviour modification tends to equate rats with human beings. Skinner's operant
conditioning principles were developed after a series of experiments on white rats. But
"organisations are more complex than Skinner's boxies".
2. Operant conditioning techniques ignore the individuality of person and constitute a threat
to the concept of personal autonomy. These techniques are employed by managers to
manipulate and control the behaviour of the subordinates.
3. Reinforcement under OB Mod seems to be in conformity with the traditional thinking that
people need to be directed to get the work done. It challenges the integrity of people as
being self-motivated and also their wisdom.
4. Behaviour modification restricts freedom of choice and utilisation of personal capabilities
of individuals. It tries to exaggerate the power of behavioural control by psychological
methods.
5. External awards are emphasised by OB Mod. Thus, rewards are controlled by others and
not the employee himself. But intrinsic pleasure of job is most important for some
employees. OB Mod ignores the internal causes of behaviour.