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Introduction to Organizational Behaviour:

Prof. Shrinivas V K

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IntroductionThe study of organizations and of the

collection of people within them together comprises the field of organizational behavior.

Organizational behavior (OB) is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself.l

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Organizational Behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization's effectiveness.

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What is Organizational Behavior?Organizations are social systems.

Organization is a combination of humanity and technology.

OB is the study and application of knowledge about how people act within the organization.

It is a human tool for human benefit .

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Contd..

A complex set of forces affects the nature of organizations today.

It can be classified into four areas:

1. People2. Structure3. Technology4. Environment

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Contd..When people join the organization to

accomplish the goals/ objectives, some kind of structure is required. They use machinery, gadgets & technology to achieve the organizational goals. At the same time they are influenced by external environment.

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Organizations are defined as social arrangements, constructed by people, who can also change them.

----Buchanan and Huczynski (1997)Organizations are a system of cooperative

activities - and their coordination requires something intangible and personal that is largely a matter of personal relationships.

---- Barnard (1938)OB is concerned with “the study of the structure,

functioning and performance of organizations, and the behavior of groups and individuals within them”.

---- Pugh (1971)

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The Organization

Environment

Environment

The Individual-Organization Interface

The Nature of Organizational Behavior

Human Behavior in Organizational Settings

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Nature of OBA field of study and not a disciplineInterdisciplinary ApproachAn Applied ScienceNormative and Value CenteredHumanistic & optimisticOriented Towards Organizational ObjectivesA total Systems Approach

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Evolution of OB

Robert Owen-(1800)Young Factory Owner-First to emphasize the human

needs of employees and refused to employ childrenTaught workers to improve working conditions Father of personnel management Andrew Ure-(1935)The Philosophy of Manufacturers -1835Value of human factor in manufacturingProvided welfare facilities to workers J.N. TATA in 1886 Instituted a pension fund & 1895

began to pay accident compensation.

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William Gilbreth-(1914)“The Psychology of Management”

F.W.Taylor-(1916)Father of Scientific ManagementTime & Motion StudyPiece Rate Method

Evolution of OB

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Henry Fayol (1916)Administrative Management , Principle of Governing

Behavior, Management Quality Elton Mayo-(1920’s & 1930’s)

Human behavior at Harvard UniversityHawthorne's Experiments/Plant

Abraham H. Maslow (1954): Need Hierarchy Motivation model

Douglas McGregor (1960):Theory X and Theory Y Managerial Style

Henry Mintzberg (1960) : Managerial Roles : Interpersonal, Informational and Decision

making

Evolution of OB

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Peter Drucker (1909 -2005) Father of modern management Importance of change How to bring best out of people Innovation Entrepreneurship

Evolution of OB

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Major Contributing Disciplines to the field of organizational Behavior1. Psychology: how individuals behave in

response to a stimulus.2. Sociology: how individuals relate to

groups and to each other.3. Social Psychology: How individuals and

organizations perceive conflict, threats and undergo stress.

4. Anthropology: understanding customs traditions and social mores of people since the organization is a microcosm of the larger society.

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Contd..5. Political Science: Understanding

Power, Authority and Corporate Politics.

6. Economics: Appreciating monetary (wage and bonus) and non monetary incentives (housing, schooling and medical care) to employees so that they are motivated to produce more efficiently and effectively.

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Challenges for OBGlobalization to Respond

Managing Diversity

Improving Quality and

Productivity

Improving Customer

Service

Improving People Skills

Stimulating Innovation and

Change

Improving Ethical Behaviour

Coping with Temporariness

Working in network

organization

Helping employees balance

work-life conflicts

Creating Positive work

environment

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Challenges and Opportunities in OBThe rise of global

businesses with culturally diverse workforces.

Rapid advances in technology.

The rising expectations of people in general.

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GlobalizationThe process of interconnecting

the world’s people with respect to the cultural, economic, political, technological, and environmental aspects of their lives.

Multinational Enterprises: Organizations that have significant operations spread throughout various nations but are headquartered in a single country.

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Working AbroadExpatriates: People who are citizens of one

country but who are living and working in another country.

Culture: The set of values, customs, and beliefs that people have in common with other members of a social unit (e.g., a nation).

Culture shock: The tendency for people to become confused and disoriented as they attempt to adjust to a new culture.

Repatriation: The process of readjusting to one’s own culture after spending time away from it.

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Working Abroad

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Management PerspectivesConvergence Hypothesis: A biased

approach to the study of management, which assumes that principles of good management are universal, and that ones that work well in the United States will apply equally well in other nations.

Divergence Hypothesis: The approach to the study of management that recognizes that knowing how to manage most effectively requires clear understanding of the culture in which people work.

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Shifting DemographicsMore women are

in the workforce than ever before.

Racial and ethnic diversity is reality.

People are living – and working – longer than ever before.

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Responding to Changes in TechnologyCreating Leaner Organizations

Downsizing/Rightsizing: The process of adjusting the number of employees needed to work in newly designed organizations.

Outsourcing: The process of eliminating those parts of organizations that focus on noncore sectors of the business and hiring outside firms to perform these functions instead.

Creating Virtual Organizations Highly flexible, temporary organizations formed by a

group of companies that join forces to exploit a specific opportunity.

Increasing 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 FlexibilityFlextime Programs: Policies that give employees some discretion over when they can arrive and leave work, thereby making it easier to adapt their work schedules to the demands of their personal lives.The Contingent Workforce: People hired by organizations temporarily to work as needed for finite periods of time.Compressed Workweeks: The practice of working fewer days each week but longer hours each day.Job Sharing: A form of regular part-time work in which pairs of employees assume the duties of a single job, splitting its responsibilities, salary, and benefits in proportion to the time worked.Voluntary Reduced Work Time Programs: Programs that allow employees to reduce the amount of time they work by a certain amount, with a proportional reduction in pay.

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The Quality RevolutionTotal Quality Management: An organizational

strategy of commitment to improving customer satisfaction by developing techniques to carefully manage output quality.

Benchmarking: The process of comparing one’s own products or services with the best from others.

Malcolm Baldridge Quality Award: An award given annually to American companies that practice effective quality management and make significant improvements in the quality of their goods and services.

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Corporate Social ResponsibilityBusiness decision making linked to ethical values, compliance with legal requirements, and respect for individuals, the community at large, and the environment. It involves operating a business in a manner that meets or exceeds the ethical, legal, and public expectations that society has of business

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Ethics in OrganizationsGood ethics is good business Improved financial performance Reduced operating costs Enhanced corporate reputation Increased ability to attract and retain employees

Code of Ethics: A document describing what an organization stands for and the general rules of conduct it expects of its employees.Ethics Officers: Individuals (usually at the vice presidential level) who oversee the ethics of a company’s operations.Ethics Audit: The process of actively investigating and documenting incidents of dubious ethical value within a company.

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Ethical Guidelines1. Does the behavior

violate the obvious “shall nots”?

2. Will anyone get hurt?3. What if you did it 100

times?4. How would you feel if

someone did it to you?

5. What’s your gut feeling?

6. Would the behavior pass the “front page test”?

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THE SCOPE OF THE ORGANIZATIONAL BEHAVIOUR IS AS UNDER:

Impact of personality on performance(b) Employee motivation

LeadershipHow to create effective teams and groupsStudy of different organizational

structuresIndividual behaviour, attitude and learningPerceptionDesign and development of effective

organizationJob design

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Importance of OBOB provides a road map to our lives in organizations. OB uses scientific research to understand and make

organization life, as it helps to predict what people will do under various conditions

It helps to influence organizational events – to understand and predict events

It helps individual understand herself/ himself in better fashion.

It helps manager to manage human resources effectively. Eg. Motivation

It helps organizations for maintaining cordial industrial relations.

It is also useful in the field marketing.

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Basic OB Model

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Towards an OB Discipline

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THANK YOU