ob class notes

7/24/2019 Ob Class Notes

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Chapter Outline

Introduction, Defnition

Historical DevelopmentFundamental Principles

O OB

Contributing Disciplines

Challenges And

Opportunities


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Till Now you have studied

hat !anagers Do !anagement Functions

!int"berg#s !anagerial

$oles

!anagement %&ills


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What are organizations

Organizations are social groups orgatherings whose purpose is to

accomplish a common goal. The goals of some organizations may be

to raise money for themselves and the

goals of other organizations may be toraise money for a non-prot foundation.t can be said that organizations vary insizes! locations! and goals.


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n short

" social unit of people thatis structured and managed to meet

a need or to pursue collective goals. "ll organizations have

a management structure thatdetermines relationships between thedi$erent activities and the members! andsubdividesand assigns roles! responsibilities!

and authority to carry out di$erent tas%s. Organizations are open systems--they

a$ect and are a$ected b


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&uccess

'()(N'& ON )(O)*(

Inputs

Outputs

Organization

!en!one'

!achiner'!aterial!anagement

TransformingInputs to outputs

+oods&ervices)rot+oal&atisfactio

n


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Therefore! understanding human behaviourhas assumed great signicance for themanagers for managing people e$ectively.

It means that the unctioning oan organi"ation depends upon

ho( people (or& or behave

in the organi"ation)


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,ow Companies are Changing

Cool Companies

elieve casual days areprogressive

elieve titles areobsolete

'ont impose onemployees personaltime

"llow sta$ to come andgo as they please

O$er all employees stoc%options

*et employees ma%edecisions that a$ect theirwor%

O$er assistance withchildcare

Old Companies

Thin% casual /ridays arepitiful

Charge employees for

per%s and incentives ,ave 0e1 time2 but only

between 3245 a.m. and6245 p.m.

,ide nancial results

from their employees (ncourage employee

input -- but rarely acton it

(mploy rigid hierarchies

7chain of command8 &top at 9open door:

policies


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. . . a feld o stud' thatinvestigates the impactthat Individuals, *roupsand %tructurehave on

behavior (ithinorgani"ations, or the

purpose o appl'ing such

&no(ledge to(ardsimproving an organi"ationThe study of people at work


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'enition

According to uthans

9OB is directly concerned with the;nderstanding! )rediction and Control of

human behavior in organizations:.

Davis and -e(strom 9The %tud' and Application of %nowledge

how people act or behave within organization.t is human tool for human benet. t appliesbroadly to the behavior of people in all types oforganizations such as business! government!

schools and service organizations:.


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The study of people at wor% is generally referredto as the study of organizational behavior. This

chapter will start by dening the termorganizational behavior and brie0y reviewing itsorigins. Organizational behavior is the systematicstudy of the actions and attitudes that people

e1hibit within organizations. (ach person regularly uses intuition or our uic%

to remind him that he


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ORGANIZATIONAL !"A#IO$R

Key forces affecting Organizational Behavior

%eople

Individuals Groups

!n&iron'ent

Government Competition

Societal pressure

Organizational eha&ior

Te(hnology

Machinery Computer hardware software

)tru(ture !o"s

#elationships


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&tudying O

Organizational behavior is about studying andunderstanding people and human nature. 'oemployee ever ma%e e$orts on behalf of their

employing organization=s interests or fellowemployees= interest when it is not in their directself-interest to do so@

This >uestion e1ists in any organization must be

address. The problem addressed here is a con0ictof self-interest.

The >uestion here should be very interesting topeople in organization. )eople should try to

understand and address counterintuitive behaviorin certain situation 7Aoung BD8. /or instance! whydoes moral hazard e1ists in organization@

Organizational behavior studies organizations fro


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Organizational behavior studies organizations from multiple viewpoints! including behavior withinthe organization and in relation to other

organizations. Eicro organizational behavior refers to individual

and group dynamics in an organizational setting.

Eacro organizational theory studies whole

organizations and industries! including how theyadapt! and the strategies! structures!and contingencies that guide them.

Concepts such

as leadership! decision ma%ing! team building! motivation! and ?ob satisfaction are all facets oforganizational behaviorand responsibilities of management.

Organizational behavior also deals heavilyin culture. Company or corporate culture isdiFcult to dene but is e1tremel relevant to how


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Why it is important for managers tohave an understanding of

organizational behavior Eanagers need an understanding of organizational

behavior because a large part of their ?ob has to do withe1actly that. Organizational behavior is the study of

how people behave while in groups and as individuals.Euch of what a manager does has to do with trying toget people to wor% as e$ectively as possible.

t can involve trying to motivate an individual wor%er orit can involve trying to understand how to get wor%erswho are part of a team to interact with one another insuch a way that they are able to wor% more eFcientlyand e$ectively.

Euch of management has to do with understanding

people and how they wor%. Therefore! having anunderstanding of organizational behavior is vital tomanagers.


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Why 'o We &tudy O@

To learn about yourself and others

To understand how the many

organizations you encounter wor%.

To become familiar with team wor%

To help you thin% about the peopleissues faced by managers andentrepreneurs


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+oals of O

'escribe

how people behave under a variety of conditions.

;nderstand

Why people behave as they do.

)robe for underlying e1planations)redict

)redict future employee behavior 7tardiness!productive G unproductive etc.8

)rovide preventive actions

Control

"t least partially and develop some human activity

at wor%. Eanagers need to remember thatorganizational behavior is a tool for humanbenet


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enets of &tudyingOrganizational ehavior

B. 'evelop s%ills to functione$ectively in the wor%place.

H. +row personally through insightinto human behavior.

4. (nhance overall organizationale$ectiveness

I. &harpen and rene common

sense


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-ature o P.OP.

Perception

A holeperson

!otivated

Behavior Desire or

involvement

/alue oPerson

-ature oO$*A-I%A0IO-

%ocial%'stems

!utualInterest

.thics

/undamental Concepts of


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/undamental Concepts ofOrganizational ehaviour

n every eld of social science! oreven physical science! has a

philosophical foundation of basicconcepts that guide its development.

There are some certain philosophicalconcepts in organizational behaviouralso. The concepts are-

Individual di+erences1


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Individual di+erences1(very individual in the world is di$erentfrom others. This idea is supported by

science 7'N"8.The idea of individual di$erence comesoriginally from psychology. /rom the day of

birth! each person is uni>ue! and individuale1periences after birth tend to ma%e peopleeven more di$erent.!otivated behaviour1

"n employee has so many needs inside him.&o! they want to full those needs. ThatswhyJ they had to perform well in the

organization. " path toward increased needfullment is the better way of enriches the>uality of wor%.


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Perception1 )eoples perceptions are

also di$er when they see an ob?ect. Twopeople can di$erently present a sameob?ect.

" person always organizes and interpretswhat he sees according to his lifetime ofe1perience and accumulated value.

(mployees also see wor% di$erently fordi$er in their personalities! needs!demographics factors! past e1periences

and social surrounding.

A h l


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A (hole person1"n employees personal life is not

detached from his wor%ing life. "s ane1ample! " women who attend the oFceat D245 "E is always an1ious for herchildrens school time 7if her children ableto attend the school or not8.

"s a result! its impact falls on herconcentration that means her wor%ing

life. /or this reason! we cannot separateit. &o manager should treat an employeeas a whole person.

Desire or involvement1


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es e o o e e

(very employee is actively see%ingopportunities at wor% to involve in decision-

ma%ing problems! share what they %nowand to learn from the e1perience. &o!organization should provide them a chance

to e1press their opinions! ideas andsuggestion for decision-ma%ing problem.

/alue o the person1 "n employee wantsto be treated separately from other factorof production 7land! capital! labour8. &o!they have to be treated with carryingrespect! dignity and etc.. from their

employers and society.


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Nature of organization

B. &ocial systems K or social structure in generalrefer to entities or groups in denite relationto each other! to relatively enduring patterns

of behavior and relationship within socialsystems! or to social institutions and normsbecoming embedded into social systems in

such a way that they shape the behavior ofactors within those social systems.

&ocial systems can be said to be the patternsof behavior of a group of people possessing

similar characteristics due to their e1istencein same society


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H.Eutual interest K&ymbiotic relationshipbetween organizations and people K)rovides asuper ordinate goal K one that can attained

only through the integral e$ort of individualsand their employers.

4.(thics KTreatment of employees in an ethical

fashion K(stablish code of ethics! publicizedstatements of ethical values! provide ethicstrainings! reward employees for notable ethicalbehaviors! set up internal procedure to handle

misconduct.


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B336!Adam Smith advocated a newform of organizational structure

based on the division of labour. B55 years later! +erman sociologist

Max Weber wrote about rational

organizations and initiateddiscussion of charismatic leadership

& ft F d i k Wi l T l


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&oon after! Frederick Winslow Taylorintroduced the systematic use of goal

setting and rewards to motivateemployees.

n the BH5s! "ustralian-born ,arvard

professor Elton Mayo and his colleaguesconducted productivity studies atWestern (lectrics ,awthorne plant in

the ;nited &tates.They discovered the importance of formal

and informal group dynamics in the wor%place! resulting in a dramatic shift towardsthe Mhuman relations= school of thought.

"ft th /i t W ld W th f f


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"fter the /irst World War! the focus oforganizational studies shifted to

analysis of ho( human actors andps'cholog' a+ectedorgani"ations! a transformation

propelled by the identication of the,awthorne ($ect.

This ,uman elations Eovement

focused on teams! motivation! andthe actualization of the goals ofindividuals within organizations.

)rominent early scholars includedChester arnard! ,enri /ayol!


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&econd World War further shiftedthe eld! as the invention of large-

scale logistics and operationsresearch led to a renewed interest inrationalist approaches to the studyof organizations.

nterest grew in theory and methods

native to the sciences! includingsystems theory! the study oforganizations with a comple1ity

theory perspective and comple1itystrategy.

"pproaches to Organizational


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"pproaches to Organizationalehavior

"u'an Resour(es Approa(h"u'an Resour(es Approa(h

Human $esources


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Human $esourcesApproach

This approach recognizes the fact that people are thecentral resource in any organisation and that they shouldbe developed towards higher levels of competency!creativity and fulllment. )eople thus developed will

contribute to the success of the organisation. The human resources approach is also called as the

supportive approach in the sense that he manager=s rolechanges from control of employee to active support of theirgrowth and performance.

The supportive approach contrasts with the traditionalmanagement approach. n the traditional approachmanagers decided what employees should do and closelymonitored their performance to ensure tas%accomplishment. n the human resources approach! role ofmanagers changes! as was stated above! from structuringand controlling to supporting.

Contingenc'


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Contingenc'Approach

The contingency approach 7sometimes called thesituational approach8 is based on the premise thatmethods or behaviours which wor% e$ectively in

one situation fail in another. O' programmes! fore1ample! way wor% brilliantly in one situation butfail miserably in another situation.

esults di$er because situations di$er! the

manager=s tas%! therefore! is to identity whichmethod will! in a particular situation! underparticular circumstances! and at a particular time!best contribute to the attainment of organisation=s

goals.


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%'stems Approach

&ystems approach to O views theorganisation as a united! purposeful systemcomposed of interrelated parts. This approach

gives managers a way of loo%ing at theorganisation as a whole! whole person! wholegroup! and the whole social system.

n so doing! systems approach tells us that theactivity of any segment of an organisationa$ects! in varying degrees the activity ofevery other segment. " systems view should

be the concern of every person in anorganisation.

,uman elations


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,uman elations"pproach

The classical school did not give importance tothe human aspects of the wor%ers. Therefore!they did not achieve a high level of productioneFciency and co-operation between

the management and wor%ers. The failure of the classical approach led to

the human relations movement.

The human relations e1perts tried to integrate

7combine8 )sychology and &ociology withEanagement. "ccording to them! organisation isa social system of interpersonal and inter grouprelationships. They gave importance to the

management of people. They felt that management can get the wor%

$ersonality O * d l


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$ersonality

$erception

%earning

&ttitudesMotivation

Group 'ynamics

Team (or)

Communication

%eadership

$ower * $olitics

'ecision+ma)ing

Organization Theory

Organization design *

Structure

Organizational Culture

Organizational,ffectiveness

I-'I.I'/&%

B,0&.IO/#

G#O/$B,0&.IO/#

O#G&-I1&TIO-

Organizational

,ffectiveness

O *odel


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Challenges and Opportunities


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Challenges and Opportunities

B. mproving )eople &%illsH. mproving Puality and )roductivity

4. Eanaging Wor%force 'iversity

I. esponding to +lobalization

L. (mpowering )eople

6. Coping with Temporariness3. &timulating nnovation and Change

D. (mergence of the e-organization

. mproving (thical ehavior

Improving People %&ills1

Technological changes! structural changes! environmental changes


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are accelerated at a faster rate in business eld. ;nless employeesand e1ecutives are e>uipped to possess the re>uired s%ills to adaptthose changes! the achievement of the targeted goals cannot be

achieved in time.

Improving 3ualit' and Productivit'1

Puality is the e1tent to which the customers or users believe theproduct or service surpasses their needs and e1pectations. /ore1ample! a customer who purchases an automobile has certaine1pectation! one of which is that the automobile engine will startwhen it is turned on. f the engine fails to start! the customer=se1pectations will not have been met and the customer will perceivethe >uality of the car as poor.

!anaging or&orce Diversit'1

This refers to employing di$erent categories of employees who areheterogeneous in terms of gender! race! ethnicity! relation!community! physically disadvantaged! homose1uals! elderly peopleetc. The primary reason to employ heterogeneous category ofemployees is to tap the talents and potentialities! harnessing the

innovativeness! obtaining synergetic e$ect among the divorcewor%force.

$esponding to *lobali"ation1

.mpo(ering People The main issue is delegating more power and responsibility to the lower level

cadre of employees and assigning more freedom to ma%e choices about their


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cadre of employees and assigning more freedom to ma%e choices about theirschedules! operations! procedures and the method of solving their wor%-related problems. (ncouraging the employees to participate in wor% relateddecision will sizably enhance their commitment at wor%.

Coping (ith 40emporariness5

n recent times! the )roduct life cycles are slimming! the methods ofoperations are improving! and fashions are changing very fast. n those days!the managers needed to introduce ma?or change programs once or twice adecade.

%timulating Innovation and Change Today=s successful organizations must foster innovation and be procient in

the art of changeJ otherwise they will become candidates for e1tinction in duecourse of time and vanished from their eld of business

.mergence o .6Organi"ation

.6 Commerce1 t refers to the business operations involving electronic mode

of transactions. t encompasses presenting products on websites and llingorder. The vast ma?ority of articles and media attention given to using thenternet in business are directed at on-line shopping.

Improving .thical behavior1

The comple1ity in business operations is forcing the wor%force to face ethicaldilemmas! where they are re>uired to dene right and wrong conduct in orderto complete their assigned activities. /or e1ample! &hould the employees ofchemical company blow the whistle if they uncover the discharging itsuntreated eQuents into the river are polluting its water resources@

&ummary and mplications for


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y pEanagers

Eanagers need to develop their interpersonal! orpeople! s%ills to be e$ective in their ?obs.

O is a eld of study that investigates the impact

that individuals! groups! and structure have onbehavior within an organization.

O focuses on improving productivity! employee ?obsatisfaction! and reducing absenteeism and turnover.

O uses systematic study to improve predictions ofbehavior.

O recognizes and helps managers to see the valueof wor%force diversity and practices.

ottom *ine2 O s /or (veryone


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ottom *ine2 O s /or (veryone

Organizational behaviour is not ?ustfor managers.

O applies e>ually well to all

situations in which you interact withothers2 on the bas%etball court! at thegrocery store! in school! or in church.

&ummary and


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ymplications

O is a eld of study that investigates theimpact that individuals! groups! andstructure have on behavior within an

organization. O focuses on improving productivity!

reducing absenteeism and turnover! and

increasing employee ?ob satisfaction andorganizational commitment.

O uses systematic study to improve

predictions of behavior.

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