Organisational behaviour

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ORGANISATIONAL BEHAVIOUR

SWATI SISODIASwati.sisodia@nmims.edu

History of Org Behavior

• A Short History of Organizational Behavior

• F.W. Taylor and Scientific Management• Mary Parker Follett• Hawthorne Studies• Theory X and Y

F W Taylor

• Scientific management: the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

• The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

Principles of Scientific Management

• Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed

• Codify the new methods of performing tasks into written rules and standard operating procedures

• Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures

• Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

Principles of Scientific Management

Mary Parker Follett- Human side The “Hawthorne Effect” Douglas McGregor:

Average employee is lazy, dislikes work, and will try to do as little as possibleManager’s task is to supervise closely and control employees through reward and punishment

Employees will do what is good for the organization when committedManager’s task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative

THEORY X THEORY Y

Other theories

What is an organization?

Groups of people who work interdependently toward some purpose

–Structured patterns of interaction –Coordinated tasks–Work toward some purpose

Organizational Behavior

• The study of individual behavior and group dynamics in organizations

• Understand• Predict• Manage

The study and application of how employees behave

within organizations

Levels of Analysis

Group LevelIndividual Level

Organizational Level

Group Level

Contributing Disciplines to the OB Field

LearningMotivationPersonalityAttitude, values MotivationPerceptionJob satisfaction

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field

Open Systems View of Organization

Outputs: Products Services

Inputs:MaterialCapitalHuman

Task environment:CompetitorsUnionsRegulatory agenciesClients

Structure

Task Technology

People(Actors)

Organizational Boundary

Why Study Org Behavior?

Competitive advantage of an organization today is represented by:

Human resource of an organization and how they are managed.

Widely recognized as-human capital

Describe how people behave under a variety of conditionUnderstand why people behave as they doPredict future employee behaviour

TRENDSGLOBALISATION

Implications of globalisation

New organisational structures Different forms of communicationMore competition, change, mergers, downsizing, stressNeed more sensitivity to cultural differences

TRENDS CHANGING WORKFORCE

More women in workforce and professionsDifferent needs of Gen-X, Gen-Y and baby-boomersDiversity has advantages, but firms need to adjust throughCultural awarenessFamily-friendly policiesEmpowerment

Employment relationshipEmployees perform many tasks, not a specific jobWorking from home, usually with a computer connection to the officeVirtual teams(operate across space, time and organisational boundaries; mainly communicate through electronic technologies)

Studying Organizational Behavior

ActivityEFFECT OF POSITIVE AND

NEGATIVE REINFORCEMENT

Personality

What is personality?

The overall profile or combination of characteristics that capture the unique nature of a person as that person reacts and interacts with others.– Combines a set of physical and mentalcharacteristics that reflect how a person looks,thinks, acts, and feels.– Predictable relationships are expected between people’s personalities and their behaviors

Factors affecting personality

HERIDITYPhysical characteristics Gender

ENVIORNMENTCultural Social Situational factors

PERSONALITY

Personality and the self-concept

– Personality dynamics.•The ways in which an individual integrates and organizes social traits, values and motives ,personal conceptions, and emotional adjustments.– Self-concept. • The view individuals have of themselves as physical, social, and spiritual or moral beings.• Self-esteem.• Self-efficacy.

How do personalities differ?

“Big Five” personality dimensions.– Extraversion• Being outgoing, sociable, assertive.– Agreeableness.• Being good-natured, trusting, cooperative.– Conscientiousness.• Being responsible, dependable, persistent.– Emotional stability.• Being unworried, secure, relaxed.– Openness to experience.• Being imaginative, curious, broad-minded.

Personal conception traits.

Locus of control.Authoritarianism/dogmatism.Machiavellianism. Self-monitoring.

Locus of control

– The extent to which a person feels able to control his/her own life.– Externals •More extraverted in their interpersonalrelationships and more oriented toward the world around them.– Internals • More introverted and more oriented towards their own feelings and ideas.

Information processing Internals make more attempt to acquire information, are less satisfied with the amount of information they possess and are better at utilizing information

Job Satisfaction Internals are generally more satisfied, less alienated and there is strong job satisfaction/ performance relationship for them

Performance Internals perform better on learning and problem solving tasks, when performance leads to valued rewards

Self control, risk & anxiety Internals exhibit better self control, are more cautious, engage in less risky behavior and are less anxious

Motivation, expectancies' and results Internals display greater work motivation, see a stronger relationship between what they do and what happens to them, expect that working hard leads to good performance, feel more control over their time.

Response to others Internals are more independent, more reliant on their own judgment and less susceptible to the influence of others ; they are more likely to accept information on its merit

Locus of control

Authoritarianism/dogmatism

– Authoritarianism.• Tendency to adhere rigidly to conventional values and to obey recognized authority.– Dogmatism.• Tendency to view the world as a threatening place.

high-Machiavellian personality

Approach situations logically and thoughtfully: a) Are capable of lying to achieve personal goals.b) Are rarely swayed by loyalty, friendships, past

promises, or others’ opinions.c) Are skilled at influencing others.d) Try to exploit loosely structured situations.e) Perform in a perfunctory or detached manner in

highly structured situations.

Note

Machiavellianism (Mach) refers to the degree to which an individual is practical in his approach, maintains an emotional distance from others, and believes that ends justify the means. Research has revealed that individuals who score high on Mach are good at manipulating others and try to win by any means. They do not need to be persuaded to work but instead are able to successfully persuade others. People having a high Mach perform well in situations that involve face-to-face meetings. They are especially productive in jobs that require the use of bargaining (persuasion) skills and in jobs that offer substantial rewards for the achievement of goal

low-Machiavellian personality

a) Accept direction imposed by others in loosely structured situations.

b) Work hard to do well in highly structured situations.

c) Are strongly guided by ethical considerations.d) Are unlikely to lie or cheat.

Self-monitoring

– A person’s ability to adjust his/her behavior toexternal situational factors.– High self-monitors.

• Sensitive to external cues.• Behave differently in different situations.

– Low self-monitors.• Not sensitive to external cues.• Not able to disguise their behaviors

MOTIVATION

The Basic Motivation Process

NEEDS DRIVES INCENTIVES

What is Motivation?

Motivation =The level and directionof EFFORT expendedat work.

Derived from latin word “movere” means to move.

Content theories.• Focus on profiling the needs that people seek to fulfill.

Major content theories.a) Maslows Hierarchy of needs theory.b) Herzberg’s Two factor theory c) Alderfer’s ERG theory d) Mc Clelland Process theories.

• Focus on people’s thought or cognitive processes. Emphasize controlling behavior by manipulating its consequences.

Major content theories.e) Vroom’s & Porter theoryf) Equity theory

Categories of motivation theories.

SELF-ACTUALIZATION

ESTEEM NEEDS

LOVE NEEDS

SAFETY NEEDS

Maslow’s Hierarchy Of Needs

PHYSIOLOGICAL NEEDS

SELF-ACTUALIZATIONPersonal growth,realization of potential

ESTEEM NEEDSTitles, status symbols,promotions, banding

SOCIAL NEEDSFormal and informalwork groups or teams

SECURITY NEEDSSeniority plans, union, health insurance,employee assistance plans, severance pay, pension

A Hierarchy Of Work Motivation

BASIC NEEDSPay

Hygiene factors in job

Organisational policiesQuality of supervisionWorking conditionsBase salary or wage Relationship with peer Relationship with subordinatesStatus Security

Motivators factors in job

AchievementRecognitionWork itselfResponsibilityAdvancementGrowth

High HighJob dissatisfaction Job satisfaction

Hezerberg’s two factor theory

ERG Theory.– Existence needs.• Desire for physiological and material well-being.– Relatedness needs.• Desire for satisfying interpersonal relationships.– Growth needs.• Desire for continued personal growth anddevelopment.

Mc Clleland’s Theory of needs :Need for achievement (nAch).• The desire to do something better or more efficiently, to solve problems, or to master complex tasks.Need for affiliation (nAff).– • The desire to establish and maintain friendly and warmrelations with others.– Need for power (nPower).• The desire to control others, to influence their behavior, or to be responsible for others.

ERG & MC CLLELAND THEORY

McClelland’s High Need Achiever

• Prefers moderately challenging goals

• Prefers performance feedback• Prefers individual responsibility

Work Preferences

Job Satisfaction Trends

• Internals or Externals• Individualists or Collectivists• Women or Men• Younger workers or Older workers• Less experienced or More experienced• Top management or Rank and file workers• Satisfied in prior jobs or Dissatisfied in prior jobs• Satisfied with life or Dissatisfied with life

Question “Who is more likely to be satisfied with a job?”

LOW HIGH

JOBS CAN BE REDESIGNED

Box 1 Box 3Box 2

Task VarietySkill VarietyAutonomy

JOB DESIGN ALTERNATIVES

Job Simplification Taylor

JobEnrichmentHerzberg

Job Enlargement& RotationAutomation Self-

ManagingTeams

LEADERSHIP

DEFINITION

According to Koontz and o’ Donnell “it is the art of including the subordinates to accomplish their assignments with zeal and confidence. Zeal reflects ardour, earnestness and intensity in execution of work; confidence reflects experience and technical ability.”

1. Initiates action

2. Motivation

3. Providing guidance

4. Creating confidence

5. Building morale

6. Builds work environment

7. Co-ordination

IMPORTANCE OF LEADERSHIP

Some Characteristics Of Managers Versus LeadersIn The Twenty-First Century

AdministersA copyMaintainsFocuses on systems and structuresRelies on controlShort-range viewAsks how and whenEye on the bottom lineImitatesAccepts the status quoClassic good soldierDoes things right

InnovatesAn originalDevelopsFocuses on peopleInspires trustLong-range perspectiveAsks what and whyEye on the horizonOriginatesChallenges the status quoOwn personDoes the right thing

Leader CharacteristicsManager Characteristics

LEADERSHIP THEORIES

A. TRAIT APPROACH

Keith davis has summarized four of the major traits which might have an impact on successful organizational leadership. They are:(a)Intelligence (b)Social maturity and breath (c)Inner motivation and achievement drives (d)Human relations attitude

A. BEHAVIOURAL APPROACH

AutocraticParticipative or supportiveInstrumental or instrumental supportive

A. SITUATIONAL APPROACHCONTIGENCY THEORYTHE PATH-GOAL THEORY

THE PATH-GOAL THEORY:

Path-goal theory identifies four kinds of leader behavior.

Directive leader behavior - letting subordinates know what is expected of them, giving guidance and direction, and scheduling work.

Supportive leader behavior - being friendly and approachable, showing concern for subordinate welfare, and treating members as equals.

Participative leader behavior - consulting subordinates, soliciting suggestions, and allowing participation in decision making.

Achievement-oriented behavior - setting challenging goals, expecting subordinates to perform at high levels, encouraging subordinates and showing confidence in subordinates' abilities.

Path-Goal Situations & Preferred Leader Behavior

LEADERSHIP STYLES

Leadership styles refer to a leader’s behaviour.

A paternalistic leader takes care of his followers in the way the head of the family takes care of the family members

A free rein leader will leave the group entirely to itself such as a leader allows maximum freedom to subordinates.

A democratic leader can win the cooperation of his group and can motivate them effectively and positively.

An Autocratic leader will not entertain any suggestions or initiative from subordinates. Under this type of leadership, one person decides for the whole group. An autocratic leader does not trust anybody.

DEMOCRATICAUTOCRATIC

LAISSEZ FAIREPATERNALISTIC

CONFLICT MANAGEMENT

DEFINITION

Conflicts occur when disagreements occur in a social situation.

Conflict is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.

It could also be defined as the appearance of difference i.e. difference of opinion , difference of interest.

It can be viewed as a breakdown in the standard mechanism of decision making.

ARE ALL CONFLICTS BAD ?

Conflicts can be constructive or destructive.

Constructive conflict prevents stagnation, encourages creativity, allows tension to be released.

Excessive conflict can hamper the effectiveness of a group or an organization, reduces satisfaction of group members, increases absence and turnover rates, and lowers productivity.

Conflict is constructive when it Improves the quality of decisions.Encourages creativity and innovation.Develops interest and curiosity.Provides medium through which tensions can be released.Promotes an environment of self-evaluation and change.

Views About Conflict

The Traditional View• This approach assumes that all conflicts hamper performance.• Conflicts occur due to poor communication, lack of openness

and trust between people, and the failure of managers to be open to their employees.

The Human Relations View• This approach assumes that conflicts occur naturally in all

groups and organizations.• It is natural and cannot be avoided, hence it should be accepted.• It cannot be removed and it may play a role in group

performance.

56Conflict Management

Functional vs. Dysfunctional Conflict

• Functional or constructive conflict supports the goals of the group and improves its performance.

• Conflicts that hamper group performance are dysfunctional or destructive conflicts.

• Task conflicts are related to the content and goals of the work.

• Low to medium levels of task conflict is good because it improves group performance.

Levels of Conflict

Conflicts can be atIntrapersonal level (conflict within the

individual)Interpersonal level (individual to individual

conflict)Inter-group levelInter-organizational level

Types of Intrapersonal conflict

• Approach – approach conflict• Avoidance – avoidance conflict• Approach – avoidance conflict

Reasons for conflict

Diversity of GoalsCompetition for scarce resourcesOrganisational ambiguitiesIntroduction to changeNature of CommunicationDifference in work orientation

Conflict Management Approaches

1. Avoidance – In avoidance, every one shows that the conflict does not really exist and hopes that it will finish.

2. Accommodation – It involves hiding the differences between the conflicting parties and showing areas of agreement.

3. Compromise – It occurs when each party gives up something for the sake of the other. No party is fully satisfied.

4. Competition – It is a victory achieved due to force, superior skill, or domination of one party. It is a win-lose situation.

5. Collaboration – It involves appreciation by all conflicting parties that something is wrong and needs attention.

ZOHARI WINDOW

• Developed by Joseph Luft and Harry Ingham (the word “Johari” comes from Joseph Luft and Harry Ingham).

• The Johari Window is a communication model that can be used to improve understanding between individuals.

• Individuals can build trust between themselves by disclosing information about themselves.

• They can learn about themselves and come to terms with personal issues with the help of feedback from others.

GROUP DYNAMICS AND UNDERSTANDING GROUP BEHAVIOUR

Definition & Characteristics

Group means there are1. Two or more

individuals 2. Interacting &

interdependent3. Come together to

achieve particular objectives.

Characteristics of Group

Shared values and NormsInterdependenceInteractionActivitiesConformity

Theories of group formation

• PROPINQUITY THEORY • EXCHANGE THEORY• BALANCE THEORY

Types of work teams

Problem solving Self managed work teamsCross functional teams Virtual teams

ORGANISATIONAL POWER AND POLITICS

A. Describe a situation where you saw evidence of power or influence being used in an organization

B. Describe a time when someone influenced you to act a particular way or do a particular thing that you would not of otherwise done.

Points to ponder

The Meaning of Power

Power is the capacity of a person, team, or organization to influence others.

The potential to influence others

People have power they don’t use and may not know they possess

Power requires one person’s perception of dependence on another person

Why does having power matter?

With power you can…

• Intercede favorably on behalf of someone in trouble• Get a desirable placement for a talented subordinate• Get approval for expenditures beyond the budget• Get items on and off agendas• Get fast access to decision makers• Maintain regular, frequent contact with decision

makers• Acquire early information about decisions and policy

shifts

Types of Individual Power: A Summary

Position Power

• Legitimate power• Reward power• Coercive power

Individual Power

Personal Power• Referent power• Expert power

Information and Power

• Control over information flow– Based on legitimate power– Relates to formal communication network– Common in centralized structures (wheel pattern)

• Coping with uncertainty – Those who know how to cope with organizational

uncertainties gain power• Prevention• Forecasting• Absorption

Commitment

Consequences of Power

RewardPower

Legitimate Power

CoercivePower

ExpertPower

ReferentPower

Resistance

Compliance

Sources of Power

Consequences of Power

Organizational Politics

• Attempts to influence others using discretionary behaviours to promote personal objectives– Discretionary behaviours — neither explicitly

prescribed nor prohibited

• Politics may be good or bad for the organization

Organizational Politics: More Likely at the Top

Exte

nt to

Whi

ch P

oliti

cal A

ctivi

ty is

Lik

ely

(ran

ge 0

-3)

Production andblue collar

Clerical andwhite collar

Technical andprofessional

Lowermanagement

Middlemanagement

Uppermanagement

1.3

1.2

1.1

1.0

.9

.8

.7

.6

.5

.4

.3

.2

.1

Organizational Level

(.18)

(.50)(.54)

(.73)

(1.07)

(1.22)Political activityis perceived to

increase at higherorganizational levels

ConditionsSupporting

Organizational Politics

ScarceResources

Complex andAmbiguousDecisions

PersonalCharacteristics

Tolerance ofPolitics

Conditions for Organizational Politics

Perception

What do you think it is ?

82

Perception

“ The study of perception is concerned with identifying the process through which we interpret and organize sensory information to produce our conscious experience of objects and object relationship.”

“ Perception is the process of receiving information about and making sense of the world around us. It involves deciding which information to notice, how to categorize this information and how to interpret it within the framework of existing knowledge.

“ A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

83

Receiving Stimuli(External & Internal)

Selecting StimuliExternal factors : Nature,

Location,Size,contrast,Movement,repetition,similarityInternal factors : Learning,

needs,age,Interest,

Organizing Figure Background ,Perceptual Grouping( similarity, proximity,closure, continuity)

ResponseCovert: Attitudes ,

Motivation,Feeling

Overt: Behavior

Perceptual Process

Interpreting Attribution ,Stereotyping,

Halo Effect, Projection

Organizational Behavior / Perception 84

Factors influencing PerceptionFactors in the perceiver• Attitudes• Motives• Interests• Experience• Expectations

Perception

Factors in the Target• Size• Background• Proximity• Similarity

Factors in the situation• Time• Work Setting• Social Setting