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OB-Concept and DefinitionAccording to Aldag and Brief OB is defined as:“Is a branch of the social sciences that seeks to build theories that can be applied to predicting, understanding and controlling behaviour in work organizations’.
According to Callahan, Fleenor and Kudson OB is:“Organizational Behaviour is a subset of management activities concerned with understanding, predicting and influencing individual behaviour in organizational settings”.
According to above definitions ingredients of OB are same, that is:Studying, understanding and controlling human behaviourThe study is about behaviour in organizations It studies human behaviour at individual level, group level and organizational
level. Knowledge about human behaviour would be useful in improving an
organization’s effectiveness.
Intuition and Systematic Study
Intuition
• Gut feelings• Individual observation•Common sense
Systematic Study
•Looks at relationships•Scientific evidence•Predicts behaviors
The two are complementary means of predicting behavior.
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An Outgrowth of Systematic Study…
Pose a managerial question
Search for best available evidence
Apply relevant information to case
Evidence-Based Management (EBM)
Basing managerial decisions on the best available scientific evidence
Must think like scientists:
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Managers Should Use All Three Approaches
The trick is to know when to go with your gut. – Jack Welsh
Intuition is often based on inaccurate information
Faddism is prevalent in managementSystematic study can be time consuming
Use evidence as much as possible to inform your intuition and experience. That is the
promise of OB.1-5
Contributing Disciplines
Psychology
Sociology
Social Psychol
ogy
Anthropology
See E X H I B I T 1–3 for details
Many behavioral sciences have contributed to the development ofOrganizationalBehavior
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PsychologyThe science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.
Unit of Analysis: Individual
Contributions to OB:Learning, motivation, personality, emotions, perceptionTraining, leadership effectiveness, job satisfaction Individual decision making, performance appraisal,
attitude measurementEmployee selection, work design, and work stress
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Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.
Unit of Analysis:Group
Contributions to OB:Behavioral changeAttitude changeCommunicationGroup processesGroup decision making
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Sociology
Unit of Analysis:-- Organizational System
Contributions to OB:Group dynamicsWork teamsCommunicationPowerConflict Intergroup behavior
-- GroupFormal organization
theoryOrganizational
technologyOrganizational changeOrganizational culture
The study of people in relation to their fellow human beings.
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Anthropology
Unit of Analysis:-- Organizational System
Contributions to OB:Organizational cultureOrganizational
environment
-- GroupComparative valuesComparative attitudesCross-cultural analysis
The study of societies to learn about human beings and their activities.
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Nature of OBA field of Study and not a Discipline- OB can be treated as a distinct field of study and
not a discipline or even emerging discipline. OB, because of its broad base, recent emergence and interdisciplinary orientation,
is not accepted as science.2. Interdisciplinary Approach- OB is basically an interdisciplinary approach. An interdisciplinary approach integrates the relevant knowledge drawn from different
disciplines like psychology, sociology and anthropology.3. An Applied Science- The basic objective of OB is to make application of various
researches to solve the organizational problems particularly related to human behaviour aspect.
4. Humanistic and Optimistic- OB focuses the attention on people from humanistic point of view. It is based on the belief that needs and motivation of people are of high concern. 5. Oriented towards Organizational Objective- OB, being an applied science and emphasising human aspect of the organization, is
oriented towards organizational objectives.6. A total Systems Approach- The systems approach is an integrative approach which takes into account all the
variables affecting organizational functioning.
Importance of OBRoad map to our lives in organisationsHelps us understand and predict organisational
lifeInfluences events in organisationsHelps understand self and others betterHelps a manager get things done betterHelps maintain cordial relationsHighly useful in the field of marketingHelps in career planning and developmentHelps sustain the temp of economic growth
Limitations of OBKnowledge about OB does not help an individual
manage personal life betterDualities of OB are bafflingHas become a fad with managersIs selfish and exploitativeManagers expect quick-fix solutions-not possiblePrinciples and practices may not work in the
events of declining fortunesCannot eliminate totally conflict and frustration
Milestones in the History of Organisation Behaviour/Predecessors of OB
Industrial Revolution Robert Owen, Andrew Ure and J.N. Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach.
Scientific Management– Taylor believed in rationalising production. He believed
Early 20th Century that human behaviour was based on ‘rabble hypothesis.’
Human Relations Movement Great Depression, labour movement and during 1920s to 1940s Hawthorne studies led to the movement. The
movement subsequently became a fadOrganisational behaviour – 1950’s
The Industrial Revolution’s Influence
On Management Practices
Machine power began to substitute for human power Lead to mass production of economical goods
Improved and less costly transportation systems became available Created larger markets for goods.
Larger organizations developed to serve larger markets Created the need for formalized management practices.
Scientific ManagementFrederick W. Taylor Scientific Management
The Principles of Scientific Management (1911) Advocated the use of the scientific
method to define the “one best way” for a job to be done
Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way.
To motivate workers, he favored incentive wage plans.
Separated managerial work from operative work.
The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency. Taylor sought to reduce the
time a worker spent on each task by optimizing the way the task was done.
Definition of Hawthorne Studies
“Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity.”
Origins of Human Relations Theory
“The Hawthorne StudiesHawthorne Works of Western Electric
Company1924 - ChicagoResearch focus: Relation of quality and
quantity of illumination to efficiency in industry
Four Important Studies
“The Hawthorne Studies” Illumination Study (November 1924)
Designed to test the effect of lighting intensity on worker productivity
Heuristic value: influence of human relations on work behavior
Relay Assembly Test Room Study (1927-1932) Assembly of telephone relays (35 parts - 4 machine screws) Production and satisfaction increased regardless of IV
manipulation Workers’ increased production and satisfaction related to
supervisory practices Human interrelationships are important contributing factors to
worker productivity Bottom Line: Supervisory practices increase employee morale
AND productivity Interviewing Program (1928-1930)
Investigate connection between supervisory practices and employee morale
Employees expressed their ideas and feelings (e.g., likes and dislikes)
Process more important than actual results Bank Wiring Room Observation Study (November 1931
- May 1932) Social groups can influence production and individual work
behavior RQ: How is social control manifested on the shop floor? Informal organization constrains employee behavior within
formal organizational structure
CHALLENGES AND OPPORTUNITIES FOR OB1. Responding to economic pressures
Deep and prolonged recession in 2008 that spread worldwide
In difficult economic times, effective management is an asset. During these times, the difference between good and bad management can be the difference between profit and loss.
In good times, understanding how to reward, satisfy, and retain employees is at a premium. In bad times, issues like stress, decision making, and coping come to the fore.
CHALLENGES AND OPPORTUNITIES FOR OB2. Responding to globalization
Increased foreign assignments Organizations are no longer constrained by national
borders. Once you’re in another country, you’ll have to manage a
workforce very differently in needs, aspirations, and attitudes from those you are used to back home.
Working with people from different cultures Even in your own country, you’ll find yourself working
with bosses, peers, and other employees born and raised in different cultures.
Management practices need to be modified to reflect the values of the different countries in which an organization operates.
Overseeing movement of jobs to countries with low-cost labor Managers are under pressure to keep costs down to
maintain competitiveness. Moving jobs to low-labor cost places requires managers to
deal with difficulties in balancing the interests of their organization with responsibilities to the communities in which they operate.
CHALLENGES AND OPPORTUNITIES FOR OB
3. Managing workforce diversity Workforce diversity is one of the most important and
broad-based challenges currently facing organizations. While globalization focuses on differences between people
from different countries, workforce diversity addresses differences among people within given countries.
Workforce diversity acknowledges a workforce of women and men; many racial and ethnic groups; individuals with a variety of physical or psychological abilities; and people who differ in age and sexual orientation.
Managing this diversity is a global concern. Three demographic forces will shape India’s labor force in
this decade: more women in the workforce, urbanization, and an increase in the population of Indians in their thirties and forties.
CHALLENGES AND OPPORTUNITIES FOR OB
4. Improving customer serviceToday the majority of employees in developed
countries work in service jobs. The service industry in India contributed 54.6 per
cent of the country’s GDP and employed 34 per cent of the labor force in 2009.
Examples of people in the service industry include technical support reps, fast food counter workers, waiters, nurses, financial planners, and flight attendants.
Employee attitudes and behavior are associated with customer satisfaction.
CHALLENGES AND OPPORTUNITIES FOR OB
5. Improving people skillsPeople skills are essential to managerial
effectiveness. OB provides the concepts and theories that
allow managers to predict employee behavior in given situations.
6. Stimulating innovation and changeSuccessful organizations must foster
innovation and master the art of change. Employees can be the impetus for innovation
and change or a major stumbling block. Managers must stimulate employees’
creativity and tolerance for change.
CHALLENGES AND OPPORTUNITIES FOR OB7. Coping with “temporariness”
Organizations must be flexible and fast in order to survive. In such a scenario: Jobs must be continually redesigned. Tasks are being done by flexible work teams rather
than individuals. Companies rely more on temporary workers. Workers need to update knowledge and skills. Work groups and organizations are in a continuing
state of flux. Managers and employees must learn to cope with
temporariness. Learning to live with flexibility, spontaneity, and
unpredictability has become part of one’s job. OB provides help in understanding a work world of
continual change, overcoming resistance to change, and creating an organizational culture that thrives on change.
CHALLENGES AND OPPORTUNITIES FOR OB8. Working in networked organizations
Networked organizations are becoming more pronounced. Manager’s job is fundamentally different in networked
organizations. Challenges of motivating and leading “online” require different techniques.
9. Helping employees balance work-life conflicts The creation of the global workforce means work no longer
sleeps. Workers are on-call 24-hours a day or working nontraditional shifts.
Communication technology has provided a vehicle for working at any time or any place.
Employees are working longer hours per week— India ranks among the hardest working nations globally with an average workweek of 50 hours.
The lifestyles of families have changed—creating conflict: more dual-career couples and single parents find it hard to fulfill commitments to home, children, spouse, parents, and friends.
Balancing work and life demands now surpasses job security as an employee priority.
CHALLENGES AND OPPORTUNITIES FOR OB10. Creating a positive work environment
Organizations like the erstwhile Satyam Computer Services realized that creating a positive work environment could be a competitive advantage.
Positive organizational scholarship or behavior studies what is ‘good’ about organizations.
This field of study focuses on employees’ strengths versus their limitations as employees share situations in which they performed at their personal best.
11. Improving ethical behavior Ethical dilemmas are situations in which an individual is
required to define right and wrong conduct. Good ethical behavior is not so easily defined. Organizations are distributing codes of ethics to guide
employees through ethical dilemmas. Managers need to create an ethically healthy climate.