1.Dr . SABIYA . MUFTIASSISTANT PROFESSORDEPARTMENT OF BUSINESS & FINANCIAL STUDIES UNIVERSITY OF KASHMIR

2. What is an Organization? An organization is a collection of people who work together to achieve individual and organizational goals. 3. What is an OrganizationAconsciouslycoordinated socialunit, composed oftwo or morepeople, that functions on a relativelycontinuous basis to achieve a commongoal or set of goals. 4. What is Organizational Behavior?Organizational behavior(OB) is the study of factorsthat affect how individualsandgroups actinorganizationsandhoworganizations manage theirenvironments. 5. Levels of AnalysisOrganizational Level Group Level Individual Level 6. Components of Organizational BehaviorUnderstandingorganizational behavior requires studyingIndividuals in OrganizationsGroup and Team Processes Organizational Processes 7. What is Management?Management is the processofplanning, organizing, leading, andcontrollingan organizationshuman, financial,material,andotherresourcesto increaseitseffectiveness. 8. The Functions Of ManagementManagement process of working with people and resources toaccomplish organizational goals effective - achieve organizational goals efficient - achieve goals with minimum waste of resources1-10 9. PlanningOrganizingManagers JobLeadingControlling 10. Managers JobManagement OrganizingFunctionsHenry Fayol a French Determines what tasks are toIndustrialist wrote that allmanagers perform fourmanagement functions be done; Who is to do them;PlanningOrganizing How the tasks are to beLeadingControlling grouped; Who reports to whom; andPlanning Where decisions are to be Organizingmade.Leading controlling 11. Managers JobManagement Functions LeadingHenry Fayol a French Industrialistwrote that all managers performfour management functions Motivating employees; Direct their activities;PlanningOrganizing Select the most effectiveLeadingControllingcommunication channels; or Resolve conflicts amongPlanningmembers. OrganizingLeading controlling 12. Managers JobManagement Functions ControllingHenry Fayol a French Industrialistwrote that all managers performfour management functions Monitoring performance; Comparing performance withPlanningOrganizingthe set standard;Leading Making corrections, ifControllingnecessary.Planning OrganizingLeading Controlling 13. Management LevelsTop-levelmanagers Middlemanagers Frontline managers1-16 14. Management Levels Management level Top-level managers senior executives responsible for overall management of an organization focus on long-term issues emphasize the survival, growth, and effectiveness of the firm concerned with the interaction between the organization and its external environment1-17 15. Management Levels Management level (cont.) Middle-level managers (tactical managers) located between top-level and frontline managers in the organizational hierarchy responsible for translating strategic goals and plans into more specific objectives and activities traditional role was that of an administrative controller who bridged the gap between higher and lower levels growing role is that of a developmental coach to the people who report to them1-18 16. Management Levels Management level (cont.) Frontline managers (operational managers) lower-level managers who supervise the operational activities of the organization directly involved with non management employees increasingly being called on to be innovative and entrepreneurial Working leaders with broad responsibilities in leading small companies, managers have strategic, tactical, and operational responsibilities have a knowledge of all business functions, are accountable for results, and focus on internal and external customers1-19 17. Managerial Roles Manager: Any person who supervises one ormore subordinates. Role: A set of behaviors or tasks a person isexpected to perform because of the position he orshe holds in a group or organization. Managerial roles identified by Mintzberg. FigureheadLeader Liaison Monitor DisseminatorSpokesperson EntrepreneurDisturbance handler Resource allocatorNegotiator 18. Management Roles In 1960s, Mintzberg after studying 5 executives to determine what those managers did on their jobs. Mintzberg concluded that mangers perform 10 different, highly interrelated roles or set of behaviors attributable to their jobs. 19. Mintzbergs Managerial RolesRole DescriptionInterpersonalFigurehead Symbolic head, required to perform a number of routine duties of a legal or social natureLeader Responsible for the motivation & direction of employeesLiaisonMaintains a network of outside contacts who provide favors & information 20. Mintzbergs Managerial RolesRole DescriptionInformationalMonitorReceives a wide variety of information; serves as nerve centre of internal & external information of the organizationDisseminator Transmits information received from outsiders or from other employees to members of the organizationSpokesperson Transmits information to outsiders on organizations plans, policies, actions, & results; serves as an expert on organizations industry 21. Mintzbergs Managerial RolesRoleDescriptionDecisionalEntrepreneurSearches organization & its environment foropportunities & initiatives projects to bringabout changeDisturbance handler Responsible for corrective action whenorganization faces important, unexpecteddisturbancesResource allocatorMakes or approves significant organizationaldecisionsNegotiatorResponsible for representing the organization atmajor negotiation 22. Managerial Skills Conceptual Skills:The ability to analyze anddiagnose a situation anddistinguish between causeand effect. Human Skills:The ability tounderstand, workwith, lead, and control thebehavior of other peopleand groups. Technical Skills:Job-specific knowledgeand techniques. 23. Luthans Study of Managerial Activities Four types of managerial activity: Traditional Management Decision-making, planning, and controlling. Communication Exchanging routine information and processing paperwork Human Resource Management Motivating, disciplining, managing conflict, staffing andtraining. Networking Socializing, politicking, and interacting with others. Managers who promoted faster (were successful) diddifferent things than did effective managers (those whodid their jobs well) 24. Wilson Managerial Skills ResearchStatistically Dealing effectively with people isvalidated profilewhat management is all about;ofmanagerial The 11 skills constitute a goalskills: over20 creation/communication/feedbyears research by ack/reward/accomplishmentClark Wilson et al cycle with human interaction at every turn.(2003) Managers with high skills mastery tend to have better subunit performance & employee morale than managers with low skills mastery 25. Wilson Managerial Skills Research (cont.)Statistically Effective female & male managersvalidated profile ofdo not have significantly differentmanagerial skills:skill profiles, contrary to claims inover 20years the popular business press inresearch by Clark recent years.Wilson et al (2003) At all career stages, derailedmanagers (those who failed toachieve their potential) tended tobe the ones who overestimatedtheir skill mastery ( ratedthemselves higher than theiremployees did). 26. Research evidence Concluding remarks of researcher: whenselecting individuals for promotionto managerialpositions, those who are arrogant, aloof, insensitive, and defensive should be avoided 27. Skills exhibited by Effective Manager Clarifies goals & objectives for everyone involved; Encourages participation, upward communication, &suggestions; Plans & organizes for an orderly work flow; Has technical & administrative expertise to answerorganization-related questions; Facilitates work through teambuilding, training, coaching, & support; 28. Skills exhibited by Effective Manager (Cont.) Provides feedback honestly & constructively; Keeps things moving by relying on schedules, deadlines, & helpful reminders; Controls details without being arrogant; Applies reasonable pressure for goal accomplishment; Empowers & delegates key duties to others while maintaining goal transparency & commitment; Recognizes good performance with rewards & positive corroboration. 29. Managing For Competitive AdvantageCostInnovationCompetitivenessCompetitive AdvantageQuality Speed1-32 30. Managing For Competitive Advantage Cost competitiveness costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers key is efficiency - accomplishing goals by using resources wisely and minimizing waste Quality excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability importance of quality has increased dramatically must identify specific elements of quality to correct problems, target needs, and deliver world-class value1-33 31. Managing For Competitive Advantage (cont.) Speed often separates winners from losers in world competition speed became a vital requirement in the 1990s requirement has increased exponentially Innovation the introduction of new goods and services important to adapt to changes in consumer demands and to new sources of competition Best managers and companies delivering all four1-34 32. Organizational BehaviorA field of study that investigates the impact thatindividuals, groups, and structure have on behavior withinorganizations, for the purpose of applying such knowledgetoward improving an organizations effectiveness.Gregory Moorhead :2007 33. Organizational Behavior The field of OB deals with human behavior in organizations OB is the multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying individual, groups, and organizational processes. Jerald Greenberg:2008 34. Organizational Behavior This knowledge is used both by scientists interested in understanding human behaviour & by practitioners interested in enhancing organisational effectiveness & individuals well being.Robert A .Baron:2008 35. Organizational BehaviorOrganisation Behaviour is concerned with the study of what people do in an organisation and howthat behaviouraffects the performance of the organisation.Robbins: 1998,9 36. Organizational BehaviorOB highlights four central characteristics of the field. It is firmly grounded in the scientific method. It studies individuals, groups & organisations. It is interdisciplinary in nature. It is used as the basis for enhancing organisationaleffectiveness & individual well-being. 37. Organizational BehaviorThe study of Organisational Behaviour involves: consideration of the interaction among the formal structure(organisational context in which the process of managementtakes place) the technology employed and the methods of carrying out work the behaviour of people the process of management the external environment 38. Organizational BehaviorInterrelated dimensions influencing behaviour: The Individual - working environment should satisfy individualneeds as well as attainment of organisational goals. The Group - formal and informal. Understanding of groupscomplements a knowledge of individual behaviour. The Organisation - impact of organisation structure anddesign, and patterns of management, on behaviour. The Environment - technological and scientificdevelopment, economic activity, governmental actions. 39. 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 ofpredicting behavior. 40. An Outgrowth of Systematic StudyEvidence-Based Management (EBM) Basing managerial decisions on the best availablescientific evidence. Must think like scientists: Pose a managerial question Search for best available evidence Apply relevant information to case 41. Intuition and Systematic StudyThe trick is to know when to go with your gut. Jack Welch Intuition is often based on inaccurateinformation Faddism is prevalent in management Systematic study can be time-consumingUse evidence as much as possible to inform your intuition and experience. That is the promise of OB. Managers Should Use All Approaches 42. Behavioral ContributionsUnit ofOutputscience Learning analysisMotivationPersonalityEmotionsPerceptionTrainingLeadership effectiveness Psychology Job satisfactionIndividual decision makingPerformance appraisalAttitude measurementEmployee selectionWok design IndividualWork stressBehavioral changeAttitude change SocialCommunication psychologyGroup processesGroup decision makingCommunication Study of GroupPowerorganizationalConflictbehaviorIntergroup behaviorSociology Formal organization theoryOrganizational technologyOrganizational changeOrganizational cultureOrganizationalComparative values systemComparative attitudesCross-cultural analysisAnthropologyOrganizational environmentpowerOrganizational culture 43. Four Contributing Disciplines Psychology The 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, perception Training, leadership effectiveness, job satisfaction Individual decision making, performanceappraisal, attitude measurement Employee selection, work design, and work stress 44. Four Contributing Disciplines Social Psychology An 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 change Attitude change Communication Group processes Group decision making 45. Four Contributing Disciplines Sociology The study of people in relation to their fellow human beings. Unit of Analysis:Organizational System GroupContributions to OB: Group dynamics Formal organization theory Work teams Organizational technology Communication Organizational change Power Organizational culture Conflict Intergroup behavior 1-48 46. Four Contributing Disciplines AnthropologyThe study of societies to learn about human beings andtheir activities.Unit of Analysis:Organizational System-- GroupContributions to OB: Comparative values Organizational culture Organizational Comparative attitudesenvironmentCross-cultural analysis 47. SIGNIFICANCE OF OB Road map to our lives in organizations Helps us understand and predict organizational life Influences events in organizations Helps understand self and others better Helps a manager get things done better Helps maintain cordial relations Highly useful in the field of marketing Helps in career planning and development 48. Limitations of OB Knowledge about OB does not help an individual manage personallife better Qualities of OB are mysterious Has become a fad with managers Is selfish and exploitative Managers expect quick-fix solutions-not possible Principles and practices may not work in the events of decliningfortunes Cannot eliminate totally conflict and frustration 49. Challenges & Opportunities forOB Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Improving Customer Service Improving People Skills Stimulating Innovation and Change Coping with Temporariness Working in Networked Organizations Helping Employees Balance Work-Life Conflicts Creating a Positive Work Environment Improving Ethical Behavior1-52 50. OB Challenges 51. Globalization Refers to the economic, social and culturalconnectivity within people in other parts of theworld. It is all about the ongoing process of increasinginterdependence with each other around theplanet, whether through trading goods &services, sharing knowledge or interacting withpeople from different cultures & locations in theworld. 52. Challenges and Opportunities for OB Responding to Globalization Increased foreign assignments Working with people from different cultures Overseeing movement of jobs to countries with low- cost labor Managing people during the war on terror1-55 53. Why Globalization? Access to additional resources (including skilledworkforce) Low cost Economies of scale Favorable regulations & tax systems Direct access to new and growing markets Ability to customize products to local tastes &styles 54. Workforce Diversity Workforce diversity means that organisations are becoming a more heterogeneous mix of people in terms of gender , age , race , physical ability etc . A diversity workforce e.g. may include , Women Color of people The physically disabled Senior citizens etc. 55. Workforce Diversity in India Indian organisations have accommodate a verydiverse social group of employees based on socio-economic, cultural and linguistic composition. Scheduled castes & Scheduled tribes Other Backward castes Bonafide members of the stateEx-defense & paramilitary personnelDisabled personsGender issues 56. DiversityDiversity enhances creativity and innovation (Adler, 1997;Jackson et al., 1992), andproduces competitive advantages(Coleman, 2002; Jackson et al., 1992).Diverse teams make it possible to enhance flexibility (Fleury, 1999) andRapid response and adaptation to change (Adler, 1997; Jackson et al., 1992. 57. The Four Layers of DiversityFunctional Level/ClassificationGeographic LocationMaritalWork Mgmt.IncomeStatusContent/ StatusAgeFieldParental Personal StatusRace Habits Personality Recreational Division/ AppearanceHabits SexualDept./UnionEthnicity OrientationUnit/AffiliationGroup Physical Work Ability Religion Experience Educational Background WorkLocationSeniority 58. Test Your Knowledge Sam is a 55 year-old, male SalesManager for XYZ corporation. He likesto drive fast cars and is NativeAmerican. Which layer of diversity hasnot been mentioned about Sam?A. PersonalityB. InternalC. ExternalD. Organizational 59. Challenges and Opportunities for OB Managing Workforce Diversity The people in organizations are becoming moreheterogeneous demographically(disability, gender, age, national origin, non-Christian, race, and domestic partners) Embracing diversity Changing demographics etc. 60. Primary and Secondary Dimensions of Diversity 61. Impact of Diversity Organizational culture Calls for diverse approaches to managing people including training the staff in desired skills For example, people with adequate programming skillsare not available in US & UK markets (HRHead, Infosys, Economic Times, 2009) 62. Prominent world level companies McDonald Founded in 1967 in Canada Operating income 50% earned from outside US operations (2005) Every three hrs. a new McDonald opens somewhere on earth 2/3rd of its workforce non-US 63. Prominent world level companies Coca-Cola Operates in more than 200 countries 80% of its workforce are non- US citizens Has 500 trained personnel to go anywhere in theworld to offer advice and expertise concerningoperational and customer service problems 70% of its operating income comes from operationsout side of US 64. Prominent world level companiesNokia the cell phone giant from Finland employs over 1000foreign workers in Finland & over 60% of its 53000employees are non-finsPhilips an electronic giant employs 83% of its workforceoutside of its headquarters in the NetherlandsIBM employ almost 80000 people in India (Eco.Times, April, 2010) 65. Prominent world level companiesTCS an Indian IT giant is planning to increase its non-Indian workforce to 20000 from present 10000 over thenext 5 yearsInfosys & Wipro could see non-Indians account for 10-15% of their totalemployee base in next 3-5 years, from around 5%presently(Economic Times, 27th April, 2009) 66. Increased Workforce Diversity -Women Glass Ceiling Invisible barrier blocking women andminorities from top managementpositions Women CEOs (as of 2/2007): 10 of Fortune 500 23 of Fortune 1000 What helps break the ceiling? 67. Increased Workforce Diversity - Race Racialminorities aregrowing 2006 1,016race-basedcharges ofdiscriminationto EEOC 68. Education and Personal Income 69. Increased Workforce Diversity - Age 70. Benefits from Managing DiversityXerox plants using diverse work teams are now 30 per centmore productive than conventional plants.Procter & Gamble achieves 30-40 per cent higher productivity at its 18diverse team-based plants than at its non-diverse plants.Motorola beat its competition by producing the worlds mostefficient and high-quality cellular phones which areproduced almost exclusively by diverse work teams.Research has shown that organizations thatproactively recruit, develop, and leveragemultinational leaders are in better positions in theglobal marketplace. 71. Benefits from Managing Diversity GE Power Systems achieved 13 per cent productivity gains fromcross-functional and multicultural teams versus homogeneousteams. Numerous empirical studies of work teams demonstrate that whentasks are complex and not clearly defined, heterogeneous teamsoutperform homogeneous teams. Super teams, those that werediverse in numerous respects and selected because of theirdifferences, outperformed those that were homogeneous. 72. Benefits from Managing Diversity Unlike other MNCs, diversity for us is a business imperative and not an issue of legal compliance. We want HLLs management to be representative of our diverse customer base so that they understand the needs of the customer better. If a manager understands the brand she is handling, the learning curve is that much shorter. For instance, in marketing, if the target audience is women, it is an advantage if a woman is incharge of the brand. Says Prem Kawath, HR Manager, HLL.4 73. Leaders in Diversity Pepsis CEO & directreports are each assigneddifferent employee group(e.g., GLT, Asian, women ofcolor) Responsible for: Understanding the issuesthese employees face Facilitating their growthand development Hold themselvesaccountable 74. Evolution of Organizational BehaviourThree significant Eras: The Classical Era (1880-1930)Administrative theory Scientific Management The Behavioural Era (1930-1960) The Hawthorne Legacy The Modern Era (1960 onwards) Contingency Approach 75. A Brief History of OB Classical approach to management (scientific management and administrative management) Hawthorne studies (workers respond to attention) Human relations movement (treat workers well to boost productivity) contd. 76. A Brief History of OBContd. The contingency approach (examine individual and situational differences before taking action) Positive organizational behavior (focus on measurable strengths of workers to improve performance) 77. The classical approach The focus of scientific management was theapplication of scientific methods to increaseindividual workers productivity.According to the principles of scientificmanagement, there is a division of workbetween managers and workers. 78. The classical approachTAYLORS PRINCIPLES the development of a true science for each personswork the scientific selection, training and developmentof the workers co-operation with the workers to ensure work iscarried out in the prescribed way the division of work and responsibility betweenmanagement and the workers. 79. The classical approach Administrative management was concernedprimarily with how organizations should bemanaged and structured. The core of management knowledge lieswithin the classical school, including theframework of planning, organizing, andcontrolling. 80. The classical approach Henry Fayol classified all the business activitiesinto six functions: Technical activities Commercial activities Financial activities Security activities Accounting activities Managerial activities 81. The Hawthorne Studies During the 1920s, attention began to focus on social factors atwork, groups, leadership, the informal organisation andbehaviour of people. Behavioural and informal are alternative headings sometimesgiven to this approach. Turning point came with the famous Hawthorne experiments atthe Western Electric Company in America (1924-32) One of the researchers (leader) was ELTON MAYO (1880-1949) 82. The Hawthorne StudiesFour Main Phases to the Hawthorne Experiments The Illumination Experiments - level of production was influenced by factors other than changes in physical conditions of work. The Relay Assembly Test Room - attention and interest by management reason for higher productivity. 83. The Hawthorne Studies The Interviewing Programme -20,000 interviews. Gave impetus to present-day personnel management and use of counselling interviews. Highlighted the need for management to listen to workers. The Bank Wiring Observation Room - Piecework Incentive Scheme. Group pressures stronger than financial incentives offered by management 84. The Hawthorne StudiesA major conclusion from these studies was theworkers reacted positively because managementcared about them (the Hawthorne effect). The Hawthorne effect is the tendency of people tobehave differently when they receive attentionbecause they respond to the demands of thesituation. contd. 85. The Hawthorne Studiescontd.The Hawthorne studies also led to many otherconclusions, such as the fact that effectivecommunication with workers is critical tomanagerial success 86. The Human Relations Movement The human relations movement was based on the belief that an important link exists among managerial practices, morale, and productivity. Key points of the movement are that satisfied workers are more productive and that, given the proper working environment, virtually all workers would be highly productive. 87. Contingency Approach Writers in the 1950s and 1960s who adopted a morepsychological orientation. Major focus was the personal adjustment of the individualwithin the work organisation and the effects of grouprelationships and leadership styles. Main contributors: MASLOW, HERZBERG AND McGREGOR. 88. Contingency ApproachMASLOWS HIERARCHY OF HUMAN NEEDSGeneral Examples NEEDS OrganisationalExamplesAchievement SELF-ACTUALISATION Challenging JobStatus ESTEEMJob TitleFriendship socialFriends in the Work GroupStabilitySECURITYPension PlanSustenance PHYSIOLOGICAL Base Salary 89. Contingency ApproachHERZBERG isolated two different sets of factors affectingmotivation and satisfaction at work.1. Hygiene or Maintenance Factors - concerned basically with job environment. Extrinsic to the work itself.2. Motivators or Growth Factors - concerned with job content. Intrinsic to the work itself.Goal of managers is to achieve a state of no dissatisfaction byaddressing Hygiene Factors. Task of improving motivation isthen by addressing the Motivators. 90. Contingency ApproachMcGREGOR argued that the style of Management adopted is afunction of the managers attitudes towards human nature andbehaviour at work.He put forward two suppositions called Theory X and Theory Ywhich are based on popular assumptions about work andpeople. 91. Contingency Approach THEORY X ASSUMPTIONS People do not like work and try to avoid it. People do not like work, so managers have tocontrol, direct, compel, and threaten employees to get them towork toward organisational goals. People prefer to be directed, to avoid responsibility, to wantsecurity, and have little ambition. 92. Contingency Approach THEORY Y ASSUMPTIONS People do not naturally dislike work; work is a natural part of theirlives. People are internally motivated to reach goals to which they arecommitted. People are committed to goals to the degree that they receive personalrewards when they reach their objectives. People will seek and accept responsibility under favourableconditions. People have the capacity to be innovative in solving organisationalproblems. People are bright, but generally their potentials are under-utilised. 93. Contingency Approach A cornerstone of the human relations movement is Theory X and Theory Y of Douglas McGregor. Theory X is the somewhat stern and pessimistic traditional assumptions about worker capabilities. Theory Y is an alternative, and optimistic, set of assumptions 94. The Contingency Approach Thecontingency approach to management emphasizes there is no one best way to manage people or work. The contingency approach is derived from the study of leadership styles. The strength of the contingency approach is that it encourages managers and professionals to examine individual and situational differences before deciding on a course of action. 95. Milestones in the History of Organization BehaviourIndustrial RevolutionRobert Owen, Andrew Ure and J.N. Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach. Taylor believed in rationalizing production. HeScientific Management 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 led to the movement. The movement subsequently became a fad Organisational behaviour 1950s The contingency approach is that it encouragesContingency Approach managers and professionals to examine individual and situational differences before deciding on a course of action-1960 onwards.