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ORGANIZATIONAL BEHAVIORA presentation by Indranil Mutsuddi
Organizational Behavior
Nature of Organizational Behavior
Human Behavior inOrganizational settings
The Organization
The individual-Organization interface
Environment
Environment
Simple Relationships Among Problems,Methodology, And Knowledge
Body of Knowledge
ResearchMethodology
Problems and Questionsabout Organizational Behavior
The Relationship Of Organizational Behavior ToOther Closely Related Disciplines
OrganizationTheory(OT)
OrganizationalBehavior
(OB)
OrganizationDevelopment
(OD)
Human ResourceManagement
(HRM)
Theoretical
Applied
Macro Micro
Foundations of Organizational Behavior
Individual Differences
Whole Individual
Causedbehavior
Human dignity
SocialSystems
Mutuality ofInterests
HolisticConcept
OB
Importance of Organizational Behavior
• To provide a roadmap to the life of an individual in an organization.
• The field of OB uses scientific research in order to help to understand & predict organizational life.
• OB helps to influence organizational events.
• OB helps an individual to understand himself/herself and others better.
Importance of Organizational Behavior
• A manager in a business organization is concerned with getting things done through delegation, knowledge of OB facilitates effective management of the same.
• The field of OB is useful for maintaining cordial IR.
• The subject of OB is also useful to understand the behavior of the consumers (Consumer Behavior).
The Basic Process of Organizational Behavior
How Strong areThey?
How do theyInterrelate?
Understanding
What patterns ofBehavior arepresent?
What is the cause-effectrelationship?
Prediction
What solutions arepossible?
Which variablescan beinfluenced?
Understanding
Problem prevention
A Social Learning Approach ToOrganizational Behavior
Much of complex behavioris acquired by directly
observing and imitatingothers in the surrounding
environment
ORGANIZATIONALPARTICIPANTS
ORGANIZATIONALBEHAVIOR
Cognitiverepresentations ofreality help guide
organizational behavior
ORGANIZATIONALENVIRONMENT
Participants control theirown behavior to the extent that they rely
on cognitive supports andmanage relevant environmental
cues and consequences
Contributing Disciplines to the OB Field
Selected Topics in Psychology
Biology & Behavior Sensation & perception Learning & conditioning Behavior in social &
cultural context Thinking & intelligence Memory Emotion Motivation Theory of personality Health, stress, & coping Psychological disorder
Contributing Disciplines to the OB Field (cont’d)
Selected Topics in Sociology Culture & Society Socialization Social interaction Groups & organizations Deviance Sexuality Social stratification Family Religion Health & medicine Collective behavior &
social movement
Contributing Disciplines to the OB Field
Selected Topics in Social Psychology
Social perception Social cognitions Attitudes Aspects of social identity Prejudice & discrimination Interpersonal attraction Intimate relations Social influence Pro-social behaviors Individual & group
behaviors Aggression
Contributing Disciplines to the OB Field
Selected Topics in Anthropology
Discovering the past The origins of culture Origins of cities and states Human variation &
adaptation The concept of culture Communication &
language sex, gender, & culture Marriage & the family The arts Culture change
Contributing Disciplines to the OB Field (cont’d)
Challenges and Opportunities (1)Challenges and Opportunities (1)
• Responding to Globalization
• Managing Workforce Diversity– Major diversity categories
Gender (2/5 of nursing school students in US are men)
RaceNational originAgeDisabilityDomestic partners
– Melting pot approach vs. values differences
VeteransBaby
BoomersXers Nexters
after 19791965-19791946-1964before 1946
Multigenerational WorkforceMultigenerational Workforce
Comparison of Xers and Boomers
Task accomplished within workday
Use Internet to compare prices
Work with flexible hours
Not necessarily secured
Task accomplished in several days
Use telephone to compare prices
Work with regular scheduled hours
Secured with retirement plan
Fulfillment
Fluency withtechnology
JobSecurity
Workschedule
X generation Baby boomers
X Generation1965-1979
Baby Boomers1946-1964
Challenges and Opportunities (2)Challenges and Opportunities (2)
• Improving Quality and Productivity– TQM is still in– Quality Circle is out
• Responding to the Labor Shortage– Low birth rate
• Total Fertility Rate: 2.1 (1983) 1.1 (2005)– Low labor participation rates
• 60.93 (1987) 57.78 (2005)– Aging workforce
• Improving Customer Service– % of Service workers
• 35.61 (1978) 58.27 (2005)
Challenges and Opportunity (3)
• Improving People Skills
• Empowering People– McKnight Principles at 3M– Saturn’s self-managed teams
• Coping with “Temporariness”
• Stimulating Innovation and Change
• Helping Employees Balance Work/Life Conflicts
• Improving Ethical Behavior
W. L. McKnight3M Chairman
1949-1966
Contextual Perspective of
Organizational Behavior
OB: Emerging Implications
McKnight Principles at (1948)
Delegate responsibility and encourage men and women to exercise their initiative
Good people want to do their jobs their own way Mistakes will be made. The mistakes he or she
makes are not as serious in the long run as the mistakes management will make if it undertakes to tell those in authority exactly how they must do their jobs.
Management that is destructively critical when mistakes are made kills initiative. And it's essential that we have many people with initiative if we are to continue to grow
3M
HR Highlights• Team structure
– Blue-collar work force are organized into self-directed work teams (6-15 people)
• Training– Minimum of 92 hours of training annually– Teambuilding, quality measurement, job skills
• Empowered Teams– Decisions on job design, selecting new team
members, providing replacement for absentees, budget preparation
• Collective Decision Making (70% consensus)– Decision-rings, business unit committees, Strategic
Action Council
Risk & Reward Pay System
• Base Pay/Benefits– 12% lower than the average GM workers
• At-risk pay (12%)– 5% meeting training requirement– 5% meeting quality requirements– 2% meeting team skills requirement
• Bonus/Reward (Quarterly review)– Based on profitability– $10,000 in 1995, 1996– $2,100 in 1997– $2,105 in 1998
Approaches to the study of OB
HRApproach
(supportive approach)
ContingencyApproach
SystemsApproach
ProductivityApproach
InteractionalismApproach
OB
Universal vs Contingency Approach of OB
OrganizationalProblems or Situations
determine
Elements of theSituation, which then
Suggest…
Organizational problemsOr situations must beEvaluated in terms of
The one best way of Responding
Contingency ways ofResponding
Universal approach
Contingency approach
Systems Approach to Organizations
Inputs:
HumanMaterialFinancial
Information
Outputs:
Products/ServicesProfit/Losses
Employee behaviorAdditional
Information
Product &Production
OrderFulfilment
Product &Production
Organization
Imports from theEnvironment
Exports to theEnvironment
Information
Feedback
Money
Interactionalist Approach to OB
Individual
Situation
Behaviour
A Conceptual Framework For The StudyOf Organizational Behavior
Environmental Context 2. Info. Tech & Globalization 3. Diversity & EthicsOrganizational Context 4. Design & Culture 5. Reward System
Cognitive Processes 6. Perception & Attribution 7. Personality & Attitudes 8. Motivational Needs & Processes 9. Emotional Intelligence, Optimism & Self-Efficacy
SocialCognitiveTheory
Managing andLeading for High Performance
15. Goals & Job Design16. Behavioral Management17. Leadership Processes & Skills18. Great Leaders Really Do
Dynamics
10. Communication11. Decision Making12. Stress & Conflict13. Power & Politics14. Groups & Teams
OrganizationalBehavior
Basic OB Model, Stage I
The OB Model • Personality• Perceptions• Learning• Attitudes & Attribution• Motivation
Individual Behavior
• Group Dynamics• Team Dynamics• Leadership• Power & Politics• Communication• Conflict
• Organization Culture• HR Policies/Practices• Work Stress• Organization Change• Organization Development
Group Behavior
Organization
OrganizationalEffectiveness
OB Depends on…
• Dependent variables
• Independent variables
The Dependent Variables
x
y
The Dependent Variables (cont’d)
The Dependent Variables (cont’d)
The Dependent Variables (cont’d)
The Dependent Variables (cont’d)
There Are Few Absolutes in OB
ContingencyContingencyVariablesVariablesx y
The Independent Variables
IndependentIndependentVariablesVariables
IndependentIndependentVariablesVariables
Individual-Level Individual-Level VariablesVariables
Individual-Level Individual-Level VariablesVariables
OrganizationOrganizationSystem-LevelSystem-Level
VariablesVariables
OrganizationOrganizationSystem-LevelSystem-Level
VariablesVariables
Group-LevelGroup-LevelVariablesVariables
Group-LevelGroup-LevelVariablesVariables
Learning Organizations
What is a Learning Organization
A Learning Organization is an organization that purposefully designs & constructs its structure, culture and strategies with the capacity to learn so that it can continuously adapt and change as needed
Case: Wal-Mart’s Global Learning
• When Wal-Mart’s U.S. market became saturated, it needed International markets for its expansion.
• By 2006 its International sales accounted for some 20% of the total sales.
• But the expansion abroad into some 15 countries was not without problems
• In Germany, Wal-Mart had problems with employees, customers & the low-price competitor Aldi Einkauf GmbH.
• In UK, Wal-Mart’s subsidiary Asda, fared because the company was recognised for its low prices.
• Since 2002, Wal-Mart operated in Japan where it invested in Seiyu Ltd, a chain selling groceries & apparels, Its competitor Aeon Co., apparently was impressed by the Wal-Mart business model that it sent its employees to China & South Korea to study the operation.
Case: Wal-Mart’s Global Learning
Case: Wal-Mart’s Global Learning
• The “Super-centre Model” of Wal-Mart did not work in Brazil where consumers preferred the local market.
• In China, where many consumers had limited transportation choices, Wal-Mart offered free shuttle services & home delivery for heavy items such as refrigerators etc.
Conclusion:• Wal-Mart is learning from its mistakes because
International customers are vital for its vision of global growth
Characteristics of a Learning Organization
• System Thinking: To be aware of the open linkages b/w managerial actions & those around them, within & outside the organization.
• Personal mastery: Organizations need to encourage their employees to continually learn & improve their own skills & abilities.
• Mental Models: They are deeply embedded assumptions & generalizations which managers carry regarding how the world works & their own actions.
Characteristics of a Learning Organization
• Building shared Visions: There is an important difference b/w a vision built around a charismatic leader-which is often transitory, and that built around shared goals.
• Team Learning: Working and sharing information among team members is a vital element of the learning organization.
Creating the Learning Organization
• Capabilities of scanning is necessary for exposing the organizations to new information, crated internally or acquired externally.
• Capabilities of self-reflection & problem-solving to enable the firm to interpret new information and redefine business knowledge is critical.
Creating the Learning Organization
• Capabilities to disseminate the new knowledge throughout the organization is important to ensure collective learning.
• Capabilities to act and experiment in order to enable the organization to practice the new responses it has learnt is essential.
• Facilitating the shift in People’s Mindsets.
Facilitating the shift in People’s Mindsets
• Managers must be receptive to the new ideas and overcome the desire to closely monitor & control operations
• Systems thinking among managers in the organization needs to be cultivated.
• It is necessary to keep the organization in a state of constant change.
Facilitating the shift in People’s Mindsets
• Diversities need to be cultivated in the functioning of the organization.
• Creating a mechanism to unlearn old & obsolete knowledge & practices.
• Disseminate learning throughout the organization systematically.
• Develop a sense of personal efficiency (efficacy) among the organizational members.
Need for Learning Organizations
• To survive in the tomorrow’s knowledge-based economy.
• To manage tomorrow’s intense Global competition.
• To cope with tomorrow’s rapid fire technological changes.
• To handle tomorrow’s demanding and fragmented markets.
• To build a people based work system in the organization.
Traditional vs Learning Organizations
Function Traditional Organization Learning Organization
1. Determination of
overall direction
Vision provided by top
management
Shared vision
2. Formulation &
implementation of
ideas
Top management decides what
is to be done ; rest of the
organization acts on these
ideas
Formulation &
implementation of ideas
take place at all level of
the organization.
3. Nature of
organizational
thinking
Each person is responsible for
his own job responsibilities
The focus is on developing
individual competence
Personnel understanding
their own jobs as well as
the way in which their
own work interrelates with
& influences that of
others
Traditional vs Learning Organizations
Function Traditional Organization Learning Organization
4. Conflict Resolution They are resolved through use
of power & hierarchical
influences.
They are resolved through
the use of collaborative
learning & the integration
of the diverse viewpoints.
5. Leadership &
Motivation
The role of the leader is to
establish the organization’s
vision, provide rewards &
punishment & maintain overall
control of employee activities.
The role of the leader is to
build a shared vision,
empower personnel,
inspire commitments, &
encourage effective
collaborative decision
making