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You and the Organisation
1KM, 2013, IIMIDR
Network of relationships
Ø Organisation: A structured social system consisting of groups and individuals –working together to meet some hope-fullyagreed-upon goals.n Organisation goalsn Product/Deptartment goalsn Personal goals…….
U need to understand the interplay of individual differences & environment in which they operate
Eg, junior doctor in Corporate hospital 2
Source: Perrow 1967
KM, 2013, IIMIDR
PERFORMANCE……
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Two dimensions of performance
Effective, but not efficient
Ex: Microsoft in initial years
Effective and efficient
(area of high managerial effectiveness)
Efficient but not effective: Ex: Digital Corpn.
PerformanceEffectivenessHow well are Goals being attained? Means – End Relationship uncertain
Performance efficiencyHow well are resources being used?
Poor
Good
Monitor and control
Engage, encourage
4KM, 2013, IIMIDR
YOUR FUTURE ROLE……
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- Time horizon- Skill - Managing self to managing others- Work values – make time for others
WHAT MANAGERS DO?
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What Managers Do
They get things done through other people.n Management Activities:n Make decisionsn Allocate resourcesn Direct activities of others to attain goals
n Work in an organizationn A consciously coordinated social unit
composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.
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Management Functions
Plan Organize
Lead Control
Managers
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n Discovered ten managerial roles – sets of behaviors in their work
n Separated into three groups:n Interpersonaln Informationaln Decisional
Mintzberg’s Managerial Roles
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Mintzberg’s Managerial Roles: Interpersonal
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Figurehead
LiaisonLeader
Interpersonal Roles11
Mintzberg’s Managerial Roles: Informational
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Monitor
DisseminatorSpokesperson
Informational Roles
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Mintzberg’s Managerial Roles: Decisional
Decisional Roles
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Entrepreneur
Disturbance handler
Resource allocator
Negotiator
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Essential Management Skillsn Technical Skillsn The ability to apply specialized knowledge or
expertise
n Human Skillsn The ability to work with, understand, and
motivate other people, both individually and in groups
n Conceptual Skillsn The mental ability to analyze and diagnose
complex situations
KM, 2013, IIMIDR 14
Luthans’ Study of Managerial Activities and Managerial Successn Four types of managerial activity:n Traditional Management
n Decision making, planning, and controlling
n Communicationn Exchanging routine information and processing
paperwork
n Human Resource Managementn Motivating, disciplining, managing conflict,
staffing, and training
n Networkingn Socializing, politicking, and interacting with others
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Successful vs. Effective Allocation by Time
Managers who got promoted faster (were successful) did different things than did effective managers (those who did their jobs well)
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DEFINITION……
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Organisation Behavior
Ø As manager you need to be efficient(resource utilisation) and effective (goal achievement)
Ø OB – to understand all aspects of behaviors in three levels of analysis - individual, groups and organisation.
18KM, 2013, IIMIDR
Behavior: The way one acts or conducts oneself in response to stimuli
Shape Behavior
Positive reinforcement principles improves organization functioning
Negative reinforcement principles to discourage undesirable behavior
1. Reward and Recognition schemes, 2. Incentive schemes,3. Various data-based performance improvements
1. Discipline related, 2. Norms, Rules & Regulations3. Convert –ve to +ve reinforcements & benefits
19KM, 2013, IIMIDR
Systematically reinforcing each successive step that moves an individual closer to the desired response (OB modification)
OB matters…..
n If accurately appraise the work of subordinates, company enjoy lower costs and higher productivity.
n People who are satisfied with the way they are treated at work are generally more pleasant to co workers, and are less likely to quit.
n People who are trained carefully to work together in teams are generally happier and more productive than those who are simply thrown together without any organisational support.
n Employees who believe that they have been treated unfairly on the job are more likely to steal and to reject policies of their organisations.
n People who are mistreated by the supervisors are likely to suffer more mental and physical illnesses.
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OB matters…..
n Organisations that treat well with respect to pay/benefits, opportunities, job security, friendliness, fairness, and pride in the company, are twice as profitable as the S&P’s 500 companies.
n……..Cuts across all areas of organisational functioningmotivation communication keep people satisfied make teams function smoothlydesign jobs effectively KM, 2013, IIMIDR 21
OB - evolution
n Scientific management:n Time and motion studies
n Designing jobs as efficiently as possiblen People are like machines (Taylor)
n Human relations movementn Importance of social processes in work settings
(Mayo)n Hawthorne studies: how the design of work
environment affected performancen Tendency for people being studied to behave differently
that they ordinarily would KM, 2013, IIMIDR 22
OB - evolution
n Boring, monotonous, physical labour is drastically reduced
n Decision making is being driven down the organisation as access to information to take decision is at finger tips of mostn To tap employees’ potential to create, judge,
imagine, build relationshipsn Create work that is challenging, meaningful
and interestingn People want to earn but also care about
interpersonal side of work – recognition, relationships, social interaction
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EVIDENCE BASED……
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Four issues….
n Firmly grounded in scientific methodn Interdisciplinary is naturen Basis for enhancing organisational
effectiveness and individual well-beingn Studies individuals, groups and organisations
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Intuition and Systematic Study
• Gut feelings• Individual observation• Common sense
Intuition
• Looks at relationships• Scientific evidence• Predicts behaviors
Systematic Study
(cause-effect)
The two are complementary means of predicting behavior.KM, 2013, IIMIDR 26
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:
KM, 2013, IIMIDR
As Manager, ask questions
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Contributing Disciplines
Psychology
Sociology
Social Psychology
Anthropology
Many behavioral sciences have contributed to the development ofOrganizationalBehavior
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Contributing Disciplines
Psychology
Sociology
Social Psychology
Anthropology
• Learning, motivation, personality, emotions, perception
• Training, leadership effectiveness, job satisfaction
• Individual decision making, performance appraisal, attitude measurement
• Employee selection, work design, and work stress
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• Behavioral change• Attitude change• Communication• Group processes• Group decision
making
• Group dynamics• Work teams• Communication• Power• Conflict• Intergroup behavior
• Organizational culture
• Organizational environment
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Fundamental assumptions
n Dynamic nature of organisation:n Open systems
n Inputs Throughput Outputn Environment Feedback
n Assumes that there is no “one best approach”n Contingency approach – a perspective
suggesting that organisational behavior is affected by a large number of interacting factors. How someone will behave is contingent on many different variables at once.
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Few Absolutes in OB
Contingency Variable (Z)
Independent Variable (X)
Dependent Variable (Y)
In American Culture
Boss Gives “Thumbs Up”
Sign
Understood as Complimenting
In Iranian or Australian Cultures
Boss Gives “Thumbs Up”
Sign
Understood as Insulting - “Up
Yours!”
Situational factors that make the main relationship between two variables change—e.g., the relationship may hold for one condition but not another.
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Types of Study Variables
Independent (X)n The presumed cause of the
change in the dependent variable (Y).
n This is the variable that OB researchers manipulate to observe the changes in Y.
Dependent (Y)n This is the response to X
(the independent variable).n It is what the OB
researchers want to predict or explain.
n The interesting variable!
X Y Predictive Ability
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Eg, Hawthorne studies32
Interesting OB Dependent Variables: work outcome variablesn Productivity
n Transforming inputs to outputs at lowest cost. Includes the concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).
n Absenteeismn Failure to report to work – a huge cost to employers.
n Turnovern Voluntary and involuntary permanent withdrawal from an
organization.
n Deviant Workplace Behaviorn Voluntary behavior that violates significant organizational
norms and thereby threatens the well-being of the organization and/or any of its members.
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More Interesting OB Dependent Variablesn Organizational Citizenship Behavior (OCB)n Discretionary behavior that is not part of an
employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization (eg, covering for a sick colleague, noticing a flaw in work process).
n Job Satisfactionn A general attitude (not a behavior) toward
one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics.KM, 2013, IIMIDR 34
The Independent VariablesThe independent variable (X) can be at any of these three levels in this model:nIndividualn Biographical characteristics, personality and emotions,
values and attitudes, ability, perception, motivation, individual learning, and individual decision making
nGroupn Communication, group decision making, leadership and trust,
group structure, conflict, power and politics, and work teams
nOrganization Systemn Organizational culture, human resource policies and
practices, and organizational structure and designKM, 2013, IIMIDR 35
VALUES, ATTITUDES AND BEHAVIOR
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Values
Basic convictions on how to conduct yourself or how to live a life that is personally or socially preferable – “How To” live life properly.Viewed as a conception, explicit or implicit, of what an individual or a group regards as desirable, and in terms of which he or they select, from among alternative available modes, the means and ends of action.
Ø Beliefs: what ‘is’ known about the world (eg, life after death, walking under ladder brings ill luck)
Ø Values: what should be and what is desirableKM, 2013, IIMIDR
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Some issues….
n Stablen Enduringn Significant portion is established in early
years – through socialisationn Some research says that values may be
partly determined by our geneticallytransmitted traits.
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Values
nAttributes of Values:n Content Attribute: says that a mode of conduct or end-
state of existence is importantn Intensity Attribute: just how important that content isnValue Systemn A person’s values rank ordered by intensityn Tends to be relatively constant and consistent
n Eg, freedom, pleasure, self respect, honesty, obedience, equality
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Importance of Values
n Provide understanding of attitudes, motivation, and behaviors
n Eg, you view that pay should be based on performance, but in your orgn, it is based on seniority – disappointment, less output….
n Influence our perception of the world around us
n Eg, tit for tat is the best…………
n Represent interpretations of “right” and “wrong”
n Imply that some behaviors or outcomes are preferred over others
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Classifying Values – Rokeach Value Survey
n Terminal Values (18 items)n Desirable end-states of existence; the goals that a person
would like to achieve during his or her lifetimen Eg, true friendship, a comfortable life
n Instrumental Values (18 items)n Preferable modes of behavior or means of achieving one’s
terminal valuesn Eg, responsible, ambitious
n People in same occupations/categories tend to hold similar values
n But values vary between groupsn Value differences make it difficult for groups to negotiate and
may create conflictKM, 2013, IIMIDR41
Value Differences Between Groups
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Source: Based on W. C. Frederick and J. Weber, “The Values of Corporate Managers and Their Critics: An Empirical Description and Normative Implications,” in W. C. Frederick and L. E. Preston (eds.) Business Ethics: Research Issues and Empirical Studies (Greenwich, CT: JAI Press, 1990), pp. 123–44.
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Generational Values
Cohort Entered Workforce
Approximate Current Age
Dominant Work Values
Socialists 1950s to the late 1980s
55+ Hardworking, conservative, conforming; loyalty to the organization; emphasis on a secure life
Liberals Early 1990s to 2000
Mid-40s to mid-60s
Success, achievement, ambition, dislike of authority; loyalty to career
Xers 2000–2005 Late 20s to early 40s
Work/life balance, team-oriented, dislike of rules; want financial success; loyalty to self and relationships
Millennials 2005 to present Early 20s Comfortable with technology, entrepreneurial; high sense of entitlement
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HOFSTEDE’S FRAMEWORK FOR ASSESSING CULTURES
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Values differ….
n Values differ across culturesn This helps to explain and predict behavior of
employees of different countriesn Most widely used n Old, done in 1970s by surveying 116000 IBM
employees in 40 countries
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Hofstede’s Framework: Power DistanceThe extent to which a society accepts that power ininstitutions and organizations is distributed unequally.
• Low distance: Relatively equal power between those with status/wealth and those without status/wealth• High distance: Extremely unequal power distribution between those with status/wealth and those without status/wealth
Eg, IndiaKM, 2013, IIMIDR 46
Hofstede’s Framework: Individualism
n Individualismn The degree to which people prefer to act as
individuals rather than as member of groupsn Collectivismn A tight social framework in which people expect
others in groups of which they are a part to look after them and protect them
n Eg, US, Australia, Britain
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Hofstede’s Framework: Masculinity
n Masculinityn The extent to which the society values work roles
of achievement, power, and control, and where assertiveness and materialism are also valued
n Femininityn The extent to which there is little differentiation
between roles for men and women
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Hofstede’s Framework: Uncertainty Avoidance
The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them
High Uncertainty Avoidance:
Society does not like ambiguous situations and tries to avoid them.
Low Uncertainty Avoidance:
Society does not mind ambiguous situations and embraces them.
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n Long-term Orientationn A national culture attribute that emphasizes the
future, thrift, and persistencen Short-term Orientationn A national culture attribute that emphasizes the
present and the here and now
n Eg, India
Hofstede’s Framework: Time Orientation
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Hofstede’s Framework: Indulgence
n Indulgence– The degree to which it is alright for people to enjoy life, have fun, and fulfill natural human desires
n Restraint– The extent to which there are social norms governing the gratification of basic human desires and behavior
Eg, India (norm bound, restrained in their expression and gratification of basic human desires)
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Hofstede’s Framework: An Assessmentn There are regional differences within countriesn The original data is old and based on only one
companyn Hofstede had to make many judgment calls while
doing the researchn Some results don’t match what is believed to be
true about given countriesn Despite these problems it remains a very popular
framework
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GLOBE Framework for Assessing Culturesn Global Leadership and Organizational Behavior
Effectiveness (GLOBE) research program using data from 825 organisations from 62 countries:n Nine dimensions of national culture
n Similar to Hofstede’s framework with some additional dimensions:n Humane Orientation: how much society rewards
people for being altruistic, generous, and kindn Performance Orientation: how much society
encourages and rewards performance improvement and excellence
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DefinitionsØ Beliefs: what ‘is’ known about the world Ø Values: what should be and what is desirableØ Attitudes: tendency to respond (in readiness) in
a particular way - expressed by evaluating an entity with some degree of favour or disfavourØ Relatively stable clusters of feelings, beliefs and
behavioral intentions towards specific object, person or institution
Ø Expressed through behaviorØ Behaviors: The way one acts or conducts
oneself in response to stimuli 54KM, 2013, IIMIDR
Attitudes
Evaluative statements or judgments concerning objects, people, or eventsThree components of an attitude:
Attitude
Behavioral
Cognitive
Affective
The emotional or feeling segment of an attitude (feeling)
The opinion or belief segment of
an attitude (evaluating) An intention to behave
in a certain way toward someone or something (action)
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I believe that my boss is lazy
I don’t like lazy people
I try to avoid boss when I can
Shades of attitudes
n Prejudice: Negative attitudes towards the members of a specific grous, based solely on the fact that they are members of those groups:n Stereotypingn Discrimination based on race, age, gender,
disabilityn Job satisfaction: attitude towards jobn Organisational commitment – attitude
towards the organisationKM, 2013, IIMIDR 56
Job satisfaction
n Dispositional model:n The conceptualisation proposing that job
satisfaction is a relatively stable disposition of an individual – that is, characteristic that stays with people through situations.n Big Five Model (personality)n Positive affectivity- enthusiasm, confidence,
cheerfulness
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Job satisfaction
n Value theory:n A theory suggesting that job satisfaction depends
primarily on the match between the outcomes of individual value in their jobs and their perceptions about availability of such outcomesn Pay, learning opportunitiesn Job satisfaction surveys – customised approach
n Social information processing modeln A conceptualisation specifying that people adopt
attitudes and behaviors in keeping with the cues provided by others with whom they come to contactn Buddy system, mentoringKM, 2013, IIMIDR 58
Organisational commitment
n The extent to which an individual identifies and is involved with his organisation and/or is unwilling to leave itn Generally independent of job satisfaction
n Continuance commitment – cant leave as cant afford to do so
n Normative commitment – strength of a person’s desire to continue working because he feels obligations from others to remain there
n Affective commitment – The strength of a person’s desire to work for an organisation because he regards it positively and agrees with its goals and valuesKM, 2013, IIMIDR 59
Affective commitment
n Research has shown that:n Performance oriented management practices
lead to high affective commitment and improved financial performance
n Maintenance oriented management practices lead to high continuance commitment and unchanged financial performance
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Does Behavior Always Follow from Attitudes?n Leon Festinger – No, the reverse is sometimes true!n Cognitive Dissonance: Any incompatibility between two
or more attitudes or between behavior and attitudes
n Individuals seek to reduce this uncomfortable gap, or dissonance, to reach stability and consistency
n Consistency is achieved by changing the attitudes, modifying the behaviors, or through rationalization
n Desire to reduce dissonance depends on:§ Importance of elements creating it (eg bribe taking)
§ Degree of individual influence in the situation (eg, it is institutionalised)
§ Rewards involved in dissonance (eg, reward here is great)KM, 2013, IIMIDR
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Cognitive dissonace
n Ways to reduce the same:
n Denialn Avoidancen Change
I believe that MBAs have lot of bookish knowledge but lack in practical use of it….
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Moderating Variables n The most powerful moderators of the attitude-
behavior relationship are:n Importance of the attituden Correspondence to behaviorn Accessibilityn Existence of social pressuresn Personal and direct experience of the attitude
BehaviorPredictAttitudes
Moderating VariablesKM, 2013, IIMIDR 63
Predicting Behavior from Attitudesn Important attitudes have a strong relationship to behavior.n The closer the match between attitude and behavior, the
stronger the relationship:n Specific attitudes predict specific behavior (eg, asking
someone about intention to quit in six months is better predictor of behavior than asking her how satisfied she is on job)
n General attitudes predict general behavior (eg, overall job satisfaction is better predictor of whether the individual is engaged in her job or motivated to contribute)
KM, 2013, IIMIDR 64
Predicting Behavior from Attitudes
n The more frequently expressed an attitude, the better predictor it is (attitudes that our memory can access easily –so talk more about it…if you want to shape your behavior)
n The more tightly related the attitude is to values we hold dear, the stronger the relationship will be to the behavior.
n High social pressures reduce the relationship and may cause dissonance but social pressures to behave in certain ways hold exceptional powers (eg, executives in ENRON).
n Attitudes based on personal experience are stronger predictors. (eg, asking college students if they would like to work for authoratarian supervisor is not likey to predict their actual behavior) KM, 2013, IIMIDR 65