Learning Outcome Why understanding and controlling the organizational behaviour is important.Concept of Organizational BehaviorNature of Organizational BehaviourOrganizational Behaviour and other similar fields of studyDisciplines contributing to Organizational Behaviour

Organization

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.

Organizational Behaviour(OB)Definition:A field of study that investigates the impact that individuals, groups, and structures have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organizations effectiveness.-Stephens P Robbins

Myth or Science?What is the net present value at a discounted rate of 12 percent per year of an investment made by spending Rs1,000,000 this year on a portfolio of stocks, with an initial dividend next year of Rs. 100,000 and an expected rate of growth thereafter of 4% per year?

What is the most effective way to motivate employees at work?

Enter Organizational BehaviorOrganizational behavior (OB)Is a relatively young field of enquiry that studies what people think, feel and do in and around organization.

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organizations effectiveness.

Objectives of OBDescribe human behaviour: How people behave under a variety of conditionsUnderstand behaviour: Why people behave as they doPredict behaviour: Guessing the future employee behaviourModify behaviour: Altering and improve human behaviourControl behaviour: Regulate and control human behaviour at work

Nature/characteristics of OB

OB is a distinguished field of study as it studies human behaviour at work. It is relatively young and growing field of study It is systematic and scientific study of humans at work. It is also an art. It is performance-oriented. It studies, describes, predicts, shapes, modifies, and controls human behaviour in the organisation.It is part of management.It studies cause and effect relationship relationship between behavioural causes and resulting outcomes.It is multidisciplinary subject/science. It is human tool for human benefits. Its knowledge improves human productivity and welfare.It is not a direct solution to human problems. It is universally applied.

1-*Contributing Disciplines to the OB FieldMacro:Groups &Organizations

Toward an OB Discipline

Contributing Disciplines to the OB FieldPsychology ( Study of mindset) The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Contributing Disciplines to the OB Field (contd)Sociology The study of people in relation to their fellow human beings.

Contributing Disciplines to the OB Field (contd)Social Psychology ( mindset of a group) An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

Contributing Disciplines to the OB Field (contd)Anthropology The study of societies to learn about human beings and their activities.

Contributing Disciplines to the OB Field (contd)Political Science The study of the behavior of individuals and groups within a political environment.

Challenges and Opportunities for OBResponding to GlobalizationIncreased foreign assignmentsWorking with people from different culturesOverseeing movement of jobs to countries with low-cost laborManaging Workforce DiversityImplications for managersRecognizing and responding to differences

Domestic PartnersMajor Workforce Diversity CategoriesRaceReligious-diversityNational OriginAgeDisabilityGender

Challenges and Opportunities for OB (contd)Improving Quality and ProductivityQuality management (QM)Process reengineeringResponding to the Labor ShortageChanging work force demographicsFewer skilled laborersEarly retirements and older workersImproving Customer ServiceIncreased expectation of service qualityCustomer-responsive cultures

What Is Quality Management?Intense focus on the customer.Concern for continuous improvement. Improvement in the quality of everything the organization does.Accurate measurement. Empowerment of employees.

Improving Quality and ProductivityQuality management (QM)The constant attainment of customer satisfaction through the continuous improvement of all organizational processes.Requires employees to rethink what they do and become more involved in workplace decisions.Process reengineeringAsks managers to reconsider how work would be done and their organization structured if they were starting over.Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.

ORGANISATIONAL BEHAVIOUR MODEL Model (or framework) is a description of how things work, and is also known as paradigm. The model shows several relevant variables in OB, their interrelations (interplay), and resulting outcomes. Experts in the field have developed different models to explain what relevant variables undergo in organisational behaviour and their interaction. Each OB model makes some assumptions about the nature of people. Fred E. Luthans explain conceptual framework of OB in form of the S-O-B-C Model. The Model contains four variables as portrayed in figure 14.3.

Challenges and Opportunity for OB (contd)Improving People SkillsEmpowering PeopleStimulating Innovation and ChangeCoping with TemporarinessWorking in Networked OrganizationsHelping Employees Balance Work/Life ConflictsImproving Ethical Behavior

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