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Unit i intro to ob

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Introduction to Organisational Behavior
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Page 1: Unit i intro to ob

Introduction to Organisational Behavior

Page 2: Unit i intro to ob

Who is a Manager & What Managers Do ?

Managerial ActivitiesMake decisions

Allocate resources

Direct activities of others to attain goals

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Where Managers Work

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Four Functions of Management

PlanningDecide on organizational goals

and allocate and use resources to

achieve those goals

OrganizingEstablish the rules and

reporting relationships thatallow people to

achieve organizational goals

ControllingEvaluate how well the

organization is achieving goals and take action to

maintain, improve, and correctperformance

LeadingEncourage and coordinate

individuals and groups so that they work

toward organizational goals

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Management Functions (cont’d)

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Management Functions (cont’d)

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Management Functions (cont’d)

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Management Functions (cont’d)

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Managerial Skills

Conceptual Skills Technical Skills

Human Skills

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Managerial Skills

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Insert Figure 1.1 here

What is Organizational Behavior?

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Complementing Intuition with Systematic Study

Systematic Study

Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence

Provides a means to predict behaviors

Intuition

“Gut” feelings about “why I do what I do” and “what makes others tick”

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Organisational Behavior Defined :

• Organisational Behavior is concerned with the understanding, prediction and control of human behavior in organisation/s.

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Features of Organisational Behavior :

• It is the study of human behavior in organisation.

• Knowledge of human behavior helps in improving organisational effectiveness and efficiency.

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Elements of Organisational Behavior :

There are three basic elements of the organisation namely:

• People • Structure • Technology

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Relation between the three Elements :

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Levels of Organizational Behavior :

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Goals of Organisational Behavior at Different Levels :

• Organisational Level : Culture, Change Management, Financial Performance, Customer Satisfaction & Retention.

• Group Level : Group performance, Information Sharing, Cross-functional Partnerships, Conflict Management, Leadership, Power & Politics.

• Individual Level : Perception,Performance, Personality,Attitude & Motivation.

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Fundamental Concepts of Organisational Behavior : Basic Assumptions

• Nature of People : Individual Difference A whole person Caused Behavior Value of the person

• Nature of Organisation : Social System Mutual Interest

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Contributing Disciplines to the OB Field

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Contributing Disciplines to the OB Field (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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Towards an OB Discipline

Social psychology

Psychology

Behavioural

science

Contribution Unit ofanalysis

Output

Anthropology

Sociology

Political science

Study ofOrganizational

Behaviour

Organizationsystem

LearningMotivationPerception

TrainingLeadership effectiveness

Job satisfactionIndividual decision making

Performance appraisalAttitude measurement

Employee selectionWork designWork stress

Group dynamicsWork teamsCommunication

PowerConflict

Intergroup behaviour

Formal organization theoryOrganizational technology

Organizational changeOrganizational culture

ConflictIntraorganizational politics

Power

Organizational cultureOrganizational environment

Behavioural changeAttitude changeCommunicationGroup processes

Group decision making

Group

Comparative valuesComparative attitudesCross-cultural analysis

Individual

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An Open Systems View of Organizational Behavior

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A Social Learning Approach to OB

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Models of OB

Facets AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL

Model depends on

Power Economic Resources

Leadership Partnership

Managerial Orientation

Authority Money Support Team Work

Employee Orientation

Obedience Security Job Performance

Responsibility

Employee Psychological Result

Dependence on Boss

Dependence on Organisation

Participation Self Discipline

Employee Needs Met

Subsistence Maintenance Higher Order Self Actualisation

Performance Result

Minimum Passive Co-operation

Awakened Drives

Moderate Enthusiasm

Page 29: Unit i intro to ob

Historical Development of OB

The predecessors of OB are :• Industrial Psychology• Scientific Management Movement• Human Relations Movement

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Historical Development of OB (cont.)

• Industrial Psychology : It is simply the application or extension of psychological facts & principles concerning human beings operating within the context of business & industry. Group testing, trade testing, rating scales, personality inventories are all its contribution which came into existence with the formation of APA (American Psychological Association)

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Historical Development of OB (cont.)

• Scientific Management Movement : Fredrick Winslow Taylor advocated the concept of parity of wages, selection of right man for right job, maximum output with minimum wastage etc. he insisted upon supervisory training to make supervisor a strong link between management & non – management group/s.

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Historical Development of OB (cont.)

• Human Relations Movement : According to Fred Luthans, three events cumulatively ushered in the era of human relations movement. These are :

The Great DepressionRise of Trade UnionismThe Hawthorne Experiments

Page 33: Unit i intro to ob

Historical Development of OB (cont.)

The Hawthorne Experiments have been segmented into following broad categories :

Illumination Experiments (1924-1927) Relay Room Experiments (1927-1932) Bank Wiring Room Experiment (1931-1932) Mass Interview Program (1928-1930)

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Historical Development of OB (cont.)

• The discipline of OB came to be recognised as a field of study around 1950. OB studies not only the human behavior within the parameters of the organisation but also the group dynamics. OB studies the external environment which influences the human behavior within the organisation. That is why OB takes cognizance of TQM, TPM, BPR or for that matter, any new concept originating in the external environment.

Page 35: Unit i intro to ob

A Paradigm Shift

The term ‘Paradigm’ is used to mean a broad model, a framework, a way of thinking or a scheme for understanding reality.

Joel Barker defined Paradigm as : “A paradigm simply establishes the rules,

defines the boundaries & tells one how to behave within the boundaries to be successful.”

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A Paradigm ShiftParadigms powerfully influences our

perceptions of the world around us.We like our current paradigms & therefore

resist change.Outsiders are more effective at introducing

paradigms (new ones) to us.Early adopters of new paradigms must often do

so on faith & not on factsNew paradigms give us new ways of viewing

the world & solving problems

Page 37: Unit i intro to ob

Management Challenges

• Globalization• Technical Innovation & Change• Quality Revolution• Workforce Diversity• Employee Empowerment• Facilitating Work Life Balance• Maintenance of Work Ethics & Culture• Corporate Reorganisation

Page 38: Unit i intro to ob

Challenges Faced by Different Levels at Workplace

Workplace

Organizational Level

• Productivity• Developing Effective Employees• Global Competition• Managing in the Global Village

Group Level

• Working With Others• Workforce Diversity

Individual Level

• Job Satisfaction• Empowerment• Behaving Ethically

Page 39: Unit i intro to ob

Challenges and Opportunity for OB

• Responding to Globalization• Managing Workforce Diversity• Improving Quality and Productivity• Responding to the Labor Shortage• Improving Customer Service

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Challenges and Opportunity for OB (cont’d)

• Improving People Skills• Empowering People• Coping with “Temporariness”• Stimulation Innovation and Change• Helping Employees Balance Work/Life

Conflicts• Improving Ethical Behavior

Page 41: Unit i intro to ob

Emerging Trends/ Concerns in OB

• Cultural Diversity & Team Work• Ethical Management & Corporate Social

Responsibility (CSR)

Page 42: Unit i intro to ob

Organisation & Environment

• The environment of any organisation is “the aggregate of all conditions, events & influences” that surround and affect it.

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Components of Organisational Environment

Organisational Environment can be broadly classified into following categories :

• Internal Environment• External Environment

External General EnvironmentExternal Operating Environment

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Components of Internal Environment

• Internal Environment :Organisational AspectPersonnel AspectProduction AspectMarketing AspectFinancial Aspect

Page 45: Unit i intro to ob

Components of External Environment

• External Environment :External Operating Environment :

Supplier ComponentCustomer ComponentLabor ComponentCompetition ComponentInternational Component

Page 46: Unit i intro to ob

Components of External Environment

• External Environment:External General Environment :

Economic ComponentDemographic ComponentTechnological ComponentLegal ComponentPolitical ComponentSocial Component

Page 47: Unit i intro to ob

Environmental Analysis

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Role of Environmental Analysis in Organisation

The role of environmental analysis vary drastically from organisation to organisation, however, the basic role played by it are as under:

• Function Oriented Role: Its main purpose is to improve organisational performance by providing environmental information concerning effective performance of specific organisational functions.

Page 49: Unit i intro to ob

Role of Environmental Analysis in Organisation

• The Integrated Strategic Planning Role: Its main purpose is to improve organisational performance by making top managers & divisional managers aware of the issue that arises in organisation’s environment, by having a direct impact on planning & by linking corporate & divisional planning.

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Role of Environmental Analysis in Organisation

• The Policy Oriented Role : Its main purpose is to improve organisational performance by simply keeping top management informed about major trends emerging in the environment. It is basically unstructured, indirect & informal.

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Strategies for Managing Environment

• Proper recruitment & selection• Organisational image building through advertising.• Proper domain choice & domain change• Contracting• Smoothening• Lobbying• Vertical integration• Buffering• Strategic alliances/ mergers/ acquisitions

Page 52: Unit i intro to ob

OB: Cognitive Framework

The cognitive framework determines a person’s deliberate or conscious efforts towards acquiring knowledge.‘Cognition’ the basic unit of cognitive framework can be defined as an act of knowing an item of information. It involves a person’s higher mental processes. Edward Toleman is being credited for the evolution of cognitive framework.

Page 53: Unit i intro to ob

OB: Behavioristic Framework

• The roots of behavioristic framework could be traced back to the research work of Ivan Pavlov & B.F Skinner

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OB: Behavioristic Framework

• Classical Conditioning/ Reflexive Conditioning: Ivan Pavlov emphasized the S-R (Stimulus- Response) approach. Learning is building up association between Unconditioned Stimulus (UCS) & Conditioned Stimulus (CS). The experiment is conducted in three stages:

Page 55: Unit i intro to ob

OB: Behavioristic Framework

• Stage I: Pre-conditioning:

UCS – UCR(Meat Powder) (Salivation)

CS – No Response(Bell)

Page 56: Unit i intro to ob

OB: Behavioristic Framework

• Stage II: During Conditioning :

CS + UCS - UCR (Bell) (Meat Powder) (Salivation)

(The activity is done repeatedly over a period of time.)

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OB: Behavioristic Framework

• Stage III: Post Conditioning :CS - CR(Bell) (Salivation)

UCS: Unconditioned Stimulus (Meat Powder)UCR: Unconditioned Response (Salivation)CS: Conditioned Stimulus (Bell)CR: Conditioned Response (Salivation)

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OB: Behavioristic Framework

• Operant Conditioning/Instrumental Conditioning: B.F Skinner proposed the theory of operant conditioning emphasizing R-S (Response-Stimulus) approach. It is basically presumed that a person’s behavior is determined by environment & individual learns by producing alteration in their environment.

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OB: Behavioristic Framework

It presupposes that human beings explore their environment (out of curiosity) & thereafter act upon it. Reinforcement is given only when a correct response is made.(Most behavior in organisation are learnt controlled & are altered by theconsequences, by manipulatingreward system.)

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OB: Social Cognitive Framework

The social cognitive framework of organisational behavior discusses the two major concerns:

• Knowledge Management• Emotional Intelligence

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OB: Social Cognitive Framework

• Knowledge Management: It’s the collection of processes that govern the creation, dissemination & utilization of knowledge. It requires :

Establishing a strategy.Redesigning the organisational structure.Reshaping the organisational culture.

Page 62: Unit i intro to ob

Sense making

Knowledge awareness

Empowerment

Training

Communication

Rewards

Individual learning

Environmentalscanning

Grafting

Experimentation

KnowledgeKnowledgeAcquisitionAcquisition

KnowledgeKnowledgeSharingSharing

Elements of Knowledge Management

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OB: Social Cognitive Framework

• Emotional Intelligence: It refers to the assortment of non-cognitive skills, capabilities, competencies that influences a person’s ability to succeed in coping with environmental demands & pressures. The concept has been devised by Daniel Goleman.

Page 64: Unit i intro to ob

OB: Social Cognitive Framework

• Emotional Intelligence: It is composed of five dimensions:

Self Awareness: awareness of one’s own feelings. Self Management: ability to manage one’s emotions &

impulses. Self Motivation: ability to persist in the face of

setbacks & failures. Empathy: ability to sense how others are feeling. Social Skills: ability to handle other’s emotions.

Page 65: Unit i intro to ob

OB: Social Cognitive Framework

The assessment and analysis of emotional intelligence is represented as a measure/ value of EQ (Emotional Quotient)

Page 66: Unit i intro to ob

QUESTIONS

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Review

• Discuss the contribution of different disciplines in the study of OB?

• Discuss the fundamental concepts of OB.• Why should a manager know about this

domain of knowledge?• Contrast formal versus informal organization.• What are the three basic elements of an

organization?

Page 68: Unit i intro to ob

Review

• Discuss Hawthorne Studies?• What is Scientific Management Movement?• Describe 3 challenges facing managers today;

why are they considered as “challenges”?• What is Emotional Intelligence & how is it

important in work organisation ?• Discuss the role of Knowledge Management in

an organisation.

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Review

• “Organisations differ in their nature”. In the light of this statement discuss various models of OB.

• Discuss the purpose & role of environmental analysis in an organisation.

• “OB represents interaction among individual, group & the organisation”. Elucidate this statement.

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Review• The Hawthorne Experiment heralded the: Management approach Group Work approach Human Relations Approach Organisational Behavior Approach• OB as a discipline now has a fairly strong presence in the

study of management because: It borrows extensively from other behavioral sciences It has a strong emphasis on studying human behavior to

harness it in enhancing organisational effectiveness It helps in changing organisations It leads to better people management

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THANK YOU


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