ORGANISATIONAL BEHAVIOUR

ORGANISATIONAL BEHAVIOUR

Introduction
Organisations for education, employment, health, travel, recreation etc. Organisations are not physical structures but made up of people who individually and collectively form an organisation to produce necessary goods and services.

 The organisation is above all social. It is people. Peter Drucker

People are the key Sam Walton, the founder of Wal-Mart and the richest person in the world when he died .

Why organisations exist?

Organisations provide us necessary goods and services and so are very useful in society. Further on to increase specialisation and division of labour. To make use of large scale technology. To manage external environment. To economise on transaction costs. To exert power and control for efficiency.

The organisational icebergFigure

2.3

What sinks a ship isnt always what sailors can see, but what they cant see.

permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the

WHY OB HAS COME INTO PICTURE

Today, running organisations with satisfied workforce is quite difficult because they are influenced by human behaviour. And this human behaviour is an important element in the functioning of an organisation. Behaviour is anything that one does.

This behaviour comes from / is made up of perceptions, values, motives, attitudes, understanding, beliefs, habits, culture, learning process etc.
The characteristics of human behaviour are : it is caused goal oriented motivated can be disrupted by certain problems (frustration, conflicts, anxiety etc.) observable measurable cause and effect relationship

- complex, may be orderly/arbitrary, systematic/random, - differs due to physiological, environmental, social and psychological variables.

This knowledge of human behaviour needs to be studied and understood by people managing organisations to run them effectively. Thats how and why OB has come into the picture.

Organisational Behaviour

Organisational Behaviour (OB)

The study of actions that affect performance in the workplace. The goal of OB is to explain and predict actions and how they will affect performance. OB focuses on three levels: individual, group, and organisational. A situation in which both parties get what they want.

Win-win Situation

Elements of OB

People Structure Environment internal & external Technology

Appannaiah & Reddy

ORGANISATIONAL BEHAVIOUR

Organisational Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.
(Robbins: 1998,9)

ORGANISATIONAL BEHAVIOUR The study of Organisational Behaviour involves:

consideration of the interaction among the formal structure (organisational context in which the process of management takes place) the tasks to be undertaken the technology employed and the methods of carrying out work the behaviour of people the process of management the external environment

ORGANISATIONAL BEHAVIOUR

Interrelated dimensions influencing behaviour: The Individual - working environment should satisfy individual needs as well as attainment of organisational goals. The Group - formal and informal. Understanding of groups complements a knowledge of individual behaviour. The Organisation - impact of organisation structure and design, and patterns of management, on behaviour. The Environment - technological and scientific development, economic activity, governmental actions.

DEFINITIONS

KEITH DAVIS & NEWSTROM OB is the study of application of knowledge of how people act or behave within an organisation. FRED LUTHANS OB is directly concerned with the understanding, prediction and control of human behaviour in an organisation.

In short, OB is
the study of human behaviour, the study of human behaviour in organisations, the study of human behaviour at individual, group and organisational levels and application of that knowledge in improving organisational effectiveness.

NATURE OF OB

A field of study and not a discipline. Interdisciplinary approach. An applied science and not a pure science.

Normative and value centred.

Humanistic and optimistic.

Oriented towards Organisational objectives.

A total systems approach.

FOUNDATIONS OF OB

The subject of OB is based on a few fundamental concepts which revolve around the nature of people and organisation. OB, as a distinct study came into existence because of some key variables mentioned below:-

a) that there are individual differences b) that a whole person needs to be studied c) that behaviour of an individual is caused d) that every individual has dignity of his own e) that organizations are social systems f) that there exists a mutuality of interests among organisational members g) that people have their own perceptions, attitudes, values etc. h) that there exists a holistic approach towards OB

Scope of OB

OB uses an applied behavioural science approach and is based on views and contribution from various behavioural disciplines such as Psychology, Sociology, Social Psychology, anthropology, Political Science and other discipline and other disciplines such as economics, Ethics, Mathematics and even Statistics.

Sociology

Sociology is concerned with the study of people as part of the social system. It specifically studies social groups, social behaviour, society, group dynamics, team communication, organisational culture/ climate, etc.

Psychology

Psychology is concerned with the study and understanding of human personality and behaviour, the traits, characteristics, perceptions, personality, attitudes, values, beliefs, and motives of individuals. As a science, psychology tries to measure, explain and at times even modify the behaviour of human beings.

Social Psychology

This is a combination of both Psychology and Sociology. Social Psychologists are interested in areas related to measuring understanding, and change of attitudes, building healthy communication network and group decision making.

Political Science

This discipline is mainly concerned with the building and structuring of powerful groups. Political scientists study the behaviours of individuals and groups within a political environment. It helps to understand conflict resolution, group coalition, allocation of power, and people manipulate power in their self interest. Poly-ticks

Anthropology

It is the study of human race and its culture. It is related to the study of larger groups (societies), nations and cultures. It helps us to study global beliefs, customs, ideas and values and the wider process of socialisation.

Economics optimum utilisation physical and human resources.

of

Ethics - establishments of standards of honesty, integrity, value, esteem, respect etc. Mathematics/statistics involves the use of acts and figures and arriving at logical and demonstrable conclusions from bodies of knowledge and research.

Engineering - helps in work measurement, productivity measurement, work flow analysis, product designs etc.

IMPORTANCE OF OB

OB provides a road organizational lives.

map

to

our

The field of OB uses scientific research to help us understand and predict organizational life. It helps us influence organizational events viz. communicate effectively, manage conflicts, make better decisions, form effective work teams etc.

It helps an individual understand himself /herself and others better.

It helps managers to get things done through delegation understand motivation and what to be done to motivate subordinates. It is useful for industrial relations. maintaining cordial

It is useful also in the field of marketing.

OBJECTIVES OF OB

To maximise productivity, citizenship and satisfaction.

To minimise turnover. absenteeism and

It is useful for pursuing a career in management to learn how to predict behaviour and apply it in meaningful way to make organisations more effective. It leads to higher productivity, profitability, growth and stability of business.

APPROACHES TO OB

1. HR Approach

5.Interactionalism Approach
OB

2.Contingency Approach

4.Productivity Approach

3. Systems Approach
k. Ashwathappa

HUMAN RESOURCE APPROACH

People are central resource to any organisation. They should be developed to higher levels of competency, creativity and fulfillment. Managers role is to provide active support to their growth and performance.

CONTINGENCY APPROACH

By this approach, we assume that there is no one best way available in any organisation. Events/ situations/ outcomes are said to be contingents influenced by other variables. It suggests that several other variables affect the relationships and appropriate managerial action needs to be taken based on elements of that situation.

SYSTEMS APPROACH

This approach views that organisations as united and purposeful system composed of interrelated parts. It suggests managers to look to organisations in totality, as a whole person, whole group and a social system. It is an input transformation output system whereby managers need to work with people and allocate resources (materials/human/financial/informational) to carry out tasks within an environment of change.

PRODUCTIVITY APPROACH

This approach focuses on optimising resource utilization and raising efficiency levels in work areas. Productivity is the ratio of output to input in economic terms but human and social inputs/ouputs are also important. Eg. OB can improve job satisfaction. It suggests that human/ social/ economic issues play an important role in organisational growth.-

INTERACTIONALISM

This approach attempts to explain how people select, interpret and change various situations. Interactionalism Suggests that individuals and situations interact continuously to determine individuals' behavior. This shows that individual behaviour results from continuous and multidirectional interaction between characteristics of a person and the situation.

OB MODEL
PERSONALITY, PERCEPTION, LEARNING, ATTITUDE, ATTRIBUTES & MOTIVATION INDIVIDUAL BEHAVIOUR

GROUP DYNAMICS, TEAMS, LEADERSHIP, POWER & POLITICS, COMMUNICATION & CONFLICTS

GROUP BEHAVIOUR

ORGANISATIONAL EFFECTIVENESS

ORG. CULTURE, H R POLICIES, STRESS, ORG. CHANGE & O D

ORGANISATIONA L BEHAVIOUR

LEVELS OF OB

OB focuses in three levels behaviour in an organisation viz..

of

1. Individual level variables 2. Group level variables 3. Organisational level variables

INDIVIDUAL LEVEL VARIABLES

1) Biological characteristics age, gender, marital status, tenure etc. 2) Personality and emotions (sum total of behaviour and intense feelings). 3) Values and attitudes ( basic convictions and evaluative statements/ judgements concerning people, objects or events)

4) Ability capacity to perform in various tasks.

5) Perception is what one thinks or interprets to an environment. 6) Motivation the process that accounts for an individuals intensity, direction and persistence of effort towards attaining goal. 6) Learning permanent change behavior as a result of experience. in

7) Individual decision making A process influenced by all other factors.

Group level variables

Group decision making Leadership and trust Communication Group structures Work teams Conflicts Power and politics

ORGANISATIONAL LEVEL VARIABLES

HR policies and practices

Organisational culture Organisational structure and designs Work design and technology

CHALLENGES AND OPPORTUNITIES FOR OB

Responding to globalisation Managing workforce diversity Improving quality and productivity Improving peoples skills Empowering people Stimulating creativity, innovation and change. Improving ethical behaviour.

The role of management as an integrating activity

OB MODELS

AUTOCRATIC MODEL CUSTODIAL MODEL SUPPORTIVE MODEL COLLEGIAL MODEL

L.M. Prasad/appannaiah & Reddy

AUTOCRATIC MODEL

Basis of model

Power

Managerial orientation Employee orientation Employee psychological result Employee needs met
Performance result

Authority
Obedience Dependence on boss Subsistence Minimum

CUSTODIAL MODEL

Basis of model

Economic resources

Managerial orientation Employee orientation Employee psychological result Employee needs met Performance result

Money
Security and benefits Dependence on organisation Security Passive co-operation

SUPPORTIVE MODEL

Basis of model Managerial orientation Employee orientation Employee psychological result Employee needs met Performance result

Status & Recognition Leadership Support Job performance

Participation
Awakened drives

COLLEGIAL MODEL

Basis of model Managerial orientation Employee orientation

Partnership Teamwork Responsible behaviour

Employee psychological result

Employee needs met Performance result

Self-discipline

Self-actualisation Moderate enthusiasm

Emerging trends in organisations

Peter F. Drucker said that organisational structures are becoming increasingly short lived and unstable. The work culture is changing in every organisation. Job and Work patterns are changing. There is a high mobility of labour. The concepts of job security and steady income are losing. Outsourcing of employees is increasing. Hierarchy levels are reduced.

Emerging trends in organisations

There is impact of globalisation organisations are restructuring. Organisations look for reducing costs and enhancing productivity. There is emphasis on changing technology and developing entrepreneurship. Organisations are becoming learning organisations. Emergence of virtual organisations. Organisations of tomorrow look for INTELLIGENCE, INFORMATION AND IDEAS.

MANAGERIAL ROLES & SKILLS

INTERPERSONAL ROLE
Leadership and Liaison.

Figurehead,

INFORMATIONAL ROLE

Disseminator and spokesperson.

Monitor,

DECISIONAL ROLE Entrepreneur,

Disturbance handler, Resource allocator, Negotiator.

A manager requires three managerial skills as under: Technical Skill- ability to apply knowledge, methods, techniques and equipments necessary to perform a skilled job or task acquired through training , education and experience on the job. Human Skill - ability to judge and work with, understand and motivate others calls for interpersonal relations at various levels to communicate, motivate and delegate responsibility. Conceptual skills mental ability and attitude to analyse and handle complex situations calls for goal setting and decision making that affect organisational functioning.

SKILLS OF A MANAGER

Skills needed

T E C H N I C A L

ex
C O N C E P T U A L

EXECUTIVE MANAGERIAL SUPERVISORY

NON-SUPERVISORY