ORGANIZATION THEORY

&
BEHAVIOR
 FOUNDATION OF
ORGANIZATION BEHAVIOR
DEFINITION OF AN ORGANIZATION
DEFINITION OF ORGANIZATION BEHAVIOR
ASSUMPTIONS
ITS SIGNIFICANCE FOR EFFECTIVENESS
TRENDS
RESEARCH FOUNDATIONS
ORGANIZATION???
 DEFINITION OF ORGANIZATION

• CONSCIOUSLY COORDINATED
SOCIAL UNIT
• COMPOSED OF 2 0R MORE PEOPLE
• CONTINUITY
• COMMON GOAL
 ENVIRONMENT

HUMAN BEHAVIOR IN ORGANIZATION

SETTINGS

INDIVIDUAL ORGANIZATION
INTERFACE

ORGANIZATION

ENVIRONMENT
 ORGANIZATIONAL PARTICIPANTS

COGNITIVE REPRESENTATION OF PARTICIPANTS CONTROL THEIR OWN BEHAVIOR

REALITY HELPS GUIDE OB TO THE EXTENT THAT THEY RELY ON
COGNITIVE SUPPORTS & MANAGE RELEVANT
ENVIRONMENTAL CUES & CONSEQUENCES

ORGANIZATIONAL BEHAVIOR ORGANIZATIONAL ENVIRONMENT

MOST COMPLEX BEHAVIOR ACQUIRED BY DIRECTLY

OBSERVING & IMITATING OTHERS IN SURROUNDING
ENVIRONMENT
 ORGANIZATIONAL
GOALS

INDIVIDUAL TEAM ROLES

TASKS
 ????
• Is ORGANIZATION nothing but an aggregate of
individuals?
• If so then – is ORGANIZATION behavior all about
individual differences?- Differences in values, beliefs,
perception, personality, motivation
• What about differences in goals, strategies, systems ,
structure in an ORGANIZATION-do these bring about a
distinctive ORGANIZATION behavior
 AN ORGANIZATION WOULD
THEREFORE HAVE
• A GOAL-OBJECTIVE
• STRUCTURE-BOUNDARIES & ROLE
• STRATEGIES & SYSTEMS
• CULTURE, CUSTOMS, VALUES-
DETERMINING BEHAVIOR
 VISION -MISION

GOAL
FUNCTIONS-
TASKS/ACTIVITIES-
WHAT & WHY?

PROCEDURES-
STRATEGIES HOW?

SYSTEMS STRUCTURE ROLES & RESPONSIBILITIES

WHO?
CULTURE
CORE VALUES
 HOW ORGANIZATION ACHIEVES ITS
GOAL?

O R G G O A L
A N N U A L P LA N

ORGANIZATIONAL PROCESSES

M A N P O W E R M A C H IN E S M O N E Y
 MANAGEMENT FOR ORG
EFFECTIVENESS
• MANAGERIAL FUNCTIONS- Planning, Organizing, Leading &
Controlling
• MANAGERIAL ROLES-Interpersonal , Information, Decisional
• MANGERIAL SKILLS-Technical, Human & Conceptual
Org Effectiveness

OB

Generalization of Certain consistencies in human

human behavior behavior
 DEFINITION
• ORGANIZATION BEHAVIOR CAN BE
DEFINED AS A FIELD OF STUDY THAT
INVESTIGATES THE IMPACT THAT
INDIVIDUALS , GROUPS AND STRUCTURE
HAVE ON BEHAVIOR WITHIN
ORGANISATION, TO ENABLE APPLYING
THIS KNOWLEDGE TOWARDS IMPROVING
ORGANIZATIONAL EFFECTIVENESS
 DEFINTION-OB
• STUDY OF BEHAVIOR OF INDIVIDUALS
WITHIN WORKGROUPS , INCLUDING AN
ANALYSIS OF THE NATURE OF GROUPS,
THE DEVELOPMENT OF STRUCTURES
BETWEEN AND WITHIN WORKGROUPS
AND THE PROCESS OF IMPLEMENTING
CHANGE
 DETERMINANTS OF OB
• INDIVIDUALS.
• GROUPS.
• STRUCTURE.
 OB APPLIES KNOWLEDGE GAINED ABOUT
INDIVIDUALS, GROUPS & THE EFFECT OF
STRUCTURE ON BEHAVIOR TO MAKE THE
ORGANIZATION MORE EFFECTIVE.
 SIGNIFICANCE OF OB
• INDIVIDUAL BEHAVIOR &
PERFORMANCE AT WORK
• GROUP WORKING-NORMS & BEHAVIOR
• STRUCTURE OF ORGANIZATION
• ORGANIZATION DESIGN
• MANAGING CHANGE
 OB EMPHASIS
• BEHAVIOR AS RELATED TO
 JOBS & COMPETENCIES
 WORK –JOB DESIGN
 PERFORMANCE & PRODUCTIVITY
 ABSENTEEISM
 EMPLOYMENT TURNOVER
 OB LINKAGES TO ORG GOAL

• PERSONALITY, PERCEPTION, SKILL & ATTITUDE

DEVELOPMENT
• LEARNING
• MOTIVATION
• LEADER BEHAVIOR & POWER
• INTERPERSONAL COMMUNICATION
• GROUP STRUCTURE & PROCESSES
• WORK DESIGN, CONFLICTS & STRESS
• CHANGE PROCESSES
 OB & BEHAVIORAL SCIENCE

• OB concerned with a whole gamut of :

– units ( individuals, roles, dyads, teams and org)
– Interfaces ( interpersonal, inter team and org
environment)
Each deserve independent understanding and
study and hence foundation of OB is
multidisciplinary
 Behavioral Science Sources of OB
Org unit Topic Relevant Behavioral Science

INDIVIDUAL Motivation, Perception PSYCHOLOGY

Personality, Personal
effectiveness
Decision Making
ROLE Inter
Role Personal styles, Attitudes
Effectiveness SOCIOLOGY & PSYCHOLOGY
Leadership
Work Motivation
Role Stress and burnout
Coping
TEAMS & INTER Team effectiveness PSYCHOLOGY
TEAMS Leadership, Conflict Management
Consensus Building,
Collaboration
ORGANISATION Org Culture, Org climate, Org PSYCHOLOGY
Communication,Org Learning,
Org Change, Org Dev, POLITICAL SCIENCE
Power & Politics, ANTHROPOLOGY
Cross Cultural Org
CONTEXT Societal culture, Values ANTHROPOLOGY
Positive Thinking, Learning PSYCHOLOGY
 MANAGING FOR EFFECTIVENESS

INDIVIDUAL LEVEL ORG LEVEL

TEAM LEVEL OUTCOMES OUTCOMES
OUTCOMES

PRODUCTIVITY PRODUCTIVITY PRODUCTIVITY

PERFORMANCE PERFORMANCE ABSENTEEISM
ABSENTEEISM NORMS TURNOVER
TURNOVER COHESIVENESS FINANCIAL PERFORMANCE
ATTITUDES SURVIVAL
STRESS CONSTITUENT SATISFACTION
 TRACING HISTORY OF
ORGANIZATIONAL RESEARCH

CONCEPT PIONEERS PHILOSOPHY OB ATTRIBUTES

SCIENTIFIC FREDERICK TAYLOR Time & Motion Studies. Maximize Cost , Task
MANAGEMENT (1911) Finding most efficient way specialization, maximize
output
PRINCIPLES OF HENRI FAYOL ( 1916-25) Management Principles Order, Equity, Division of
MANAGEMENT Training in use of Principles work, Discipline

HUMAN RELATIONS ELTON MAYO (1933) Psychological factors-Job Paying attention to worker
Satisfaction, Team work needs & satisfaction
DECISION MAKING HERBERT SIMON (1947) Bounded Rationality Hierarchy o Goals ,
Optimization of Goals Effective use of resources

SOCIO-TECHNICAL E L TRIST & K W Social Systems view means Fit between social &
BAMFORTH (1951) that organization is an open technological factors
system
BEHAVIOR DOUGLAS Mc GREGOR Individual needs & Cohesiveness, Loyalty,
(1961) RENSIS LIKERT importance of participative commitment & Employer
(19670 management Management system

STRATEGIC ALFRED CHANDLER Establish Strategy , then Strategy/Structure fit need to

MANAGEMENT (1962) Structure is established adapt to environmental
changes
 TRACING HISTORY OF
ORGANIZATIONAL RESEARCH-Contd
CONCEPT PIONEERS PHILOSOPHY OB ATTRIBUTES

CONTINGENCY P R LAWRENCE & J W Structure firm to meet Integration fit

LORSCH ( 1967) environmental demands

QUALITY DEMING(1971) How to detect & eliminate Instill pride in quality’

& JURAN ( 1974) defects Focus on customer
satisfaction
ENPOWERNMENT 1984

PROACTIVE 1987 Responsiveness to change ,

PERFORMANCE Need for Social Support
 EMERGING PERSPECTIVES IN OB

• SYSTEMS APPROACH
• CONTINGENCY PERSPECTIVE
• INTERACTIONALISM
 SYSTEMS APPROACH
• VIEWS ORGANIZATION AS A SET OF
INTERRELATED ELEMENTS FUNCTIONING
AS A WHOLE
FEEDBACK

INPUTS- TRANSFORMATION OUTPUTS

material, TECHNOLOGY
Product/Service
human,
financial, Profit/Losses
international
Employee behavior
 CONTINGENCY APPROACH
• SUGGESTS THAT IN MOST ORGANIZATIONS SITUATIONS &
OUTCOMES ARE CONTINGENT ON , OR INFLUENCED BY,
OTHER VARIABLES
UNIVERSAL CAUSE & EFFECT
ORG PROBLEMS/ APPROACH WAY
SITUATIONS OF RESPONDING

CONTINGENCY APPROACH
CONTINGENT WAYS
ORG PROBLEMS OF RESPONDING
EVALUATE IN TERMS
OF THE SITUATION,
WHICH THEN SUGGEST
 INTERACTIONALISM

• INDIVIDUALS AND SITUATIONS INTERACT

CONTINUOSLY TO DETERMINE
INDIVIDUALS’ BEHAVIOR

INDIVIDUALS

BEHAVIOR

SITUATIONS
 POPULAR PRESS

• ARTICLES, RESEARCH WORKS &

BOOKS GIVING NEW INSIGHTS.

• THEORY Z, EMOTIONAL INTELLIGENCE, REENGINEERING,

CORPORAT E CULTURES, IN SEARCH OF EXCELLENCE ETC.
 Contribution of OB
• Main contribution is in the understanding
and using processes, which can also be
defined as the underlying behavioral
dimensions of any unit of the organisation
 PROCESS
• The main processes concern the
– Individual( existential processes)
– Inter person (empathic processes)
– The role ( coping processes)
– The group ( collaboration processes)
– Organisation ( growth processes)
– Organisation interface ( influence processes)
– Community ( social awareness
– Society ( value processes)
OB- CHALLENGES &TRENDS
• Paradigm shift------?
• GLOBALISATION- Creating a global village
• INFORMATION AGE-IT
• TOTAL QUALITY MANAGEMENT
• DIVERSITY & CULTURAL ISSUES
• REENGINEERING
OB- CHALLENGES &TRENDS
• ENPOWERING EMPLOYEES- shift from
• Management control
• COPING WITH CHANGE &
TEMPORARINESS-Stability of Flexibility
• STIMULATING INNOVATIVENESS &
CHANGE
• CORPORATE VALUES & ETHICS
OB- CHALLENGES &TRENDS
• STIMULATING INNOVATIVENESS &
CHANGE.
• CORPORATE VALUES & ETHICS.
• WORK FORCE DEMOGRAPHICS-Age, Gender,
Ethnic Composition.
• WORK PLACE ISSUES- Employee Privacy,
Employee rights, Unionization.
• Improving Employee Skills.
 OB MODELS
COGNITIVE, BEHAVIORISTIC & SOCIAL LEARNING THEORETICAL
FRAMEWORKS USED TO DEVELOP OB MODEL

AUTOCRATIC CUSTODIAL SUPPORTIVE SUPERLATIVE

(COLLEGIAL)
BASIS OF Power Economic Leadership Partnership
MODEL Resources
Managerial Authority Money Support Teamwork
orientation
Employee Obedience Security Job Responsible
Orientation Benefits Performance Behavior
Employee Dependence Dependence Participation Self
psychological on Boss on Discipline
result Organization
Employee Subsistence Security Status & Self
need met Recognition Actualization
Performance Minimum Passive Awakened Moderate
result cooperation drivers enthusiasm
 Basic framework for understanding organizational behavior

INDIVIDUAL ENHANCING INDIVIDUAL INTERPERSONAL PROCESSES

PROCESSES
& INTERPERSONAL PROCESSES Group Dynamics
•Individual
Goal setting/Rewards Inter group dynamics
differences
Job Designation/Participation Leadership/Influence
•Attitudes/Attitude
formation Performance Appraisal Power/Politics/Conflict
•Learning Stress Interpersonal Communication
/Reinforcement
Decision Making/ Creativity
•Motivation
ORGANIZATIONAL PROCESSES
INTEGRATING INDIVIDUALS, & CHARACTERISTICS
GROUPS & ORGANIZATIONS
MANAGERIAL CONTEXT Organization Structure
•Change/development
Managing People & Environment/technology
Organizations •International Issues
Organization Design
•Career Dynamics
Organization Culture

ORGANIZATIONAL EFFECTIVENESS