An Introduction to Organizational Behaviour

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Try answering the following question on the first day of your Finance Class
What is the net present value at a discount rate of 12 percent per year of an Investment of INR 45 million this year on a portfolio of stocks, with an initial dividend next year of INR 4 million and an expected rate of dividend growth rate thereafter of 4 percent per year? A trifle difficult isnt it? Its unlikely that you will be able to answer this question without some instruction in Finance

Let us now try something different

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Try answering the following question on the first day of your OB Class
What is the most effective way to motivate employees at work? Difficult yes With a little bit of hesitation, however, you will be able to come out with a few suggestions.

We all enter an OB course with a lot of preconceived notions that we accept as facts. Notions like:
You cant teach an old dog new tricks Leaders are born, not made

But these facts are not necessarily true

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One of the objectives of a course in OB is to replace these popularly held notions, often accepted without question, with science based conclusions As we will see the field of OB is built on decades of research Let us begin by understanding the importance of Interpersonal Skills

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Understanding OB helps determine manager effectiveness

Technical and quantitative skills are important But leadership and communication skills are CRITICAL

Organizational benefits of skilled managers

Higher productivity from team Lower turnover of quality employees Higher quality applications for recruitment Better financial performance

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Organizational Behavior
- Organizational Behavior is 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 towards improving an organizations effectiveness.

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Managers Functions, Roles & Skills

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Management Functions
Planning : Defining Goals, Establishing Strategy, Developing Plans to co-ordinate activities Organizing : Organization Structure, What tasks, Who will perform, Grouping the tasks, Reporting Relationships, Decisions made where Leading : Motivating, Directing, Selecting Communication Channels , Resolving Conflicts Controlling : Monitoring Activities to ensure accomplishment, Correcting Significant Deviations

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Discovered ten managerial roles Separated into three groups:

Interpersonal Informational Decisional

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Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

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Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

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Technical Skills
The ability to apply specialized knowledge or expertise

Human Skills
The ability to work with, understand, and motivate other people, both individually and in groups

Conceptual Skills
The mental ability to analyze and diagnose complex situations

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`Is

there a difference in frequency of managerial activity between effective and successful managers?
`Four

types of managerial activity: Traditional Management

x Decision-making, planning, and controlling.

Communication
x Exchanging routine information and processing paperwork

Human Resource Management

x Motivating, disciplining, managing conflict, staffing and training.

Networking
x Socializing, politicking, and interacting with others.

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Managers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)
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Seven Foundation Competencies

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Job Knowledge Hard Skills Soft Skills Visible Easier to Develop

Personality
(Traits, Motives, Attitudes & Values)

Hidden
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Difficult to Develop

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`A

Competency is an underlying characteristic of a person which enables him /her to deliver superior performance in a given job, role or a situation.

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Managing Self Managing Communication Managing Diversity Managing Ethics Managing Across Cultures Managing Teams Managing Change

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Understand the personality and attitudes of yourself and others Perceive, appraise, and interpret accurately yourself, others, and the immediate environment Understand and act on your own and others workrelated motivations and emotions Assess and establish developmental, personal/liferelated, and work-related goals Take responsibility for managing yourself and your career over time & stressful circumstances

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A career is a sequence of work-related positions occupied by a person during a lifetime. Career development involves making decisions about an occupation and engaging in activities to attain career goals. A career plan is an individuals choice of occupation, organization, and career path.

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Career success or failure is best determined by the individual, in terms of his/her personal goal achievement No absolute career evaluation standards exist Examine a career subjectively (e.g., values and personality fit) and objectively (e.g., job choices, competencies needed) Make decisions about occupation and pursue activities to attain career goals throughout your lifetime Consider cultural factors as they impact performance and career opportunities

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Involves the ability to use all the modes of transmitting, understanding, and receiving ideas, thoughts, and feelings, (verbal, listening, nonverbal, written, electronic, etc.) for accurately transferring and exchanging information and emotions

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Convey information, ideas, and emotions so they are received as intended Provide constructive feedback Engage in active listening Use and interpret nonverbal communication effectively Engage in effective verbal communication Engage in effective written communication Effectively use electronic communication resources

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Involves the ability to value unique individual and group characteristics, embrace such characteristics as potential sources of organizational strength, and appreciate the uniqueness of each individual

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Foster an environment of inclusion for all Learn from others with different characteristics, experiences, perspectives, and backgrounds Embrace and support diversity Work with others because of their talents and contributions, rather than personal attributes Provide leadership in addressing diversity-based conflicts Apply diversity laws, regulations, and organizational policies related to your position

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Genetic characteristics that affect a persons self-image and socialization, appear to be unlearned and are difficult to modify

Primary Categories:

Age, race, ethnicity, gender, physical abilities and qualities, and sexual and affectional orientation

Learned characteristics that a person acquires and modifies throughout life

Secondary categories:

Education, work experience, income, marital status, religious beliefs, geographic location, parental status, behavioral style

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Involves the ability to incorporate values and principles that distinguish right from wrong in making decisions and choosing behaviors

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Definition: Values and principles that distinguish right from wrong. Ethics are often based upon laws, organizational policies, social norms, family, religion, and/or personal needs, and may be subject to differing interpretations with problems in proving truth Ethical Dilemma: A situation in which an individual or team must make a decision that involves multiple values.

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Identify and describe the principles of ethical decision making and behavior Assess the importance of ethical issues in actions Apply laws, regulations, and organizational rules in making decisions and taking action Demonstrate dignity and respect for others Demonstrate honest and open communication limited only by legal, privacy, and competitive considerations

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Involves the ability to recognize and embrace similarities and differences among nations and cultures and then approach key organizational and strategic issues with an open and curious mind
Culture = the dominant pattern of living, thinking, and believing that is developed and transmitted by people, consciously or unconsciously, to subsequent generations Cultural values = those consciously and subconsciously deeply held beliefs that specify general preferences, behaviors, and define what is right and wrong.
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Understand, appreciate, and use cultural factors that can affect behavior Appreciate the influence of work-related values on decisions, preferences, and practices Understand and motivate employees with different values and attitudes Communicate in the local language Deal effectively with extreme conditions in foreign countries Utilize a global mindset (use a worldwide perspective to constantly assess threats or opportunities)

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Individualism = the tendency of people to look after themselves and their immediate family, which implies a loosely integrated society In cultures that emphasize individualism, people view themselves as independent, unique, and special; value individual goals over group goals; value personal identity, personal achievement, pleasure, and competition; accept interpersonal confrontation; and are less likely to conform to others expectations Such cultures include the United States, Australia, New Zealand and the United Kingdom Example: Stand on your own two feet!

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Collectivism = the tendency of people to emphasize their belonging to groups and to look after each other in exchange for loyalty Cultures that emphasize collectivism are characterized by a tight social framework, concern for the common welfare, emotional dependence of individuals on larger social units, a sense of belonging, a desire for harmony, with group goals being viewed as more important than individual goals, and a concern for face-saving Such cultures include Japan, China, Venezuela, and Indonesia Example: The nail that sticks up gets hammered down!

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Involves the ability to develop, support, facilitate, and lead groups to achieve organizational goals

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Determine when and how to use teams Set clear performance goals directly or participatively Define responsibilities and tasks directly or participatively Show accountability for goal achievement Use appropriate decision-making methods Effectively manage conflicts Assess performance and take corrective action as needed

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Involves the ability to recognize and implement needed adaptations or entirely new transformations in the people, tasks, strategies, structures, or technologies in a persons area of responsibility

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Apply the other six competencies in pursuit of needed changes Provide leadership in planned change Diagnose pressures for and resistance to change Use the systems model and relevant processes to facilitate change Seek out, learn, share, and apply new knowledge in the pursuit of constant improvement

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Responding to Globalization Managing Workforce Diversity Succession Planning Improving Customer Service Improving People Skills Stimulating Innovation & Change Coping with temporariness Working in networked organizations Helping employees handle Work-Life Balance Creating a Positive Work Environment Improving Ethical Behavior

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