PEMP - EMM PT11

ORGANIZATIONAL
BEHAVIOUR
By
Prof. B.S.Ajit Kumar

 M.S Ramaiah School of Advanced Studies - Bangalore 1

 PEMP - EMM PT11

Introduction
• Managers get things done through other people
• They Plan,Organise,Lead,Control
• Firms,Industries,Schools,Hospitals Churches,
Temples ,Police dept are ALL Organisations and
MGRS have to work in an orgn

 M.S Ramaiah School of Advanced Studies - Bangalore 2

 PEMP - EMM PT11

Introduction
• Plan means defining goals & strategies
• Organising means—who does what task,how they
are grouped,who reports to whom etc
• Leading means motivating,resolving conflicts,
directing activities of others etc
• Controlling means monitoring, comparing,
correcting

 M.S Ramaiah School of Advanced Studies - Bangalore 3

 PEMP - EMM PT11

Introduction
• Managerial Roles—figurehead,resource allocator,
negotiator……
• Management Skills
– Technical---Domain
– Human---Communicate,Motivate,Delegate
– Conceptual—Analyse and diagnose complex
situations

 M.S Ramaiah School of Advanced Studies - Bangalore 4

 PEMP - EMM PT11

Introduction
• An interesting study
– Traditional mgt (plan etc)
– Communication (Exchanging routine info)
– HRM(Motivating,disciplining,Trg,conflict mgt)
– Networking(Socialising,Interacting with
outsiders)
Average Successful Effective

 M.S Ramaiah School of Advanced Studies - Bangalore 5

 PEMP - EMM PT11

Effective Versus Successful Managerial Activities (Luthans )

1. Traditional management
• Decision making, planning, and controlling
2. Communications
• Exchanging routine information and processing
paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking
• Socializing, politicking, and interacting with others

 M.S Ramaiah School of Advanced Studies - Bangalore 6

 PEMP - EMM PT11

Allocation of Activities by Time

EXHIBIT 1-2

 M.S Ramaiah School of Advanced Studies - Bangalore 7

 PEMP - EMM PT11

Conclusion
• One common thread runs thru functions, roles,
skills,activities and approaches to Mgt---Each
recognises the paramount importance of managing
people. Regardless of what it is called ---
hrm,leading,interpersonal etc---it is clear that
managers need to develop their people skills if
they are going to be effective and successful.
• The discipline on which people skills is based is
called OB

 M.S Ramaiah School of Advanced Studies - Bangalore 8

 PEMP - EMM PT11

Definition of OB
• OB is a field of study that investigates the
impact that individuals,groups,and
structure have on behaviour within
organisations,for the purpose of applying
such knowledge towards improving an
organisation’s effectiveness.

 M.S Ramaiah School of Advanced Studies - Bangalore 9

 PEMP - EMM PT11

ORGANIZATIONAL BEHAVIOUR
We take a Macro View by:
• Defining OB
• History
• Fundamental characteristics
• We will then try and analyse our own strengths by
PSYCHOMETRIC TESTS:
• We will then understand a TYPICAL organization
STRUCTURE and NORMAL interplay of various
functions in a manufacturing company.

 M.S Ramaiah School of Advanced Studies - Bangalore 10

 PEMP - EMM PT11

ORGANIZATIONAL BEHAVIOUR
• What is an Organization:
• An organization is a structured social system
consisting of groups and individuals working
together to meet some agreed upon objectives
• Let us try and answer two key questions:
• What is the field of OB all about?
• Why is it important to know about OB?

 M.S Ramaiah School of Advanced Studies - Bangalore 11

 PEMP - EMM PT11

ORGANIZATIONAL BEHAVIOUR
• The field of OB has Four Main characteristics:
• OB is firmly grounded in scientific method
• OB studies individuals, groups and organizations
• OB is interdisciplinary in nature
• OB is used for enhancing organizational
effectiveness and individual well being.

 M.S Ramaiah School of Advanced Studies - Bangalore 12

 PEMP - EMM PT11

ORGANIZATIONAL BEHAVIOUR
• OB KNOWLEDGE IS BASED ON Behavioural Science.
Granted this is not as sophisticated and mature ---- P, C, M,
Nevertheless OB seeks to develop knowledge by using an
empirical research based methodology. It is based on
systematic observation and measurement of the Behaviour or
phenomenon of interest. OB researchers have shed light on:
• How can goals be set to enhance people’s job performance?
• How can leaders enhance their team effectiveness?
• What can be done to improve orgn communication?

 M.S Ramaiah School of Advanced Studies - Bangalore 13

 PEMP - EMM PT11

ORGANIZATIONAL BEHAVIOUR
• OB recognizes that 3 levels of analysis need to be considered to fully
comprehend the complete Behaviour of an organization like;
• Individual perceptions, attitudes, motives.
• How people communicate and co ordinate activities in work groups.
• Also the way the organization is structured and how they operate in
an environment which effects individual and groups.
• OB draws upon a wide variety of social sciences------ psychology,
sociology, Anthropology, political science, economics, and
Management science.

 M.S Ramaiah School of Advanced Studies - Bangalore 14

 PEMP - EMM PT11

Contd
• Psychology---Study of Individual behaviour of humans---
Job satisfaction,Work design,Emotions
• Sociology—Study of people in relation to their
environment or culture—Group behaviour,Teams
• Social Psychology—Change mgt, Measuring,
understanding and changing attitudes
• Anthropology---Study of societies-Why
values,habits,attitudes,behaviour are diff in diff countries
• Economics---Decision making ,Negotiation

 M.S Ramaiah School of Advanced Studies - Bangalore 15

 PEMP - EMM PT11

ORGANIZATIONAL BEHAVIOUR
• Theory Y – Modern approach not lazy, will to work
hard if right conditions prevail [ Assumes people
have a psychological need to work and seek
achievement and responsibility].Ability to innovate is
widely spread and not solely those of mgrial class
• Theory X—Employees dislike work,so will attempt to avoid it
So they need to be coerced,controlled,punished to achieve
Employees avoid responsibility &seek direction always
Most place security above all needs and display no ambition

 M.S Ramaiah School of Advanced Studies - Bangalore 16

 PEMP - EMM PT11

Theory X
Theory X assumes that the average person:
Dislikes work and attempts to avoid it.
Has no ambition, wants no responsibility, and would
rather follow than lead.
Is self-centered and therefore does not care about
organizational goals.
Resists change.
Is gullible and not particularly intelligent.

Essentially, Theory X assumes that people work only for

money and security.

 M.S Ramaiah School of Advanced Studies - Bangalore 17

 PEMP - EMM PT11

Theory Y
Theory Y
The higher-level needs of esteem and self-actualization are
continuing needs in that they are never completely satisfied. As such,
it is these higher-level needs through which employees can best be
motivated.
Theory Y makes the following general assumptions:
Work can be as natural as play and rest.
People will be self-directed to meet their work objectives if they
are committed to them.
People will be committed to their objectives if rewards are in
place that address higher needs such as self-fulfillment.
Under these conditions, people will seek responsibility.
Most people can handle responsibility because creativity and
ingenuity are common in the population.

 M.S Ramaiah School of Advanced Studies - Bangalore 18

 PEMP - EMM PT11

Theory Z
theory Z
Definition
Japanese consensus management style based on the assumptions
that (1) employees want to build cooperative relationships with their
employers, peers, and other employees in the firm; for this they (2)
require high degree of support in the form of secure employment and
facilities for development of multiple skills—through training and job
rotation, (3) they value family life, culture and traditions, and social
institutions as much as material success, (4) they have well-
developed sense of dedication, moral obligations, and self-discipline,
and (5) they can make collective decisions through consensus.
Introduced by the author William Ouchi (born 1943) in his book
'Theory Z.

 M.S Ramaiah School of Advanced Studies - Bangalore 19

 PEMP - EMM PT11

Why is it important to know about OB?

• One company – people don’t get along, goof a lot, boss is very unpleasant.
• Another company – people friendly, hard working, and boss is pleasant.
• What be at the heart of this difference is of great concern to OB practitioners
and so for managers.
• No matter what job you end up in; knowing about OB will help you to do the
job better, as managers have to know
– How to motivate employees?
– How to keep them satisfied and productive?
– How to communicate effectively?
– How to make teams work effectively?
– How to design jobs?

 M.S Ramaiah School of Advanced Studies - Bangalore 20

 PEMP - EMM PT11

History of OB
• Only since 100 years that people became interested in studying
behaviour in organizations and only in past 50 years has gained
wide acceptance.
• Started with question – how to get people to do more work in
less time?
• Frederick Taylor addressed this in a Steel Mill. Time and
Motion Study and scientific management was born to design a
job and select and train the right person.
• Human environment and treatment dramatically increased
performance – studied by mayo at Hawthorne plant.
[Illumination, rest, duration of work day etc.]

 M.S Ramaiah School of Advanced Studies - Bangalore 21

 PEMP - EMM PT11

Contd

Social Forces at Work were found as

important as physical factors

 M.S Ramaiah School of Advanced Studies - Bangalore 22

 PEMP - EMM PT11

Contd
• Division of Labour – work divided into specialized
tasks and whom each worker should be responsible
• Bureaucracy – application of set of rules where the
higher authority is in changer of lower ranking
workers.
• (Fayol and weber were the pioneers)

 M.S Ramaiah School of Advanced Studies - Bangalore 23

 PEMP - EMM PT11

OB in InfoTech Age
• Boring, Repetitive jobs – automated.
• Educated workforce can problem solve
themselves. Managers need to only know Big
Picture, create, innovate and learn how to TAP
into employees skills by building relationships.
• Employees concerned to a great extent about
challenge, meaning of work, as about money.

 M.S Ramaiah School of Advanced Studies - Bangalore 24

 PEMP - EMM PT11

OB in InfoTech Age
• There are 3 trends which we can identify:
– Rise of Global business with culturally diverse work
forces
– Rapid advances in technology
– Rising expectations of people in general
• Tendency for countries to be influenced economically by
one another is Globalization. This is aided by technology,
liberalized trade laws; developing nations have followed
“export” instead of import substitution.
• So MNC’s are common with lot of expatriates

 M.S Ramaiah School of Advanced Studies - Bangalore 25

 PEMP - EMM PT11

OB in InfoTech Age
• Also different work culture exposure.Understanding
behaviour of people at work requires a deep
understanding of their CULTURE.
• Shifting Demography of Work force
• More women in work force
• Racial and ethnic diversity.
• People living and working longer

 M.S Ramaiah School of Advanced Studies - Bangalore 26

 PEMP - EMM PT11

OB in InfoTech Age
• When more people differ from each other, more
challenges the organization faces in their
interaction. [Style of interaction, motivations
different, willingness to accept people different
from them regarding values, norms, behaviour etc,
career choices]

 M.S Ramaiah School of Advanced Studies - Bangalore 27

 PEMP - EMM PT11

Rapid Advances in Technology

• The organization of work, performance of work
and flexibility need have been changing due to
technology (mainly computer and wireless based)
and customers demands.
• Technology enables more work by less people and
at far locations
– Leads to downsizing
– Leads to out sourcing
– Telecommuting

 M.S Ramaiah School of Advanced Studies - Bangalore 28

 PEMP - EMM PT11

Rising expectations
• Social Factors have changed employee’s expectations
– Flexi hours due to nuclear families
– Temporary workers
– Compressed work weeks
• Customer’s demands have made TQM mandatory
– Total Employee Involvement
– Continuous Improvement
– CUSTOMER FOCUS

 M.S Ramaiah School of Advanced Studies - Bangalore 29

 PEMP - EMM PT11

contd
• Corporate Social Responsibility – unethical work practices
• Environmental concerns – Global Warming
• Managing means to understand:
• Basic human processes
• Personality and abilities
• Emotions and Stress on Job
• Individual in the organization
• Motivations
• Career Dynamics

 M.S Ramaiah School of Advanced Studies - Bangalore 30

 PEMP - EMM PT11

contd
• Group Dynamics
• Decision making
• Communications
• Interpersonal behaviour
• Influencing others
• Organization culture, creativity and Innovation
• Leadership
• Organizational processes
• Change Management

 M.S Ramaiah School of Advanced Studies - Bangalore 31

 PEMP - EMM PT11

Challenges and Opportunities in OB

• Globalisation
• Workforce Diversity
• Improving Quality & Productivity
• Labour shortage
• Improving Customer service
• Improving people skills
• Empowering people
• Innovation fostering
• Temporariness
• Work-Life balance
• Ethics

 M.S Ramaiah School of Advanced Studies - Bangalore 32

 PEMP - EMM PT11

Organisational Culture
• Read Hand out

 M.S Ramaiah School of Advanced Studies - Bangalore 33

 PEMP - EMM PT11

Developing an OB Model
• Model is an abstract of reality-a simplified
representation of some real world phenomenon
• OB Model proposes that there are three levels of
analysis
– Individual
– Group
– Orgn system
As we move we add systematically to our
understanding of behaviour in organisations

 M.S Ramaiah School of Advanced Studies - Bangalore 34

 PEMP - EMM PT11

Model--Contd
• A dependent variable is a key factor that needs
prediction and which is affected by some other
factor.In OB they are:
– Productivity
– Absenteeism
– Turnover
– Job Satisfaction
– Improper workplace behaviour
– Organisational citizenship behaviour
– See Handout for more details on each item

 M.S Ramaiah School of Advanced Studies - Bangalore 35

 PEMP - EMM PT11

Model--Contd
• Independent variable is the presumed cause of some
change in the dependent variable
• We look at causes at all Three levels
• Individual—
Biography(age,gender,race,experience),ability,Values,Attit
udes,personality,perception,motivation
• Group—Team working,leadership,power &politics
• Organisation level—Design of orgn,Trg,hrpolicies,Perf
evaluation

 M.S Ramaiah School of Advanced Studies - Bangalore 36

 PEMP - EMM PT11

Model---Contd
• Note;
• Groups are more than a sum of individuals
(Behaviour in a group is different than
ALONE.Generally you act as expected and exhibit
acceptable behaviour)

 M.S Ramaiah School of Advanced Studies - Bangalore 37

 PEMP - EMM PT11

Book References
• Behaviour in Organisatios-----Greenberg and
Baron------LPE---Prentice Hall publications
• Organisational Behaviour-----Robbins and Judge
Prentice Hall Publications

 M.S Ramaiah School of Advanced Studies - Bangalore 38