Professional Documents
Culture Documents
14 MSU 04
UNIT 1
Today’s challenges bring opportunities for managers to use OB concepts. The following are
the most critical issues confronting managers for which OB offers solutions—or at least
meaningful insights toward solutions.
When times are bad, though, managers are on the front lines with employees who must be
fired, who are asked to make do with less, and who worry about their futures. The difference
between good and bad management can be the difference between profit and loss or,
ultimately, between survival and failure. In good times, understanding how to reward, satisfy,
and retain employees is at a premium. In bad times, issues like stress, decision making, and
coping come to the fore.
Responding to Globalization
Organizations are no longer constrained by national borders. The world has become a global
village. In the process, the manager’s job has changed.
To work effectively with people from different cultures, you need to understand how their
culture, geography, and religion have shaped them and how to adapt your management style
to their differences.
In a global economy, jobs tend to flow where lower costs give businesses a comparative
advantage.
Managing Workforce Diversity
One of the most important challenges for organizations is adapting to people who are
different. Globalization focuses on differences among people from different countries,
workforce diversity addresses differences among people within given countries.
It acknowledges a workforce of women and men; many racial and ethnic groups; individuals
with a variety of physical or psychological abilities; and people who differ in age and gender
orientation.
One has to gain insights into specific people skills that he can use on the job. One can learn
ways to design motivating jobs, techniques for improving listening skills, and how to create
more effective teams.
An organization’s employees can be the impetus for innovation and change. The challenge
for managers is to stimulate their employees’ creativity and tolerance for change. The field of
OB provides a wealth of ideas and techniques to aid in realizing these goals.
Today most managers and employees today work in a climate best characterized as
temporary. Permanent employees are replaced with temporary workers. Managers and
employees must learn to cope with temporariness, flexibility, spontaneity, and
unpredictability. The study of OB can help you better understand a work world of continual
change, overcome resistance to change, and create an organizational culture that thrives on
change.
Networked organizations use e- mail, the Internet, and video-conferencing allow employees to
communicate and work together even though they are thousands of miles apart. The
manager’s job in a networked organization requires different techniques from those used
when workers are physically present in a single location.
Employees increasingly recognize that work infringes on their personal lives, and they’re not
happy about it. Recent studies suggest employees want jobs that give them flexibility in the ir
work schedules so they can better manage work–life conflicts. OB offers a number of
suggestions to guide managers in designing workplaces and jobs that can help employees
deal with work–life conflicts.
Employees see people all around them engaging in unethical practices. Employees paid
expense accounts or take bribes; corporate executives inflate profits so they can cash in
lucrative stock options; and university administrators look the other way when winning
coaches encourage scholarship athletes to take easy courses. Managers and their
organizations are responding to the problem of unethical behaviour in a number of ways.
They’re writing and distributing codes of ethics to guide employees through ethical
dilemmas. They’re offering seminars, workshops, and other training programs to try to
improve ethical behaviours.
ORGANISATIONAL BEHAVIOUR
DEFINITIONS
Organizational behaviour (often abbreviated OB) is a field of study that investigates the
impact that individuals, groups, and structure have on behaviour within organizations, for the
purpose of applying such knowledge toward improving an organization’s effectiveness.
OB is the study of what people do in an organization and how their behaviour affects the
organization’s performance.
OB refers to the behaviour of individuals and groups within organisations and the interaction
between organisational members and their external environments.
NATURE OF OB
1. It is a field of study emerged as a distinct field due to the significance of human behaviour
in organisations.
3. OB integrates the knowledge drawn from psychology, sociology, anthropology etc for
organisational analysis. Hence it is an interdisciplinary approach.
4. Both art and science. OB contains systematic knowledge about human behaviour and
hence it is a science. But it is an art to provide creative and specific solutions to the problems.
6. Goal oriented – OB seeks to fulfil both organisational goals and individual needs.
7. As a systems approach, OB takes into account all the variables like personal, social,
cultural and other factors that influence the organisational functioning.
SCOPE OF OB
In a very broad sense, the scope of OB is the extent to which it can govern or influence the
operations of an organization. The scope of OB integrates 3 concepts respectively:
Individual Behaviour
It is the study of individual’s personality, learning, attitudes, motivation, and job satisfaction.
In this study, we interact with others in order to study about them and make our perception
about them.
Example: The personal interview round is conducted to interact with candidates to check
their skills, apart from those mentioned in the resume.
Inter-individual Behaviour
It is the study conducted through communication between the employees among themselves
as well as their subordinates, understanding people’s leadership qualities, group dynamics,
group conflicts, power and politics.
FOUNDATIONS OF OB
Scientific Management
The theory of Scientific Management argues that a task given to an employee should be
optimized for maximum efficiency.
Leadership Research
Since 1940s time, a wide variety of personal characteristics have been evaluated with the
hope of discovering which traits can be associated with successful leadership and relationship
between leadership and power. Because leadership is such an important factor in determining
the success of an organization, leadership research is one of the most defining aspects of OB
research.
The Hawthorne effect refers to how the social influence of an informal group can determine
individual behavior. Mayo's finding that working conditions, satisfaction, and relationships
with other workers can all influence employee behavior gave rise to the human relations
approach to management, which held that there is no one best way of managing employees.
Motivation
The first motivation theories were developed toward the end of the 1930s. These theories are
based on the assumption that behavior is largely determined by immediate needs. They show
how the various physical, psychological, and social needs of a person will predict behavior.
EVOLUTION OF OB
Industrial revolution in the year 1776 brought as many changes in the manufacturing units.
People working in the factories faced materialism, discipline, monotony in work, boredom,
job displacements, increased production etc. Industrialists understood the human needs of
employees.
F. W. Taylor working at the Midvale Steel Company in the US during 1870s discovered that
applications of scientific methods to complete the tasks effectively. He advocated that:
a. In 1920s the dominant American market faced the trade cycle of depression/recession. The
management of every factory recognised the importance the functional areas like production,
marketing, finance and personnel to survive in the market and grow. Thus human relations
received increased significance.
b. Production area was still found to be the dominant business operation. Human aspects like
hours of work, wages, working conditions led the workers to protest against the management.
Thus labour movements led to the formation of trade unions.
The above reasons influenced the management to realise that workers need to be
distinguished from non- human factors like capital, money, machine etc. Thus human
relations movement further contributed to the significance of humanistic approach in
factories.
4. Stage Four: Hawthorne studies:
Following F.W. Taylor, Elton Mayo and his team began the research in the area of
organisational behaviour. In 1924 the team from Harvard Business School, US began to
research into human aspects of work and working conditions at the Hawthorne Plant of
Western Electric Company at Chicago. The experiments conducted resulted in findings like
importance of social factors, formation of groups in organisations, style of leadership, flow of
communication and information shared, conflicts and the supervisory climate.
HAWTHORNE EXPERIMENT
In November 1924, a team of research professors from the Harvard Business School of USA
began investigating into the human aspects of work and work conditions at the Hawthorne
plant of Western electric Company, Chicago. The company was producing bells and other
electric equipments for telephone industry. The team consists Elton Mayo (Psychologist),
Roethlisberger and Whitehead (Sociologists) and William Dickson (Company
Representative). The team conducted four separate experiments and behavioural studies over
7 year period.
2. Relay Assembly Test Room Experime nts (1927-1928) to find out the effects of changes
in number of work hours and related workers working conditions on worker productivity.
3. Experiments in intervie wing worke rs (1928-1930) to find out workers attitudes and
sentiments toward work.
4. Bank Wiring Room Expe riments (1931-1932) to find out social system of an
organisation.
It consisted of a series of studies of test groups in which the levels of illumination varied but
the conditions were held constant. The purpose behind it was to examine the relation of the
quality and quantity of illumination to the efficiency of workers. It was found that
productivity increased to almost the same rate in both test and control groups selected for the
experiments. In the final experiment, it was discovered that output decreased with the
decreased illumination level.
The researchers did not find any positive relationship between illumination and productivity.
But they found that people behave in a different manner when they are observed and in casual
manner if not observed.
The variables of working conditions did not account any results of relationship with
productivity. But the researchers suspected employee attitude and sentiments.
In 1928, researchers directly met the workers to ask their opinion about the things important
to them. Around 20 thousand workers were interviewed over a period of two years. The
interviewers skilfully listened to the workers thought about themselves and about their job.
They found relationships in an informal way between the workers in the formal
organisational set up. This experiment led to a richer understanding of the social,
interpersonal dynamics of people at work.
This study was conducted between 1931 and 1932. A group of 14 men who wired telephone
banks were observed in a standard shop condition.
Firstly, the workers had to work with the presence of the observer. The observer had no
conversations with the workers. The workers were natural and relaxed with their behaviour
after 3 weeks (initially workers were conscious about the observer).
Secondly, the observer found that the workers had set themselves to work up to 6600 units
per person per day. They worked in the pace that they can only produce 6600 units. Even
though they can produce more than 6600 units and also the y would be paid according to the
output, they did not do more. It was set as norm like set by them and if anyone tries to prove
that they could produce better, they would be harassed.
It was concluded that the behavioural norms set by the work group had a powerful influence
over the productivity of the group.
It provides for analysing why and how an individual behaves in a particular way.
1. Psychological
2. Social
3. Cultural
Organisational Behaviour integrates these factors to provide simplicity in understanding
human behaviour.
Interpersonal interaction is normally in peer relationship which represents mans most natural
attempt at socialisation. Two person relationship is inevitable in the organization. Analysis
of-
i. Reciprocal relationship
ii. Role analysis and
iii. Transitional Analysis
Are some of the common methods which provide such understanding.
Group pressures become a force in shaping human behaviour. Research in group dynamics
has contributed vitally to organisational behaviour and shows how a group behaves in its:
i. Norms
ii. Cohesion
iii. Goals
iv. Procedures
v. Communication pattern
vi. Leadership and
vii. Membership
Understanding group relationships is very important for organisational morale and
productivity.
The organisation is made up of many groups that develop a complex of relationships to build
its process and substance.
i. Interaction
ii. Rotation of members among groups
iii. Avoidance of win-lose situation
iv. Focus on total group objectives
2. Controlling and Directing Behaviour
After understanding the mechanism of human behaviour, managers are required to control
and direct the behaviour so that it conforms to standards required for achieving organisational
objectives.
i. Organisational Behaviour can be controlled and directed by the use of power and sanctions
which are formally prescribed by the organisation.
ii. Power is referred to as capacity of an individual to take certain action and may be utilised
in many ways.
iii. Organisational Behaviour explains how various means of power and sanction can be
utilised so that both organisational and individual objectives are achieved simultaneously.
(b) Leadership:
Organisational Behaviour brings new insights and understanding to the theory of leadership.
It identifies various leadership styles available to a manager and analyses which style is more
appropriate in a given situation.
(c) Communication:
iii. The communication process and how it works in interpersonal dynamics has been
evaluated by Organisational Behaviour.
ii. Organisational Behaviour suggests the approach to create organisational climate in totality
rather than merely improving the physiological conditions or increasing employees
satisfaction by changing isolated work process.
iii. Organisational Behaviour states that it is very important to create an atmosphere of
effective supervision, the opportunity for the realisation of personal goals, congenial relations
with others at the work place and a sense of accomplishment.
3. Organisational Adaptation
ii. Organisations have to adapt themselves to the environmental changes by making suitable
internal arrangement.
iii. Managers have to face dual problems- Identifying need for change and then implementing
the changes without adversely affecting the need for satisfaction of organisational people.
CONTRIBUTING DISCIPLINES
OB is an applied behavioural science that is built upon contributions from various disciplines.
The main areas are psychology, sociology, social psychology, anthropology, and political
science. As we will learn, psychology’s contributions have been mainly at the individual or
micro- level of analysis. The other four disciplines have contributed to our understanding of
macro concepts, such as group processes and organization. The following Exhibit presents an
overview of the major contributions to the study of OB.
1. Psychology
It is the study of behaviour of both of humans and of animals. It helps to measure, explain
and even change the behaviour of people and animals.
2. Sociology
This refers to the study of group behaviour. The focus is on the behaviour of people in
relation to their fellow human beings.
3. Anthropology
This refers to the study of the human race, particularly its culture. The focus is on how human
race adjusts itself to the environment.
4. Social Psychology
This blends the concepts from psychology and sociology. It focuses on the influence of the
people on one another. Change, communication patterns, group decision making processes
and attitudinal changes are studied through social psychology.
5. Political Science
It is the branch of knowledge that deals with the state and system of governing things; the
scientific analysis of political activity and behaviour.
MODELS OF OB
There are four models of organisational behaviour. They are autocratic, custodial, supportive
and collegial.
This model represents traditional thinking of economic concept of man. Employees become
dependent on the boss who has power to hire or fire. Under this model workers reluctantly
perform due to fear of punishment. Their morale and productivity tends to be low due to
insecurity feeling and frustration. However this model can be successful when workers are
lazy. It may be appropriate for blue collar workers who seek satisfaction of their
physiological needs.
This model depends on the economic resources of the organisation to pay wages and other
benefits to the employees. The employees are able to satisfy their security needs. They
become dependent on the organisation instead of on the boss. Employees feel satisfied and
happy but are not motivated to work hard for the organisation. Managers decide what is good
for their employees and psychological needs of employees are not satisfied
This model depends on managerial leadership. Management provides a climate that helps
employees grow and accomplish. The focus is on the participation and involvement of
employees in the decision making process. Supportive model feel a sense of task involvement
and participation in the organisation. This model is effective with executive and professional
employees who seek satisfaction of higher order needs.
Collegial – attempts to fulfil self actualisation needs
The term collegial means a body of persons having a common purpose. It is based on team
concept wherein each employee has high degree of understanding towards others and shares
common goals. The organisational climate is conducive to self fulfilment. Direction and
control from management is not required due to Self discipline of employees.
As the need hierarchy changes with the level of a person in the organisation, the suitability of
model also changes.
INDIVIDUAL BEHAVIOUR
Individual behaviour refers to the way in which an individual reacts or behaves at his place of
work.
It refers to some concrete action by an individual. Study of individual behaviour reveals the
behaviour of human at the working environment.
Personal Factors
Environmental Factors
Organizational Factors
I Personal Factors
Age- Age is an individual inherited characteristic that is determined by date of birth. Young
people are expected to be more efficient, energetic, risk-taking, innovative and ambitious.
Marital Status- Researcher indicated that with marital status, responsibilities of individual
get inclined and for them having steady proper job becomes more important. Such employees
have less absences, low turnovers and more job satisfaction.
Values- These are global beliefs that guides distinct actions and judgements in several
situations. It comprises of idea of an individual that is based on good, right and desirable
opinions.
II Environmental Factors
The external environment has an effective role in influencing the individual behaviour.
Employme nt level- Employment opportunities available within the country act as a major
determinant of individual behaviour. In case of less employment opportunities, he/she will
remain stick to same job level irrespective of how much satisfaction is attained. However, if
there are more employment opportunities available then employees will shift to other jobs.
Wage Rate- Monetary compensation is a major factor that every employee considers before
joining any organization. Therefore, a decision whether to stay in a particular company or
shift anywhere else is taken on the basis of wages he/she is getting.
Wide range of organizational factors influence behaviour of individual which are listed
below: –
Physical Facilities- Physical environment at work place have a great influence on behaviour
of individual. It comprises of factors like lighting, cleanliness, heat, noise level, office
furnishing, strength of workers etc.
Reward System- Fair reward system adopted by company for compensating its employees
enhances the overall performance and behaviour of individual.
INTELLIGENCE
Meaning/Definitions
Intelligence is defined as an ability to adapt to a variety of situations both old and new: an
ability to learn, or the capacity for education; and an ability to employ abstract concepts and
use to use a wide range of symbols and concepts.
Intelligence refers to a property of the mind that contains several capacities to reason, to plan,
to solve problems, to think abstract, to comprehend ideas, to use a language, and to learn.
Kinds of Intelligence
1. Cognitive intelligence
It involves the ability to understand complex ideas, to adapt effectively to the environment, to
learn from experience and to overcome obstacles by careful thought.
2. Emotional intelligence
It is the awareness and ability to manage one’s own emotions as well as the ability to be self-
motivated, to feel and to be socially skilled.
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1. Heredity
It appears to be partly dependent on brain structures and genes shaping brain development.
The ratio of brain weight to body weight also contributes to the IQ of a person. Age also
influences the IQ level. At initial ages, one develops the intelligence, applies the IQ in the
mid-age and as people grow older their level of intelligence declines as their deterioration of
health, deficiencies of eye sight, hearing etc.
2. Environment
The environmental conditions like nutrition, health, quality of encouragement, emotional
climate at home, educational opportunities and appropriate rewards for accomplishments
determines the development of individual intelligence.
MENTAL INTELLIGENCE
Specific intelligence is a person’s ability to excel in certain areas such as music, business or
arts.
EMOTIONAL INTELLIGENCE
Meaning