MANAGING HUMAN BEHAVIOUR II

INTRODUCTION & CHAPTER 1

BY DR. GLORYSON CHALIL

MHB II August 17, 2023 1

Based on recommended text (Organizational Theory, Design and Change)
and other mentioned readings
 COURSE OBJECTIVES
Major objectives of this module as an introductory course are:
• To familiarize the participants with different concepts related to macro level analysis of organizational behavior

• To develop an understanding of the nature, functioning and design of the organizations based on the interrelationship among
multiple components of star model

• To examine the reciprocal relationship between organizational characteristics and managerial behavior from the perspective of
an HR professional and improve their ability to
• Apply the relevant concepts to multiple contexts and analyze the necessity for customization across for each of these
contexts
• Evaluate the relative merits of the available options and create a better organizational design, if required

Learning modules based on Content and Sequential objectives are:

• Introduction and context of organizational design (module I)

• Structural elements of organizational design (module II)

• Contingency factors influencing organizational design (module III)

• Process elements of organizational design (module IV)

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MHB II August 17, 2023 3
Ref: https://cft.vanderbilt.edu/guides-sub-pages/blooms-taxonomy/
 MANAGING HUMAN BEHAVIOUR II
GRADING COMPONENTS
Component Weight
Class & Follow-up Activities 20%
(Individual & Group)
Case Analysis & Discussions 15%
Midterm Exam 25%
End Term Exam 40%

Those interested can participate in a research study with 15 marks (in addition to 100 above)
• Data collection require response from you and another five members from your organization
• Will share both links to those volunteer to participate
• The marks vary depending upon the number, diversity and quality of responses received
4
August 17, 2023
MHB II
 MANAGING HUMAN BEHAVIOUR II
GROUP FORMATION
• You will be forming groups of five/six members as primary
group
− Case analysis submissions will be done on primary group basis
• Each primary group will have two secondary groups of
two/three members
− Simulations and some class activities are done on secondary
group basis
− Prefer primary & secondary group members sitting together
• Form primary and secondary groups and communicate the
same to academic associate (Shabnam@xlri.ac.in) by next
class
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 MHB-II GRADING COMPONENTS
Class & Follow-up Activities
• This component (CA) mostly check participant’s ability to apply and analyze the related concepts to different
contexts. There may be a few class activities wherein you need to create a solution or evaluate the suitability of
various concepts discussed during the course before applying it.
• 10 marks of class activity is meant for a newspaper based midterm exercise scheduled on session 10, at primary
group level
• Since you need to operate in a VUCA world, be prepared to solve questions with imperfect background
information and significant time constraints.
• For class activities expected to be completed within scheduled sessions, CRs may request for extension of
announced timelines, while facilitator reserve the right to extend it.
• You need to submit the class activities on AIS portal under assignment section (whenever required).
• Three simulations are considered as class activities and your marks will be determined based on HBSP data of
your relative performance.
• All class activities are not graded as they are for experiential learning. Feel free to collect feedback during
interaction sessions arranged by CR or individually, even though they are discussed during classes.
MHB II August 17, 2023 6
• Since class activities may not be similar for each section, it will be converted into percentile scores for each
section.
 MHB-II GRADING COMPONENTS
Case Discussions
• Submissions by the primary groups will be considered for 50% of this component.
− All submissions should reach academic associate by 8.30 am of the due date.
− Delayed submissions till 9.00 am will result in 50% deduction and submissions
after 9.00 am will not be considered
• Remaining 50% will be based on the presentations and value adding interventions made
by each group/group member.
− Two/three groups will make presentations on random basis, while the
second/third group is expected to focus on additional insights and differences in
their analysis from the first/previous groups. Different groups will be called to
present analysis for each question
− Marks for groups not getting a chance for presentation will be determined based
on submission
• Groups are allowed to refer to their submissions, while making presentations. Be
MHB II August 17, 2023
prepared to answer follow-up questions from batch mates / facilitator. 7

• All members present on the day of case discussion will get equal marks
 MHB-II GRADING COMPONENTS
Midterm
• Preannounced Midterm with negative marking
− Avoid excessive risk taking
• Mostly MCQ’s
• Expect class activities, case studies, class discussions, simulations, some
application questions given during the class, portions from the shared text
book link, readings uploaded etc. to be a part of the quiz
• Syllabus for midterm: Portions covered till Session 07
• Marks will get converted to percentile scores for each section
− to take care of negative marking

MHB II
− to compensate for some specific examples that are not shared inAugust
one 17, 2023 8
section
 ORGANIZATIONS; TOWARDS A DEFINITION
• MORE THAN AN INDIVIDUAL
• JOIN TOGETHER TO SATISFY SOME NEED
• NEED TO COORDINATE THESE INDIVIDUALS

Compare the
definition with that ORGANIZATIONS: Tool used by people to coordinate their
of group actions to obtain something they desire or value

ORGANIZATIONAL THEORY: Study of how organizations

function and how they affect and are affected by the
environment in which they operate

MHB II August 17, 2023 9

 LEVELS OF ANALYSIS

Organization
system Level

Group Level

Individual Level
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 LEVELS OF ANALYSIS

External Orgn.
Environment
Orgn. Orgn.
B C D

Organizational
Level
Organization A

Group Dept A Dept B Dept C

Level

Individual
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Level August 17, 2023 11
 WHY ORGANIZATIONS?

Most effective
individual /
team in your
opinion
- Any
organization
behind their
success?
12

August 17, 2023

MHB II
 VALUE CREATION BY ORGANIZATIONS

AT WHICH STAGE(S)?

INPUT CONVERSION OUTPUT

PROCESS

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 Organizational inputs: Conversion process :
(Obtain inputs from its (Organization transform
environment) inputs and adds value to Class Activity 1
them)
Raw Material Compare the
Money & Capital Machinery regular flagship
Computers programs of
Human Resource
XLRI with VIL
Information & Knowledge: Human Skills & Abilities
programs in
Customers of service organizations terms of model
presented in the
slide:
Organization’s environment: Organization’s output :
(Sales of outputs allow it to obtain (Releases output to its
Reflection question
new supplies of inputs) environment)
Customers Finished Goods
What is the value of
Shareholders Services this analysis for an
Suppliers, Distributors Dividends HR professional?
Government Salaries
Competitors Value for stakeholders
MHB II August 17, 2023 14
 Organizational inputs: Conversion process :
(Obtain inputs from its (Organization transform Tata Motors
environment) inputs and adds value to Vs
them) Tata Steel
Raw Material
Machinery Tata Steel
Money & Capital
Vs
Human Resource Computers
TCS
Information & Knowledge: Human Skills & Abilities
Customers of service organizations TCS
Vs
Tata Sons

Organization’s environment: Organization’s output : Hard Copy Text

(Sales of outputs allow it to obtain (Releases output to its Vs
new supplies of inputs) environment) Virtual Text Book
Customers Finished Goods
Shareholders Services Sales Dept.
Suppliers, Distributors Dividends Vs
Salaries HR Dept.
Government
Competitors Value for stakeholders
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 August 17, 2023 16

MHB II
 ORGANIZATIONAL STRUCTURE & DESIGN
IN MULTIPLE FIELDS
• Religion
• Comparison of structures
• Catholics & Protestants
• Islam, Hinduism
• Indian cricket vs Indian football
• Impact of structure…
• How IPL changes the culture of cricket from its traditional form
• Politics
• Role of “Upper House” in Indian context
• Stability of coalition partners
• Movie making
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 ORGANIZATIONAL DESIGN

Relationship with 7S Model

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Ref: www.jaygalbraith.com/images/pdfs/StarModel.pdf
 COMPONENTS OF STAR MODEL
(BASED ON DESIGNING ORGANIZATIONS (2014; CH. 2) BY J GALBRAITH)
Strategy:
What to Do? (goals and objectives)
Where to Play? (type of business, region)
How to Win (Competitive advantage)

People: Structure:
Skill/Mind sets Specialization (Division of labour)
HR Policies that build organizational Shape, Distribution of Power (vertical & lateral),
capabilities Departmentalization (hierarchy)

Rewards: Processes:
Compensation, Promotion, Recognitions, Job Vertical (Management: allocation of resources),
Challenges Lateral (Information & decision: workflow), Informal
(alignments of goals) (social)
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* Ref: Designing Organizations (2014) by J Galbraith
 STAR MODEL BASED EXERCISE

• Reflect about your organizational experience

• Identify the changes in STAR model during the last 3-5 years in given organization

• Which design element has changed maximum

• Whether the change in the design element was stand alone, or has it impacted other design
elements?

• Share your experiences with other members of the group and choose the best example from the
group

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* Ref: Designing Organizations (2014) by J Galbraith
 IMPORTANCE OF ORGANIZATIONAL DESIGN

IMPORTANCE OF DESIGN DRIVERS OF DESIGN*

❑ Variety & Diversity
• Dealing with contingencies
❑ 4 stages (even the fifth one)
• Gaining competitive advantage ❑ U Form, Multi Products, Multi-locational,
Customer-Centric, Data-Centric
• Managing diversity
❑ Analytics 1.0, 2.0, 3.0
• Promoting efficiency, speed and innovation
❑ Interdependence

❑ Dynamics of Change
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* Ref: Designing Organizations (2014) by J Galbraith
 STAR MODEL BASED CASE
ANALYSIS FOR NEXT CLASS
Go through the case on HSBC:
Refer to each year and try to identify:
➢ The elements of star model mentioned in articles
➢ The element that initiated design change
➢ Impact of one element on other elements (whether they are explicit or implied in the shared
article)
➢ Any hints about drivers/importance of Organizational Design
Now analyze the case across years and try to connect all information related
organizational transition
No submission for this case.
Analyze following two additional cases later
❑Structural Changes @ Mahindra
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❑Walt Disney Restructuring Indian Operations. August 17, 2023 22
 ORGANIZATIONAL EFFECTIVENESS
MEASURING ORGANIZATIONAL EFFECTIVENESS

(Control)

(Innovation)

(Efficiency)
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 OPTIONS TO ATTAIN ORGANIZATIONAL EXCELLENCE
How strategy, people, process decisions vary

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August 17, 2023

 FLEXIBILITY
Human Relations Model Open Systems Model
(E) Human Resource
Development (M) Flexibility, Readiness

(M) Cohesion (E) Growth,

Morale Resource acquisition

INTERNAL EXTERNAL
(M) (E) Productivity,
Communication Efficiency
Information (E) Stability
(M) Planning, Evaluation
Mgmt. Control Goal setting
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Internal Process Model STABILITY Rational Goal Model

 Collectivity Stage
FLEXIBILITY
Human Relations Model Open Systems Model

Human Resource
Development
(M) Flexibility, Readiness

(M) Cohesion (E) Growth,

Morale Resource acquisition

INTERNAL EXTERNAL

(M) Communication (E) Productivity,

Information Mgmt. Efficiency

(E) Stability (M) Planning, Evaluation

Control Goal setting

MHB II Internal Process Model Rational Goal Model August 17, 2023 26

STABILITY
 FLEXIBILITY
Human Relations Model Open Systems Model

Human Resource
Development
(M) Flexibility, Readiness

(M) Cohesion (E) Growth,

Morale Resource acquisition

INTERNAL EXTERNAL

(M) Communication (E) Productivity,

Information Mgmt. Efficiency

Formalization & (E) Stability (M) Planning, Evaluation

Control Stage Control Goal setting

MHB II Internal Process Model Rational Goal Model August 17, 2023 27

STABILITY
 FLEXIBILITY
Human Relations Model Open Systems Model

Human Resource
Development
(M) Flexibility, Readiness

(M) Cohesion (E) Growth,

Morale Resource acquisition

INTERNAL EXTERNAL

(M) Communication (E) Productivity,

Information Mgmt. Efficiency

(E) Stability (M) Planning, Evaluation

Control Goal setting

MHB II Internal Process Model Rational Goal Model August 17, 2023 28
STABILITY
Elaboration of structure stage