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Organisation Behavior

OB Investigates impact that Individuals, Groups & Structure have on organisational functioning, in a given context

Built on contributions from

Psychology (seeks to measure, explain & sometimes change human behaviour) [Individual] Sociology (study of people in reln to social environment/culture) [Group] Anthropology (study of societies/cultures to learn about human behaviour) [Org System] Political science

Study of OB
Intuition Systematic Study Role of Theory

What Managers Do
Management Functions Plan, Organise, Lead & Control Management Roles Imformational Monitor, Disseminator, Spokesperson Interpersonal Figurehead, Leadership, Liaison Decisional Entrepreneur, Disturbance Handler, Resource Allocators, Negotiator Management Skills Technical Skills(SME), Human Skills(understand/communicate/motivate) & conceptual skills(analyse and diagnose)

Managerial Skills

There Are Few Absolutes in Behavior

Contingency variables
that moderate the relationship between two or more other variables and improve the correlation (People behave differently under different conditions/variables. One in a party behaves different from one in a religious place)

Images of Organisation
Organizations as Machines
Term organization derived from Greek word organon meaning tool or instrument Efficient Reliable Control systems Documentation Code of conduct Routines & standardization to reduce uncertainty Suppress spontaneity, innovation & change

Organizatons as Cultures
Rituals, core values, stories, behavior patterns Relationships Decision-making Management style

Organizatons as Psychic Prisons

Organisations stimulate & bring out pathological tendencies/neurotic impulses in an acceptable form White collar crime Deceipt Political games Exploitation Obedience to authority

Organizatons as Living Systems

Show predictable sequence of growth like living beings Primary goal is survival & adaptation Must interact with environment to survive

Organizational adaptation is not automatic: moderated by cognitive acumen of its members

Organizatonal Effectiveness
Resource-based Approach: ability to secure, manage & control scarce/ valued skills & resources Goal Approach: productivity, efficiency, measurable goals Internal Process Approach: ability to innovate & respond

Stakeholder Approach
Owners Employees Customers Creditors Community Suppliers Govt/ external agencies Financial return Satisfaction, pay, supervision Quality of goods & services Creditworthiness Social responsibility Abiding laws & regulations

Personality & Individual Behavior

I am like all other people I am like some other people I am like no other person

Nature vs Nurture
P=f ( H x E x S)

Relevance of Understanding Personality?

Sum total of ways in which an individual reacts and interacts with others

Personality Traits that Influence Work Behavior

Cognitive Style- Decision- Making, Taking Risk, Dogmatic, Flexibility Emotional Stability- Self Efficacy, Secure, Balanced, Anxious, Neurotic Tendencies, Hostile Ascendant Tendencies- Assertive, Dominating, Machiavellian, Submissive Interpersonal Style- Sociable, Detached, Responsive, Empathetic,Team Worker, Networking

Self-Monitoring: Adjusting to external /situational factors, Ability to play Multiple (& contradictory) Roles Type A Personality Sense of urgency, multitasking, obsessed with nos./measuring

Psychological Processes
Self Esteem Emotional Stability Locus of Control

Locus of Control

Influenced by fate & others Low self-direction Cautious in trying new approaches Express greater dissatisfaction with job, orgn, and superior Use defenses to cope with inadequacies Often feel helpless Become cynical

Self-reliant, self-directed Accept responsibility for own growth & career development Confident Higher risk- taking Self blaming Achievement oriented Higher perseverance

RoleTaking vs. Role Making

Do People Change?
Strong impulse to grow Self-fulfilling prophesy - I think I am & therefore I am

Obstacles to Growth Safety

Captives of the Past " I have always been this way" Tendency to rationalise, justify (Defenses) Low self-esteem Being a critic rather than a doer Fear of Failure


Head Tapes

I can Ill make it work This is my right My needs are important Im not old


Others are better What will others say? I must not fail I cant

Emotional Intelligence & Interpersonal Relations

Anyone can be angry that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way- that is not easy Aristotle
We hire attitudes and train for skills Rising stars flamed out not because they lacked technical abilities, but because of interpersonal flaws Intelligence gets you hired; relationships get you a promotion Primary causes of executive derailment: difficulty in handling change, not working well in team & poor interpersonal relations CEOs may have been hired for their skills, but get fired for their personalities (India inc gives CEOs some coaching (ET Dec. 06)


Logical Intelligence (IQ)

Linguistic Intelligence Musical Intelligence Spatial Intelligence Interpersonal Intelligence (EQ)

Emotional Intelligence Ability to detect and manage emotional cues and information
1. Ability

to understand your emotions - what causes them

2. Ability to express feelings, when & where to express & how they effect others 3. Ability to listen to others & empathize with their emotions

Four Competencies of Emotional Intelligence

Skills in collaboration & building relationships Ability to take initiative Drive to achieve results Ability to lead teams

1. 2. 3.

Success of Leaders is dependent on how they do something Whether they are upbeat, enthusiastic & move us or whether they are negative, passive, aggressive & take away our enthusiasm or cause distress

People will forget what you SAID People will even forget what you DID But they may never forget how you made them FEEL

Interrelationship betwn Behavior, Attitudes & Values Self concept in the centre of the circle, values, attitudes and behaviour flowing outwards. Values Judgmental basis Attitudes Feelings toward a person/situation Behavior Actions/Outcome Self Concept & Behavior
Positive Selfconcept Resilient face setbacks Open to criticism Can level with authority Likely to think well of others Behavior Confident, Self-assured Comfort with new people /new situations Long lasting positive relationships Low Self-esteem Defensive, Fearful, Hesitant Self-destructive behavior Seek approval of others Authority issues Behavior Low initiative Compliance Resistance to change Rebellious

Values, Attitudes & Behavior

Values: Judgmental. Basic conviction that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of existence Attitude: Feelings towards person / event /situation Behavior: Action, outcome

Types of Attitudes
Job Satisfaction Feelings toward the job. Leads to improved performance & retention. Recruitment policies, placement practices, development schemes etc. contribute to JS Job Involvement Identifying with job, actively participating in it & considering performance important to self-worth Organisational Membership - acceptance & willingness to achieve values & goals of orgn


Attitude Surveys Job Satisfaction Organizational Citizenship Behavior (OCB) engaging in behaviors that go beyond the normal expectations of the job

Where to Start
Simple acts of mutual acceptance Pay attention to own & others feelings Take responsibility for own emotions & behavior

Managing Superior

Understand superior from his perspective Dont hide important information Dont give message of being an out- group member Dont be a rebel without a cause Help superior succeed Dont sound like a complainer Dont expect the superior to be perfect

Perception is a personal construct World view influenced by several factors The eyes see but the mind evaluates Peoples behavior is based on their perception of

reality, not on reality itself

Selective Perception
Internal Factors

Learning: past experience, background Expectations: Self-fulfilling Prophesy Personality: traits, attitudes, beliefs
Situational Factors

Position in organisation

1. Attribution Theory 1. Individuals are motivated to understand the cause of their own & others behavior 2. Assign different causes for success & failures for Self & for Others 3. Tendency to underestimate influence of external factors and overestimate influence of internal factors when 4. Tendency to attribute own success to internal factors & place blame for failures on external factors 2. Stereotyping (Judge on the basis of our perception)[shortcut perception] 3. Halo Effect (Drawing a general impression on the basis of a single characteristic) 4. Contrast Effect (In entertainment Never follow an act that has kids or animals)
making judgments about others failures

(Necessary for economy of perception, but if not cautious , often leads to preconceived ideas & biases)

Reducing Perceptual Errors

Not jump to conclusions Collect more information / data / facts Analyse own assumptions & biases while making decision

Applications in Organizations
Decision Making during Interviews Performance Appraisal / Rewards Self

Managing Impressions


Rational Decision-Making Model

1. 2. 3. 4. 5. Recognise & define problem Identify & weigh criteria Search for information Generate alternatives Take optimal decision

Assumptions of Rational Decision-Making

Problem clarity Option are known Individuals have clear preferences Preferences are constant No time or cost constraints while making a decision

How Decisions Are Actually Made

Limited perspective Judgmental biases - past experience, shortcuts to reduce demands of processing information Individuals make decisions by simplifying the process Extract essential features of a problem/issue without capturing all its complexity Outcome? Choosing a decision that is good enough Satisficing

Bounded Rationality
the idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Common Errors in Making Decisions

Overconfidence- Believing too much in own decision taking capabilities Anchoring- Fixating on early, first received information Confirmation - Using only the facts that support our decision Availability - Using information that is most readily at hand Escalation of Commitment- Increasing commitment to a previous decision in spite of negative information

Group Dynamics
Types of Groups

Formal group (defined by org structur with dedicated work assignments establishing tasks. E.g. flight crew of an airplane Informal group (natural formation e.g. 3 emploeees from diff depts.) - Command group determined by org chart - Task group people working together to complete a task - Interest group people working together to attain a specific objective which all are concerned with - Friendship group share one or more common characteristics

SOCIAL IDENTITY THEORY Perspective that considers when and why individuals consider themselves members of a group.

Analysing Structure of Groups

Content vs. Process
Leadership Rules Norms Roles Cohesiveness

Groups Influence Individual Behavior & Judgment

Social Facilitation Social Inhibition Social Loafing Self Handicapping Conformity

Group Decision Making - Assets

Greater knowledge and facts Broader perspective/alternatives on issues Greater satisfaction with & support of decisions Better problem comprehension Increased communication

Group Decision Making - Liabilities

Less speed Individual domination Compromise may damage quality of decision Ambiguous responsibility/Premature decisions

Power & Influence

Organisational iceberg

Individual & Organisation

Individuals need to respond not only to formal, rational organisation but also to informal, irrational & political aspects of organisation Organisation does not change itself for each individual Individual has more control over self than over the organsiation

Power & Influence

Authority is the Right to seek compliance Power is the Ability to secure compliance

Sources of


Legitimate Power based on structural changes Reward Power . Someone who distributes rewards(raise/bonus) Coercive Power . Application/threat of app of physical sanctions Information Power Expert Power Charismatic Power

Formal authority to control and use organisational resources

Symbols of Power

Get work done on own terms Access to early information Ability to intercede for someone in trouble Ability to get favors for employees Exceed budget limits Procure above-average raises for employees Seniors seek their opinion

Influence: An Interplay of
Reputation Credibility Capability Professional Standing Eminence Recognition Networking Managing Relationship Affiliations Membership Associations

Recognition and Reputation

Managing Politics
Reduce uncertainty Open communication Setting objective criteria for rewards Awareness of causes & consequences of political behavior