HRM for EXECUTIVES

Sep 20, 2020 HRM: AN OVERVIEW 1

 HRM for EXECUTIVES

Organizational behavior is the

systematic study and careful
application of knowledge about
how people - as individuals
and as groups- act within
organizations.

Sep 20, 2020 HRM: AN OVERVIEW 2

 HRM for EXECUTIVES

Three Levels of OB Analysis

1-3
 HRM for EXECUTIVES

GOALS OF OB

• Describe
• Understand
• Predict
• Control

Sep 20, 2020 HRM: AN OVERVIEW 4

 HRM for EXECUTIVES

Describe:
•Study of organizational behaviour is based on
scientific methods, which have been applied on
human beings.
•It is a science, that analyses as to how people
behave in different situations in the organization.
•A manager should be able to describe the behaviour
of each of the individuals under his command, identify
attitude, and be able to pinpoint his behaviour so that
the situation in the organization is under control.

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 HRM for EXECUTIVES

Understand:
•Leaders must understand human behaviour as to
why people behave in particular manner and try to
identify reasons so that corrective actions can be
taken.

Predict:
•Ideally, managers would have the capacity to predict
which employees might be dedicated and productive
and which ones might be absent, tardy or disruptive.
•So that managers could take preventive measures.

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 HRM for EXECUTIVES
Control:
•The final goal of OB is to control and develop some
human activity at work.
•Since managers are held responsible for performance
outcome, they are vitally interested in being able to make
an impact on employee behavior, skill development, team
effort, and productivity.
•Managers need to be able to improve results through the
actions they and their employees take, and organizational
behavior can aid them in their pursuit of this goal.

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 HRM for EXECUTIVES

Fundamental Concepts
of
Organizational Behavior

• The Nature of People

• The Nature of Organizations

Sep 20, 2020 HRM: AN OVERVIEW 8

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

• Individual differences
Each person is substantially different
from all others in terms of their
personalities, needs, demographic
factors and past experiences and/or
because they are placed in different
physical settings, time periods or social
surroundings.

Sep 20, 2020 HRM: AN OVERVIEW 9

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

• Perception
• Perception is the unique way in which each
person sees, organizes and interprets things
based on their background of individual
differences.
• Each person reacts not to an objective world, but
to a world judged in terms of his/her own beliefs,
values and expectations.
• Managers need to recognize the perceptual
differences among the employees and manage
them accordingly.
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 THE NATURE OF PEOPLE
HRM for EXECUTIVES
• A whole person
• People function as total human beings. People are physical,
mental, social and spiritual beings and the organization
actually employs the whole person rather than certain
characteristics.

• There are spillover effects between the work life and life
outside work and management’s focus should be in
developing not only a better employee but also a better
person in terms of growth and fulfillment.

• If the whole person can be developed, then benefits will

extend beyond the firm into the larger society in which
each employee lives.
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 THE NATURE OF PEOPLE
HRM for EXECUTIVES

• Motivated behavior
• Individual’s behavior is guided by their
needs and the consequences that results
from their acts.
• In case of needs, people are motivated not
by what others think they ought to have
but by what they themselves want.
• Motivation of employees is essential to the
operation of organizations and the biggest
challenge faced by managers.

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 THE NATURE OF PEOPLE
HRM for EXECUTIVES

• Desire for Involvement

Many employees actively seek
opportunities at work to become involved
in relevant decisions, thereby
contributing their talents and ideas to
the organization’s success.
Consequently, organizations need to
provide opportunities to the employees for
meaningful involvement.

Sep 20, 2020 HRM: AN OVERVIEW 13

 THE NATURE OF PEOPLE
HRM for EXECUTIVES

• Value of the Person

People wants to be treated with care,
dignity and respect and increasingly
they are demanding such treatment from
their employers.
They want to be valued for their skills
and abilities and to be provided with
opportunities to develop themselves.

Sep 20, 2020 HRM: AN OVERVIEW 14

 THE NATURE OF ORGANIZATIONS
HRM for EXECUTIVES

• Social systems
• Sociology tells that organizations are social systems;
consequently, activities therein are governed by social
laws as well as psychological laws. Just as people have
psychological needs, they also have social roles and
status.
• Their behavior is influenced by their group as well as
by their individual drives.
• Two types of social systems exist side by side in the
organization- the formal (official ) social system and the
informal social system - each influencing and getting
influenced by the other.

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 THE NATURE OF ORGANIZATIONS
HRM for EXECUTIVES

• Mutual Interest
• There is a mutuality of interest between the
organization and its employees.
• Organization needs employees to reach its
objectives and people need organizations to help
them reach individual objectives.
• Mutual interest provides a super ordinate goal –
one that can be attained only through the
integrated efforts of individuals and their
employees.

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 THE NATURE OF ORGANIZATIONS
HRM for EXECUTIVES

• Ethics
• Ethics is the use of moral principles and values to
affect the behavior of individuals and organizations with
regard to choices between what is right and wrong.
• In order to ensure a higher standard of ethical
performance by managers and employees companies
have established codes of ethics, publicized statements
of ethical values and set up internal procedures to handle
misconduct.
• When organization’s goals and actions are ethical,
individual, organizational and social objectives are more
likely to be met.

Sep 20, 2020 HRM: AN OVERVIEW 17