Introduction to OB

Faculty: Mrs. Vijayalakshmi Suvarna

What is an Organization?

An organization is a open system that comprises of

Individuals

Systems & Processes

Groups

Environmental Influences

History of OB
Org. theory prior to 1900: Emphasized the division of labor and the importance of machinery to facilitate labor Scientific management(1910s-)--Described management as a science with employers having specific but different responsibilities Classical school( 1910s- ) Listed the duties of a manager as planning, organizing, commanding employees, coordinating activities, and controlling performance; basic principles called for specialization of work, unity of command, scalar chain of command, and coordination of activities

 Human relations(1920s-)Focused on the importance of the attitudes and feelings of workers; informal roles and norms influenced performance Classical school revisited (1930s):Reemphasized the classical principles Group dynamics(1940s) Encouraged individual participation in decision-making; noted the impact of work group on performance Bureaucracy--(1940s) Emphasized order, system, rationality, uniformity, and consistency in management; lead to equitable treatment for all employees by management

 Leadership(1950s) Stressed the importance of groups having both social task leaders; differentiated between Theory X and Y management Decision theory(1960s) Suggested that individuals "satisfice" when they make decisions Sociotechnical school(1960s) Called for considering technology and work groups when understanding a work system Envir. and tech. system(1960s) Described the existence of mechanistic and organic structures and stated their effectiveness with specific types of environmental conditions and technological types

 Systems theory-(1970s): Represented organizations as open systems with inputs, transformations, outputs, and feedback; systems strive for equilibrium and experience equifinality Contingency theory(1980s): Emphasized the fit between organization processes and characteristics of the situation; called for fitting the organization's structure to various contingencies

Today..

Individuals in organizations an eclectic mixture of

Perceptions & Attitudes Personality Types Learning Aptitudes Motivation Performance

are

Interpersonal behavior in organizations include

Group / Team behavior Power and Politics Conflict & Negotiation Leadership Interpersonal Communications

Processes and Systems that drive the organization are

Decision Making Job / Function Design Culture Communication / Reporting Channels Change

Environmental factors that influence the organization are

Technology Quality Global Perspective Cultural Diversity Ethics and their influence

This means that all people who work in organizations are expected to be competent in all the above for successful on the job performance.

Managing Diversity Attitude toward Diversity

 Respond to the following statements. Use a scale of 5 to 1 to indicate how strongly you agree with the statements. 5 = Strongly Agree 4 = Agree 3 = Neutral 2 = Disagree 1 = Strongly Disagree

S. No
1 2 3 4

Statements
I make a conscious effort to not think stereotypically I listen with interest to the ideas of people who dont think like I do I respect other peoples opinions, even though I may disagree If I were at a social event with people who differed ethnically from me, I would make every effort to talk to them I have a number of friends who are not my age, race, or gender, or of the same economic status and education. I like to hear both sides of an issue before making a decision

5 4 3 2

S. No
7

Statements
I recognize the influence that my upbringing has had on my values and beliefs and that my way isnt the only way I dont care how the job gets done, as long as it is done ethically and I see results I dont get uptight when I dont understand everything going on around me I adapt well to change and new situations I enjoy traveling, seeing new places, eating different foods, and experiencing different cultures

5 4 3 2

10 11

S. No
12

Statements
I enjoy people-watching and trying to understand the dynamics of human interaction I have learned from my mistakes When I am in unfamiliar surroundings, I watch and listen before acting When I get lost, I dont try to figure it out for myself but ask for directions When I dont understand what someone is telling me, I ask questions I really try not to offend or hurt others

5 4 3 2

13 14

15 16

17

S. No
18 19 20

Statements
People are generally good, and I accept them as they are I watch for peoples reactions whenever Im speaking to them I try not to assume anything

5 4 3 2

Scoring
Total your answers For +80 You probably value diversity and can adapt easily to a multicultural work environment. Continue to look for areas of improvement. For -50 You probably need to work on understanding the need to value diversity.

Case Study

Organization Structure

Traditional

Today

Where are you in todays global village?

WE LIVE AND CONDUCT BUSINESS IN A DIVERSE WORLD

Shift in Travel Industry

Business and investments: Current situation of Indias hotels

Some figures :
Hotel Imperial New Delhi: 99.57 % occupancy. Hotel Trident Hilton,Gurgaon (suburban Delhi): 98.3 % occupancy. Indian hotels are witnessing mindblowing occupancy rates. Increase in average room rent for the entire hotel industry over the last year: 35 %. Unmet demand for hotel rooms: 150 000 rooms. Additional demand this year: 15 000 rooms. The boom has attracted several global players, ranging from Starwood and Mariott to Four Seasons and ShangriLa. The largest hotel company in the world,French chain Accor, has entered India and is now devising aggressive plans for expansion in the market. Several others are racing to increase their presence in India, including the Marriott group. Currently Marriott has over 1,000 rooms spread across four properties in Mumbai and Goa.

Phenomenal Explosion of Domestic Tourism

Year 1990 1998 1999 2000 Domestic 63,817,285 168,196,000 176,082,442 210,082,442

Challenges that follow

The lack of adequate infrastructure development. The airports at the primary gateway cities of Delhi and Mumbai have been privatised, and work has commenced on modernisation. New privately owned international airports are expected to be commissioned at Hyderabad (2008) and Bangalore (2009), which will give a large boost to the economic growth of these areas. There is still need to improve air connectivity; rail and road connections as well as general infrastructure like power and water. The result of the industry's success. As competition increases, there is a definite pressure on ARR and operating margins. The industry market will definitely shift from being demand-driven to supply-driven and that the hotel companies will need to revisit their strategies and, of course, their prices. Some players are already preparing for the difficult times when the ARRs are expected to fall by 30-40 percent in the next 3-4 years and then the distinguishing factor for the hotels will be the offer in its entirety rather than just the price or the facilities that the hotels offer.