Organisational Behaviour

Semester 2

Rizvi Management Institutes, Mumbai

2022-24

Session 1 – February 15, 2023

Welcome to Semester 2
Attendance
 Agenda today

• Feedback on your Sem 1 exams performance

• Sem 2 details – 5W 1H
• Business =/x Organisation =/x Management?
• Groups and Group Behaviour
 Feedback on your exams performance
Sem 1
• Classical conditioning
• B F Skinner
• AET
• Motivation
– Maslow’s theory
• 5 human needs?
• Hierarchy in management?
• Attribution theory
• Fishbone diagram*
 Benefits of using a fishbone diagram
1. Being a visual tool, it is easy to understand for problem
analysis and identification of a solution
2. Easy to identify the root cause of the problem
3. Locates bottlenecks in the work process and different
segments/parts of each process
4. Finds ways to improve the work process or any of its
segments or parts
5. Forces in-depth discussion of the problem, to educate
the concerned team members
6. Prioritises further analysis, to take corrective actions
and steps, if any
 What are the advantages of using the
fishbone diagram* in problem solving?
 It gives root cause • The major advantage – it
 Problem solving is effective requires proper timing of solving
• It takes less time to solve any problem
problem • Any department or any industry
• Problem of various types can be can use fishbone diagram to
solved solve problem
• By using fishbone diagram, one • Fishbone diagram is efficient and
can easily find any type of problem effective by an immediate effect
• It does not require any kind of • To find problem within
cost; so, it can be used by small organisation should not require
scale industry as well as large any type of formal education; just
scale industry need to ask question to the
• Decision can be taken by the problem you will get root cause
output given by this diagram to that problem
Wake up, this is now urgent
 Semester 2 – 14 lectures
1. Groups and group behaviour
2. Understanding work teams 1
3. Understanding work teams 2
4. Emotional intelligence
5. Leadership 1
6. Leadership 2
7. Leadership 3
8. Mid-term test
9. Power and Politics
10.Conflict
11.Negotiation
12.Organisational structure
13.Organisational culture
14.Organisational change
 Crucial instructions and advice for Sem 2
• 13 lectures and 1 mid-term test (February 15 to April 16)
• Get serious about your education
• Duration 2 hours per lecture; no toilet/water breaks
– MMS A
– MMS B
• Subject treatment – much more intensive, case studies
• Mid-term test – after 7 lectures
• Semester-end evaluation process
– 60 marks Semester 2 Examination (written test)
– 40 marks Internal assessment
• 30 marks Mid-term written test
• 10 marks Classroom (virtual) behaviour, late-joining into
class, lecture involvement, improved learning and interest,
periodic assignments, responses to classroom questions`
Is BUSINESS = ORGANISATION =
MANAGEMENT?

If no, what is the difference?

 What is a business?
1. Manufacturing
– By making and “selling” a product and earning money
2. Trading
– By buying and “selling” a service and earning money
3. Consultancy/Advisory
– By understanding work and “selling” advice and earning money
• So, “selling” to earn/make money (= “item/service bechna”)
• Hence, in any business, the buyer (= your customer) pays you money; so,
s/he is always most important
– S/he who pays you to buy your product, service or advice
• Measures of business performance – market share, revenue, bonus, sales,
qly, ½ yly, cost savings, outstandings, collections, recoveries, credits, pay
for performance …….
• Any action, activity, work, job or task that earns money
 Fundamentals in business
Making and “selling” a product – Buying and “selling” a service –
Manufacturing Trading
•Mobile phones •Airlines
•Motor cars •Banks
•Furniture •Hotels
•TV sets •Insurance
•Tooth paste •Laundry services
•Book printing •Advisory/Consultancy
•Foods kitchen •Bus (local and inter-city)
•Shoes and chappals •Rail (local and inter-city)
•Clothing •Food delivery services
•Computers •Courier services
 What is an organisation?
• What?
1. A consciously coordinated social unit
2. Hierarchy of authority and responsibility
1. Chain of command
2. Unity of command
3. Division of effort amongst two or more people who are working
together
• Why?
• Purpose is to integrate (= combine) everyone’s effort, to achieve
the organisation’s common goals, targets, objectives, KRAs
• Purpose of business is to make money!
 Different kinds of organisations
• Company
• Partnership
• Multi-National Corporation (MNC)
• Kirana store
• Shopping mall
• Paan-bidi shop
• Cooperative housing society
• Government department
• Public Sector Undertaking (PSU)
• Ration office
• BMC ward office
• NGO
 Different kinds of businesses
• Banking
• Airlines
• Consulting
• FMCG
• Telecom
• Retail
• IT & ITES
• Auto
• Shipping
• Real Estate and infrastructure
• Furniture
• Engineering
 Different functions in a business
Your specialisations
• Marketing
– Product management
– Sales management
– Sales promotion and PR
– Sales administration
• Manufacturing
– Production
– Maintenance
– Purchase and vendor development
– Research and quality
– Logistics/Supply chain
• Systems, IT
• Finance, accounts and audit
• HR and administration
 “Business” is/is NOT an “Organisation”?
• A business MAY be a consciously coordinated social unit
• A business MAY have a hierarchy of authority and
responsibility
– Chain of command
– Unity of command
• A business MAY have a division of effort amongst two or
more people who are working together
• A business MAY have the purpose to integrate everyone’s
efforts, in order to achieve the organisation’s “common” goals
• But, a business is NOT an organisation if making money is its
MAIN goal, although it depends on people’s efforts
 So…….
• For a business to become an organisation, methods, systems
and processes are necessary
• In any organisation, money must be utilised (= used as a
means) to achieve business goals, NOT become an end in itself
• Thus, knowledge of management helps to achieve
ORGANISATIONAL GOALS by applying methods, systems and
processes, not just to make money
– Goal/s = target/s = objective/s = KRA/s
• Strong correlation between “employee behaviour” and “goal/s”
• MBO = Management By Objectives
• Understanding OB helps business to manage the desire and
drive towards achieving the “goal/s” of the business
 And… MANAGEMENT teaches….?
1. WHAT are the RIGHT methods, systems and processes to
apply, so that the business runs BEST?
2. HOW to apply them?
• ORGANISATION = CONSCIOUSLY COORDINATED set of
structure, systems, processes and methods
– Hierarchy
– Unity of command
– Chain of command
– Division of effort amongst two or more employees
• These right methods, systems and processes enable its
employees to successfully achieve and surpass its goals,
provided they are all COMMONLY understood and accepted
Origins of OB are in Human Behaviour

Hence, we first study individual

OB (Sem 1), and then study group
OB (Sem 2)
 Organisational Behaviour – Semester 1
 What is Organisational Behaviour (OB)?
 Manager’s job – functions, roles, skills
 Diversity – age, gender, tenure
 Learning and shaping of behaviour
 Attitude
 Job satisfaction
 Emotions and moods
 Personality and values
 Perception
 Individual decision making
 Motivation – concepts
 Motivation – applications
 Communication and Interview readiness
What is a group?
 Group
• Definition = A group consists of two or more inter-dependent people who
come together to achieve something specific, by interacting and
communicating with each other
• Two or more people come together
• They together achieve something specific
• They interact and communicate with one another
• They are inter-dependent
• Key issues to understand
1. Each group member has a different upbringing, beliefs, culture, attitude and
behaviour
2. However, the group’s beliefs, culture, attitudes and behaviours can be modified
to suit a specific organisation’s environment and expectations
• Every business organization and it’s management’s primary task
– To find and establish common ground, by creating a common understanding
and acceptance amongst ALL team members, about the organisation’s goals
and result expectations
 Why do people form groups?
• “Social identity” theory (= Converging identities)
o Similarity
o Upbringings, beliefs, cultures, attitudes, behaviours
o Distinctiveness
o Uniqueness, speciality, exclusiveness
o Status
o Esteem, social position
o More certainty
o More re-assurance and, therefore, less uncertainty about
expectations, roles and norms, as well as members’
safety and security
 Group working

• Fundamentals of a group?
• How and why are groups formed?
• Progressive, differing stages of group development
• Group behaviour = behaviour of people in a group?
• Different aspects of behaviour in a group
• Major, obvious differences between GROUP
behaviour and INDIVIDUAL behaviour – in an
organisational setting?
Fundamentals of group and their behaviour
• Group
– Different types of groups
– Why does a group get formed?
– How does a group develop?
• Behavioural aspects of groups
– Role
– Norms
– Status
– Size
– Cohesiveness
 Characteristics of group behaviour
• Individuals naturally tend to form groups since “no man is an island”
1. People are happier living and working in groups
2. Their individual upbringings, beliefs, cultures and attitudes impact
workplace behaviours
3. Group members exert significant influence on the organisation’s
performance and results
4. Members create the foundation of how and why the entire group works
• So, how and what a group does, is a sigma of what all the group members
can do
• To improve (and/or correct) their behaviour
• Their upbringings and beliefs cannot be changed, but the group members’
cultures and attitudes can be improved
• This is a manager’s primary task
• Your ASKs will always be tested on your competence to do this task
 Types of groups

Types of groups
Imagine you’re working in an organisation
1.Formal
– Command group
– Task group
2.Informal
– Interest group
– Friendship group
 Stages of group development

1. Forming
2. Storming
3. Norming
4. Performing

5. Adjourning*
5 key aspects of human behaviour in groups
1. Role
– What work does each member do, in a group?
– What related (= inter-connected) set of activities does each person in the
group perform, to complete a task or process?
2. Norms
– What standards of behaviour must all group members observe and adhere to?
3. Status
– What status (= esteem, relative social position) does each of the group
members perceive, about self and others?
4. Size
– How many people are members in the group (size = big/small)?
– Is there an “ideal” group size?
– How to judge what size is “ideal”?
5. Cohesiveness
– What attracts and binds (= holds) all the group members together?
 Role requirements/expectations change in
different situations/groups
• Role perception
– My view of my role
• Role expectations
– Other peoples’ expectations of my role
• Role conflict
– Compliance issues = do my views comply or
conflict with what and how others see, as my
role?
 Norms and status influence an individual’s
behaviour in a group
• Conformity = adherence to the group’s norms
• Deviant workplace behaviour
• Status characteristics theory
– Power
– Ability
– Personal characteristics
• Status inequity
 Size of the group affects it’s performance

• Small group size

• Danger that all members will be stressed due to
overwork
• Large group size
• Danger of some members not fully occupied,
resulting in “social loafing”
 Cohesiveness in the group

• Extent of attraction to the group

• Extent of motivation within the group
• Productivity of the group
 Next lecture
February 17 and 18

Group decision making

Understanding workplace teams