LATE 20 TH CENTURY: Ob in today`s infotech age

ORGANIZATIONAL BEHAVIOR Ob respond to the rise of

AS A SOCIAL SCIENCE globalization and diversity

Behavior in work setting is shaped by individual, group and organizational factors
1940- Doctoral degrees were awarded in OB and the first textbooks were published
By the late 1950s and early 1960s- OB become a concern
In the 1970s, active programs of research, investigation on motivation, leadership
and the impact of organizational structure were going on.
Middle 20th century- Uneven and unsystematic scientific investigation in managerial
and organizational issues
GORDON AND HOWELL
REPORT IN 1959
A project on the nature of business education in the US was published
Recommendation- the field of management pay greater attention to basic academic
disciplines especially the social sciences
During 1960s- The business school curricula was developed and promoted the
development of the field of organizational behavior
This report recommend for incorporation into business curricula. OB grow into one
borrowings from other disciplines
DIFFERENT DISCIPLINES
CONTRIBUTIONS
OB IN TODAY`S INFOTECH
Earlier, primary challenge was- how to make people work efficiently?
They did so by treating people like the machines- pushing them as hard as possible.
Later, the importance of the human element in the workplace- to treat people in a
more humane fashion.
Infotech age- computer technology eliminate vast laborers and has changed the way
people work, managers` operate. Easy access to information in online database made
possible for any worker to gather the facts needed to make their own decisions.
Managers can focus on the big picture and come up with innovative ways to improve
their whole organizations.
The best managers have learnt to tap employees- with humanity, their ability to
create, judge, imagine and build relationships.
People are likely to care about work as the money they make.
OB recognizes that people care more about interpersonal side of work- recognition,
relationships, and social interaction.
21st century OB scientists are busy to cultivate the humanity that was learnt over the
years. Modern OB make possible to do work of more challenging, meaningful, and
interesting to people
OB has connections with the various economic, social, and cultural trends and forces
that shapes today`s society. The three prominent trends are as follows:-
1. The rise of global business with culturally diverse workforces
2. Rapid advances in technology
3. The rising expectations of people
OB RESPONDS TO THE RISE OF
GLOBALIZATION AND
DIVERSITY
Today `s organizations are global in nature and are populated by women and people
of color even individuals work in the retirement years.
The organization operate within an economic system of international in scope.
Example –a massive earthquake devastated the Caribbean island nation of Haiti in
January 2010. The loss of Haiti`s textile and apparel business have been felt by
suppliers and customers throughout the world. The countries are influenced by the
one another- globalization.
Organizations have trends towards globalization that has been driven by three forces-
1. Technology
2. laws restricting trade become liberalized throughout the world, and
3. Developing nations expands their economies by exports and opening doors to
foreign companies seeking investments.
TRENDS IN OB

1. Globalization- MNEs, expats, culture,

culture shock, repatriation

2. Diversity- more women at work place, racial and

ethnic diversity, baby boom generation

3. Virtual organizations-
telecommunting
GLOBALIZATION
Globalization- the process of interconnecting the world`s people with respect to the
cultural economic, political, technological and environmental aspects of their lives.
Multinational enterprises (MNEs) organizations with significant operations spread
throughout in various nations and have headquarter in a single nation. Example –
General motors and Ford. The companies of oil and gasoline dominate the lists.
Expatriates (expats)- MNEs has resulted in large numbers of people who are citizens
of one country but living and working in different country for some extended periods
of time. Such individuals are called expatriates or expats risen, fallen, and shifted
direction along with shifts in economic development. Shrinking economies leave
expats without jobs in their newly adopted nations.
People become confused and disoriented- culture shock* while working abroad and
when they return to their native cultures, repatriation** happens. People recognize
the facts that others may be different from them in ways that they never imagined
and this takes some getting used to.
Culture- the set of values, customs, and beliefs that people have in common with
other members of a social unit/ nation.
*Culture shock- the tendency for people to become confused and disoriented as they
attempt to adjust to a new culture.
** Repatriation- the process of readjusting to one`s own culture after spending time
away from it.
ADJUSTING TO FOREIGN
CULTURE: THE GENERAL
STAGES
It follows the U- shaped curve. After an initial period of excitement, culture shock
often sets in. after this period of adjustment (about 6 months), the more time spent in
the new culture, the better it is accepted.
First- people are optimistic and excited about learning a new culture ( a month) then,
for the next several months, people become frustrated and confused as they struggle
to learn their new cultures(culture shock).
After six months- people adjust to new cultures and become more accepting of them
and satisfied with them. Culture shock results from the tendency to be highly
parochial and highly ethnocentric.
FIGURE 1.7
Parochial assumption- taking narrow view of the world by believing that there is one
best way of doing things.
Ethnocentric – believing that their way of doing things is the best way.

Highly parochial and ethnocentric views have no place in contemporary

organizations. During 1950s and 1960s, management scholars tended to pay
attention to cultural differences. They made two assumptions:-
1. Principles of good management are universal
2. The best management practices are ones that work well in the US.
CONVERGENCE HYPOTHESIS
DIVERGENCE HYPOTHESIS
Convergent hypothesis- A biased orientation reflects the fact that the study of
behavior in organizations first emerged when US was the world`s predominant
economic power.
This approach assumes that principles of good management are universal, and that
ones that work well in the US will apply equally in other nations
Divergent hypothesis- When the understanding of best practices concerns in
various countries, effective management depends upon the individual culture in
which people live. A widely accepted alternative approach which appreciate the
cultural context within which they operate.
The ways Culture influences OB. Example- US cultural norms of questioning to the
boss is not applicable in Japan.
WORKFORCE SHIFTING –
TRENDS TOWARDS DIVERSITY
Within organizations, growing diversity of the people from different races, ethnic
groups, nationalities and different sex have a different trend. All have important
implications for the field of OB.
1. More women in the work force- women comprised hailf of the work force. The
growing social acceptance of women working outside the home ( women traditional
worked inside) become necessary. Child care facilities, elder care facilities and
personal support policies are some employee support policies***.
2. People from different racial and ethnic groups and differences in the birth rates
made white people a smaller majority. 1/3rd color people are expected to be the
majority by 2042. By 2050, Hispanics will be 30% of the US population. Minority
outnumber traditional majority group members in California and New Mexico.
CHALLENGES FOR OB
The more people differ from each other, the more challenges they are likely to face
when interacting with one another. Differences in the age, gender and ethnic group
membership can bring differences in the communication style in the organization.
People at different stages are likely to be motivated by the different things , and to be
satisfied with different aspects of their jobs. At work place issues about their norms
and values, willingness to accept others who are different from themselves is another
challenge.
Potential stress and conflict in the workplace, career choices also influence their
capacity to work effectively.
EMPLOYEE SUPPORT
POLICIES
1. Child care facilities- sites at or near company locations where parents can leave
their children while they are working. In Kentucky, a child care center is open 24
hours a day at a reasonable fees.
2. Elder- care facilities- facilities at which employees at work can leave elderly
relatives for whom they are responsible (parents and grand parents). IBM offering
elder care to employees and have an online support group for individuals taking care
of the elderly parents.
3. Personal support policies- practices help employees meet the demands of their
family lives, freeing them to concentrate on their work. The Wilton Conner
packaging Co., North Carolina offers an onsite laundry, high school equivalency
classes, door –to-door transportation, and a children`s clothing swap centre.
BABY BOOM GENERATION
OLDER EMPLOYEES
RETENTION
The generation of children born during the period after WW II as peacetime
economy flourished, soldiers returned from war and began families.
Older people in the work force put more drain on the health- care system. Medicine
facility and technology has made physical labor less important. The retired
individuals takes with them decades of experience which is impossible to replace, so
company institute programs to keep older employees working a little longer before
ceasing employment.
1. Phase retirement
2. Deffered retirement option plan (DROP)
PHASED RETIREMENT
Plans in which individuals approaching the 65 years of age can make a transition to
full retirement by continuing to work, with a reduced work load. This allows the best
of both work and retirement. Part time or seasonal work, offer of extended leaves of
absence are some plans.
DEFFERED RETIREMENT
OPTION PLAN (DROP)
This arrangement allows a person to continue working while depositing his or her
retirement benefits into a separate account that he or she can claim as a lump when
formally retired (1 to 5 years later). This provide tax incentive and extend working
years beyond the retirement age.
Thank you