Transcript SET-Introduction-to-OB

Organizational Behaviour: An Introduction
Facilitated By Namita Gupta,
Assistant Prof. SBS
Recommended Text Books
• Robbins Stephen P. - Organizational Behaviour,
Pearson Education
• Other References:
• Newstrom, John W. - Organizational Behavior: Human Behavior
at Work (Tata Mc Graw Hill, 12th Edition)
Course Structure and Grading
30%
• Continuous
Evaluation
20%
• Mid Term
Exam
50%
• Final
Organizations
What is an Organization?
An organization (or organisation) is an entity, such as an institution or an
association, that has a collective goal and is linked to an external
environment.
Why Study Organizational Behaviour ?
What are your career plans post qualification?
What do you care about in your prospective jobs/career?
What type of an organization would like to be a part of?
Focal Points of OB address these questions:
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Jobs
Work
Absenteeism
Employment turnover
Productivity
Human performance
Management
Organizational Behaviour
Why should we study OB?
Why is one organization more or less effective than others?
Example Steve Jobbs’s Forte
Hiring the right people for Apple and fostering a culture of hard work and
creativity
“People are definitely a company’s greatest asset. It doesn’t make any
difference whether the product is cars or cosmetics. A company is only as
good as the people it keeps.”
Mary Kay Ash, founder of Mary Kay Inc., a billion-dollar cosmetics company
Organizational Behaviour
“Organizational behaviour is a field of study that investigates the impact that
individuals, groups and organizational structure have on behaviour
within the organization, for the purpose of applying such knowledge
towards improving an organizational effectiveness”.
OB is the systematic way of looking at and understanding the behaviour
of people in and around organizations.
Scope of the Course
• Introduction: Concept, Nature, Conceptual Foundations and
Importance of OB, Models of OB, Challenges and Opportunities
• Personality: Determinants, Traits-Cattel, Types and Theories
• Learning: Concept and theories of learning
• Attitude: Concept, Attitude formation, Importance
• Motivation: Early and Contemporary Theories, Concepts and
Application
• Leadership: Importance and theories of Leadership, Trait,
Behavioural styles, Models
• Group Behaviour: Theories of Group formation; Formal
organizations and Informal groups and their interaction
• Teams: Importance of Teams, Formation of Teams, Team work,
Managing interpersonal relationship at work
Scope of the Course
• Power and Politics: Sources of Power in OrganizationsInterpersonal Sources, Organizational Sources; Organizational
Politics, Ethics of Power and Politics
• Organizational climate, organizational culture, organizational
effectiveness
• Organizational Dynamics: Managing resistance to change, Kurt
Levin’s Theory of Change, Managing across cultures
• Organizational Development: Basic’s of OD Assumptions, OD
Interventions strategies
• Knowledge management and Emotional Intelligence in
Business Organisation
• Stress Management: Understanding Stress and its
Consequences, Sources of Stress, Management of stress
• Conflict Management: Sources, types, Process and resolution
Study of Organizational Behaviour
Nature of Organizational Behaviour
Organizational Behaviour (OB)
- is an interdisciplinary behavioural science, dynamic, no absolutes
- is all pervasive
- studies phenomena and dynamics (processes) of organisations
- relates these processes to their various human units
- There are no absolutes in OB
Few Absolutes in OB
• Impossible to make simple and accurate
generalizations
• Human beings are complex and diverse
• OB concepts must reflect situational conditions:
contingency variables
Input “A”
Condition
“C”
Behavior
“B”
•1-12
Organizational Behaviour
Finding Solutions
Company: Dominos Pizza
Industry: Fast Food
Issue: Turnover Rate, High Training Costs
Facts about the industry:
Minimum wages paid to entry level employees
Low loyalty
Your Solution?
Organizational Behaviour Issues: An illustration
CEO David Brandon, “… you can’t overcome a bad culture by paying people a
few bucks more.”
Key Element Recognized: Store managers churn at high rates, it has a
tremendous negative effect with store-level employee turnover rates
1. Hire Better Quality Store Managers
Tests to measure number and people skills
2. Provide Better Tools to Store Managers
Computer Tracking Program for employee level statistics
3. More Meaningfully Incentivize Store Managers
Stock options, Tie incentives to Sales Growth and Customer Service
Measurements
OB is an interdisciplinary subject -Fields Contributing to OB
•Micro:
•The
Individual
Psychology
Social Psychology
•Macro:
•Groups &
•Organizations
Sociology
Anthropology
Fields Contributing to OB
Psychology
•Applied Science that Examines and Predicts Human Behaviour
Helps Understand: Personality, Attitude, Motivation, Leadership, Decision
Making, Conflict Management
Focus: Individual Ex. Working Conditions that can affect performance
Sociology
•Studies the impact of social environment or culture on Group Behaviour
•Helps Understand: Group-dynamics, Role of communication, Norms, Status,
Power, Conflict Management, Group Decision-Making, Change Management
•Focus: Group Behaviour Ex. Team behaviour
•Social Psychology
•Blend of both concepts
•Focus: People’s influence on one another
•Helps Understand: Change: How to implement and make it more acceptable
Fields Contributing to OB
•Political Science:
•Relating to the Macro Picture
•Helps Understand: The environment that an organization operates in i.e. the political
environment, the laws of the land, how the rules and regulations augur for the
organization
•Anthropology:
•Study of how humans are evolving in cultural and environmental context.
•Helps Understand: Cultural influences from various parts of the world, cross-cultural
interaction and issues, challenges of changing environment
•Relevant due to rampant Globalization, Mergers and Acquisitions
•Economics:
• Ex. Decision Making
Trends, Challenges and Opportunities in OB
• Power Shift from the Organization to Consumer
Example: Nationalized Banks
Employees: Changing Psychological Contract : More autonomy & Flexibility
Individual rising above post
Value of title, promotion changing
Loyalty, Job Switching, Information Gathering
Managing the Millennial Generation
Rewards, Opportunities to enhance skills
Trends, Challenges and Opportunities in OB
Helping employees balance work-life conflicts
• Global workforce means work no longer sleeps. Workers are on-call 24hours a day or working nontraditional shifts.
• Balancing work and life demands now surpasses job security as an
employee priority.
• Average work-week in India is … hours?
• Diversity: Managing employees of different backgrounds
Language differences, Gender Differences, National Ethnic groupings
Attitude and cultural differences
Technological Changes
Ex. Internet Revolution, 24x7Connectivity, Devices
Creating a positive work environment
Trends, Challenges and Opportunities in OB
Trends in working arrangements
A newer way to structure your organizations and jobs
Ex. The Virtual corporation, Telecommuting
• GlOBalization, Economic Pressures
Increased foreign assignments
– Differing needs and aspirations in workforce
Working with people from different cultures
– Domestic motivational techniques and managerial styles may not work
Overseeing movement of jobs to countries with low-cost labor
Trends, Challenges and Opportunities in OB
• Corporate Governance and Ethics leadership
Corporate Social Responsibility, New Companies Act, 2013
With effect from April 1, 2014, every company, private limited or public limited,
which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or
net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for
the immediately preceding three financial years on corporate social
responsibility activities.
• The quality revolution: Total quality management and re-engineering
Examples: Dell, GE
• Stimulating Innovation and Change
• Increasing “temporariness” in the workplace
Some Current Trends in OB
• The Role of Social Media
Facebook,Twitter, LinkedIn, Pinterest, MySpace, and Google+. Sharing
multimedia including Instagram,YouTube, and Flickr.
Includes:
Narratives (i.e., blogs and comments) and
Multimedia (images, videos, and audio recordings)
Social media interactions blur the lines between personal communication
and professional communication.
Some Current Trends/Issues in OB
• How do companies handle Social Media?
• Initial reaction: Write off as a fad, Slow acceptance
• Now Used to
– Connect Externally with customers and investors
– Branding, networking, sharing project related information
– Monitoring competition, Recruiting employees
– Connect Internally with employees (Yammer)
OB Offers Insights Into:
• Improving quality and
productivity
• Customer service and building a
customer-responsive culture
• Developing people skills
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Positive Organizational Behaviour
• Creating a positive work environment can be a
competitive advantage
• Positive Organizational Scholarship (Positive OB):
– Examines how organizations develop human strengths,
foster vitality and resilience, and unlock potential.
– Focus is on employee strengths, not their weaknesses.
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OB
Model
•Three Levels
•Dependent
Variables (Y)
•Independent
Variables (X)
•E X H I B I T 1–6
•© 2009 Prentice-Hall Inc. All rights
•1-
Various Models of OB
1. The Autocratic Model: Relies on power. Managers have the
ability, authority to control their employees and the employee’s
performance is lower than expected.
Various Models of OB
2. Custodial Model: Relies on Economic Resources. Employee
need that is met is security. Passive Cooperation. Managers
simulate employees by offering benefits, less team work
Various Models of OB
3) Supportive Model: Relies on leadership. Managers support
employees by encouraging, to perform better, get along with
each other and as well as developing their skills. Participation,
Task Involvement, Moderate enthusiasm
Various Models of OB
4) Collegial Model: Relies on Teamwork. Employees cooperate
and work as a team
Various Models of OB
5) System Model: Relies on self-motivation. Caring employer,
Diverse workforce, Dynamic Environment, Psychological
ownership for the organization, Inspired employees, Higher
order needs
Various Models of OB
MANAGERIAL ROLES
Interpersonal Roles
Informational Roles
Decisional Roles
INTERPERSONAL ROLES
• Figurehead - The symbolic head who is required to
perform a number of routine social or legal duties
• Leader - Responsible for motivating and
• activating subordinates as well as for sustaining and
associated duties
• Liaison - Maintains a self-developed network of
outsiders and contacts who provide favours and
information
Informational roles
• Monitor - Receives wide variety of special and current
information to develop thorough understanding of the
organization and the environment
• Disseminator - Transmits information received from
outsiders and subordinates to organization members.
• Spokesperson - Transmits information to outsiders
about organization plans, policies, actions, and
results.
DECISIONAL ROLES
• Entrepreneur - Searches internally and externally for
opportunities, initiates projects to bring about
change.
• Disturbance handler - Responsible for corrective
action when the organization faces important,
unexpected disturbances
• Resource allocation - Responsible for the allocation of
resources, thereby making or approving all significant
decisions.
• Negotiator - Responsible for representing the
organization at major negotiations
MANAGERIAL FUNCTIONS
Planning
Organizing
Managerial
Functions
Controlling
Leading
MANAGERIAL COMPETENCIES
• Technical skills -
An ability to perform
specialized tasks.
• Human skills - An ability to work well with other
people.
• Conceptual skills -
An ability to see and
understand how the system works, and how
the parts are interrelated.