What is Organizational Behavior: What is Organizational Behavior What Is an Organization?: What Is an Organization? A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals. Behaviour: Behaviour A manner in which one acts, Action or reaction in certain circumstances Concept and meaning : Concept and meaning Organization behavior has been defined as the knowledge of people’s behavior at work. Organizational behavior is considered to be a branch of science wherein human behavior is studied, researched, concluded and channelised for organizational effectiveness . Behavior is a dynamic process depending on the experiences of individuals and the experiences of others related with the individuals. The purpose of the study is to modify and mould their behavior for increasing the effectiveness and efficiency of the organization. Definitions: Definitions Organization behavior is the study and application of knowledge about how people act within an organization. It is a human tool for human benefit. It applies broadly to the behavior of people in all types of organizations. Organizational behavior is a field of study that investigates the impact, that individuals, groups and structures have on behavior within the organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness. OB Model: OB Model The field of organization behavior : The field of organization behavior Organization behavior focuses on three levels of analysis : 1. Individuals Organization behavior specialists are concerned with individual perceptions, attitudes and motives. Slide 8: 2. Groups Organization behavior specialist also describe about how people communicate with each other and coordinate their activities between themselves in work groups. 3.Organizations Organization behavior specialists examine organization as a whole --- the way they are structured and operate in their environments and the effects of their operations on the individuals and groups within them. Organization Behavior is Multidisciplinary in Nature: Organization Behavior is Multidisciplinary in Nature Considering the broad range of issues and approaches taken by the field of Organization Behavior, it is easy to appreciate the fact that the field is multidisciplinary in nature. It draws on a wide variety of social science disciplines rather than studying a topic from only one particular perspective, the field of Organization Behavior is likely to consider a wide variety of approaches. These range from the highly individual oriented approach of sociology, to issue in organizational quality studied by management scientist. The Multidisciplinary Roots of OB/ Contributing Disciplines to the OB Field: The Multidisciplinary Roots of OB/ Contributing Disciplines to the OB Field Psychology:- Perception and Learning, Personality, Emotion and Stress, Attitudes, Motivation, Decision Making, Creativity. Sociology:- Group Dynamics, Socialization, Communication. Anthropology:- Organizational Culture, Leadership. Political Science:- Interpersonal Conflict, Organizational Power. Economics:- Decision Making, Negotiation, Organizational Power. Management Science:- Technology, Organizational Quality. Toward an OB Discipline: Toward an OB Discipline Social psychology Psychology Behavioural science Contribution Unit of analysis Output Anthropology Sociology Political science Study of Organizational Behaviour Organization system Learning Motivation Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Group dynamics Work teams Communication Power Conflict Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture Conflict Intraorganizational politics Power Organizational culture Organizational environment Behavioural change Attitude change Communication Group processes Group decision making Group Comparative values Comparative attitudes Cross-cultural analysis Individual Management Functions: Management Functions Planning Organizing Leading Controlling Management Functions Scientific Approach: Scientific Approach The scientific management school , is primarily attributed to the ideas and works of Fredrick W.Taylor , who is known as “ the father of scientific management”. Principles of Scientific Approach:: Principles of Scientific Approach: Every job should be broken into its elements and a scientific method to perform each element should be established. Workers should be scientifically selected with right attitudes for the job and ability and then properly trained to perform the work. Management should cooperate with workers to ensure that all work is done Scientific distribution of work and responsibility between workers and the managers. The management should design the work, set up and supervise the task and the workers are free to perform the task in the best possible way. Applications: Applications Maximum utility of efforts, thus eliminating waste. More emphasis on fitting workers to particular tasks and training them further to best utilize their abilities. Greater specialization of activities with proper design of jobs, specification of methods, and set time and motion standards. Establishment of standards of performance as average output and maximum output per capita. The role of compensation and other incentives for increase in productivity. Areas of Opposition: Areas of Opposition promotes individualism rather than team spirit because of the competitive nature of “more work, more pay”. Specialization makes the worker unfit for other types of jobs Specialization makes the work repetitive and monotonous. Workers are merely converted into machines to carry out a set of instructions thus leaving no room for initiative and innovation. It puts in the hands of employers an immense mass of information and methods that may be used to the detriment of workers because all workers are not going to measure up to the set standards. anti- democratic in the sense that it separates manager from the worker, since it gives the management the right to manage, while the workers have the duty to work. Administrative Approach: Administrative Approach Prominent administrative theorist- Henri Fayol Based on 14 principles of Fayol that could be used by managers to co-ordinate organization’s internal activities, i.e. Division of Work Authority & Responsibility Discipline Unity of Command Unity of Direction Subordination of the individual interest to the general interest Contd’: Contd ’ 7. Remuneration 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Espirit de corps Bureaucratic Management Approach: Bureaucratic Management Approach Emphasizes the need for org. to function on a rational basis. Ignore nepotism & worked as highly structured , formalized & impersonal org. Help removing ambiguities & inefficiencies Behavioral Approach: Behavioral Approach Also known as Human Relations Approach Based upon the premise of increase in productivity and managerial efficiency through an understanding of people. Positive Attributes/ Factors influencing worker’s behavior: Positive Attributes/ Factors influencing worker’s behavior When workers are given special attention by management, the productivity increased irrespective of actual changes in the working conditions. An increased understanding of the individual worker with emphasis on motivation, needs, interpersonal relationships and group dynamics. Increase the organizational effectiveness of its human resources, which could be achieved by properly taking care of human needs Quantitative Approach: Quantitative Approach Emerged during World War II Includes application of statistics, optimization models, information models & computer simulations Focuses on achieving organizational effectiveness through the application of mathematical & statistical concepts Three branches of this approach are- Management Science Operations Management Management Information System Management Science: Management Science Stresses the use of mathematical models and statistical methods for decision making Another name- operations research Used in areas like- capital budgeting & cash flow management, production schedule, development of product strategies, planning for HRD To apply this approach to decision making, individuals with mathematical, statistical, engineering, economics & business skills are required Since one person cannot have all such skills so team work is required Operations Management: Operations Management An applied form of management science Deals with effective management of production process Timely delivery of organizations products & services Concerned with inventory management, work scheduling, production planning, facilities location & design, quality assurance Tools used by operating managers are forecasting, inventory analysis, material requirement planning system, control techniques, etc. Management Information System: Management Information System Focuses on designing & implementing computer based information systems for business organizations Converts raw data into information & provides needed information Slide 27: Systems Approach Organization imports Exports Information Money INPUTS Human Material Financial Information Product & Production Order Fulfillment Product & Production OUTPUTS Products/ Services P&L Employee Behavior Additional Information Contingency Approach: Contingency Approach Also known as Situational Approach Implies that “no one best way” of managing Focused on situational analysis there are no universal principles applicable to all management and organizational situations, each such situation, is not so unique and specific Advantage of contingency approach stems from the belief that the organizational environment is highly dynamic and constantly changing. This approach forces managers to learn to adapt to these changes effectively Emerging Approaches to Management: Emerging Approaches to Management William Ouchi outlined a new theory- Theory Z It combines the positive aspects of both American & Japanese management styles Involves providing job security to employees to ensure their loyalty & long term association with company Involves job rotation of employees to develop their cross functional skills Shows concern for its employees well being & lays emphasis on their Training & Development Contd’: Contd ’ Another approach of management thought that is gaining increasing importance is – Quality Management Directs the efforts of management towards bringing about continuous improvement in product & service quality to achieve higher levels of customer satisfaction Assignment: Assignment Q. Which managerial approach is more suitable for organizational effectiveness in a democratic society as ours? Illustrate your reasons?