Organizational behavior revised

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Organizational Behavior Micro Course Facilitator Dr Harold Andrew Patrick Head – OB and HRM haroldpatrick@christuniversity.com

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Organizational behavior Micro OB – deals with the dynamics of individual & group behavior within organizations. Macro OB– also called organizational theory , studies whole organizations, how they adapt, & the strategies & structures that guide them

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3 What is an Organization? A structured social system consisting of groups and individuals working together to meet some agreed-upon objectives.

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Definitions of organizations. Bernard defined organizations as “ a system of consciouslyciously coordinated activities of two or more persons.” Weber- a social membership which limits or closes admission of outsiders by rules so far as its order is enforced by the action of specific individuals. Organisations are sets of people who work together to achieve shared goals. etzioni- social units deliberately constructed & reconstructed to seek specfic goals.

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Features of organizations. An organization is a powerful tool created by human beings. with there purposeful existence, strength of their members, command over multiple resources, orgn’ts become versatile entities with far greater potential than individuals. organizations live longer. They maintain a boundary between themselves & the environment. Organizations are complex systems organisations are systems designed for stability & control. Organizations processes go beyond being simply rational. Organizational relationships are interdependent..

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Five reasons why orgn’ts exist. Increased spl & division of labour Use large scale technology Manage the external envmt Economize on transaction cost Exert power & control. Which increases the value that org’tn can create Organisation allows people jointly to

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7 Practical Managerial Problems How can goals be set to enhance people’s job performance? How may jobs be designed so as to enhance employees’ feelings of satisfaction? Under what conditions do individuals make better decisions than groups? What can be done to improve the quality of organizational communication? What steps can be taken to alleviate work-related stress? How can leaders enhance the effectiveness of their teams?

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What Managers Do They get things done through other people. Management Activities: Make decisions Allocate resources Direct activities of others to attain goals Work in an organization A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals. 1- 8

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Katz’s Essential Management Skills Technical Skills The ability to apply specialized knowledge or expertise Human Skills The ability to work with, understand, and motivate other people, both individually and in groups Conceptual Skills The mental ability to analyze and diagnose complex situations 1- 9

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Luthans’ Study of Managerial Activities Is there a difference in frequency of managerial activity between effective and successful managers? Four types of managerial activity: Traditional Management Decision-making, planning, and controlling. Communication Exchanging routine information and processing paperwork Human Resource Management Motivating, disciplining, managing conflict, staffing and training. Networking Socializing, politicking, and interacting with others. 1- 10

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Effective Versus Successful Managerial Activities (Luthans) Traditional management Decision making, planning, and controlling Communication Exchanging routine information and processing paperwork Human resource management Motivating, disciplining, managing conflict, staffing, and training Networking Socializing, politicking, and interacting with others

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12 Organizational Behavior The field that seeks increased knowledge of all aspects of behavior in organizational settings through the use of the scientific method. Characteristics of the field: OB applies the scientific method to practical managerial problems. OB focuses on three levels of analysis. OB is multidisciplinary in nature. OB seeks to improve organizational effectiveness and the quality of life at work.

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. Organizational Behavior-definition Organizational behavior (OB) A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

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. Organizational Behavior- definition OB is a field of study that investigates the impact that individuals, groups & structure have on behavior within the organization for the purpose of applying such knowledge towards improving the organizational effectiveness.

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15 Levels of Analysis in OB

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Features of OB OB is the study of human behaviour. The study is about behavior in organizations. Knowledge about human behavior would be useful in improving organization's effectiveness. its A field of inquiry focus is on behavior within the organizations Humanistic & positive. Importance to groups Ongoing process.

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meaning of OB It’s a study of human behavior in organizational settings, of the interface between human behavior & the organization & the organization itself. OB comprises of individual behavior, group behavior & of the organization itself. Environment surrounding the organisation influences the interface between individuals & the organisations. OB is a distinct field of study OB represents only the behavioral or people approach to management

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18 Why is OB Important? Companies whose managers accurately appraise the work of their subordinates enjoy lower costs and higher productivity. People who are satisfied with the way they are treated on their jobs are more pleasant to work with and less likely to quit. People who are trained to work together tend to be happier and more productive. Employees who believe they have been treated unfairly are more likely to steal and reject the policies of their organizations. People who are mistreated by their supervisors have more mental and physical illnesses than those who are treated with kindness, dignity, and respect. Organizations that offer good employee benefits and have friendly conditions are more profitable than those that are less people oriented.

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Importance of OB OB provides a road map to our lives in organizations, as they have a profound effect on our actions & behavior. the field of OB uses scientific research to help & understand & predict organizational life OB helps us to influence organizational events OB helps an individual understand himself/herself & others better. this helps to improve IPRs A manager in business establishment is concerned with getting things done trough delegation. OB will help the manager understand the basis of motivation & what he or she should do to motivate sub-ordinates.

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Importance of OB-contd The field of OB is useful in maintaining cordial IRs. OB is useful in the field of marketing- consumer choice behavior, he nature of influence ,etc .. Ob helps in an employee pursuing a career in management by learning how to predict behavior & apply it in some meaningful way to make organization more effective. OB is a discipline which enables a manager to motivate his or her subordinates towards higher productivity & better results.

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Foundations of OB Individual differences Whole person Caused behaviour Human dignity OB Social systems Mutuality of interests Holistic concept Need For management

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Replacing Intuition with Systematic Study Systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors. Intuition A feeling not necessarily supported by research.

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Replacing Intuition with Systematic Study The Facts Preconceived Notions ≠

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Toward an OB Discipline

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Contributing Disciplines to the OB Field Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

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Contributing Disciplines to the OB Field (cont’d) Sociology The study of people in relation to their fellow human beings.

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Contributing Disciplines to the OB Field (cont’d) Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

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© 2005 Prentice Hall Inc. All rights reserved. 1– 28 Contributing Disciplines to the OB Field (cont’d) E X H I B I T 1 –3 (cont’d) Anthropology The study of societies to learn about human beings and their activities.

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Contributing Disciplines to the OB Field (cont’d) Political Science The study of the behavior of individuals and groups within a political environment.

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Nature & Scope of OB It’s a field of study & not a discipline. Interdisciplinary approach. An applied science. Behavioral approach to management. Concern with environment. Scientific method foundation. Contingency orientation Level of performance analysis.- (individual, group, formal orgnt’s.) Few absolutes:

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Conceptual model of OB Formal orgn’t Structure Classical Neo-classical Modern Processes decision making Communication Control Technology Techniques Human knowledge. Human being Biological physiological Heredity, nervous system, sense organs,muscles & glands. Psychological processes. Perception. Learning Motivation. Personality. Development Structure. OB Orgnt’l dynamics Groups Informal orgnt’s Conflict & change . Frustration,goal conflict,role conflict,human resistance. Human adaptation to organ’t Motivation & leadership techniques, orgt’n development.

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Process of OB Understanding Which variables are important? How strong they are?. How do they interrelate.? Prediction What patterns of behavior are present? What is the cause effect relationship. Control What solutions are possible? Which variables can be influenced? How can they be influenced? Problem prevention

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The Dependent Variables x y Dependent variable A response that is affected by an independent variable.

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© 2005 Prentice Hall Inc. All rights reserved. 1– 34 The Dependent Variables (cont’d) Productivity A performance measure that includes effectiveness and efficiency. Effectiveness Achievement of goals. Efficiency The ratio of effective output to the input required to achieve it.

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© 2005 Prentice Hall Inc. All rights reserved. 1– 35 The Dependent Variables (cont’d) Absenteeism The failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.

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© 2005 Prentice Hall Inc. All rights reserved. 1– 36 The Dependent Variables (cont’d) Organizational citizenship behavior (OCB) Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.

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© 2005 Prentice Hall Inc. All rights reserved. 1– 37 The Dependent Variables (cont’d) Job satisfaction A general attitude toward one’s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

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Basic OB Model, Stage I Model An abstraction of reality. A simplified representation of some real-world phenomenon.

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Basic OB Model, Stage II

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Challenges and Opportunities for OB Responding to Globalization Increased foreign assignments Working with people from different cultures Coping with anti-capitalism backlash Overseeing movement of jobs to countries with low-cost labor Managing Workforce Diversity Embracing diversity Changing U.S. demographics Implications for managers Recognizing and responding to differences

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Challenges and Opportunities for OB (cont’d) Improving Quality and Productivity Quality management (QM) Process reengineering Responding to the Labor Shortage Changing work force demographics Fewer skilled laborers Early retirements and older workers Improving Customer Service Increased expectation of service quality Customer-responsive cultures

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Challenges and Opportunity for OB (cont’d) Improving People Skills Empowering People Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior

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Domestic Partners Major Workforce Diversity Categories Race Religious beliefs National Origin Age Disability Gender

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We must welcome the future , remembering that soon it will be the past; and we must respect the past, remembering that it was once all that was humanly possible. -- George Santayana When I want to understand what is happening today or try to decide what will happen tomorrow , I will look back– Oliver wendall Helmes.

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Historical evolution of OB Interest in the welfare of workers is age old, but experts trace the development of OB from the beginning of the 19 th century. prior to 19 th century the plight of the average worker was miserable . He had to work under inhuman conditions as he had no other option. He had to live. Then came the industrial revolution which brought about materialism, discipline, monotony, boredom, impersonality & work interdependence. In 1800 Robert Owen , a welsh factory owner , was the one to emphasis the human needs of employees, & he refused to employ children He is called the father of personnel management. in 1835 Andrew Ure, included the human factor in his publication –the philosophy of manufactures. in 1886 J.N. Tata instituted a pension fund & in 1895 began to pay accident compensation.

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contd In 1911 Taylor published Principles of Scientific management. He is called the father of scientific management. As he converted broad generalizations into practical tools. Taylor revived interest in human resources at work. But wanted to increase production by rationalizing everything. His assumption that human behavior was based on the “ rabble Hypothesis” was not liked by many. The great depression, the labor movement & results of the Hawthorne studies gave birth to the human relations movement.

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contd Historically , three of the most important contributing factors to the human relations movement would be the Great Depression(1929), the labor movement, the results of Hawthorne Studies. The Human relations movement developed fast, so fast, that , it almost became a fad. The movement lost its flavor & gave place to OB.

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Elton Mayo Harvard Circle laid the foundations for Harvard’s Human Relations School Mayo was able to draw on his diverse academic background (medical, economics, philosophy and psychology) to develop his ideas on the problems facing industrial man Best known accomplishment was his industrial research work with Fritz Roethlisberger on the Hawthorne Studies

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The HAWATHORNE STUDIES The Hawthorne Studies were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago, Illinois. The studies grew out of original experiments that were conducted from 1924 to 1927 that examined the effects of light on productivity. These experiments showed THAT FACTORS OTHER THANLIGHTING WERE AT WORK. It is from this experiment the term Hawthorne effect was coined , referring originally to the fact that people’s knowledge that they are being studied leads them to modify their behavior.

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1. Six women who assembled telephone relays were taken off the shop floor and put on a team. These women were observed by a manager who acted more as a friend than a foreman. 3. The productivity of the team was measured under various conditions. A general upward trend in productivity was observed, independent of any changes made by Mayo and his team. The researchers concluded that the physical changes had no impact but the supervisory changes were the major reason for increase in productivity. The relay assembly room study.( 1927 – 1933 )

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The Bank wiring room study.(1931 – 32) A group of 14 men who wired telephone banks was observe in a standard shop condition,. the workers were relatively free from constant supervision. the workers would pace their work so that they reached the norm at the end of the day. The researchers concluded that the behavioral norms set by the work group had a powerful influence over the productivity of the group. thus Hawthorne studies laid the foundation for understanding people’s social & psychological behavior in the workplace.

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The Hawthorne Effect has been described as the benefits you reap when you pay attention to people. The mere act of showing people you are interested in them usually spurs them to better job performance. It has been referred to as the ‘Somebody upstairs cares’ syndrome. When people spend a large portion of their time at work, they must have a sense of belonging, of being a part of a team. When they do, they produce better. This was a tremendous break from the idea that industrial man was motivated by economic means only.

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Human relations has come to be viewed as vital to the long term sustainability of any organization. Prior to the Hawthorne Studies, employees were treated as nothing more than plant assets by management. The results of “scientific management” on society were disastrous. The work of Mayo and Roethlisberger began the break from Taylorism Their studies brought forth the concepts that work takes place in a social environment and employees are motivated by more than economic incentives. 1932.

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Human Relations at Work Today Current work problems are the result of social disintegration (increased labor mobility, weakened communal ties, isolated family life). Changes justified by placing high value on economic growth and ignoring the need to cooperate and communicate. Labor mobility social functions blur people become maladjusted. Lack of collaboration between management and employees results in restricted output.

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Milestones in the History of OB Industrial revolution – Robert Owen , Andrew Ure & J.N.Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach. Scientific Management early 20 th Century --- Taylor believed in rationalizing production. He believed that human behavior was based on the rabble hypothesis. Human relations movement during 1920s to 1940s --- great depression, labor movement & Hawthorne studies led to the movement. The movement subsequently became a fad. Organizational Behavior --- 1950