Organisational behaviour

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Introduction to organizational Behaviour:

Introduction to organizational Behaviour VIKAS 6 th semester

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What Managers Do Managerial Activities Make decisions Allocate resources Direct activities of others to attain goals Managers (or administrators ) Individuals who achieve goals through other people.

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Where Managers Work 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. What are Organizations? Groups of people who work interdependently toward some purpose Structured patterns of interaction Coordinated tasks Work toward some purpose

Why Study Organizational Behavior:

Why Study Organizational Behavior Organizational Behavior Research Understand organizational events Predict organizational events Influence organizational events

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Enter Organizational Behavior 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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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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Organizational Behavior Anchors Multidisciplinary Anchor Systematic Research Anchor Contingency Anchor Open Systems Anchor Multiple Levels of Analysis Anchor Organizational Behavior Anchors

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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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Contributing Disciplines to the OB Field (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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Source: Drawing by Handelsman in The New Yorker , Copyright © 1986 by the New Yorker Magazine. Reprinted by permission.

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There Are Few Absolutes in OB Contingency Variables x y Contingency variables Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.

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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

Employment Relationship:

Employment Relationship Employability “New deal” employment relationship Continuously learn new skills Contingent work No contract for long-term employment Free agents, temporary-temporaries Minimum hours of work vary

Employability vs Job Security:

Employability vs Job Security Job Security Lifetime job security Jobs are permanent Company manages career Low emphasis on skill development Employability Limited job security Jobs are temporary Career self-management High emphasis on skill development

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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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Improving Quality and Productivity Quality management (QM) The constant attainment of customer satisfaction through the continuous improvement of all organizational processes. Requires employees to rethink what they do and become more involved in workplace decisions. Process reengineering Asks managers to reconsider how work would be done and their organization structured if they were starting over. Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.

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

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

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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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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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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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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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The Independent Variables Independent Variables Individual-Level Variables Organization System-Level Variables Group-Level Variables Independent variable - The presumed cause of some change in the dependent variable.

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Basic OB Model, Stage II

Knowledge Management Defined:

Knowledge Management Defined Any structured activity that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success Intellectual Capital Human Capital - Knowledge that people possess and generate Structural Capital - Knowledge captured in systems and structures Relationship Capital - Values derived from satisfied customers, reliable suppliers, etc.

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Awareness Empowerment Communication Communities of practice Grafting Individual learning Experimentation Knowledge acquisition Knowledge sharing Knowledge use Knowledge Management Processes

Organizational Memory:

Organizational Memory The storage and preservation of intellectual capital Retain intellectual capital by: Keeping knowledgeable employees Transferring knowledge to others Transferring human capital to structural capital Successful companies also unlearn.

Individual Behaviour:

Individual Behaviour Biographical Characteristics Personal characteristics—such as age, gender, and marital status—that are objective and easily obtained from personnel records.

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Ability, Intellect, and Intelligence Ability An individual’s capacity to perform the various tasks in a job. Intellectual Ability The capacity to do mental activities. Multiple Intelligences Intelligence contains four subparts: cognitive, social, emotional, and cultural.

Dimensions of Intellectual Ability :

Dimensions of Intellectual Ability Number aptitude Verbal comprehension Perceptual speed Inductive reasoning Deductive reasoning Spatial visualization Memory


Abilities Physical Abilities - The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics. Strength Factors Flexibility Factors Dynamic strength Extent flexibility Trunk strength Dynamic flexibility Static strength Explosive strength Other Factors Body coordination Balance Stamina

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Ability-Job Fit The Ability- Job Fit Employee’s Abilities Job’s Ability Requirements

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What is Personality? The sum total of ways in which an individual reacts and interacts with others. Relatively stable pattern of behaviors and consistent internal states that explain a person's behavioral tendencies Personality Traits Enduring characteristics that describe an individual’s behavior. Personality Determinants Heredity Environment Situation

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Personality - Basic assumptions of individual differences (IDs) The assumption of stability A combination of traits that make individuals unique but also make their thought & behaviour consistent over time The assumption of broad underlying dimensions Common dimensions to explain IDs Factor analysis IDs are normally distributed

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The Myers-Briggs Type Indicator Personality Types Extroverted vs. Introverted (E or I) Sensing vs. Intuitive (S or N) Thinking vs. Feeling (T or F) Judging vs. Perceiving (P or J) Myers-Briggs Type Indicator (MBTI) A personality test that taps four characteristics and classifies people into 1 of 16 personality types.

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The Big Five Model of Personality Dimensions 5 factors: a framework to understand individual differences Normally distributed: most people are in the middle The big five provides an account of the structure of personality

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The Big Five Model of Personality Dimensions Extroversion Sociable, gregarious, and assertive Agreeableness Good-natured, cooperative, and trusting. Conscientiousness Responsible, dependable, persistent, and organized. Openness to Experience Imaginativeness, artistic, sensitivity, and intellectualism. Emotional Stability Calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative).

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The big 5 extraversion – introversion Traits defining extraversion: Venturesomeness: socially confident Affiliativeness: more warm & friendly Energy: prefer more than too little Ascendance: more assertive Better at jobs with high levels of stimulus, novelty, variety

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The big 5 neuroticism – stability Neuroticism : a high level of negative affect Traits correlating to this factor: Anxiety Tenseness Low self-esteem Guilt-proneness Emotional control Irrationality Shyness Moodiness

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The big 5 conscientious – expedient Conscientious : strong sense of obligation & duty, At work : punctual, systematic, order & predictable environments Expedient : individualistic At work : overlook rules & procedures, pragmatic, responsive, adaptable The best predictor of performance

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The big 5 open – closed to experience Open : actively seek new experience aesthetic interests, analytical, intellectual, imaginative, abstract, diversity of interests At work : creative problem-solvers, abstract thinkers Closed : practical, down to earth At work : focus on accomplishing tasks

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The big 5 agreeable – hostile Agreeable : maintain good relationships & serve others At work : natural ‘team players’, adaptive Hostile : mistrustful, irritable, headstrong At work : not easily fooled, lower performers Highly consistent from childhood onwards

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Freud & the dynamics of personality Personality is the outcome of dynamic processes The conscious: thoughts & perceptions The pre-conscious: memories & stored information The unconscious: phobias, traumas, sexual urges, anxieties

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Freud & the dynamics of personality Tripartite structure of personality The id : pleasure principle The ego : reality principle The superego : values & morals The id (pleasure) & the superego (morality) struggle for control over the ego (reality)

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Freud & the dynamics of personality Defense mechanisms Repression : motivated forgetting Projection : externalizing difficult/ positive feelings distortions of reality, alienation Reaction formation : reflecting opposite feelings denial, regression, displacement

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Psycho-sexual stages Oral stage (0 – 2): mouth dependent & trusting attitudes Anus stage (2 – 4): anus (non)conforming & (un)controlled attitudes Phallic stage (4 – puberty): relations & attraction develops Genital stage (adult life): self-centeredness ends – we derive pleasure from developing our relationships

Major Personality Attributes Influencing OB:

Major Personality Attributes Influencing OB Locus of control - The degree to which people believe they are masters of their own fate. Internals Individuals who believe that they control what happens to them. Externals Individuals who believe that what happens to them is controlled by outside forces such as luck or chance. Machiavellianism (Mach) - Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. Conditions Favoring High Machs Direct interaction Minimal rules and regulations Emotions distract for others

Major Personality Attributes Influencing OB:

Major Personality Attributes Influencing OB Self-esteem (SE) - Individuals’ degree of liking or disliking themselves. Self-monitoring - A personality trait that measures an individuals ability to adjust his or her behavior to external, situational factors. Type A personality

Risk Taking:

Risk Taking High Risk-taking Managers Make quicker decisions Use less information to make decisions Operate in smaller and more entrepreneurial organizations Low Risk-taking Managers Are slower to make decisions Require more information before making decisions Exist in larger organizations with stable environments Risk Propensity Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.

Personality Types:

Personality Types Type A’s are always moving, walking, and eating rapidly; feel impatient with the rate at which most events take place; strive to think or do two or more things at once; cannot cope with leisure time; are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire. Type B’s never suffer from a sense of time urgency with its accompanying impatience; feel no need to display or discuss either their achievements or accomplishments; play for fun and relaxation, rather than to exhibit their superiority at any cost; can relax without guilt.

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Proactive Personality Identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs. Creates positive change in the environment, regardless or even in spite of constraints or obstacles.

Achieving Person-Job Fit:

Achieving Person-Job Fit Personality-Job Fit Theory (Holland) Identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover. Personality Types Realistic Investigative Social Conventional Enterprising Artistic

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Social learning – locus of control Internal : ‘I make things happen’ External : ‘Things happen to me’ At work : internals perform better have better perception of their work, effort and working conditions externals: feel less connection between their effort & the outcome/ under-valuation LoC may change through new experiences

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Conceptions of intelligence (I) Cognitive processes (explicit theory) : Pure speed : simple information processing Choice speed : time needed to make a choice Speed of lexical access : retrieving information from L-T memory Speed of reasoning processes : higher order information processing

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Measurement of explicit I factors G : the innate ability to perceive relationships & educe co-relationships (only one factor) Need for specific ability factors (aptitudes): Spatial ability Verbal reasoning Perceptual speed Numerical ability Memory Verbal fluency Inductive reasoning

Emotions Defined:

Emotions Defined Psychological and physiological episodes experienced toward an object, person, or event that create a state of readiness.

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Positive Emotions at Pike Place Employees at Pike Place Fish Market in Seattle turned a money-losing, morale-draining business into a world-famous attraction by deciding to have fun at work, such as tossing fish and joking with customers.

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Emotions- Why Emotions Were Ignored in OB The “myth of rationality” Organizations are not emotion-free. Emotions of any kind are disruptive to organizations. Original OB focus was solely on the effects of strong negative emotions that interfered with individual and organizational efficiency.

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What Are Emotions? Moods Feelings that tend to be less intense than emotions and that lack a contextual stimulus. Emotions Intense feelings that are directed at someone or something. Affect A broad range of emotions that people experience.

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Types of Emotions Activated Negative Activated Positive Astonished Tranquil Cheerful Sad Fearful Elated Content Bored Activated Unactivated Pleasant Unpleasant

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Emotion Continuum The closer any two emotions are to each other on the continuum, the more likely people are to confuse them.

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Emotion Dimensions Variety of emotions Positive Negative Intensity of emotions Personality Job Requirements Frequency and duration of emotions How often emotions are exhibited. How long emotions are displayed.

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Attitudes versus Emotions Attitudes Emotions Judgments about an attitude object Experiences toward an attitude object Usually stable for days or longer Occur briefly, usually lasting minutes Based mainly on rational logic Based on awareness of our senses

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Behavior Emotions, Attitudes and Behavior Emotional Episodes Perceived Environment Attitude Feelings Beliefs Behavioral Intentions

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Emotional Labor Effort, planning and control needed to express organizationally desired emotions during interpersonal transactions. Emotional labor higher when job requires: frequent and long duration display of emotions displaying a variety of emotions displaying more intense emotions Influenced by culture and other situational factors

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Felt versus Displayed Emotions Felt Emotions An individual’s actual emotions. Displayed Emotions Emotions that are organizationally required and considered appropriate in a given job.

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Emotional Labor Issues Difficult to hide true emotions, especially anger Emotional dissonance Conflict between true and required emotions Potentially stressful with surface acting Less stress through deep acting

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Emotional Intelligence Defined Ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others

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Social Awareness Self-management U nderstanding and sensitivity to the feelings, thoughts, and situation of others Controlling or redirecting our internal states, impulses, and resources Self-awareness Understanding your own emotions, strengths, weaknesses, values, and motives Relationship Management M anaging other people’s emotions Lowest Highest Model of Emotional Intelligence

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Improving Emotional Intelligence Emotional intelligence is a set of competencies (aptitudes, skills) Can be learned, especially through coaching EI higher in people with extroversion, conscientiousness, agreeableness, emotional stability, and low neuroticism

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Emotions- Why Emotions Were Ignored in OB The “myth of rationality” Organizations are not emotion-free. Emotions of any kind are disruptive to organizations. Original OB focus was solely on the effects of strong negative emotions that interfered with individual and organizational efficiency.

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Gender and Emotions Women Can show greater emotional expression. Experience emotions more intensely. Display emotions more frequently. Are more comfortable in expressing emotions. Are better at reading others’ emotions. Men Believe that displaying emotions is inconsistent with the male image. Are innately less able to read and to identify with others’ emotions. Have less need to seek social approval by showing positive emotions.

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External Constraints on Emotions Organizational Influences Cultural Influences Individual Emotions

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Affective Events Theory (AET) Emotions are negative or positive responses to a work environment event. Personality and mood determine the intensity of the emotional response. Emotions can influence a broad range of work performance and job satisfaction variables. Implications of the theory: Individual response reflects emotions and mood cycles. Current and past emotions affect job satisfaction. Emotional fluctuations create variations in job satisfaction. Emotions have only short-term effects on job performance. Both negative and positive emotions can distract workers and reduce job performance.

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Affective Events Theory (AET) Source: Based on N.M. Ashkanasy and C.S. Daus, “Emotion in the Workplace: The New Challenge for Managers,” Academy of Management Executive , February 2002, p. 77.

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OB Applications of Understanding Emotions Ability and Selection Emotions affect employee effectiveness. Decision Making Emotions are an important part of the decision-making process in organizations. Motivation Emotional commitment to work and high motivation are strongly linked. Leadership Emotions are important to acceptance of messages from organizational leaders.

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OB Applications… (cont’d) Interpersonal Conflict - Conflict in the workplace and individual emotions are strongly intertwined. Customer Services - Emotions affect service quality delivered to customers which, in turn, affects customer relationships. Deviant Workplace Behaviors Negative emotions lead to employee deviance (actions that violate norms and threaten the organization). Productivity failures Property theft and destruction Political actions Personal aggression

Ability and Selection:

Ability and Selection Emotional Intelligence An assortment of noncognitive skills, capabilities, and competencies that influence a person’s ability to succeed in coping with environmental demands and pressures. Emotional Intelligence (EI) Self-awareness Self-management Self-motivation Empathy Social skills Research Findings High EI scores, not high IQ scores, characterize high performers.