1. Define organizational behavior (OB). 2. Describe what managers do. 3. Explain the value of the systematic study of OB. 4.

Transcription

1 AFTER STUDYING THIS CHAPTER AND LISTENING TO MY LECTUER,I HOPE THTAT YOU WILL BE ABLE TO: 1. Define organizational behavior (OB). 2. Describe what managers do. 3. Explain the value of the systematic study of OB. 4. List the major challenges and opportunities for managers to use OB concepts. 5. Identify the contributions made by major behavioral science disciplines to OB.

2 6. Describe why managers require a knowledge of OB. 7. Explain the need for a contingency approach to the study of OB.

3 What is the field of Organizational Behavior all about? OB helps in understanding human behavior and helps in enhancing organizational effectiveness and individual well being OB highlights four central characteristics of the field First OB is firmly grounded in the scientific method Second OB studies individuals groups and organizations Third OB is interdisciplinary in nature Fourth OB is used as he basis for enhancing effectiveness and individual well-being

4 based on the division of labor What is the field of Organizational Behavior all about? OB is the study of what people think feel and do in and around organizations OB emerged as a distinct field around the 1940s-origin can be traced much further The Greek philosopher Plato wrote about the essence of leadership The writings of Chinese philosopher Confucius in 500 BC are beginning to influence contemporary thinking about ethics and leadership In 1776 Adam advocated a new form of organizational structure

5 One hundred years later German sociologist Max Weber wrote about rational organizations and initiated discussion on charismatic leadership Frederick Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees In the 1920s Elton Mayo and his colleagues discovered the importance of formal and informal group dynamics OB was organized into a unified discipline until World War II

6 Enter Organizational Behavior Organizational behavior (OB) Deals with human behavior in organizations. It is a multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes and organizational dynamics

7 What is Organizational behavior? The Meaning of Organisational Behaviour (OB) OB is the study of human attitudes, behaviour and performance. It is the study of what people do in an organisation and how that behaviour affects the performance of the organisation. As rightly indicated by J.W. Newstrom, OB is the systematic study and careful application of knowledge about how people as individuals and as groups act within organisations. It is an action-oriented and goal-directed discipline. Its goals are to make managers more effective at describing, understanding, predicting, and controlling human behaviour. Describe behaviour Understand behaviour Predict behaviour Control behaviour

8 What is organizational behavior and why is it important? Scientific thinking is important to OB because: Process of data collection is controlled and systematic Proposed explanations are carefully tested Only explanations that can be scientifically verified are accepted Copyright 2008 John Wiley & Sons, Inc. 1-8

9 Scientific methods models Scientific methods models simplified views of reality that attempt to identify major factors and forces underlying real-world phenomenon Link independent variables with dependent variables Copyright 2008 John Wiley & Sons, Inc. 1-9

10 OB uses scientific methods to develop test generalization about behavior in organization Copyright 2008 John Wiley & Sons, Inc. 1-10

11 What is Organizational behavior? OB applies the Scientific Method to Practical Managerial problems Managers rely heavily on knowledge derived from OB research For example researchers have shed light on such practical questions How can goals be set to enhance people s job performance? How many 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? What do leaders do to enhance the effectiveness of their teams? How can organizations be designed to make people highly productive?

12 What is Organizational behavior? OB applies the Scientific Method to Practical Managerial problems OB through the scientific research and theory will answer to the questions It is safe to say that the scientific and applied facets of OB not only coexist but complements each other Just as knowledge about the properties of physics may be put to use by engineers and engineering data can be used to test theories of basic physics Knowledge and practical applications are closely interwined in the field of OB

13 What is the secret source that makes company the best place to work the secret source that makes a company the best place to work for? High and differentiated compensation Innovative titles Faster career progression plans Meaningful growth avenues More satisfying jobs Overseas exposure Opportunity to work on cutting-edge technologies and problems Referral schemes etc. (many a time, employees may want a bit of all these and much more!)

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

15 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.

16 Management Functions Planning Organizing Management Functions Controlling Leading

17 Management Functions (cont d) Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

18 Management Functions (cont d) Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

19 Management Functions (cont d) Leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

20 Management Functions (cont d) Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

21 Roles Managerial Roles Henry Mintzberg offered a view of the managing job that throws considerable light on how managers perform their work. Managers, according to Mintzberg, must fill many roles as they carry out the management functions. These roles can be grouped into three categories: interpersonal, informational and decisional.

22 Mintzberg s Managerial Roles Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

23 Roles Interpersonal relationships essential to all managerial work Managers team leaders should be able to develop maintain and work well with wide variety of people-outside and inside the organization Work with task networks-(of specific job related contacts Career networks(of career guidance and opportunity resources) Social networks(trustworthy friends and peers)

24 Mintzberg s Managerial Roles (cont d) Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

25 Mintzberg s Managerial Roles (cont d) Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

26 Mindset Recently Henry Mintzberg and his colleague Jonathan Gosling asked question What does it mean to think like a manager Complexity of managerial work To help managers develop attitudes and ways of thinking that can improve their effectiveness Defined managerial mind set as an attitude a frame of mind that opens up new vistas

27 Mindset The five mind sets important to success in managerial work The reflective mindset deals with being able to manage oneself The analytic mindset deals with managing organizational operations and decisions The worldly mindset deals with managing in the global context The collaborative mindset deals with managing relationships The action mindset deals with managing change All five mind sets must work together for managerial decisions

28 Skills A skill is an ability to translate knowledge into action that results in a desired performance

29 Skills Managerial skills Performing management functions and roles and achieving competitive advantage are the principal characteristics of a manager s job. Merely understanding this fact, however, does not guarantee success. Managers need a variety of skills to do these things well. Skills here refer to specific abilities that result from knowledge, information, practice and aptitude. Robert L. Katz has identified three basic types of skills technical, human and conceptual that he says are needed by all managers.

30 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.

31 Management Skills Emotional intelligence ability to understand and deal with emotions Self-awareness-ability to understand your own moods and emotions Self-regulation-ability to think before acting and control disruptive impulses Motivation-ability to work hard and persevere Empathy-ability to understand the emotions of others Social skill-ability to gain rapport with others and build good relationships 2008 John Wiley & Sons, Inc.

32 Effective Versus Successful Managerial Activities (Luthans) 1. Traditional management Decision making, planning, and controlling 2. Communication Exchanging routine information and processing paperwork 3. Human resource management Motivating, disciplining, managing conflict, staffing, and training 4. Networking Socializing, politicking, and interacting with others

33 Allocation of Activities by Time Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

34 Multidisciplinary Nature of OB OB is multidisciplinary in nature. It is, in fact, an applied behavioural science that is built on contributions from a wide variety of social science disciplines, such as psychology, sociology, social psychology, anthropology, political science, economics etc. Discipline Relevant OB topics The Multidisciplinary Roots of OB Psychology -Perception and learning, personality, emotion and stress, attitudes, motivation, decision-making and creativity. Sociology - Group dynamics, socialisation, communication, intergroup behaviour, power, conflict. Social Psychology - Intergroup collaboration,group decision-making,integration of individual needs with group activities, effect of changeon individuals. Anthropology- Organisational culture, leadership, organisational empowerment Economics - Decision-making, organisational power PoliticalScience - Conflict, intra-organisationalpolitics, manipulatingpowerfor individual self-interest.

35 Toward an OB Discipline

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

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

38 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.

39 Contributing Disciplines to the OB Field (cont d) Anthropology The study of societies to learn about human beings and their activities.

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

41 Emerging fields from which organizational behavior knowledge is acquired Discipline (traditional ) Relevant OB topics Economics Decision making, negotiation, organizational power Industrial engineering Emerging disciplines Communications Information systems Marketing Women s studies Job design, productivity, work measurement Knowledge management, electronic mail, corporate culture, employee socialization Team dynamics, decision making, knowledge management Knowledge management, creativity, decision making Organizational power,perception

42 Five anchors of Organizational Behavior Multidisciplinary anchor Systematic research anchor Contingency anchor Multiple levels of analysis anchor Open system anchor OB should import knowledge from many disciplines OB should study organizations using systematic research methods OB theory should recognize that the effects of actions often vary with the situation OB knowledge should include three levels of analysis:individual,team,and organization OB should view organizations as open systems that interact with their environment

43 Open System view External Environment Inputs RM HR Information Financial resource equipment Subsytems Transforming inputs to outcomes Outputs Product/services Employee behaviors Profits/losses Waste/pollution

44 -Subsystems such as process(communication and reward systems) -Task activities(production, marketing) -Social dynamics(informal groups, power dynamics) -Aid of technology(equipment,work method and information) These subsystems transform inputs into outputs

45 External Environment and stakeholders Successful organizations monitor their environments and are able to maintain a close fit with changing conditions Configure their outputs(new products and services, reducing waste) Transforming their processes Organizations need to adapt to changing environment Stakeholders represent a central part of the internal and external environment Stakeholders influence the firms access to inputs and ability to discharge outputs If leaders pay attention to only shareholders organization will be trouble Cannot ignore corporate social responsibility

46 There Are Few Absolutes in OB There are few if any simple and universal principles that explain OB Laws in the physical sciences-chemistry astronomy physics-that are consistent apply in a wide range of situations Scientists generalize pull of gravity-confident about sending astronauts into space to repair satellites Human beings complex-not alike-our ability to make simple accurate and sweeping generalization is limited Behavior changes in different situations Does not mean that reasonably accurate explanations of human behavior or make valid predictions OB concepts must reflect situational or contingency conditions

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

48 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 lowcost labor Managing Workforce Diversity Embracing diversity Changing demographics Implications for managers Recognizing and responding to differences

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

50 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

51 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.

52 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

53 Models of OB OB Model A model is a simplified presentation of some real-world phenomenon. The OB model focuses attention on three distinct levels of analysis individuals, groups and organisations. It tries to look into the impact the individuals, groups and organisations have on the behaviour of members working in an organisation. It tries to utilise this knowledge with a view to improve organisational performance. The model of OB is generally built around two sets of variables, namely dependent variables (productivity, absenteeism, turnover, job satisfaction) and independent variables (individual level variables, group level variables and organisation system level variables). The basic objective of any model of OB is to make managers more effective at describing, understanding, predicting and controlling human behaviour.

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

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

56 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.

57 The Dependent Variables (cont d) Absenteeism The failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.

58 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.

59 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.

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

61 Organisation Structure Organisational Culture, Creativity and Innovation Human Resource Policies and Practices Organisational Change and Development International Organisational Behaviour Organisation Level Group Behaviour Teams and Teamwork Communication Leadership Power and Politics Conflict and Negotiation Group Level Outcomes Productivity Absenteeism Turnover Job Satisfaction Cont.

62 Personality Perception and Attribution Ethics and Social Responsibilities Values, Attitudes and Job Satisfaction Learning and Behaviour Modification Basic Concepts in Motivation Job Design, Empowerment and Work Scheduling Individual Level Basic OB Model Resources

63 Basic OB Model The model examines the variables influencing individual behavior The knowledge obtained at the individual level will help us analyse the behaviour at group level and organisational level.

64 Knowledge Management Googles chief financial officer George Reyes said that his company is a learning organization Any structured activity that improves an organization s capacity to - acquire - Share Use knowledge in ways that improve its survival and success

65 Knowledge Management Stock of knowledge that resides in an organization is called intellectual capital Intellectual capital is the sum of everything known in an organization that gives it competitive advantage including human capital Structural capital Relationship capital

66 Knowledge Management Process To maintain intellectual capital(stock of knowledge) Organizations depend on acquiring sharinguse knowledge effectively This process is called organizational learning Companies have established systemsstructures-organizational values that manage knowledge management

67 Knowledge Management Process Strategies companies use to acquire share use knowledge Knowledge acquisition Knowledge sharing Knowledge use

68 Knowledge Management Process Organizational Memory Corporate leaders are the keepers of an organizational memory Storage and preservation of intellectual capital Includes information employees possess Knowledge embedded in the organization systems and structures To maintain organizational memory keep good employees Attract and retain by adopting employment practices compatible with emerging workforce expectations-work life balance-egalitarian

69 Knowledge Management Process Organizational Memory Second organizational memory strategy systematically transfer knowledge before employees leave(trade apprentice) Third approach to transfer knowledge into structural capital -this includes bringing out hidden knowledge organizing and putting it in a form available to others Unlearn-Selectively forget certain knowledge -Cast off routines and patterns of behavior