Unit 1. I.T.S Management & IT Institute Mohan Nagar, Ghaziabad

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1 Organization Behavior Unit 1 I.T.S Management & IT Institute Mohan Nagar, Ghaziabad

2 Unit-1: Contents Concept, Nature, Importance & Characteristics of OB Conceptual Foundations Models of Organization Behavior Management Challenge A Paradigm Shift Relationship with other fields Organization Behavior: Cognitive Framework Behaviourastic Framework Social Cognitive Framework

3 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.

4 Why study Organization Behavior? To learn about yourself and how to deal with others You are part of an organization now, and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time Some of you may want to be managers or entrepreneurs

5 Organizations as Open Systems Organizations are open systems, such that their long term effectiveness is determined by their ability to anticipate, manage, and respond to changes in their environment, with such changes resulting from external forces and/or stakeholders. External forces include the labor force, the natural environment, the economy, and different cultures, while stakeholders include shareholders, customers, competitors, suppliers, creditors, governmental agencies and their regulations Note the impact of these environmental influences on individual, interpersonal, team, and organizational processes; organizations that do not effectively adapt to environmental change will fail

6 Organization Behavior... 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.

7 What is Organizational Behavior? Definition: The study of human behavior, attitudes, and performance in organizations. Value of OB: Helps people attain the competencies needed to become effective employees, team leaders/members, or managers Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge needed by an individual to be effective in most professional and managerial positions

8 Nature of OB The field of Organization Behavior attempts to understand human behavior in organization settings, the organization itself, and the individual organization interfaces. These all three are interrelated. Thus, although, it is possible to focus on only one of these areas at a time, a complete understanding of organizational behavior requires knowledge of all three areas.

9 Importance of OB The study of OB can greatly clarify that why others in the organization behave as they do and the factors that affects how managers Manage. Hence, the field attempts to describe the complex human contexts of the organizations and to define the opportunities, problems, challenges, and issues associated with that realm (area). Typical managerial activities in the realm include motivating people to work harder, ensuring that employee s jobs are properly designed, resolving conflicts, evaluating performance, and helping workers to set goals to achieve rewards. The fields of OB abounds with models and research relevant to each of these functions. The value of the OB is that it isolates important aspects of the manager s job and offers specific perspectives on the human side of the management: viz. People as the resource, People as the organizations, People as People.

10 Importance of OB In dealing with the individuals, an understanding of basic issues related with Leadership, power, and political behavior, decision making, organization structure and design and organization culture can be extremely beneficial. Managers can also use their knowledge of OB to better understand their own needs, motives, behaviors and feelings, which will help them improve decision making capabilities, control stress, communicate better, and comprehend how careers dynamics unfold. An understanding of attitudinal processes, individual differences, group dynamics, intergroup dynamics, organization culture, and power and political behavior can help managers handle such interactions more effectively.

11 An inter-disciplinary Approach Characteristics of OB In many ways the field of OB synthesizes the several other fields of study. Perhaps the greatest contribution is from psychology, especially organizational psychology. Psychologists study human behavior whereas organizational psychologists deal specifically with the behavior of people in organizational settings. Sociology, too, has had a major impact on the field of OB. Sociologists study social systems such as families, occupational classes, and organizations. Anthropology is concerned with the interactions with the people and their environments, especially their cultural environment. Culture is a major influence on the structure of the organizations and on the behavior of people in organizations. Political science also interests organizational behaviorists. We usually think of political science as the study of political systems such as governments. But themes of interests to political scientists include how and why people acquire power and such topics as political behavior, decision making, conflict, the behavior of interest groups and coalition formation.

12 Contd.. Economists study the production, distribution and consumption of goods and services. Students of OB share the economists interests in areas such as labor market dynamics, productivity, human resource planning and forecasting, and cost-benefit analysis. Engineering has also influenced the field of OB. Industrial engineering in particular has long been concerned with work management, productivity measurement, work flow analysis and design, job design and labor relations. Recently medicinal has come into play in connection with the study of human behavior at work, specifically in the area of stress. Increasingly, research is showing that controlling the causes and consequences of stress in and out of organizational settings is important for the well being of both the individual and the organization.

13 Relationship with other fields Psychology Sociology Social Psychology Behavioral science Psychology Sociology Contribution 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 behavior Unit of analysis Individual Output Anthropology Political Science Social psychology Anthropology Formal organization theory Organizational technology Organizational change Organizational culture Behavioral change Attitude change Communication Group processes Group decision making Comparative values Comparative attitudes Cross-cultural analysis Group Organization system Study of Organizational Behavior Organizational culture Organizational environment Political science Conflict Intraorganizational politics Power

14 Contd.. It has the descriptive nature: The Organization behavior is descriptive for several reasons such as: The immaturity of the field The complexities inherent in studying human behavior Lack of valid, reliable, and accepted definitions and measures

15 Evolution of Management Thought 1970 s Organizational Behavior Human Relations 1940 s Hawthorne Studies Classical Organization Theory 1900 s Scientific Management

16 Conceptual Foundations Management Functions Planning Organizing Management Functions Controlling Leading

17 Concept of the field of OB The central concept of the organization behavior can be grouped into three basic categories: Individual Processes Interpersonal Process Organization Processes and characteristics Organization systems level Group level Individual level

18 Individual Processes Foundation Motivation Stress Decision Making Organizational Processes Organization Structure Organization Design Organization Culture Organization Change Interpersonal Processes Groups and Teams Communication Leadership and Power Politics Conflict and Negotiation

19 Models of Organization Behavior There are four major models or frameworks that organizations operate out of, Autocratic, Custodial, Supportive, and Collegial: Autocratic The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. Custodial The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.

20 Supportive The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. Collegial The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and selfdiscipline. The employee need that is met is selfactualization. The performance result is moderate enthusiasm.

21 Managing for Effectiveness Individual-Level Outcomes Productivity Performance Absenteeism Turnover Attitudes Stress Group-Level Outcomes Productivity Performance Norms Cohesiveness Organization-Level Outcomes Productivity Absenteeism Turnover Financial Performance Survival Stakeholder s Satisfaction Organizational Effectiveness

22 Contextual Perspectives on Organization Behavior Systems Perspective: The system perspective, or the theory of systems, was first developed in the physical sciences, but it has been extended to other areas, such as management. According to this perspective, an organizational system receives four kinds of inputs from its environment: Material, Human, Financial and Informational. The organization s manager then combine and transform these inputs and return them to the environment in the form of products or service, employee behaviors, profits and losses, and additional information. Feedback Inputs Transformation Output Environment

23 Contextual Perspectives on Organization Behavior Situational Perspective: In the earlier days of management studies, mangers tried to search for universal answers to organizational questions. They sought prescriptions, the one best way that could be used in any organization under any conditions, searching, for example, for forms of leadership behavior that would laways lead employees to be more satisfied and to work harder. Eventually, however, researcher s realized that the complexities of human behavior and organizational settings make universal conclusion virtually impossible. They discovered that in organizations most situations and outcomes are contingent; that is, the precise relationship between any two variable is likely to be situational dependent on other variable.

24 Management Skills

25 Allocation of Activities by Time

26 Management Challenge Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service Improving People Skills Empowering People Coping with Temporariness Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior ` Organizational Level Productivity Developing Effective Employees Global Competition Managing in the Global Village Group Level Working With Others Workforce Diversity Individual Level Job Satisfaction Empowerment Behaving Ethically Workplace

27 The Challenges Facing Management Although the problems with human organizations and the solutions over the ages have not really changed that much, the emphasis and surrounding environmental context certainly have. This new environment is disruptive, discontinuous change. It represents a new paradigm, a new way of thinking about the workplace. Three challenges facing managers to day are: - Globalization and Information Technology - Diversity - Ethics

28 A Paradigm Shift A paradigm simply establishes the rules (written or unwritten), defines the boundaries, defines a way to understand reality, ways of thinking/framework, and tells one how to behave within the boundaries to be successful. For today s and tomorrow s organizations and management, there are new rules with different boundaries requiring new and different behaviors. There is considerable resistance to change and why it is very difficult to move from the old management paradigm to the new.

29 Theoretical Framework for OB Cognitive Framework Personality Satisfaction, Commitment and Absenteeism Model Attraction- Selection-Attrition Model Behavioristic Framework Pavlov s Dogs Environmental Contingencies Social Cognitive Framework Allows for more complexities More accepted framework

30 Cognitive Framework The cognitive theoretical approach is shown in the classic work of Edward Tolman. The cognitive approach emphasizes more on people compared to other approaches. It is based on the expectancy, demand and incentive concepts. Cognition is a psychological process of recollecting information and past experiences. Cognition generally precedes behavior and serves as an input for a person's thoughts, perception, problem solving and information processing. Cognitive maps are concepts that can be used as pictures or visual aids to comprehend a person's understanding of a particular, and selective, elements of the thoughts (rather than thinking) of an individual, group or organization.

31 Behavioristic Framework Ivan Pavlov and John B. Watson were the pioneers of the behaviorist theory. Unlike the earlier psychologists, they focused on observable behaviors rather than the evasive mind. They explained human behavior with the help of stimulus-response experiments. A stimulus brings out a response in an individual and results in learning. The stimulus- response relationship explains the physical reflexes in human beings. For example, when a person is pricked with a pin, he immediately flinches.

32 Social Cognitive (Learning) Framework The cognitive approach emphasizes too much on psychological process whereas the behaviorist approach stresses on stimulus, response and consequences. The social cognitive approach attempts to integrate the contributions of both these approaches. However, the influence of behavioral approach is higher than the cognitive approach on the social learning approach. In social cognitive approach, behavior is considered as the appropriate unit of analysis. It is held that people are self-aware and make an effort towards conscientious behavior. Individuals learn about the environment, modify and construct it in a manner favorable to them. Albert Bandura made a significant contribution to the social learning framework. He explained behavior as a continuous reciprocal interaction among cognitive, behavioral and environmental determinants.

After studying this chapter, you should be able to:

After studying this chapter, you should 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