ORGANISATIONAL BEHAVIOUR

SWATI SISODIA Swati.sisodia@nmims.edu

History of Org Behavior

A Short History of Organizational Behavior F.W. Taylor and Scientific Management Mary Parker Follett Hawthorne Studies Theory X and Y

F W Taylor
Scientific management: the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency The amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

Principles of Scientific Management

Study the way employees perform their tasks, gather informal job knowledge that employees possess, and experiment with ways of improving the way tasks are performed Codify the new methods of performing tasks into written rules and standard operating procedures

Principles of Scientific Management

Carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures Establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

Other theories
Mary Parker Follett- Human side The Hawthorne Effect Douglas McGregor:
Average employee is lazy, dislikes work, and will try to do as little as possible Managers task is to supervise closely and control employees through reward and punishment Employees will do what is good for the organization when committed Managers task is create a work setting that encourages commitment to organizational goals and provides opportunities for employees to be exercise initiative

What is an organization?
Groups of people who work interdependently toward some purpose
Structured patterns of interaction Coordinated tasks Work toward some purpose

Organizational Behavior
The study of individual behavior and group dynamics in organizations Understand Predict Manage

The study and application of how employees behave within organizations

Levels of Analysis
Organizational Level Group Level Individual Group Level Level

Contributing Disciplines to the OB Field

Learning Motivation Personality Attitude, values Motivation Perception Job satisfaction

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field

Open Systems View of Organization

Task environment: Competitors Unions Regulatory agencies Clients

Inputs: Material Capital Human

Structure Task People (Actors) Organizational Boundary Technology

Outputs: Products Services

Why Study Org Behavior?

Competitive advantage of an organization today is represented by: Human resource of an organization and how they are managed. Widely recognized ashuman capital

Describe how people behave under a variety of condition Understand why people behave as they do Predict future employee behaviour

TRENDS GLOBALISATION

Implications of globalisation
New organisational structures Different forms of communication More competition, change, mergers, downsizing, stress Need more sensitivity to cultural differences

TRENDS CHANGING WORKFORCE

More women in workforce and professions Different needs of Gen-X, Gen-Y and baby-boomers Diversity has advantages, but firms need to adjust through Cultural awareness Family-friendly policies Empowerment Employment relationship Employees perform many tasks, not a specific job Working from home, usually with a computer connection to the office Virtual teams (operate across space, time and organisational boundaries; mainly communicate through electronic technologies)

Studying Organizational Behavior

Activity EFFECT OF POSITIVE AND NEGATIVE REINFORCEMENT

Personality

What is personality?
The overall profile or combination of characteristics that capture the unique nature of a person as that person reacts and interacts with others. Combines a set of physical and mental characteristics that reflect how a person looks, thinks, acts, and feels. Predictable relationships are expected between peoples personalities and their behaviors

Factors affecting personality

HERIDITY Physical characteristics Gender ENVIORNMENT Cultural Social Situational factors

PERSONALITY

Personality and the self-concept

dynamics. The ways in which an individual integrates and organizes social traits, values and motives ,personal conceptions, and emotional adjustments. Self-concept. The view individuals have of themselves as physical, social, and spiritual or moral beings. Self-esteem. Self-efficacy.

Personality

How do personalities differ?

Big Five personality dimensions. Extraversion Being outgoing, sociable, assertive. Agreeableness. Being good-natured, trusting, cooperative. Conscientiousness. Being responsible, dependable, persistent. Emotional stability. Being unworried, secure, relaxed. Openness to experience. Being imaginative, curious, broad-minded.

Personal conception traits.

Locus of control. Authoritarianism/dogmatism. Machiavellianism. Self-monitoring.

Locus of control
extent to which a person feels able to control his/her own life. Externals More extraverted in their interpersonal relationships and more oriented toward the world around them. Internals More introverted and more oriented towards their own feelings and ideas.
The

Locus of control
Information processing Internals make more attempt to acquire information, are less satisfied with the amount of information they possess and are better at utilizing information Internals are generally more satisfied, less alienated and there is strong job satisfaction/ performance relationship for them Internals perform better on learning and problem solving tasks, when performance leads to valued rewards Internals exhibit better self control, are more cautious, engage in less risky behavior and are less anxious Internals display greater work motivation, see a stronger relationship between what they do and what happens to them, expect that working hard leads to good performance, feel more control over their time. Internals are more independent, more reliant on their own judgment and less susceptible to the influence of others ; they are more likely to accept information on its merit Job Satisfaction

Performance Self control, risk & anxiety Motivation, expectancies' and results

Response to others

Authoritarianism/dogmatism
Authoritarianism.

Tendency to adhere rigidly to conventional values and to obey recognized authority. Dogmatism. Tendency to view the world as a threatening place.

high-Machiavellian personality
Approach situations logically and thoughtfully: a) Are capable of lying to achieve personal goals. b) Are rarely swayed by loyalty, friendships, past promises, or others opinions. c) Are skilled at influencing others. d) Try to exploit loosely structured situations. e) Perform in a perfunctory or detached manner in highly structured situations.

Note
Machiavellianism (Mach) refers to the degree to which an individual is practical in his approach, maintains an emotional distance from others, and believes that ends justify the means. Research has revealed that individuals who score high on Mach are good at manipulating others and try to win by any means. They do not need to be persuaded to work but instead are able to successfully persuade others. People having a high Mach perform well in situations that involve face-to-face meetings. They are especially productive in jobs that require the use of bargaining (persuasion) skills and in jobs that offer substantial rewards for the achievement of goal

low-Machiavellian personality

a) Accept direction imposed by others in loosely structured situations. b) Work hard to do well in highly structured situations. c) Are strongly guided by ethical considerations. d) Are unlikely to lie or cheat.

Self-monitoring
A persons ability to adjust his/her behavior to external situational factors. High self-monitors. Sensitive to external cues. Behave differently in different situations. Low self-monitors. Not sensitive to external cues. Not able to disguise their behaviors

MOTIVATION

The Basic Motivation Process

NEEDS

DRIVES

INCENTIVES

What is Motivation?
The level and direction of EFFORT expended at work.

Motivation

Derived from latin word movere means to move.

Categories of motivation theories.

Content theories. Process theories. Focus on profiling the needs that people Focus on peoples thought or cognitive seek to fulfill. processes. Emphasize controlling behavior by manipulating its consequences. Major content theories. a) Maslows Hierarchy of needs theory. b) Herzbergs Two factor theory c) Alderfers ERG theory d) Mc Clelland Major content theories. a) Vrooms & Porter theory b) Equity theory

Maslows Hierarchy Of Needs

SELFACTUALIZATION ESTEEM NEEDS

LOVE NEEDS

SAFETY NEEDS

PHYSIOLOGICAL NEEDS

A Hierarchy Of Work Motivation

SELFACTUALIZATION Personal growth, realization of potential ESTEEM NEEDS Titles, status symbols, promotions, banding SOCIAL NEEDS Formal and informal work groups or teams SECURITY NEEDS Seniority plans, union, health insurance, employee assistance plans, severance pay, pension BASIC NEEDS Pay

Hezerbergs two factor theory

Hygiene factors in job

Organisational policies Quality of supervision Working conditions Base salary or wage Relationship with peer Relationship with subordinates Status Security
High Job dissatisfaction

Motivators factors in job

Achievement Recognition Work itself Responsibility Advancement Growth

Job satisfaction

High

ERG & MC CLLELAND THEORY

ERG Theory. Existence needs. Desire for physiological and material well-being. Relatedness needs. Desire for satisfying interpersonal relationships. Growth needs. Desire for continued personal growth and development. Mc Cllelands Theory of needs : Need for achievement (nAch). The desire to do something better or more efficiently, to solve problems, or to master complex tasks. Need for affiliation (nAff). The desire to establish and maintain friendly and warm relations with others. Need for power (nPower). The desire to control others, to influence their behavior, or to be responsible for others.

McClellands High Need Achiever

Work Preferences Prefers moderately challenging goals Prefers performance feedback Prefers individual responsibility

Job Satisfaction Trends

Question Who is more likely to be satisfied with a job? Internals or Externals Individualists or Collectivists Women or Men Younger workers or Older workers Less experienced or More experienced Top management or Rank and file workers Satisfied in prior jobs or Dissatisfied in prior jobs Satisfied with life or Dissatisfied with life

JOBS CAN BE REDESIGNED

Box 1 Box 2 Box 3

LOW

Task Variety Skill Variety Autonomy

HIGH

JOB DESIGN ALTERNATIVES

Job Simplification Taylor Job Enrichment Herzberg

Automation

Job Enlargement & Rotation

SelfManaging Teams

LEADERSHIP

DEFINITION
IMPORTANCE OF LEADERSHIP

According to Koontz and o Donnell it is the art of including the subordinates to accomplish their assignments with zeal and confidence. Zeal reflects ardour, earnestness and intensity in execution of work; confidence reflects experience and technical ability.

1. Initiates action 2. Motivation 3. Providing guidance 4. Creating confidence 5. Building morale 6. Builds work environment 7. Co-ordination

Some Characteristics Of Managers Versus Leaders In The Twenty-First Century Manager Characteristics
Administers A copy Maintains Focuses on systems and structures Relies on control Short-range view Asks how and when Eye on the bottom line Imitates Accepts the status quo Classic good soldier Does things right

Leader Characteristics
Innovates An original Develops Focuses on people Inspires trust Long-range perspective Asks what and why Eye on the horizon Originates Challenges the status quo Own person Does the right thing

LEADERSHIP THEORIES
A. TRAIT APPROACH

Keith davis has summarized four of the major traits which might have an impact on successful organizational leadership. They are: (a)Intelligence (b)Social maturity and breath (c)Inner motivation and achievement drives (d)Human relations attitude

A. BEHAVIOURAL APPROACH

Autocratic Participative or supportive Instrumental or instrumental supportive

A. SITUATIONAL APPROACH

CONTIGENCY THEORY THE PATH-GOAL THEORY

THE PATH-GOAL THEORY:

Path-goal theory identifies four kinds of leader behavior. Directive leader behavior - letting subordinates know what is expected of them, giving guidance and direction, and scheduling work. Supportive leader behavior - being friendly and approachable, showing concern for subordinate welfare, and treating members as equals. Participative leader behavior - consulting subordinates, soliciting suggestions, and allowing participation in decision making. Achievement-oriented behavior - setting challenging goals, expecting subordinates to perform at high levels, encouraging subordinates and showing confidence in subordinates' abilities.

Path-Goal Situations & Preferred Leader Behavior

LEADERSHIP STYLES
Leadership styles refer to a leaders behaviour.

AUTOCRATIC
An Autocratic leader will not entertain any suggestions or initiative from subordinates. Under this type of leadership, one person decides for the whole group. An autocratic leader does not trust anybody.

DEMOCRATIC
A democratic leader can win the cooperation of his group and can motivate them effectively and positively.

PATERNALISTIC
A paternalistic leader takes care of his followers in the way the head of the family takes care of the family members

LAISSEZ FAIRE
A free rein leader will leave the group entirely to itself such as a leader allows maximum freedom to subordinates.

CONFLICT MANAGEMENT

DEFINITION
Conflicts occur when disagreements occur in a social situation. Conflict is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. It could also be defined as the appearance of difference i.e. difference of opinion , difference of interest. It can be viewed as a breakdown in the standard mechanism of decision making.

ARE ALL CONFLICTS BAD ?

Conflicts can be constructive or destructive. Constructive conflict prevents stagnation, encourages creativity, allows tension to be released. Excessive conflict can hamper the effectiveness of a group or an organization, reduces satisfaction of group members, increases absence and turnover rates, and lowers productivity.

Conflict is constructive when it Improves the quality of decisions. Encourages creativity and innovation. Develops interest and curiosity. Provides medium through which tensions can be released. Promotes an environment of self-evaluation and change.

Views About Conflict

The Traditional View This approach assumes that all conflicts hamper performance. Conflicts occur due to poor communication, lack of openness and trust between people, and the failure of managers to be open to their employees. The Human Relations View This approach assumes that conflicts occur naturally in all groups and organizations. It is natural and cannot be avoided, hence it should be accepted. It cannot be removed and it may play a role in group performance.
Conflict Management 56

Functional vs. Dysfunctional Conflict

Functional or constructive conflict supports the goals of the group and improves its performance. Conflicts that hamper group performance are dysfunctional or destructive conflicts. Task conflicts are related to the content and goals of the work. Low to medium levels of task conflict is good because it improves group performance.

Levels of Conflict
Conflicts can be at Intrapersonal level (conflict within the individual) Interpersonal level (individual to individual conflict) Inter-group level Inter-organizational level

Types of Intrapersonal conflict

Approach approach conflict Avoidance avoidance conflict Approach avoidance conflict

Reasons for conflict

Diversity of Goals Competition for scarce resources Organisational ambiguities Introduction to change Nature of Communication Difference in work orientation

Conflict Management Approaches

1. Avoidance In avoidance, every one shows that the conflict does not really exist and hopes that it will finish. 2. Accommodation It involves hiding the differences between the conflicting parties and showing areas of agreement. 3. Compromise It occurs when each party gives up something for the sake of the other. No party is fully satisfied. 4. Competition It is a victory achieved due to force, superior skill, or domination of one party. It is a win-lose situation. 5. Collaboration It involves appreciation by all conflicting parties that something is wrong and needs attention.

ZOHARI WINDOW
Developed by Joseph Luft and Harry Ingham (the word Johari comes from Joseph Luft and Harry Ingham). The Johari Window is a communication model that can be used to improve understanding between individuals. Individuals can build trust between themselves by disclosing information about themselves. They can learn about themselves and come to terms with personal issues with the help of feedback from others.

GROUP DYNAMICS AND UNDERSTANDING GROUP BEHAVIOUR

Definition & Characteristics

Group means there are 1. Two or more individuals 2. Interacting & interdependent 3. Come together to achieve particular objectives.
Characteristics of Group Shared values and Norms Interdependence Interaction Activities Conformity

Theories of group formation

PROPINQUITY THEORY EXCHANGE THEORY BALANCE THEORY

Types of work teams

Problem solving Self managed work teams Cross functional teams Virtual teams

ORGANISATIONAL POWER AND POLITICS

Points to ponder

A. Describe a situation where you saw evidence of power or influence being used in an organization B. Describe a time when someone influenced you to act a particular way or do a particular thing that you would not of otherwise done.

The Meaning of Power

Power is the capacity of a person, team, or organization to influence others.
The potential to influence others People have power they dont use and may not know they possess Power requires one persons perception of dependence on another person

Why does having power matter?

With power you can

Intercede favorably on behalf of someone in trouble Get a desirable placement for a talented subordinate Get approval for expenditures beyond the budget Get items on and off agendas Get fast access to decision makers Maintain regular, frequent contact with decision makers Acquire early information about decisions and policy shifts

Types of Individual Power: A Summary

Individual Power

Position Power Legitimate power Reward power Coercive power

Personal Power Referent power Expert power

Information and Power

Control over information flow
Based on legitimate power Relates to formal communication network Common in centralized structures (wheel pattern)

Coping with uncertainty

Those who know how to cope with organizational uncertainties gain power Prevention Forecasting Absorption

Consequences of Power
Sources of Power Expert Power
Commitment

Consequences of Power

Referent Power Legitimate Power Reward Power Coercive Power

Resistance Compliance

Organizational Politics
Attempts to influence others using discretionary behaviours to promote personal objectives
Discretionary behaviours neither explicitly prescribed nor prohibited

Politics may be good or bad for the organization

Organizational Politics: More Likely at the Top

Extent to Which Political Activity is Likely (range 0-3) 1.3 1.2 1.1 1.0 .9 .8 .7 .6 .5 .4 .3 .2 .1 Production and Clerical and Technical and Lower Middle Upper blue collar white collar professional management management management

Political activity is perceived to increase at higher organizational levels (.73) (.50) (.54)

(1.22) (1.07)

(.18)

Organizational Level

Conditions for Organizational Politics

Personal Characteristics Scarce Resources

Conditions Supporting Organizational Politics

Tolerance of Politics Complex and Ambiguous Decisions

Perception

Perception
The study of perception is concerned with identifying the process through which we interpret and organize sensory information to produce our conscious experience of objects and object relationship. Perception is the process of receiving information about and making sense of the world around us. It involves deciding which information to notice, how to categorize this information and how to interpret it within the framework of existing knowledge. A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

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Perceptual Process
Receiving Stimuli (External & Internal)

Selecting Stimuli External factors : Nature,

Location,Size,contrast, Movement,repetition,similarity Internal factors : Learning, needs,age,Interest,

Interpreting Attribution ,Stereotyping, Halo Effect, Projection

Organizing Figure Background , Perceptual Grouping ( similarity, proximity, closure, continuity)

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Response Covert: Attitudes , Motivation, Feeling Overt: Behavior

Factors influencing Perception

Factors in the perceiver Attitudes Motives Interests Experience Expectations

Factors in the situation Time Work Setting Social Setting

Perception

Factors in the Target Size Background Proximity Similarity

84 Organizational Behavior / Perception