Organisational Behaviour

By: Bhavna Kumar Assistant Professor Indira institute of management, Pune

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Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisation for the purpose of applying such knowledge towards improving an organisations effectiveness.

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OB is concerned with the study of what people do in an organisation and how the behaviour affects the performance of the organisation.
It is concerned with employment related situations, and emphasizes behaviour as related to concerns such as jobs, work, absenteeism, employee turnover, productivity, performance and management.

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OB refers to the behaviour of individuals and groups within organisations and interaction between organisational members and their external environment.

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Discuss Diagram

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ORGANISATIONAL BEHAVIOUR

of

FOUNDATIONS

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Foundations of OB
Individual Differences Social Systems

Whole Person

OB
Caused Behaviour

Mutuality of Interests

Holistic Concept Human Dignity

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Concepts concerned with people Individual differences

Despite having much in common among mankind every person in the world is also individually different. From birth itself every individual is different and the experiences in life makes them even more different. It is the individual that which causes OB to begin its dealing with individual.

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Concepts concerned with people Whole Person

When organisations hires an individual it is not his skills alone that is hired, it also includes his social background, likes and dislikes, pride and prejudices, his ego etc.

Family life of an individual cannot be separated from his work life.

Organisation while treating an individual as a whole individual must strive to develop employees as a better person in terms of growth and fulfillment.
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Concepts concerned with people Caused Behaviour

An individual behaviour is caused and not random. At certain times the individual believes that his behaviour is in his interest. Organisation need to realise this basic principle and tackle the issues from its root.

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Concepts concerned with people

Human Dignity
This is more a philosophical concept rather than scientific conclusion. It confirms that people are to be from other factors as they are of higher order of universe. It recognises that people want to be treated with dignity and respect and not as an economic tool.

Ethical values should prevail while dealing with people.

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Concepts concerned with organisations

Organisations are social system
Social sciences expresses that organisations are social system and consequently organisations are governed by social and psychological laws. Formal and informal both types of social system exists in an organisation. It implies that organisation is dynamic and all parts of the organisations are interdependent as well as are subject to influence by each other.

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Concepts concerned with organisations

Mutuality of interests among individuals
The concept is represented by organisation needs people and people also need organisations.

People see organisation as a means to help them reach their goals, organisations on the other hand need people to attain their objectives. Mutual interest provides a superordinate goal that unites the variety of needs that people bring to organisation.

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Concepts concerned with organisations

Holistic Concept
When all the six concepts are placed together, there emerges a holistic concept. This concepts interprets people-organisation relationship in terms of a whole person, whole group, whole organisation and the whole system.

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ORGANISATIONAL BEHAVIOUR

of

IMPORTANCE

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Study of OB is beneficial to all those who work in an organisation. OB provides a roadmap to the life of people in the organisations. It enable the people to know the world where they live in that is - the organisation.

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Importance of OB

Firstly

Since OB provides a roadmap to lives of people in organisations, people join in an organisation with aspirations and dreams and also along with their fear and frustrations. Different people in organisation behave in a different way, even one may get caught in anxiety in case one needs to respond to the changes in the organisation. Therefore there arises the need to map out organisational events so that one can function in more secure and comfortable environment.

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Importance of OB

Secondly

The field of OB uses scientific research and therefore it helps in predicting and understanding organisational life. This knowledge is not absolute, and the field of OB is not a pure science.

Therefore all decisions that are made in the organisations are determined by complex combination of factors. However, OB helps to make sense of workplace and predict to some extent what people would do under various circumstances 6/29/2012

Importance of OB OB helps us influence organisational events.

Thirdly

People work in various specialised area and they need to understand communication, conflict handling, managing stresses, make better decisions, ensuring commitment, help employee work effectively and efficiently.
Theories and concepts of OB will help them to influence such organisational events.

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Importance of OB

Fourthly

OB helps people to understand self and others better.

This helps considerably. improve interpersonal relations

The study of areas like perception, communication, leadership, attitude, etc. will change the style of functioning of an individual.

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Importance of OB

Fifthly

OB helps in motivating subordinates get things done through delegation. Study of motivational theories make managers understand the basis of motivation and what one should to do motivate others

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Importance of OB

Sixthly

OB helps in maintaining cordial industrial relations. Declining productivity, slow working by an employee may be because of indifferent attitude of the manger towards the employee. Study of OB helps in understanding the required attitude that a manager must have to maintain cordial industrial relations.

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Importance of OB OB is also useful in the field of marketing.

Seventhly

Success or failure of an enterprise will depend upon awareness of the nature of individual and social processes. This will also allow to meet the challenges of dynamics of flow of goods and services from producer to consumers. OB helps in research of consumer choice behaviour, consumer influence and channels involved.

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Importance of OB

Eighthly

Another important reason is that when one is interested in pursuing a career in management one wants to learn how to predict behaviour of people and group and apply it in some meaningful way to make organisation more effective.

A successful manager should have good people skills which include the ability to understand employees and thereby applying this knowledge make the employees more effective and efficient.

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Importance of OB

Ninthly

In order to maintain the growth in economy and sustain the trend of this growth, there is need for effective management in all sector of economy. Effective management does not mean competent utilisation of technical or financial resources . Rather it implies efficient people management where OB is of utmost importance. OB is a discipline which enables a manger to motivate his subordinate towards higher productivity and better results

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ORGANISATIONAL BEHAVIOUR

The Emerging Challenges

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OB Challenges

Managing Diversity Ethical Behaviour

Changing Demographic of Workforce

Changed Employee expectations

Globalisation

Technology Transformation

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Foundations Individual Behaviour

of

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Foundations of Individual behaviour Individual Behaviour has its base on various factors and they are: Personal Factors

Environmental factors
Psychological

Organisational Systems and Resources

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Foundations of Individual Behaviour

Personal Factors Age Sex Education Abilities Marital status No. of dependents Creativity Psychological Personality Perception Attitudes Values Learning

Individual Behaviour
Organisational systems & resources Physical facilities Organisation structure & design Leadership Reward system Work related behaviour
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Environmental Factors Economic Social norms & cultural values Political

Models of organisational behaviour

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Models of organisational behaviour

1. 2. 3. 4. 5.

Autocratic Model The custodial model The supportive model The collegial model The SOBC (Stimulus, organism, behaviour, consequences) model

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The Autocratic Model

The model is based on the assumption that authority is central to results. People must accept the authority of their superiors and obey their instructions. Obedience is the main employee orientation. Obedience on the part of subordinates can be for respect for the knowledge and the authority of the superiors or fear of punishment. Job security, basic needs of a person, survival and growth makes the subordinates to obey.

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The Custodial Model

This assumes that the organisational behavior depends upon the economic resources. Employee work for money and desires job security. While money is the main managerial orientation, job security is the main employee orientation. For the basic need of job security employee offer a passive co-operation to the superiors. The management knows better welfare of the people & takes the role of custodian and guardian of the people and their wealth.

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The Supportive Model

The model assumes that management is leadership. The management plays the role of a supportive leadership. The employees are performance oriented & need support for their initiative and drive for performance. This encourages participation by the subordinates. The basic need of the employee is the self esteem and recognition. The employees need support, status and recognition for their performance.

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The Collegial Model

This model is based on the assumption that generally the employees are self disciplined and they exhibit a responsible behaviour. The main need of the employee is self-actualisaton. If this need is satisfied, they show enthusiastic performance. Therefore they must be encouraged for the participation in decision making. Team building on the part of management is must as the team work is main managerial orientation.

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The SOBC Model

This model is based on the assumption that every behaviour is caused. What we see are the consequences of the behaviour shown by organism due to stimulus. This model can be diagrammatically shown as follows:
Stimulus (cause) > Organism > Behaviour > Consequences (individual) (Actions) (Results)

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The Stimulus is the cause that may be overt or covert, physical, social, psychological, technological, environmental etc. The Organism can be individual or a group. They have cognitive mediators with physiological existence. The Consequences are expressed as the results that may be overt or covert. Positive or negative and can have effects on environmental dynamics and applications. SOBC model is based on the very practical philosophy of human behaviour that: every behaviour is caused & follows the Cause-Effect relationship.
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PERSONALITY

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Definitions
Personality

is the dynamic organisation within an individual of those psychological systems that determine his unique adjustments to his environment. - Gordon Allport
Personality is the sum total ways in which an individual reacts to and interacts with others. - Stephen Robins

PERSONALITY DETERMINANTS
Individual Personality is the result of heredity and environment and the third factor is recognised to be situation.

HEREDITY
Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are generally considered to be either completely or substantially who the parents are; that is, by their biological, physiological, and inherent makeup. The heredity approach argues that the ultimate explanation of an individuals personality is the molecular structure of the genes.

ENVIRONMENT
Environment factor like culture in which one is raised, early conditioning; norms among family, friends, social group and other influences that one experiences, exert pressure on personality of an individual.

SITUTATION
Situation influences the effect of heredity and environment on personality. A individuals personality, although generally stable and consistent, does change in different situations. The different demands of different situations call for different aspects ones personality.

Locus of control

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LOCUS OF CONTROL
Locus of control is the degree to which people believe they are masters of their own fate
Some people believe that they are masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance.

INTERNALS
Individual who believes 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.

TYPE A AND TYPE B PERSONALITY

TYPE A PERSONALITY
A person with a Type A personality is aggressively involved in chronic, incessant struggle to achieve more and more in less and less time, and if required to do so, against the opposing efforts of other things or other persons. Continous

Type As
1.Are always moving, walking, and eating rapidly 2.Feels impatient with the rate at which most event take place 3.Strive to think or to do two or more things at once 4.Cannot cope with leisure time 5.Are obsessed with numbers, measuring their success

TYPE B PERSONALITY
Type B is exactly opposite to type A are rarely harried by the desire to obtain a wildly increasing number of things or participate in an endless growing series of events in an ever decreasing amount of time.

Type Bs
1.Never suffer from a sense of time urgency with the accompanying impatience 2.Feel no need to display or discuss their achievements 3.Play for fun and relaxation and not exhibit superiority 4.Can relax without guilt

16 Personality Factor - Q
Personality are the enduring characteristics that describe an individual behavior.
A study identified 17,953 individual traits. Another researcher isolated 172 traits and reduced set of traits that would identify underlying patterns and thereby 16 personality factors (called the source or primary traits) were identified These 16 traits are to be found generally steady and constant source of behavior.

Personality traits Sixteen Primary Traits

1 Reserved 2 Less intelligent 3 Affected by feelings 4 Submissive 5 Serious 6 Expedient 7 Timid Vs Vs Vs Vs Vs Vs Vs Outgoing More intelligent Emotionally stable Dominant Happy-go-lucky Conscientious Venturesome

8 Tough minded
9 Trusting 10 Practical 11 Forthright 12 Self-assured

Vs
Vs Vs Vs Vs

Sensitive
Suspicious Imaginative Shrewd Apprehensive

13 Conservative
14 Group dependent 15 Uncontrolled 16 Relaxed

Vs
Vs Vs Vs

Experimenting
Self-sufficient Controlled Tensed

BIG Five personality model

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Big Five Personality Dimensions

Extroversion: Outgoing, talkative, sociable, assertive Agreeableness: Trusting, good natured, cooperative, softhearted. Conscientiousness: Dependable, responsible, achievement oriented, persistent. Emotional stability: Relaxed, secure, unworried. Openness to experience: Sensitive, intellectual, imaginative, curious, broadminded.

MBTI

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Its a 100 question personality test that asks people how they usually feel or act in particular situations.

Extraverted Vs Introverted Sensing Vs. Intuitive Thinking Vs. feeling Judging Vs. Perceiving

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PERCEPTION

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Perception is a process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment.
- Stephen Robins

Factors Influencing Perception

Factors in the Perceiver Attitudes Motives Interests Experience Expectations

PERCEPTION

Factors in the situation Time Work Setting Social Setting

Factors in the target Novelty Motion Sounds Size Background Proximity Similarity

What do you see?

What do you see? What do you see?

There's a face... and the word liar

Is the left center circle bigger?

No, they're both the same size

It's a spiral, right?

No, these are a bunch of independent circles

You can see a white vase as figure against a black background, or two black faces in

profile on a white background

What do you see?

Now what do you see?

Best known ambiguous figure is Old Woman/Young Woman,

by E. G. Boring

Mller-Lyer Illusion

The two lines above are the same length, but

the diagonals extending outward from both

ends of the lower line make it look longer than

the upper line

Count the black dots!

0 (ZERO)

Process of Perception

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Process of Perception
1. Confrontation of stimulus The Individual comes face to face with another individual/group/object/situation/ problem

Process of Perception
2. Registration
The individual registers the stimulus and its gravity

Process of Perception
3. Interpretation
The individual tries to understand the real meaning of the situation.

Process of Perception
4. Feedback
The individual evaluates the strength and weakness and gives a quick feedback to the sensory motor.

Process of Perception

5. Reaction
The individual gives the response in terms of reaction that can be positive, negative or neutral, depending upon the mutual interaction between the stimulus and the individual.

APPLICATION OF PERCEPTION

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ATTRIBUTION THEORY
The theory is proposed to develop explanations of the ways in which we judge people differently, depending on what meaning we attribute to a given behaviour. The theory suggests that when an individual observes another individuals behaviour and they observer attempts to determine whether the behaviour is caused internally or externally. The determination, however depends upon three factors 1. Distinctiveness 2. Consensus 3. Consistency

Frequently used shortcuts in judging others :

1.Selective perception 2.Halo/ horns effect 3.Contrast effect 4.Stereotyping (profiling)

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ATTITUDES

ATTITUDES
Attitudes Evaluative statements or judgments concerning objects, people or events. Attitude may be favourable or unfavourable concerning objects or events. Attitudes are not the same as values, but the two are interrelated.

COMPONENTS OF AN ATTITUDE
Attitude has three components and they are
1.Cognitive Component 2.Affective Component 3.Behavioural Component

COMPONENTS OF AN ATTITUDE
Cognitive component of an attitude It is the opinion or belief segment of an attitude Affective component of an attitude It is the emotional or feeling segment of an Attitude. Behavioural component of an attitude An intention to behave in a certain way toward someone or something.

TYPES OF ATTITUDES
There may be thousands of attitudes in a person, OB focuses attention on a very limited number of work related attitudes. These work related attitudes are positive or negative and shows how employee feel about their job. Most of the research in OB has been concerned with three attitudes namely: 1. Job Satisfaction 2. Job Involvement 3. Organisational Commitment

JOB SATISFACTION
The term job satisfaction refers to an individuals general attitude toward his or her job. An individual with high level of job satisfaction holds positive attitudes about the job, while a dissatisfied individual may hold negative attitudes about the job.

Low job satisfaction can result in high attrition rate, absenteeism, and poor mental health.

JOB INVOLVEMENT
Job involvement measures the degree to which a person identifies psychologically with his or her job and considers his or her perceived performance level important to self worth.

High level of job involvement reduces attrition and absenteeism.

ORGANISATIONAL COMMITTMENT
Organisation commitment is defined as degree to which an employee identifies with a particular organisation and its objectives and wishes to maintain membership in the organisation. An employee may be dissatisfied with his or her present job and consider it a temporary condition, yet not be dissatisfied with the organisation as a whole. But when dissatisfaction spreads to the organisation itself, individuals are more likely to resign.

EFFECTS OF JOB SATISFACTION

The job satisfaction has an effect on the performance of an individual however in the organisation it tends to center on its effect on productivity, absenteeism and turnover.

Satisfaction and productivity Happy workers are productive workers is a myth, the concept productive workers are likely to be happy workers may hold good. Satisfaction and absenteeism There is a negative relationship between satisfaction and absenteeism. Absenteeism increases with decrease in job satisfaction Satisfaction and turnover Satisfaction is also negatively related to turnover , factors like alternative job opportunities, length of tenure, labour market condition will also effect the turnover.

EXPRESSION OF DISSATISFACTION
Employee dissatisfaction can be expressed in various ways, however the following four responses shall indicate different responses to employee dissatisfaction. Exit : Dissatisfaction expressed through behaviour directed toward leaving the organisation. Voice : Dissatisfaction expressed through active and constructive attempts to improve conditions, may include union activity.

Loyalty : Passively but optimistically waiting for the condition to improve. It is trusting organisation and management to do the right thing. Neglect : Dissatisfaction expressed through allowing condition to worsen, it includes chronic absenteeism, reduced effort and increased error rate.

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JOB SATISFACTION AND CUSTOMER SATISFACTION

Satisfied employees increase customer satisfaction and loyalty. Satisfied employee are more likely friendly and responsive which customers appreciate. Satisfied employees are less prone to turnover, customers are more likely to encounter familiar faces and receive experienced service.

VALUES
Values Basic convictions that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence. Value System A hierarchy based on ranking of an individuals values in terms of their intensity.

TYPES OF VALUES
Value typologies can be developed in two approaches as per survey conducted by Milton Rokeach, the survey is popularly known as Rokeach Value Survey (RVS). RVS consists of two sets of values Terminal values and Instrumental values

TYPES OF VALUES

Terminal values Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Instrumental values Preferable modes of behaviour or means of achieving ones terminal values.

Terminal Values
A comfortable life (a prosperous life) An exciting life ( a stimulating, active life) A sense of accomplishment ( lasting contribution) A world of peace ( free of war and conflict) A world of beauty (beauty of nature and the arts) Equality (brotherhood, equal opportunity for all) Family security (taking care of loved ones) Freedom (independence, free choice) Happiness (contentedness)

Instrumental Values
Ambitious (hardworking, aspiring) Broad minded (open minded) Capable (competent) Cheerful (lighthearted, joyful) Clean (neat, tidy) Courageous (standing up for your beliefs) Forgiving (willing to pardon others) Helpful (working for the welfare of others) Honest (sincere, truthful) Imaginative (daring, creative) Independent (self-reliant, selfsufficient)

Inner harmony (freedom from inner conflict) Mature love (sexual and spiritual intimacy) National security (protection from attack) Pleasure (an enjoyable, leisurely life) Salvation (saved, eternal life) Self respect (self-esteem) Social recognition (respect, admiration) True friendship (close companionship) Wisdom (a mature understanding of life)
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Intellectual (intelligent, reflective) Logical (consistent, rational) Loving (affectionate, tender) Obedient (dutiful, respectful) Polite (courteous, wellmannered) Responsible (dependable, reliable) Self-controlled (restrained, self-discipline)

THANK YOU

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