Concept and Meaning of Organizational Behavior

Unit - I Concept and Meaning of  Organizational Behavior 

 What is Organisational Behaviour? Organi Org anisati sation on::  A place where managers practice practice the art of management.  An Institution or sub-units of an institution working together for a common goal. 

Organisation Behaviour: It is an study of human behaviour  The study is about the behaviour of people in an organisation.  Knowledge about human behaviour and its usefulness in improving  an organizations effectiveness. 

Some

Definitions

is the stu study dy & app applilicat cation ionss of kno knowl wledge edge about about ho how w peo peopl plee act  within an organisation. It is a human tool for human benefit. It applies broadly broa dly to the behaviour behaviour of peopl peoplee in all types of organi organizatio zations ns such as business,, Govt. Schools & Service business Ser vice Organisationsµ. Keith Davis & JW Newton in Human Behaviour @ work. ´OB

is di dire rect ctly ly co conc ncern erned ed wi with th th thee un unde ders rsta tand ndin ing, g, pr pred edic icti ting ng & controlling of human behaviour in Organisationsµ. -F red red Luthaus. ´OB

Organization

behaviour behavio ur encompasses a wide range of topics such as human behaviour, change, leadership, teams etc. OB is also a field of  study.. It studies 3 determinants of behaviour in organizations:study organizations: Individual.  Group.  Organisation.  To sum up OB is concerned with: Study of of what people do in in the organization.  How behaviour behaviour effects the performance of the organization.

MODELS



of  OB:

Autocratic ²  The basis of this model is power with a managerial orientation of authority   Custodial ²  The basis of thi thiss mod model el is eco econom nomic ic resource resourcess wit with ha managerial orientation orientation of money money..  Sup Thee bas asiis of th this is mo mode dell is lea ead der ersh ship ip wi with th the upport portiv ivee ²  Th managerial orientation of support.  Co Thee basis of this model is part rtn nership wi witth the Coll lleg egia iall ²  Th managerial orientation orientation of team work. work.

offers both challenges and opportunities for managers. ma nagers. It recognizes differences and helps managers to see the value of workforce diversity  and practices that need to be changed when managing. It can help improvee quality and employee productivity by showing managers how to improv empower their people as well as how to design and implement change programs. It offers specific insights to improve a managers people·s skills. OB can help managers cope in the world of temporariness and learn lea rn wa ways ys to sti stimul mulate ate inn innov ovati ation. on. Fin Finall allyy, OB can of offer fer man manager agerss guidance in creating an ethically healthy work climate. OB



Key Elements of OB 1. People 2. Structure 3. Technology 4. Environment 

Foundations of OB 1. Individual Differences 2. Whole Person 3. Caused Behaviour  4. Human Dignity 5. Organisations as Social System 6. Mutuality of  Interest 7. Holistic Concept 8. Need for Management

e  Scop ope

of OB

1. Individuals

2. Groups of Individuals 3. Organisation as a whole 

eed Nee d for study study OB

1. Helps

to understand self and others better . 2. Effective management of people 3. Tackle human problems humanly 4. Predict the human behaviour  5. Effective utilisation of human resources .

Contributions to the development of  of OB OB as major subject in Modern Literature 1.

anagement: Scientific Management:



aximum aximu mum m ´Maxi

   

Frederick  Frederick  W W.  T (1911 1911 1911)): ): Taylor (

pro prosp pros pr ospe speri peri erity  rity ty  ty fo forr em empl ploy ploye oyer oyers ers rss  wit with with wit hh maximum maxi ma ximu mum m prosperity for each employeeµ prosperity Disput Dis Disputes putes es bet betwe between ween en Man anagement anag agem emen entt & la lab labo abou bour our urr sh shou ould ld be centered on what what each viewes viewes as mutually  mutually exclusive goals goals..  This This theory  theory can maximize goals goals.. anagement anage geme ment nt sh shoul shou ould ld d  vi view  view vie ew  w pr pro prof pr oofit fitit fi t as a res esu esult lt of  f ccooMana operation between management & workers workers  There Theree sh Ther shou shoul sho oul uld ldd be pr prop prope pro oper per err div divis divi di visi ision sion ions onss of  of  wwork woork rk  between betw be tween een managers & workers. workers.

Four Principles of  Scientific Management 1. St Stan Staanda andard dard rd  wo work  work wor rk  k pra practi prac pr actic ctices tices ces es sta standa standar stan ndardi dardiz rdize dize zee the

tools for management management.. 2. Scientifically Scie Sc ienti ntifi fical cally  ly select each worker. worker. 3.

Management

&  workers workers must coco-operate -operate to and wwoork  and rk aac acc cccoor ord rddiningg  tto o a standard standard procedure.. procedure 4. Man anagement anag agem emen entt m must mu usstt make p pla pl lans & task  task  assignments;;  workers assignments workers should should carry  carry out the tasks assigned by by the managers managers..

2.

heory eory  T Th

of of   Administration: Admi Ad mini nist stra rati tion on: Henry Fayol Fay ayo ol

(1919) (1919 1919): ):

Five functions of management: 1. Planning.

2. Organising. 3. Command/Directing. 4. Co Co---ord o ordination. rdin inat atio ion. n. & 5. Control.

Bureaucracy:: Max  Webber Bureaucracy Webber (19 (1922): ): Ma axx W Web We ebbbbe ber err waass aa Ge Germ German rman an Po Polilitic tical al Scientist, Scien Sci entis tist, t, economist & sociologist. economist sociologist. H Hee suggested suggested Bureaucratic form of  of organi organisation sation & management in order to form a su in succ cceess ssf ssfu fful ul & efficient effi ficcient administration.. administration Bureaucracy ureaucracy  also takes into it purview  purview the following  following::  Clearly defined specialize function  Use of legal authority   Hierarchal form   Written Written rules & procedures   Technically Technically trained bureaucrats 3.

  Apt Apt to positions based on technical expertise.  Promotions Prom Pr omot otio ions ns ssh shou ho ould ulld d be based on on technical tech te chni nica call expertise & Competence Competence..  Should clearly define career path. &   There There should be objectivity & impersonality of  decisions.

4.Observations

on Organisations & (1925) Mary Parker Follet (19



Management

Mary ary  worked worked

mainly mainly  as Social  worker worker in Roxbury  Section of Boston. oston.  In 1920s 20s  ²  ²  1930·s 30·s;; her main observ observations ations regarding  Organisation & Management were: were:  ²  Power: ¶Power is capacity· & cannot be delegated but authority can.  ²  Conflict: Studied integration of desires.  ²  Leadership: Good Leader ´ Tenacity, steadfastness of  purpose, tactfulness, steadiness in stormy periods.µ

wentieth wenti eth The  T T  wentieth 5.  T

Century·s Centur Cen tury·s y·s Mana anagement anagem gement ent Guru Guru Peter F. Drucker 1995   Austrian Austrian born, modern management guru.  Propounded MBO & Self control concepts.  Statistician and an analyst of things from different Perspectives.  Prediction up to 2010: - Rise in alliance, alliance, partne partnership rship & joint  ventures ventures on global scale scale..  Technology Technology  will will help in ¶Networking  ¶Networking of  Societies·.. Societies· - Need for decentralizing decentralizing in an extremely extremely uncertain environment.. environment

 Use of teams in Organisations.  Number of  of knowledgable knowledgable  workers, workers, worker s, blue collar jobs and continuous learning  learning..  Evolution Evol Ev olut utio ion n of of  know knowled knowle ledge ledg dge gee so soci societie ciet etie eties iess in developed deve de velo lope ped d countries..  These countries These societies  will will remain in 3 sectors 1 )) Bu ( 1) usiness siness (2 ( 2 ) Government Government (3 ( 3 ) Non Non--Profit -Profit Organisations/NGO·s. ·s.   World World Worl d ma mark market mar rket ket et  wil will willl become will becom bec omee more important important than domestic market market..

5.

Functions of  of the Executive Executive:: Chester I. Bernard (1938): (19 ):



rganisations rgani anisat satio ions ns Org

are are ffo form orme or rmed med ed d be becau becaus bec cause ause see in indiv indi dividu divi vidu iduals duals als ha have have ve a purpose but aal purpose also lsso o lilimi limitations. mita tati tion onss. Li Limi Lim mita mit itat tati atio tion ions ons nss co coul could uld b bee knowledge, financial resource or physical resource resource..  Purpose + Limitation = System of  of Cooperative action action..   Two Two types of  of motivation in organisation organisation::  Motivation to participate participate..  Motivation to perform perform..  Chris  Argyris, Argyris, has further tried to elaborate elaborate it by  by comparing  bureaucr bure bureaucratic aucratic atic syst system system em (wi (with th ass assum assumption umpti ption on ) to to m more mo ore or ree hu hum human man structure (Theory  ) because bureaucratic  values values leads to poor or shallow  shallow relationships relationships..

People

   

- Organisation relationship.

Whole  person Whole person Whole groups Whole organisation & Whole Social S ystem

ORGANIS A  TION BEHAVIOUR  ANCHOR   ANCHOR  OB should draw on knowledge from other disciplines rather than own research base: 1. 

     

Multidisci ultidisciplinary plinary

Anchor Field of psychology & sociology has contributed the most to current OB knowledge. Psychology ² Understanding of individual & interpersonal behaviour Sociology ² Team dynamics, organisation socializations organisation power Anthropology ² Organisation culture. Political Science ² Power & politics in organisation. Engineering ² Productivity issues. Economics ² Po Power, wer, negotiations & decision making.

2.  The Scientific Method ethod Anchor  Anchor 



Testing their hypothesis in a scientific manner from collecting data, analyzing  & concluding. A set of principles & procedures is adhered.

3. The Contingency Anchor  Clause ¶It depends·   

No single solution is best in all circumstances. ´Different consequences in different situation, no single solution applicable all the timeµ. Should be careful in this clause as well.

4. The multiple Level of Analysis anchor How people people structure their work relation relationship ship & How organisations organisations interact interact  with the environment?  Discussion, power, Organisation politics and conflict. 

5. The Open S ystem Anchor 



Organisations

are living systems. Phill Ca Phi Carro rrol,l, ´Orga rgani nisa sati tion on con consi sist stss of in inter terdep depen ende dent nt pa parts rts tha thatt wor orks ks together to continually monitor & transact with the external Environmentµ.

offer off erss bo both th cha halllen enge gess an and d opp ppo ort rtun unit itiies for ma mana nage gerrs. It rec ecog ogni nize zess differ eren ence cess and he help lpss ma man nage gerrs to see th thee valu luee of    wor workf kfor orce ce di divver ersi sity ty an and d pr prac acti tice cess th that at ne need ed to be ch chan anged ged wh when en managing. It can help improve quality and employee productivity by  showing managers how to empower their people as well as how to design and implement change programs. It offers specific insights to improve a managers people·s skills. OB can help managers cope in the  world of temporariness and learn ways to stimulate innovation. Finally, OB can offer managers guidance in creating an ethically healthy work  climate. OB

ORGANIZA  TION:  An organization is a social arrangement which pursues collective goals and  which controls its own performance and which has boundaries separating it from fr om it itss en envi viro ronm nmen ent. t. In so soci cial al sc scie ienc nces es,, or orga gani niza zati tion onss ar aree st stud udie ied d by  researchers from several disciplines which are as follows:Sociology.  Economics.  Political Science.  Psychology.  Management.  Organizational Communication. 

 T ypes

of  organizations:

Sole proprietorship  Partnership  Corporation  Non-profit organization/NGO·s.  Trusts 

Organizational Structures: Organization

structure defines how job tasks are formally divided, grouped & coordinated. There are 6 elements for organization structure which are as follows: Work  S pecialization



Departmentalization  Chain of  Command  S pan of  control  Centralization & Decentralization  Formalization

Organizational Design:  Simple Structure

  The

Bureaucracy   The Matrix Structure  P yramid or Hierarchies Structure

ple e Structur e Simpl

Bureaucratic Structure

ram mid Structur e Pyra

Organization Culture: Organizational culture, or corporate culture, comprises comprises of the attitudes, attitudes, experiences, beliefs and values values of an organization. 

It ha hass been defined defined as "th "thee spec specifi ificc collectio collection n of va value luess and norms that are shared by people and groups in an organization and that control the way they  interact with each other and with stakeholders outside the organization.µ  Fr From om or organ ganiz izati ationa onall val alue uess de devvel elop op org organ aniz izati ationa onall norm normss, gu guide ideli line ness or expec exp ectat tatio ions ns tha thatt pr pres escr crib ibee ap appro propr pria iate te ki kind ndss of be beha havi vior or by em empl ploy oyee eess in particular situations situations and control the behavior of organiz organizational ational members members towards one another" Senior management may try to determine a corporate culture.  In addition, there will also be an extant internal culture within the workforce.   Work Work-gr -group oupss wi withi thin n the or organ ganiz izat atio ion n ha havve the their ir ow own n be beha havi viora orall qui quirk rkss an and d interactions which, to an extent, affect the whole system. Strong/weak  trong/weak cultures cultures:

 Strong

culture is said said to exist where staff staff respo respond nd to stimulus stimulus because because of their alignment to organizational or ganizational values. weak ak cu cult ltur uree wh  Con Conve versel rselyy, ther theree is we wheere th ther eree is lit ittl tlee al aliign gnme men nt wi with th organizational values and control must be exercised through extensive procedures and bureaucracy.

Elements A number of elements that can be used to describe or infl flu uence Organizational Culture:   The Paradigm 

Control S ystems  Organizational Structures  Power Structures  S ymbols  Rituals and Routines  Stories and M yths

Characteristi Chara cteristics cs of Organ Organizatio ization n Culture: Research suggests that there are 7 primary characteristics: 

Innovation and risk taking   Attention to detail  Outcome orientation  People orientation   Team orientation   Aggressiveness  Stability

Each of these characteristics exists from low to high. Appraising the organization on these 7 characteristics then, gives a composite picture of the organization.

Organizational Climate Clima Cl imate te is of often ten def defin ined ed as the rec recurri urring ng pa patte tterns rns of be beha havi viou our, r, at attit titud udes es & feelings that categorize life in the organization. Although culture and climate are related, climate often proves easier to assess & change. At an individual individ ividual ual psy psychol chologi ogical cal cli climate  mate . Th levvel of an le anal alys ysiis th thee co conc ncep eptt is ca call lled ed ind Theese indi in divi vidua duall pe perc rcept eptio ions ns ar aree oft often en aggre aggregate gated d or co coll llec ected ted fo forr an anal alysi ysiss an and d understanding at the team or group level, or the divisional, functional or overall organizational level.  There are several approaches to the concept of climate of which 2 have received substantial patronage which are as follows: 

Cognitive Scheme Approach:



Shared Perception Approach:

It is important to realize that among these 2 approaches, there is no best approach and they actually have a great deal of overlap.  While an organisation and its leaders cannot remove every stressor in the daily life of its employe employees, es, Organisational Climate studies have identified a number of 

Organizational Climate Climate Assessment:  Assessment:  The objective objective of performing an employee employee climate assessment assessment is to identify the key areas which are hindering production, reducing effectiveness & which might generate unexpected cost in near future. The idea & approach is for thee or th orga gani niza zati tion on no nott to si simp mply ly pe perf rform orm an ac acad adem emic ic ex exer erci cise se,, bu butt to critically examine themselves to see where the company and the employees might mig ht be fi finel nelyy tun tuned ed to gen gener erate ate hi high gher er le levvel elss of pe perfo rforman rmance ce.. Once identi ide ntifi fied, ed, opp opport ortun unit itie iess to st stre reng ngthe then n ex exis istin tingg ap appr proa oach ches es whi which ch ar aree  working well, as well as selecting appropriate interventions for addressing    weakest areas should be aggressively pursued for maximum benefit of  everyone.  T he

assessme assess ment nt is de desig signe ned d wit with h the fol follo lowin wing g ass assum umpt ption ionss in mind:-



   

Fundamental care of employee as an asset Respect for the dignity of the employee and the sensitiveness of human beings Full understandin understandingg of the realities realities of of busines businesss Embracing optimization and improvement Key to motivation and commitment