Introduction

Introduction ––
Organisation
Organisation Behaviour
Behaviour
 ?
Over the past two decades, business schools have added required courses on
people skills to many of their curricula. Why have they done this?
a. Managers no longer need technical skills in subjects such as economics
and accounting to succeed.
b. There is an increased emphasis in controlling employee behavior in the
workplace.
c. Managers need to understand human behavior if they are to be
effective.
d. These skills enable managers to effectively lead human resources
departments.
e. A manager with good people skills can help create a pleasant
workplace.
 
Answer
c
What
What IsIs Organizational
Organizational Behavior?
Behavior?

Organisation Behaviour = Organisation

+
Behaviour

1-4
What
What IsIs Organization
Organization

System with parts which work together

From the above definition we get 2

characteristics of organisations
 Parts – Physical + Human Resources
 Their relationship with one another and
the organisation as a whole

1-5
What
What IsIs Organization
Organization

Relationship arise b/w

 one individual and another
 individual and his group
 one group and another

1-6
Business
Business organisations
organisations

 Bodies or entities created for a stated purpose

 They may consist of one or more people.
 Sole trader or single operator needs to build
relationship with suppliers, contractors, customers,
clients and community.
 For those orgn that consist of more than one person
internal as well as external r/s have to be created and
maintained

1-7
 Organisations therefore consist of

– Individuals
– Groups
– Relationships

 Objectives, Structure, System and Processes are then

created to give directions and order to activities and
interactions

1-8
What
What isis Behaviour
Behaviour

 Behaviour means Act, conduct, manners

What
What isis Organisational
Organisational Behaviour
Behaviour

 The study of what people think, feel, and do in and

around organizations
 OB is concerned with the study of the behaviour and
interaction of people in restricted or organised settings
Organizational
Organizational Behavior
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.
Organizational
Organizational Behavior
Behavior

It is a human tool for

human benefit and
human development
Dhirubhai
Dhirubhai Ambani-
Ambani- The
The Corporate
Corporate Czar
Czar who
who
redefined
redefined business
business philosophy
philosophy was
was asked
asked the
the
secret
secret of
of his
his success,
success, he
he responded
responded
““ One
One must
must have
have ambition
ambition and
and one
one must
must
understand
understand the the minds
minds ofof men
men”.”. He
He said
said
““ Think
Think BIG,
BIG, think
think FAST,
FAST, think
think
AHEAD
AHEAD ””
Goals
Goals of
of OB
OB

Describe
Understand
human
Predict
behaviour in
Control organisations
Key
Key Elements
Elements of
of OB
OB

People
Organisation structure
Technology
Environment
Nature
Nature of
of OB
OB
A field of study
Interdisciplinary approach
Applied science
Normative and value centered
approach
Humanistic and optimistic
A total systems approach
Need
Need of
of studying
studying organisation
organisation behaviour
behaviour
 Understanding self and others
 Improvement in interpersonal behaviour
 Improves ability to understand employees
behaviour
 A tool of motivation
 Cordial industrial relations
 Useful in marketing
 Higher productivity and better results
 Effective organisational climate
Intuition
Intuition and
and Systematic
Systematic Study
Study

The two are complementary means of predicting behavior.

What
What Managers
Managers Do
Do

 They get things done through other people.

 Management Activities:
– Make decisions
– Allocate resources
– Direct activities of others to attain goals

 Work in an 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.
Management
Management Functions
Functions
Management
Management Functions:
Functions: Plan
Plan

A process that includes defining

goals, establishing strategy, and
developing plans to coordinate
activities.
As managers advance, they do this
function more often.
Management
Management Functions:
Functions: Organize
Organize

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.
Management
Management Functions:
Functions: Lead
Lead

A function that includes

motivating employees, directing
others, selecting the most
effective communication
channels, and resolving
conflicts.
It is about PEOPLE!
Management
Management Functions:
Functions: Control
Control

Monitoring performance,
comparing actual performance
with previously set goals, and
correcting any deviation.
Mintzberg’s
Mintzberg’s Managerial
Managerial Roles
Roles

 Discovered ten managerial roles

 Separated into three groups:

– Interpersonal
– Informational
– Decisional
Mintzberg’s
Mintzberg’s Managerial
Managerial Roles:
Roles: Interpersonal
Interpersonal
 Mintzberg’s
Mintzberg’s Managerial
Managerial Roles:
Roles: Interpersonal
Interpersonal
1) Interpersonal
The figurehead- A leader with nominal power i.e representative of
org’n performing ceremonial & social duties like greeting visitors,
signing legal documents, attending function on the behalf of org’n.

The leadership role- motivation and direction to subordinates.

The Liaison role- maintain a network of outside contacts who

provide favors and information.

2)Informational role
Monitor- As a monitor he has to scan his environment for info
and monitor his relations internally and externally. He has to receive
info about operations of an enterprise.

The disseminator role- Passing info to subordinates about changes

in policies & other matters thru memo’s, phone calls or meetings.

The spokesperson- transmitting info those outside the org’n.

3) Decisional
The enterpreneurial role-
-risk takers,innovators, initiators.
-constant look for new ideas, initiate feasibility studies, seeks
participation for improvement in any way.

The conflict handler role-

-Acts as arbitrating in solving differences among the
subordinates or the employee’s conflict with the mgt.

The resource allocator--

-Make budgetary allocations to different activities of the org’n.
-They assign personnel to jobs.
-Allocate their own time to different activities, funds for new
equipments, advertising & pay raises etc.

The negotiator role-

-dealing with various persons & group of persons
-like negotiate contracts with the unions, price negotiation
with customers, suppliers etc.
 Katz’s
Katz’s Essential
Essential Management
Management Skills
Skills
 Technical Skills
– The ability to apply specialized knowledge or
expertise
– A manager’s ability to use the tools, procedures,
and techniques of a specialized field. Highly
necessary at lower level, desirable at middle level
and even top mgt must have knowledge
 Human Skills
– The ability to work with, understand, and
motivate other people, both individually and in
groups. Necessary at all levels.
 Conceptual Skills
– The mental ability to analyze and diagnose
complex situations. Ability to coordinate all of
the organization’s interests and activities & view
org’n as a whole. Extremely imp for top mgt.
Luthans’
Luthans’ Study
Study of
of Managerial
Managerial Activities
Activities
 Is there a difference in frequency of managerial activity
between effective and successful managers?

 Four types of managerial activity:

– Traditional Management
• Decision-making, planning, and controlling.
– Communication
• Exchanging routine information and processing paperwork
– Human Resource Management
• Motivating, disciplining, managing conflict, staffing and
training.
– Networking
• Socializing, politicking, and interacting with others.
Successful
Successful vs.
vs. Effective
Effective Allocation
Allocation by
by Time
Time

Managers who promoted faster (were successful) did different

things than did effective managers (those who did their jobs well)
E X H I B I T 1–2
E X H I B I T 1–2
 Scope
Scope of
of OB
OB
 OB being the study of human behaviour in the
organisation encompasses the study at
individual level ( intrapersonal or individual
behaviour),
group level (inter personal behaviour) and
organisational system level

Our OB model has three levels of

analysis

Each level is constructed on the

prior level
OB
OB Model
Model

Dependent
Variables (Y)

Independent
Variables (X)
Contributing
Contributing Disciplines
Disciplines

Many behavioral sciences

have contributed to the
development of
Organizational
Behavior
Psychology
Psychology
The science that seeks to measure, explain, and
sometimes change the behavior of humans and other
animals.

Unit of Analysis:
– Individual
Contributions to OB:
– Learning, motivation, personality, emotions, perception
– Training, leadership effectiveness, job satisfaction
– Individual decision making, performance appraisal attitude
measurement
– Employee selection, work design, and work stress
Sociology
Sociology

The study of people in relation to their fellow human

beings.

Unit of Analysis:
-- Organizational System -- Group

 Contributions to OB:
– Group dynamics – Formal organization theory
– Work teams – Organizational technology
– Communication – Organizational change
– Power – Organizational culture
– Conflict
– Intergroup behavior
Social
Social Psychology
Psychology
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.

Unit of Analysis:
– Group
Contributions to OB:
– Behavioral change
– Attitude change
– Communication
– Group processes
– Group decision making
Anthropology
Anthropology

The study of societies to learn about human beings and

their activities.

Unit of Analysis:
-- Organizational System -- Group

 Contributions to OB:
– Organizational culture – Comparative values
– Organizational environment – Comparative attitudes
– Cross-cultural analysis
Challenges
Challenges and
and Opportunities
Opportunities for
for OB
OB
 Responding to Globalization
 Managing Workforce Diversity
 Improving Quality and Productivity
 Improving Customer Service
 Improving People Skills
 Stimulating Innovation and Change
 Working in Networked Organizations
 Helping Employees Balance Work-Life Conflicts
 Creating a Positive Work Environment
 Improving Ethical Behavior
Responding
Responding to
to Globalization
Globalization
 Increased foreign
assignments
 Working with people from
different cultures
 Coping with anti-capitalism
backlash
 Overseeing movement of
jobs to countries with low-
cost labor
 Managing people during the
war on terror
Managing
Managing Workforce
Workforce Diversity
Diversity
 The people in organizations are becoming more
heterogeneous demographically
– Embracing diversity
– Changing. demographics
– Changing management philosophy
– Recognizing and responding to differences
Summary
Summary and
and Managerial
Managerial Implications
Implications
 Managers need to develop their interpersonal skills to
be effective.
 OB focuses on how to improve factors that make
organizations more effective.
 The best predictions of behavior are made from a
combination of systematic study and intuition.
 Situational variables moderate cause-and-effect
relationships – which is why OB theories are
contingent.
 There are many OB challenges and opportunities for
managers today.
ASSIGNMENT
ASSIGNMENT

 Prepare a presentation on Significance of OB

QUIZ
QUIZ
Q1
Which of the following is most likely to be a belief
held by a successful manager?
a. Technical knowledge is all that is needed for
success.
b. It is not essential to have sound interpersonal
skills.
c. Technical skills are necessary, but insufficient
alone for success.
d. Effectiveness is not impacted by human behavior.
e. Technical skills do not influence efficiency.
Q2
Which of the following would not be considered an
organization?
a. a church
b. a university
c. a military unit
d. all adults in a given community
e. an elementary school
Q3
Which of the following is best defined as a
consciously coordinated social unit, composed of two or
more people, which functions on a relatively continuous
basis to achieve a common goal or set of goals?
a. party
b. unit
c. team
d. community
e. organization
 Q4
Which of the following is least likely to be
considered a manager?
a. an administrator in charge of fund-raising
activities in a non-profit organization
b. a lieutenant leading an infantry platoon
c. a doctor who acts as head of the physiotherapy
department at a public hospital
d. the mayor of a large city
e. an IT technician who enables communication
between all of a company’s employees
 
 Q5
While the Functions, Roles, Skills, and Activities
approaches to management all differ, they all recognize
that effective and successful managers must develop
which of the following?
a. people skills
b. technical skills
c. efficiency
d. entrepreneurialism
e. ability to network
Q6
Determining how tasks are to be grouped is part of
which management function?
a. planning
b. leading
c. controlling
d. organizing
e. contemplating
Q7
Mintzberg concluded that managers perform 10
different, highly interrelated roles. Which of the
following is one of the broad categories into which these
roles could be grouped?
a. intrapersonal
b. institutional
c. decisional
d. affective
e. reflective
Q8
Robert Katz identified three essential skills that
managers need to have in order to reach their goals.
What are these skills?
a. technical, decisional and interpersonal
b. technical, human, and conceptual
c. interpersonal, informational and decisional
d. conceptual, communication and networking
e. human, informational and communication
Q9
As a manager, one of Joe’s duties is to present
awards to outstanding employees within his
department. Which Mintzberg managerial role is Joe
acting in when he does this?
a. leadership role
b. liaison role
c. monitor role
d. figurehead role
e. spokesperson role
Q10

The pie charts above show how 5 different managers spent their time.
According to Luthans’ research, which manager is most likely to receive
more promotions and other rewards associated with career success?
a. Manager A
b. Manager B
c.Manager C
d. Manager D
e.Manager E
Check
Check Your
Your Answers
Answers
 1c
 2d
 3e
 4e
 5a
 6d
 7c
 8b
 9d
 10c