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OB - Notes
OB - Notes
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• No two individuals are likely to behave in
the same manner in a particular work
situation. It is the predictability of a
manager about the expected behavior of
an individual. There are no absolutes in
human behavior. It is the human factor
that is contributory to the productivity
hence the study of human behavior is
important. Great importance therefore
must be attached to the study.
ORIGIN OF OB
• Organisational behaviour has emerged gradually, right from inception of social organisation. The
main factor which promoted the growth of OB was understanding the needs and motives of the
people engaged in organisational activities. Individual’s desires and wants were focused on the
activities devoted to obtain material means of satisfaction of his wants.
• Poor workers had to work just for survival. There was no consideration to improve human
relation to create behavioural satisfaction of the working class. The discontent at the work
places becomes uncontrollable and resulted in industrial revolution in England in the latter half
of the 18th century.
• This action of the labour force brought them some relief in wages and relief measures in work
places. In this regard, robert owen, a factory owner in wales was the first person, who realised
the needs of workers in his factory. He is sometimes referred to as the forerunner of personnel
management.
FOCAL POINTS OF OB
• Jobs
• Work
• Absenteeism
• Employment Turnover
• Productivity
• Human Performance
• Management
CONTRIBUTING DISCIPLINES
TO THE OB FIELD
Micro: Psychology
The Individual
Social Psychology
Sociology
Macro:
Groups &
Organizations Anthropology
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CONTRIBUTING DISCIPLINES
Psychology seeks to Sociology studies
measure, explain, people in relation to their
and change fellow human beings
behavior
Social psychology
focuses on the
influence of people
on one another
People: People make up the internal and social systems of the organization. They consist
of individuals and groups. Groups are dynamic and they work in the organization to
achieve their objectives.
Technology: Technology such as machines and work processes provide the resources
with which people work and affect the tasks that they perform.
Quality is simply the degree to which products are able to satisfy the customer’s needs & wants.
It is the main factor which affects the customer satisfaction level. Better quality products more
easily satisfy customer needs & wants.
Every organisation should focus on quality factor to increase its customer base. The main
dimensions covered under the quality factors are Features, Reliability, Durability, Performance,
Conformance with standards, Responses & Reputation.
Managers are focusing more & more to meet the quality expectations of customers. In order to
improve quality & productivity, they are even engaging programs like Total Quality Management
(TQM) & Reengineering. These two techniques mainly focus on customer needs & continuously
make efforts to increase the customer satisfaction level. These techniques too involve extensive
employee involvement in order to increase productivity.
Working with people in different cultures
Every organisation has employees who differ from each other in terms of race, culture,
religion, gender, and ethnicity. Employing person with distinct cultures help organisations
in getting fresh & new talents and potentialities. Maintaining peace & cooperation among
its different employees is a challenging task for every organisation.
There is substantial research to show that diversity brings many advantages to an organization:
increased profitability and creativity, stronger governance and better problem-solving abilities.
Employees with diverse backgrounds bring to bear their own perspectives, ideas and experiences,
helping to create organizations that are resilient and effective, and which outperform organisations
that do not invest in diversity.
A Boston Consulting Group study found that companies with more diverse management teams
have 19% higher revenues due to innovation. This finding is significant for tech companies, start-
ups and industries where innovation is the key to growth. It shows that diversity is not just a metric
to be strived for; it is actually an integral part of a successful revenue-generating business.
GLOBALIZATION
Globalization – The trend toward a unified global
economy involving free trade and a free flow of
capital between countries
• Products, services, people, technologies, and
financial capital move relatively freely across national
borders
• Tariffs, currency laws, travel restrictions, immigration
restrictions, and other barriers to these international
flows become less difficult to manage
• Unified world market in which to sell products and
services, and acquire resources
OPPORTUNITIES AND CHALLENGES
Political Growth
Risks
Diversification
of Risk
Economic
Challenges Opportunities
Risks
Economies
of Scale
Managerial Location
Risks Advantages
INTERNATIONALLY FOCUSED JOBS
Well suited to associates who thrive on
challenge
Typically member of geographically
dispersed teams
Individual Issues
Virtual Teams
Swift Trust
FOREIGN JOB ASSIGNMENTS
Building Relationships
Spousal Adjusting to Local Culture
Adjustment Effectiveness
Developing a Feeling of Being at
at Home
FOREIGN NATIONALS AS COLLEAGUES
Some issues involve different:
Business Respect
Behavior for Rules
Interpersonal roles:
figurehead role
leader role
liaison role
FIGUREHEAD:
Leader role
Liaison role
Informational roles:
monitor role
disseminator role
spokesman role
MANAGERIAL ROLES
Monitor role
Collect information from internal & external sources.
Daily stock count, control of cash & costs.
Disseminator
Share information internally & externally.
Regular meetings for the exchange of information.
Spokesperson:
Convey information to stakeholders.
Accountable to GM.
MANAGERIAL ROLES
Decisional roles:
entrepreneurial role
disturbance handler role
resource allocator role
negotiator role
MANAGERIAL ROLES
Entrepreneurial role
▪Initiate ideas to bring in innovation & improvement.
Disturbance handler
Budget.
Rosters.
Negotiator
Informational Role
•Monitor − Seeks out information related to your organization and industry, and monitors internal teams in
terms of both their productivity and well-being.
•Disseminator − Communicates potentially useful information internally.
•Spokesperson − Represents and speaks for the organization and transmits information about the
organization and its goals to the people outside it.
Decisional Role
•Entrepreneur − Creates and controls change within the organization - solving problems, generating new
ideas, and implementing them.
•Disturbance Handler − Resolves and manages unexpected roadblocks.
•Resource Allocator − Allocates funds, assigning staff and other organizational resources.
•Negotiator − Involved in direct important negotiations within the team, department, or organization.
Human Resources Approach
This approach recognizes the fact that people are the central resource in any organization and that
they should be developed towards higher levels of competency, creativity, and fulfillment.
People thus contribute to the success of the organization.
The human resources approach is also called as the supportive approach in the sense that the
manager’s role changes from control of employee to active support of their growth and performance.
In the traditional approach, managers decided what employees should do and closely monitored their
performance to ensure task accomplishment.
In the human resources approach, the role of managers changes from structuring and controlling to
supporting. The superiors and managers should practice a style where workers are given the
opportunities and encouragement to perform under loose supervision. By treating individuals as
mature adults, organisations can increase productivity and at the same time meet the needs of
individuals for independence and growth.
Contingency Approach
The contingency approach (sometimes called the situational approach) is based on the premise that
methods or behaviors which work effectively in One situation fail in another.
For example; Organization Development (OD) programs, way work brilliantly in one situation but fail
miserably in another situation.
Results differ because situations differ, the manager’s task, therefore, is to identify which method will, in a
particular situation, under particular circumstances, and at a particular time, best contribute to the attainment
of organization’s goals.
The strength of the contingency approach lies in the fact it encourages analysis of each situation prior to
action while at the same time discourages the habitual practice of universal assumptions about methods and
people.
The contingency approach is also more interdisciplinary, more system – oriented and more research-
oriented titan any other approach. The manager’s task therefore, is to identify which method will, in a
particular situation, under particular circumstances and at a particular time, best contribute to the attainment
of organization’s goals. Thus, the manager will have to analyze each situation prior to action and different
managerial practices and styles are needed for effective management.
Productivity Approach
Productivity which is the ratio of output to input is a measure of an organization’s effectiveness. It
also reveals the manager’s efficiency in optimizing resource utilization.
The higher the numerical value of this ratio, the greater the efficiency. Productivity is generally
measured in terms of economic inputs and outputs, but human and social inputs and outputs also
are important.
For example, if better organizational behavior can improve job satisfaction, a human output or
benefit occurs.
In the same manner, when employee development programs lead to better citizens in a
community, a valuable social output occurs.
Organizational behavior decisions typically involve human, social, and/or economic issues, and
so productivity usually a significant part of these decisions is recognized and discusses
extensively in the literature on OB.
Systems Approach
The Systems Approach to OB views the organization as a united, purposeful system composed of interrelated
parts.
This approach gives managers a way of looking at the organization as a whole, whole, person, whole group,
and the whole social system.
In so doing, the systems approach tells us that the activity of any segment of an organization affects, in varying
degrees the activity of every other segment. A systems view should be the concern of every person in an
organization.
The clerk at a service counter, the machinist, and the manager all work with the people and thereby influence
the behavioral quality of life in an organization and its inputs.Managers, however, tend to have a larger
responsibility, because they are the ones who make the majority are people oriented.
The role of managers, then, is to use organizational behavior to help build an organizational culture in which
talents are utilized and further developed, people are motivated, teams become productive, organizations
achieve their goals and society reaps the reward.
PERSONALITY
• Personality: it can be termed as the combination of qualities mental, physical and moral that set
one apart from others.
• Sensing Managers:
Take in information through their sense and attend to the details of the problem. They are
patient with routine details and precise in their work. They distrust creative inspiration and usually
work all the way through to reach conclusions. They emphasize action, urgency, and bottom-line
results.
Intuitive Managers
• Like solving new problems and are impatient with routine details. They perceive the problem in
its totality and consider several alternatives simultaneously. They are imaginative and futuristic,
enjoying mind testing games.
Feeling Managers
• Heavily emphasize the human aspects in dealing with organizational problems and is more
process oriented. They enjoy pleasing people avoid conflicts.
Thinking Managers
• Are logical and analytical in their problem solving and search for additional information in a
logical manner.
Intuitive Thinkers(NT)
• Is the architects of progress and ideas. They are interested in the principles on which the
organization is built and seek answers to the “whys” of events. They have enormous drive and
creative.
• If organizations do not have some nt,s change will be minimal.
Sensation Feelers(SF)
• Deal with concrete problems in a methodical way. They have astute powers of observation
regarding the details of how an organization is run. Sfs do not fight the systems, but use what is
available for problem solving. Sfs are non- judgmental of their coworkers and do not look for
underlying motives and meaning in people behaviour.
• If organization do not have sfs, small problem will go unattended till they become big
Sensation Thinkers(ST)
• Are decisive and excellent at decisions involving precise interpretations of facts and figures. They
are preserving and precise. They want the organization run on an impersonal basis. They are hard
working and super dependable.
• Organizations run efficiently because of such managers
Intuitive Feelers(NF)
• Have personal charisma and commitment to the people they lead. They communicate their caring
and enthusiasm. They are comfortable in an unstructured, group- centered management system
that lets employees participate in the decision making process.
• Without nfs an organization will become cold and dull.
Sick Personality
• The personally can be broadly classified into two groups – sick personality
and healthy personality.
• The sick personality is also known as disturbed or peculiar personality. Sick
personality can be the consequence of physical and/or psychological factors.
These factors may or may not be in the control of the person. Some of these
factors can be troubled childhood, repeated failures, lack of motivation,
rejections, distrust of the parents and peers etc. The person himself has to
assume a greater responsibility for following a prescribed pattern and pulling
himself out of this situation.
Healthy Personality
• Healthy personality is an image of a person who does not feel anxious or hostile, is not self
defeated or destructive to others. People with healthy personalities are judged to be well adjusted.
Apart from a good physical health, some other characteristics and features are necessary for an
individual in order to have a positive, strong, and balanced personality. Such a personality helps
an executive to influence other people in his favor.
FACTORS INFLUENCING PERSONALITY
• The most important and relevant question related to personality is: how does it originate and
develop?
• The major determinants of personality of an individual can be studied under four broad heads –
biological, family, cultural and situational.
BIOLOGICAL FACTORS:
• The foremost determinant of personality is the biological factor, in which are included heredity,
the brain and the physical stature. Psychologists and geneticists argue strongly that heredity plays
an important role in one’s personality. The importance of heredity varies from one personality trait
to another. For example, heredity plays a more important role in determining a person’s
temperament than determining the values and ideals.
BRAIN OF THE INDIVIDUAL
• Another factor which influences the personality is the brain of the individual.
• Perhaps, physical stature of an individual is the most outstanding influence on the personality of
an individual. For example, the fact that a person is short or tall, fat or skinny, good looking or
not, will influence others and in turn will affect the person himself.
FAMILY FACTORS:
• Family and social factors are also important in giving the shape to an individual’s personality. It
initially starts with contact with the mother and later with other members of the family. Later still,
the contact with social group influences an individual’s personality. The personality of an
individual is also influenced by the home environment. There is evidence to indicate that the
overall environment at home created by parents is critical to personality development.
• Apart from the family background, social class also leaves an imprint on the personality of an
individual.
SITUATIONAL FACTORS
• Many a times the actions of the person are determined more by the situation, rather than his
behavior. Therefore, the situation may potentially have a very big impact on the actions and
expressions
VALUES, ATTITUDES,
Value System
A hierarchy based on a ranking of an individual’s
values in terms of their intensity.
IMPORTANCE OF VALUES
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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 a ranking of an individual’s
values in terms of their intensity.
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IMPORTANCE OF VALUES
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TYPES OF VALUES –- ROKEACH VALUE
SURVEY
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 behavior or means of achieving
one’s terminal values.
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HOFSTEDE’S FRAMEWORK FOR ASSESSING
CULTURES
Power Distance
The extent to which a society accepts that power in
institutions and organizations is distributed
unequally.
low distance: relatively equal distribution
high distance: extremely unequal distribution
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HOFSTEDE’S FRAMEWORK (CONT’D)
Individualism Collectivism
The degree to which A tight social framework in
people prefer to act as which people expect
individuals rather than others in groups of which
a member of groups. they are a part to look
after them and protect
them.
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HOFSTEDE’S FRAMEWORK (CONT’D)
Achievement
The extent to which societal values are characterized
by assertiveness, materialism and competition.
Nurturing
The extent to which societal values emphasize
relationships and concern for others.
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HOFSTEDE’S FRAMEWORK (CONT’D)
Uncertainty Avoidance
The extent to which a society feels threatened by
uncertain and ambiguous situations and tries to
avoid them.
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HOFSTEDE’S FRAMEWORK (CONT’D)
Long-term Orientation
A national culture attribute that emphasizes the
future, thrift, and persistence.
Short-term Orientation
A national culture attribute that emphasizes the
past and present, respect for tradition, and fulfilling
social obligations.
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ATTITUDES
Attitudes Cognitive component
The opinion or belief segment
Evaluative of an attitude.
statements or
judgments Affective Component
concerning
objects, The emotional or feeling segment of
people, or an attitude.
events. Behavioral Component
An intention to behave in a certain
way toward someone or something.
TYPES OF ATTITUDES
Job Satisfaction
A collection of positive and/or negative feelings that
an individual holds toward his or her job.
Job Involvement
Identifying with the job, actively participating in it,
and considering performance important to self-worth.
Organizational Commitment
Identifying with a particular organization and its
goals, and wishing to maintain membership in the
organization.
This multi-component model is known as the ABC Model or CAB Model. Let’s see the
components of the CAB model.
1.Cognitive Component – This involves the person’s learning, knowledge, beliefs, and
thoughts about the attitude-object (in our case, Honda cars). For example, if you have
learned previously that Honda cars give more than 20 km/litre mileage on petrol – that
can create a positive attitude towards the brand.
2.Affective Component – This involves a person’s feelings, emotions about the attitude
object. For example, if owning a Honda car gives you pleasure and prestige, that will
create a positive attitude about the brand.
The very strong attitude of Muthu may get directly expressed in his behaviour in the form of
hero-worship, intolerance of any negative comments, an extreme expression of emotions
etc. However, even though Rahul has a positive attitude towards the Film actor, as his
attitude is not as strong as Muthu, he may not exhibit strong behaviour as Muthu.
Daniel Katz classified attitudes into different groups based on their functions
1.Knowledge function: knowing one’s or other’s attitude imparts knowledge.
2.Ego-defensive function: attitudes can help people protect their self-esteem and avoid depression.
4.Instrumental function: helps to choose what is rewarding (and also avoid punishment).
5.Social Acceptance function: adapt to the socially approved attitudes of a larger group.
Knowledge Function
As we discussed in the beginning, attitude is all about what a person likes or dislikes.
Knowing a person’s attitude helps us predict their behaviour. For example, knowing that a person is
religious we can predict they will go to Church.
Attitude thus allows us to predict what is likely to happen, and so gives us a sense of control.
Attitudes can help us organize and structure our experience.
The knowledge function refers to our need for a world which is consistent and relatively stable. In
short, attitudes serves the function of providing meaning (knowledge) for life.
Ego-defensive Function
However, attitude (like/dislike), can mask this truth to protect your ego.
For example, you may not be able to play football like Messi. However, instead of accepting this truth,
to protect your self-esteem you can say that you don’t like football, and you are interested only in
intellectual activities 🙂
Positive attitudes towards ourselves, just like the example above, have a protective function (i.e. an
ego-defensive role) in helping us preserve our self-image. Otherwise, we might fall into depression.
Ego Expressive Function (Value Expressive/Self Expressive)
The attitudes we express (what we like or dislike) helps to express who we are, what are our basic values,
and what we stand for.
This (1) help communicate who we are and (2) may make us feel good because we have asserted our
identity.
For example, as tax-evasion attracts punishments, a person may not favour evading taxes, and start
paying taxes properly.
Note: Any attitude that is adopted in a person’s own self-interest is considered to serve a utilitarian
function.
Social Acceptance Function (Identity/Adaptive)
If a person holds or expresses socially acceptable attitudes, other people will reward
them with approval and social acceptance.
He asked a Chinese couple to travel across the United States, and stay in different hotels. They were all given
accommodation by the different hotels (there was only one instance during these occasions they were
refused service by one of the hotels).
Sometime later, LaPierre sent out questionnaires to managers of hotels and tourist homes in the same areas
where the Chinese couple had travelled, asking them if they would give accommodation to Chinese guests.
A very large percentage (91%) said that they would not do so.
This response showed a negative attitude towards the Chinese, which was inconsistent with the positive
behaviour that was actually shown towards the travelling Chinese couple.
Thus, attitudes may not always predict the actual pattern of one’s behaviour. To be more precise, LaPierre’s
study shows that the cognitive and affective components of attitudes (e.g. disliking Chinese people) do not
necessarily coincide with behaviour (e.g. serving them).