Introduction to OB

Leadership &OB
Modules 1-14
Module 1 Introduction to OB
Module 2 -
Foundations of Individual Behavior
Module 3 Attitudes and Job Satisfaction
Module 4 Personality and Values
Module 5 Perception
Module 6 Motivation
Module 7 Foundation of Group Behavior
Modules 1-14
Module 8 - Work Team
Module 9 Leadership
Module 10 Power and Politics
Module 11 Conflict
Module 12 Organizational Structure
Module 13 Organization Culture
Module 14 Organizational Change
Module 1 Introduction to OB
Management functions, roles, skills, jobs,
meaning of OB, systematic study, disciplines
contribute to the OB field, few absolutes in
OB, challenges and opportunities for OB,
OB model.
Learning Objectives

15
Define organizational behavior.
Identify the functions that comprise the management
process and relate them to organizational behavior.
Relate organizational behavior to basic managerial
roles and skills.
Describe contemporary organizational behavior.
Discuss contextual perspectives on organizational
behavior.

After studying this chapter you should be able to:
Organizational Behavior deals with the
systematic study of human behavior within
the context of the organization. It deals
with Individual and group behavior in
organizations ,external environment of
organization and organization itself.


Definition by Stephen P.Robbins
OB is 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 towards improving an
organizations effectiveness.
MANAGEMENT FUNCTIONS
P
O
S
D
C
The most widely accepted functions of management given
by KOONTZ and ODONNEL
i.e.Planning, Organizing, Staffing, Directing and Controlli
ng.
MANAGEMENT FUNCTIONS
Management FUNCTIONS - KOONTZ and ODONNEL
Plan- According to KOONTZ, Planning is deciding in advance - what to
do, when to do & how to do. It bridges the gap from where we are &
where we want to be. A Future course of Action-Business Plan.
Organize-to organize Land,labour,capital,organizational structure,
reporting relationships.
To organize a business involves determining & providing human and
non-human resources to the organizational structure.
Staffing - Manpower Planning , Recruitment, selection & placement,
Training& development. Compensation&benefits,Performance
appraisal, Promotions & transfer.
Directing - Supervision,Motivation,Leadership,Communication
Controlling -Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding out
deviation if any then Corrective action.




Management skills THC
Technical Skills -For Junior level managers
Human Skills-For middle level managers
Conceptual Skills-For top level managers
Katzs Essential Management Skills
Effective Versus Successful Managerial Activities or
Luthans Study of Managerial Activities
1. Four types of managerial activity:
2. Traditional management
Decision making, planning, and controlling
3. Communication
Exchanging routine information and processing paperwork
4. Human resource management
Motivating, disciplining, managing conflict, staffing, and
training
5. Networking
Socializing, politicking, and interacting with others
Allocation of Activities by Time
NEW CONCEPT-ENTREPRENEURIAL MANAGERS
Managers who promoted faster (were successful) did different things than
did effective managers (those who did their jobs well)
Mintzbergs Managerial Roles -10 roles in 3 groups

Intuition , Systematic Study and Evidence
Based Management
Intuition
Gut feelings, Individual observation, Common sense
Systematic Study
Looks at relationships, Scientific evidence, Predicts behaviors

Evidence-Based Management (EBM)

Basing managerial decisions on the best available scientific evidence.
These three are complementary means of predicting behavior.

Use evidence as much as possible to inform your intuition
and experience. That is the promise of OB.

1-15
The Importance of Organizational Behavior
116
Organizations can have a powerful influence on our
lives:
Most people acquire most of their material possessions
from organizations
Many of our activities are regulated by governmental
organizations
Most people spend most of their lives in organizations
Importance of OB
Basic understanding of how to motivate yourself
and your people to achieve goals
Topics such as Attitude,Leadership,TA,Conflict and
Stress Management will change the style of
functionality of an Individual.
When you understand the behavior of an individual,
you will be able to predict the result.
In OB,different personality tests are conducted to
predict the behavior of people.
An understanding of OB will help managers to
efficiently manage conflict and crisis.

Importance of OB
Ob is concerned with the emerging realities in the
work-place revolution.
Knowledge is replacing infrastructure.
Self-leadership is superceding command-control
management.
Networks are replacing hierarchies.
Virtual teams are replacing committees.
Globalization has become the mantra of corporate
survival.
Co-workers are not down the hall; they are at the
end of an internet connection located somewhere
else on the planet.


Companies are looking for employees with emotional intelligence,
not just technical smarts.


GOAL SETTING
WORK TOWARDS YOUR GOALS


He thank God for his life

Love Yourself





Managing for Effectiveness
146
Managers work toward accomplishing the various
goals (outcomes) that exist at specific levels in
an organization:
Individual-level outcomes
Group-level outcomes
Organizational-level outcomes
2009 South-Western, a part of Cengage
Learning
147
Managing for Effectiveness
What are the Contributing
Disciplines OR Subjects to OB?

OB is a blended discipline. It is an applied behavioral
science drawn from the integration of the following
Subjects.
Psychology
Sociology
Social Psychology
Anthropology
Political Science
Engineering

Contributing Disciplines to OB
Social psychology
Psychology
science
Contribution Unit of
Anthropology
Sociology
Political science
Study of
Organizational
Behaviour
Organization
system
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Formal organization theory
Organizational technology
Organizational change
Organizational culture
Conflict
Intraorganizational politics
Power
Organizational culture
Organizational environment
Behavioural change
Attitude change
Communication
Group processes
Group decision making
Group
Comparative values
Comparative attitudes
Cross-cultural analysis
Individual
Nature/Features/Determinants of
OB/basic OB Model
OB studies interaction of three factors in
organization.




Individual
Group
I
Organization
Interaction between internal and external
environment

Each Individual is unique or special

Foundations of OB




Each Individual is unique or special
Each individual is different. They have different
Intelligence, emotions
When a company selects a person, a whole person is
hired. Along with the person, his background, likes and
dislikes also affects his performance
Behavior of an individual is caused.Behaviour of boss
has an effect on the behavior of employees.
An individual has dignity or self pride and he needs to
be treated with respect irrespective of his position.
There should be mutual interest between organization
and individual
Holistic concept vision of whole organization not just
a department

There Are Few Absolutes in OB=universal principles

Contingency
Variables
x y
Contingency variables
Human beings are unique and complex -Two people often act very differently in
the same situation, and the same persons behavior changes in different situations.

For the same reason,OB concepts must reflect situational, or contingency,
conditions. We can say that x leads to y, but only under conditions specified in z
(the contingency variables).



Few Absolutes in OB
Situational factors that make the main relationship
between two variables changee.g., the
relationship may hold for one condition but not
another.

Contingency Variable
(Z)
Independent Variable
(X)
Dependent Variable (Y)
In American Culture Boss Gives Thumbs
Up Sign
Understood as
Complimenting
In Iranian or Australian
Cultures
Boss Gives Thumbs
Up Sign
Understood as Insulting
- Up Yours


Approaches to OB


There are mainly five approaches to
organizational behavior. They are:

1 .HR approach
2 .Contingency/ Situational Approach
3 .Systems Approach
4 .Productivity Approach
5. Interactionism

Approaches
1.HR Approach -People First
2.The contingency approach-situation first
3.Systems Approach-system first
4.Productivity -productivity first
5.Interactionism-dynamics first
1.HR Approach -People First
focus on workers as human beings rather than
money making machines.
Focus on development of individuals
Companies like IBM,Microsoft,Tatasteel
conducts Employee development
programmes,team building activities like office
pizza party, adventure learning ,employee
picnics.

2.The contingency approach-
situation first

contingency approach says that there is no one
best way to manage an organization. Managers
have always asked questions such as "What is the
right thing to do? should we be centralized or
decentralized? Should we use task or people
oriented leadership styles? There is no one best
way to answer this. So we can take the situation
approach or contingency approach-acting as per
situation.
3.Systems Approach-system first


Input CPU Output
Systems Approach Organization is compared to a
system .Input material,motivation ;Output-Profit,
Efficient Employees.
4.Productivity -productivity first
Productivity Approach -Productivity means
ability to convert input to output.. Productivity
is measured by efficiency to do the job,
achievement in the job workmanship,
adherence to standard, and absence of
complaints.
5.Interactionalism
Individual Behavior is the result of interaction
between Individual and Situation.

Focuses on how individuals and situations interact
continuously to determine individuals behavior.

Interactionism
OB studies interaction of three factors in
organization.




Individual
Group
I
Organization
Interaction between internal and external
environment

Basic OB Model
Organizational Models -4 models Keith Davis

1.Autocratic model McGregor's Theory X-powerful boss.
Employees need to be disciplined.
2.Custodial model-Paternalistic some concessions, security-basic
needs met.-Tally software
3.Supportive model- McGregor's Theory Y-supportive
management, employees get recognition -HP,Tata.
4.Collegial model-employees and managers as partners-
teamwork.-walmart



Challenges and Opportunities for OB
Responding to Globalization
Managing Workforce Diversity
Improving Quality and Productivity
Improving People Skills
Stimulating Innovation and Change
Coping with Temporariness
Working in Networked Organizations
Helping Employees Balance Work-Life Conflicts
Creating a Positive Work Environment
Improving Ethical Behavior










1 .Effects of Globalization
2 .Managing Workforce Diversity
3 .Technology Transformation
4 .Changed Employee Expectation

Challenges and Opportunities for OB / impact of
globalization and information technology on
organizational behavior.
1. Effects of Globalization

Globalization promote increased foreign assignments
and working with people from different cultures is
quite normal in todays corporate

Understanding the work culture of the country when
planning advertisement, outsourcing jobs to low-cost
labor countries, managing people during war, terror,
natural calamities all pose a challenge to OB.

2. Managing Workforce Diversity
Diversity consists of visible & non-visible differences
which include gender, age, background, race,
disability, personality and work style.

3. Changed Employee Expectation
Job security, salary, housing do not motivate younger
employees. Todays Employees need power in
decision making-ESOPS and career advancement.



4.Technology transformation
Technology transforms the lives of people and
companies. Changes in technology has made the
distance short. Anyone can get access to information
using internet. Webinars (web conferences) video
conferences made widely dispersed group
conferences possible.

Technology Lean Organizations
Most of the organizations are wired
organizations and employees has the facility
of telecommuting or working in virtual
organizations.
Leaner Organizations
-through automation,IT delayering orgs at an
unbelievable pace.
Downsizing using fewer staff to produce
more result.
Rightsizing - hiring orgs to do the non core
activities so that the org can focus on its
core competency.

Technology
Wired Org
-Telecommunication home office-webinars(web
conferences) video conferences,hidden cams, closed
circuit tvs,anyone accessing private details,groups
widely dispersed across globe. Blurred hierarchies
and collapsed walls, no rigid reporting structure.
Virtual offices
People work anywhere,anytime and with anyone.
Critical messages can be delivered to and from
central office, clients office,airport,car or home.

Domestic
Partners
Major Workforce Diversity Categories
Race
Religions
National
Origin
Age
Disability
Gender
Workforce diversity is a business imperative than a legal
compliance.
Workforce diversity is a powerful force for
change in organizations. After globalization
increase, companies are recruiting professionals
with different backgrounds, cultures, styles and
motivations.

When tasks are complex and not clearly defined
heterogeneous teams outperform homogeneous
teams. Diversity is a business imperative than a
legal compliance.








Workforce diversity is a Business Imperative than a Legal Compliance.

Workforce DIVERSITY is about valuing and promoting differences,
similarities and unique characteristics of groups and individuals in
the workforce.

Diversity Management. A proactive effort that responds to the
changing demographic profile of the workforce through the
implementation of programs and services that support and empower
a diverse workforce through multicultural approaches (program-
oriented).

Workforce diversity is a legal imperative. Equal Employment
Opportunity (EEO). The set of laws, regulations, and policies that
guarantee every individuals right to EEO in the workplace,
irrespective of race, color, religion, national origin, sex, sexual
orientation, age, or disability (reactive, legally driven).





Heterogeneous teams are more creative and perform
better in problem solving than homogeneous teams.
Racial diversity is positively associated with higher
performance in organizations that integrate and
leverage diverse perspectives as resources for product
delivery.
Gender diversity is positively associated with more
effective group processes and performance in
organizations with people-oriented performance
cultures.
Diverse teams are more creative and perform better
in problem solving than homogeneous teams.

Workforce diversity
Workforce diversity reflecting consumer/market
diversity results in: * New product development *
Consumer confidence * Increased product/service
marketability * Significant revenue growth (e.g.
McDonalds, Pepsi-Cola, IBM)

Barriers to accepting diversity
Prejudice
Ethno centrism
Xeno centrism
Stereotypes
Discrimination
Harassment
Sexual Harassment
Forces affecting organizational behavior / key
elements of OB.
The four key forces /elements affecting organizational behavior consist of
1. People
2. Structure
3. Technology
4. Environment

People: Organizations consist of individuals with very diverse educational
backgrounds, values, abilities, and perceptive.
Structure: The formal relationship between the people within the
organization
Technology: The machinery and computer hardware and software that the
people of the organization use to effectively accomplish tasks
Environment: Organizations have both an internal and external
environment. Every organization is part of a larger system that
consists of elements such as government, competitors, family, and
other organizations. Factors such as globalization and societys
expectations of the organization influence one another

OPENING CASE
Sanjay works with I gate as Manager-Projects. His
team members are dispersed across international
borders and he needs to lead them from Bangalore
while his team is in US, Philippines ,Singapore,
Canada etc.
But even with new Web-based collaboration tools at
his disposal, he find handling remote teams
extremely challenging.
1. What steps you will be taking to keep in touch
and motivate your team which is scattered across
the borders but bonded by the same organization?



Assignment /Presentations

1.Workforce diversity can be an opportunity and
challenge at the same time .Explain the
statement in the context of organization.

2. How an MNC manage workforce diversity
during Mergers and Acquisitions? Take the case of
recent mergers and acquisitions and do a
presentation.

3.Workforce diversity is a business imperative
than a legal complaince.Take any corporate that
values diversity as a business requirement and
explain.