ORGANISATION BEHAVIOR

( A GLOBAL PERSPECTIVE )

By : Prof. V.P.KAKKAR
INTRODUCTION & COURSE REVIEW
 MODULE : I
( UNDERSTNDING ORGNIZATION BEHAVIOR )
 HUMAN BEHAVIOR
• Functioning of an organization depends upon how people work or behave in an organization.
• Why do people behave the way they behave ?
What influences people’s behavior at work.?
• BEHAVIOR = Personality x Environment / situation
• Behavior is what a person actually does
• OVERT BEHAVIOR : Observable & measurable activity ( Decision making, physical activity )
COVERT BEHAVIOR : Non- observable & non –measurable ( Feelings, Attitudes, Perceptions)
• Human behavior can be understood easily if causes behind behavior are analyzed and can be
controlled by manipulating these causes.
• One persons behavior is affected by others behavior and also affects other’s behavior.
• Human beings are not self contained entities or autonomous bodies but are affected by large
systems- group, family, society
• Human behavior should be taken in terms of cause & effect relationship. It is not perfactly
predictable as it is affected by large no. of variables.
• PROCESS ( S-O-B-C MODEL )

SITUATION ORGANISM BEHAVIORAL PATTERN CONSEQUUENCES

 MANAGEMENT FUNCTIONS,SKILLS & ROLES
(WHAT MANAGERS DO)

MANAGEMENT FUNCTIONS:
• PLANNING: Future course of action, why an action, what action, how
and when to take action. Short, medium & long term plans. Determination
of objectives, policies , strategies, procedures , rules & budgets etc..
• ORGANISING: Dividing work into convenient tasks & duties, Grouping
of activities into departments, assigning duties, delegating authority,
Developing structures & reporting relationships, Temporary work groups,
Extent of decentralization, specialization, formalization & standardization etc
• STAFFING: Manning various positions, HR planning-identifying surplus/
deficit manpower, recruitment, selection, training & development,
appraisal, compensation etc..
• DIRECTING: Leading, communicating, coordinating & motivating people
• CONTROLLING: Determination of standards performance, measuring
actual performance, finding gap/deviation, taking corrective action,
ensures that work progresses in the right direction without any deviation.
MANAGEMENT ROLES:
• INTERPERSONAL ROLES:
Concerned with interacting with other persons( Internal & External ):
FIGUREHEAD ROLE: Ceremonial duties of symbolic nature: representing firm,
greeting visitors, greeting visitors, attending social functions etc..
LEADER ROLE: Motivating, guiding & encouraging them
LIASON ROLE: connecting link with outside environment :
( Between his organization & outsiders or between his unit
& other organizational units )
• INFORMATIONAL ROLES:
Concerned with giving and receiving information both within & outside organization
for an effective decision making. Requires skill in gathering/using information
MONITORING ROLE: Constantly connecting relevant information, building/analyzing data-base
DISSEMINATOR ROLE: Timely transmission of information with clarity to subordinates, superiors
and peers.
SPOKESPERSON ROLE: Representing organization or unit while interacting with others
• DECISIONAL ROLES:
Concerned with choosing most appropriate alternative out of available ones.
ENTREPRENEAUR ROLE: New initiatives, calculated risks, innovation & creativity,
DISTURBANNCE HANDLER ROLE: Containing forces/events that tends to disturb org. equilibrium, normal working
RESOURCE ALLOCATOR ROLE: Allocating scarce & precious human, physical & financial resources
NEGOTIATOR ROLE: Negotiations with various interest groups/stakeholders.
MANAGEMENT SKILLS:
SKILL: Practical ability or expertness in an action or doing something.
Robert Katz has categorized various management skills into 3 broad categories:

• TECHNICAL SKILLS:
Ability to apply specialized knowledge & expertise
Pertain to knowledge & proficiency in activities involving methods & procedures.
These are developed by actual practice on the job.
e.g. Professionals like engineers, Doctors, Managers etc…
• HUMAN SKILLS:
Human relations / interpersonal skills ie ability to work effectively with others.
As manager have to get things done through other people, their ability to work with ,
understand, communicate and motivate other people both individually and in groups has the
prime importance.
• CONCEPTUAL SKILLS:
Mental ability to see whole picture, analyze & diagnose complex situations for an
effective, quick and accurate decision making.

All the managers need these three skills in varying proportions. At lower levels Technical
Skills are more relevant. As one moves up in the organization, more Human Skills are
required. Whereas at the top level conceptual skills become more important
 DEFINING OB

• A field of study that investigates the impact that individuals, groups

and structures have on behavior within organization, for the purpose
of applying such knowledge toward improving an organization's
effectiveness.

• OB is primarily concerned with that aspect of human behavior which

is relevant for organizational performance. It studies human behavior
at individual level, group level and organizational level. As such it
applies the knowledge gained about individuals. groups and the effect
of organization structure on behavior for the purpose of making an
organization work more effectively.
 NATURE & SCOPE OF OB
• A FIELD OF STUDY NOT A DISCIPLINE: Discipline is an accepted science based on theoretical foundations . But OB has multi –
disciplinary orientation thus not based on specific theoretical background.

• AN APPLIED SCIENCE: Involves applications of various researches to solve behavior related organizational problems in
addition to systematic knowledge about human behavior. It can be called science as-well-as art both.

• ACTION & GOAL ORIENTED DISCIPLINE: major goal: explaining and predicting human behavior

• HUMAN TOOL FOR HUMAN BENEFIT: Helps predicting human behavior for solving behavior related problems in an
organization.
• LEVELS OF ANALYSIS: 3 levels of analysis of behavior- Individual behavior, group behavior, organizational level – impact of
structure, systems on behavior within organizations.

• COMMONALITY OF INTERESTS: Individuals view orgs for achieving their personal & professional goals and orgs wish
individuals & groups to work towards achievement of org. objectives.

• INTEGRATING/ INTER DISCIPLINARY APPROACH: It tries to synthesize knowledge drawn from various disciplines like:
Psychology, Social psychology, sociology and anthropology.

• HUMANISTIC & OPTIMISTIC PPROACH: Treats people as thinking and feeling human beings who have an intrinsic desire of
being independent, creative and productive.

• A TOTAL SYSTEM APPROACH: As it integrates people, groups and organizations as a whole system

• NORMATIVE & VALUE CENTERED: Prescribes how various findings of researches can be applied to add value and get
organizational results acceptable to society.
 CONTRIBUTING DISCIPLINES TO OB
• PSYCOLOGY: Science that focuses directly on understanding and
predicting human behavior. It has greatly contributed to intra-personal
dynamics of human behavior. Topics such as personality, perception,
attitude, learning and motivation describe intra-personal aspects of
psychology.

• SOCIOLOGY: Studies people in relation to fellow human beings.

Psychologists focus on individuals whereas sociologists focus on group of
individuals and group dynamics and communication etc.

• ANTHROPOLOGY: It is the study of societies /human races and their

activities. Helps to understand cultural differences wrt fundamental values,
attitude and behavior in different regions and organizations.

• OTHER SOCIAL SCIENCES: Economics, Political Science and History

have also contributed to OB. Several economical models have made
valuable contributions in understanding individual & organizational decision
making process. Politics and authority are popular topics derived from
political science. History has contributed by describing lives of great leaders
with their success stories.
 OB TODAY
( MODERN APPROACH TO OB )
• Today , what has been called Info-Tech age, computer technology has made it possible to eliminate
vast amount of grunt work that laborers used to do. ( monotonous, boring & dangerous physical
labor )

• Modern technology has also changed the way managers operate. With easy access to information,
they can concentrate on bigger picture of innovative ways to improve whole organization

• They can now more focus on behavioral aspects like creating, judging and building relationships.
Cotemporary OB recognizes that people care more than ever about the interpersonal side of work –
recognition ,relationships and social interaction etc.

• Despite the fact that technology has advanced , changing the ways employees work, people
themselves have not changed. All employees are human and simply because they are working
differently than before, basic application of OB concepts remains the same.

• Modern OB is focusing on evolving a work culture where employees do more challenging,

meaningful and interesting work which goes on to add more value as compared to competitors.

• Modern OB responds readily to the rise of globalization and diversity, focusing more on
international business and Global Economy.

• More focus is on shifting demographics- trend towards diversity, cross cultural implications of
behavior

• Modern OB also responds quickly to changing expectations : Flexibility employees expect from
employers, quality that consumers demand from the product, socially responsible behavior people
in general expect from companies etc…
 OB TODAY – THE INFOTECH AGE
( CHALLENGES & OPPORTUNITIES )

• OB responds to the rise of globalization

• Shifting demographics of the workforce- trends towards workforce diversity
More women and minorities in the workface than ever before
Racial and ethnic diversity.
Differing cultural values and lifestyles
• OB responds to advances in technology
• Leaner organizations – Downsizing & outsourcing
• Virtual corporation – A network of temporary organizations
• Telecommuting- Going to work without leaving home
• OB responds to People’s changing expectations wrt : (1) flexibility
employees expect from employers (2) Quality consumers demand from the
product (3)Socially responsible behavior expect from companies with which
they do business
 CHANGING PROFILES
EMPLOYERS & EMPLOYEES
EMPLOYEES:
CHANGING PROFILES/ WORFOCE DIVERSIY:

• It includes all forms of differences including culture, gender, age, ability, religion, personality, social
status and sexual orientation.

• Attention to diversity has increased in recent years . This is because of changing demographics of
working population.

• Dealing with diversity is of paramount concern for managers for two reasons:
1. managers need to know how to motivate diverse workforce
2. How to communicate effectively with employees who have different values and languages

• Changing demographic trends reveal that in coming times, the workforce will be more culturally diverse,
more female and older than ever.

• Legislation and new technologies may bring more workers with disabilities

• Hence learning to work together with an open mind is going to be more important through diversity
training.

• All forms of diversity lend heterogeneity to the work force , which has both positive and negative
implications involving lot of challenges.

BENIFITS: Attracts & retains best human talent, Improve marketing efforts, Promotes creativity and
innovations, Results I better problem solving and enhance organizational flexibility
PROBLEMS/CHALLENGES: resistance to change, Lack of cohesiveness, communication problems,
interpersonal conflicts and slow decision making.
CUSTOMERS:
CHANGING PROFILES

• The basic reason for existence of any business organization is making

profits and profits are created by customers. Hence fulfilling the ever
changing needs of varied customers with ever changing profiles is of utmost
importance.

• Organizations must continuously monitor customer environment in terms of

any change in demographics, needs or preferences and take it as prime
responsibility to see that interests of customers are protected at all times.
CHANGING PROFILES
EMPLOYERS:
• Working with leaner workforce
• Want to employ people with multi skills
• Want to strike balance between qualitative & quantitative
aspects of HR planning
• More emphasis on expansion strategies through Mergers, Takeovers, JV’s.
Partnerships etc
• More emphasis on productivity through people
• Greater thrust on competitiveness through cost- leadership,
differentiation and focus strategies.
• More investment in R&D, want people with research background
• With Organizations becoming Multinational & Global in character;
Inducting /developing global managers for global assignments and global
challenges
• More strategic and focus on developmental aspects of employees
 GLOBALISATION
• Concerned with degree of standardization of products and practices
plus high level of co-ordination and integration of activities in the company’s
value chain.
• Offers extensive opportunities for worldwide development and getting
integrated to global economy.
• For developing countries, it offers prospects of integration with
rest of developed economy.
• In economic terms , It’s the process of integration of world into one huge
market.
• It is a process not an event. It has no beginning or end.
• It is fast becoming imperative for modern business due to:
1) crumbling trade barriers 2) global flow of capital & technology
3)Information explosion 4) Intensity of global market competition
5) Changing life styles and demand for innovative products etc…
• It offers free flow of information, goods, capital & people across political and
economic boundaries and is a process by which enterprises become
interdependent and interlinked globally.
 GLOBALISATION OF BUSINESS
& CHALLENGES
• Major environmental changes in last 15 yrs – GLOBALISATION
• World becoming global village & business becoming Global in character
• Increased business opportunities in marketing and production.
NEW CHALLENGES :
• Domestic firms competing with foreign companies. There is High level of cost
consciousness and competitive pressures
• Multinational companies require employees who can adopt to different cultures,
customs, social practices, values, economic and political systems,
management approaches and who can work with other employees with different
backgrounds.
• To ensure that employees with requisite knowledge ,skills, abilities and cultural
adaptability are available to be successful in global assignments.
• Focusing increasingly on employee productivity
• Developing diverse training programmes.
• Developing HR initiatives directed to workforce diversity.
• Identifying and training expatriate managers to develop them into Global
Managers for overseas assignments.
• Developing equitable pay plans for individuals working in different countries.
• Managing a Global workforce, focus on cost, differentiation & quality to enhance
competitiveness and ensuring legal compliance while conducting business abroad.
 MODELS OF ORG. BEHAVIOR
• Simplified representation of some real world phenomenon

• To provide framework about how people will be treated in an organization

• Models are developed in different fields to guide activities of those fields

• Models are developed on the basis of management assumptions about people.

Different assumptions – different models

• 2 basic assumptions since the beginning of civilization

a) Trust everyone unless there is contrary evidence
b) Do not trust anyone unless there is contrary evidence
(Most of the organizations have assumption that people can not be trusted even on small matters.
In the field of OB assumption about people have been made on two extreme sides. Ex-
McGregors theory of X & Y; Argyris theory of Immaturity & maturity)

• 4 OB Models given by DAVIS are:

1) Autocratic 2) Custodial 3) Supportive 4) Collegial
 AUTOCRATIC MODEL

• Managerial orientation is towards POWER & AUTHORITY

• Power/Authority being only means to get things done
• Employees expected to follow orders, dependency on boss is very high
• Authority delegated through formal process
• Assumption based on theory X- where employees are distasteful towards
work and want to avoid work. Strict and close supervision is required for
desired performance.
• Also based on better performance through fear ,threat, punishment-and
occasional rewards- based on Likert’s exploitive/authoritative mgmt system.
• Based on economic concept of man.
• In modern times, this model is not very popular due to changing values and
aspirations of people; as such it is paving way for other models
 CUSTODIAL MODEL
• Orientation towards use of economic resources of an organization and its
ability to pay for employee benefits.

• Employees becoming highly dependent on organisation for their

maintenance & security needs but fail to provide strong motivatio

• Employees working under custodial model feel happy, but their level of
performance is not very high as they are not given desired authority to
decide what benefits and rewards they should get.

• Such phenomenon and approach is more predominant in family managed

business where parents decide what is good and what is bad for their
children and managers decide what is good for their employees.

• This model is not suitable for mature employees.

 SUPPORTIVE MODEL
• Model depends upon managerial leadership based on the principles supportive
relationships rather than on the use of money or power.

• AIM: To support employees in their achievement of results.

• Focus primarily upon participation and involvement of employees

in managerial decision making process.

• Model is quite similar to Mcgregor’s theory ‘Y’ where employees move to the
maturity level where they expect supportive organisational climate to fulfill their
higher level needs for their growth & development.

• Supportive model is best suited where employees are self motivated

• Manager’s role: to help employees achieve their goals rather than strict & close
supervision.

• More applicable for middle or higher level managers whose lower level needs are
reasonably satisfied and are driven by intrinsic motivation.

• Tendency of modern management is to move towards supportive model.

 COLLEGIAL MODEL
• An extension of Supportive Mode

• Term Collegial is based on team concept having common purpose, where

employees develop high degree of understanding towards others

• Organization tries to take or treat employees as partners

• Employees need little direction and control from management. Control

through self discipline and self actualization

• Model requires job flexibility , autonomy & conducive environment where

employees can achieve self fulfillment through self realization /actualization

• Under the collegial environment, the workers have job satisfaction, job
involvement, job commitment and some degree of fulfilment.