ORGANISATIONAL

BEHAVIOR
MAJOR CHALLENGES TODAY
Inconsistent Economy
But at organisational level:
Advanced Information Technology
Globalisation
Diversity
 Contd…
But:
Managing the people – the human
resources of the organisation have
been, are and will continue to be the
major challenge and of critical
competitive advantage. (Eg. HHRPK, Lagaan Team Work)
 Contd…
Sam Walton, the founder of Wal Mart
once said:
“People are the Key !”
Technology can be purchased or
copied; it levels the playing field. The
people on the other hand, cannot be
copied. Their ideas, personalities,
motivation and organisation culture,
values cannot be copied.
 Contd…
The human resources of an
organisation and how they are
managed represent the competetive
advantage of today’s and tomorrow’s
organisations and are widely
recognised as : Human Capital,
Social Capital and Positive
Psychological Capital.
 Contd…
Human Capital: What you know-
Education, experience, skills.
Social Capital: Who you know –
networks, connections, friends.
Positive Psychological Capital: Who
you are- Confidence, hope, optimism
and
Who you can become- one’s possible
authentic self.
THE IMPORTANCE OF HUMAN
RESOURCE
Bill Gates once said: “The inventory,
the value of my company, walks out
of the door every evening.”
Andrew Carnegie said: “Take away
my people but leave my factories,
and soon grass will grow on factory
floors. Take away my factories and
leave my people, and soon we will
have a new and better factory. ”
 WHAT IS BEHAVIOR
As per the Illustrated Oxford Dictionary
and Concise Oxford Dictionary:
“The way one conducts oneself or
behaves, the treatment of others or
moral conduct. The way in which an
animal or person responds to a situation
or stimulus is known as behavior.”
 WHAT IS BEHAVIORALISM
As per concise Oxford Dictionary:
“The methods and principles of the
scientific study of human behavior,
advocacy of, or adherence to a
behavioral approach to social
phenomenon.”
UNDERSTANDING BEHAVIOR
Managers need three levels of
expertise:
– They must understand the pasta nd
current behavior
– Be able to predict behavior
– Learn to direct, change and control
behavior.
 WHAT IS ORGANISATIONAL
BEHAVIOR (OB)
Definition of OB:
“A field of study that investigates the
impact that individuals, groups and
structure have on behavior within
organisations, for the purpose of
applying such knowledge towards
improving an organisation’s
effectiveness.”
 WHAT DOES OB STUDY
It studies three determinants of behavior
in organisations:
– Individuals
– Groups
– Structure
OB applies the knowledge gained about
individuals, groups and effect of structure
on behavior in order to make
organisations work more effectively.
 Contd…
Therefore, OB is concerned with the study
of what people do in an organisation and
how the behaviors affect the performance
of the organisations.
OB basically deals with behavior related
to:
–Jobs
–Absenteeism
–Employment Turnover
–Productivity
–Human performance
–Management
CONTRIBUTING DISCIPLINES TO
THE FIELD OF OB
OB is an applied behavioral science that is
built on number of behavioral disciplines.
Predominant areas are:
Psychology
Social Psychology
Sociology
Anthropology
Political Science
 Contd…
Psychology: The science that seeks
to measure, explain, and sometimes
change the behavior of humans and
other animals.
Social Psychology: An area within
psychology that blends concepts
from psychology and sociology and
that focuses on the influence of
people on one another.
 Contd…
Sociology: The study of people in
relation to their social environment
or culture.
Anthropology: The study of societies
to learn about human beings and
their activities.
Political Science: The study of the
behavior of individuals and groups
within a political environment.
 WHAT MANAGERS DO?
Managers: Individuals who achieve
goals through other people.
Managers get things done through
other people. They make decisions,
allocate resources, and direct the
activities of others to attain goals.
 Contd…
Organisation: 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 FUNCTIONS
In the early part of the twentieth
century, a French industrialist, Henry
Fayol wrote that all managers
perform five management functions:
Planning, Organising, Command,
Control and Coordinate.
Today they have been condensed
into four: Planning, Organising,
Leading, Controlling.
 Contd…
Planning: A process that includes
defining goals, establishing strategy
and developing plans to integrate
and coordinate activities.
Organising: 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.
 Contd…
Leading: A function that includes
motivating employees, directing
others, selecting the most effective
communication channels and
resolving conflicts.
Controlling: Monitoring activities to
ensure they are being accomplished
as planned and correcting any
significant deviations.
 MANAGEMENT ROLES
Henry Mintzberg, after a careful study of
five executives to determine what these
managers do on their jobs, concluded that
they perform ten different, highly
interrelated roles-or set of behaviors.
These are grouped together as being
primarily three major jobs, as under:
Interpersonal roles
Informational Roles
Decisional roles.
 INTERPERSONAL ROLES
Figurehead: Symbolic head; required
to perform a number of routine
duties of a legal or social nature.
Leader: Responsible for the
motivation and direction of
employees.
Liaison: maintains a network of
outside contacts who provide favors
and information.
 INFORMATIONAL ROLES
Monitor: Receives wide variety of
information, serves as a nerve center of
internal and external information of the
organisation.
Disseminator: Transmits information
received from outsiders or from other
employees to members of the
organisation.
Spokesperson: Transmits information to
outsiders on organisations plans, policies,
actions and results; serves as expert on
organisations industry.
 DECISIONAL
Entrepreneur: Searches organisation and
its environment for opportunities and
initiates projects to bring about change.
Disturbance handler: Responsible for
corrective action when organisation faces
important, unexpected disturbances.
Resources Allocator: makes or approves
significant organisational decisions.
Negotiator: Responsible for representing
the organisation at major negotiations.
 MANAGEMENT SKILLS
Robert Katz has defined three
essential management skills:
1. Technical
2. Human
3. Conceptual
 Contd…
Technical Skills: The ability to apply
specialised knowledge or expertise.
Human Skills: The ability to work
with, understand and motivate other
people, both individually and in
groups.
Conceptual Skills: The ability to
analyse and diagnose complex
situations.
 CHALLENGES AND
OPPORTUNITIES FOR OB
Fundamental Assumptions of
Contemporary OB:
Organisations can be made more
productive while also improving the
quality of people’s work life.
There is no one best approach to
studying behavior in the
organisations.
Organisations are dynamic and ever
changing.
 FORCES SHAPING OB
TODAY
The field of OB is highly related to
several economic, social and cultural
trends in today’s society. These include:
1. Globalisation of Economy.
2. Diversification of the workforce.
3. Development of flexible new working
arrangements.
4. Technological advances creating new
organisational forms.
5. The quality revolution.
IMPORTANT TERMINOLOGIES
Globalisation: The process of
interconnecting the world’s people
regarding the cultural, economic,
political, technological and
environmental aspects of their lives.
Multinational Corporations:
Organisations with significant spread
throughout various nations but
headquartered in a single nation.
 Contd…
Expatriates: People who are citizens
of one country but live and work in
another country.
Culture: the set of values, customs
and beliefs people have in common
with other members of a social unit.
(Eg: A nation).
 Contd…
Multicultural Society: A society with
many different racial, ethnic,
socioeconomic and generational
subgroups, each with its own culture.
Sub culture: A smaller cultural
subgroup, having its own well
defined culture, operating within
larger, primary culture.