Organizational Behavior 1.

2
UNIT 1

1. History of OB
2. Evaluation
3. Challenges and Opportunities
4. Contributing Disciplines-The OB Model
5. Management Functions and relevance to OB
6. Personality-Determinants, Structure, behaviors, Assessments
7. Psycho-Analytical, social learning, Job fit, Trait theories

1.2 OB Aegis
OB : History

 Hawthorne studies-Bell Telecom

 Mary Follet
 Maslow
 Gilbreth

 Evaluation
 Foundations: Levels
 Individual – Group – Organization

 Essence of the study

 Preparing, understanding and motivating People (Rewards, Punishments)
 Managerial Effectiveness—Interpersonal skills

1.2 OB Aegis
Challenges for OB Studies

Dramatic Changes:
Typical Employees getting older
Breakdown of Racism
More women @the workplace
Corporate Downsizing
Huge Temporary Workforce
Changing Employee Loyalty
Global Competition-Flexibility

1.2 OB Aegis
What Managers Do

Individual level:
1. Getting things done through people.
2. Make decisions.
3. Allocate Resources.
4. Direct activities of others to attain Goals.

Organization wide:
1. Coordinated Social unit.
2. Functions on day to day basis to achieve a common Goal or set of Goals.
3. Classified as Manufacturing,Service,NPO

1.2 OB Aegis
Challenges Contd

Managing Workforce Diversity

Embracing diversity
Changing demographics
Implications for managers
Recognizing and responding to difference
For Managers
 Adapting to different People from same nation(Asian Influence)
 Heterogeneous in Gender,Age,Race and ethnicity(even Disabled ,aged, lesbians)
 From Melting-Pot to Differentiation Approach
 Immigrants@ workplace

1.2 OB Aegis
Challenges in the contemporary Business Environment:

Responding to Globalization
Increased opportunities for overseas assignments
Working with people from different cultures

Overseeing movement of jobs to countries with low-cost labor

Managing Workforce Diversity
Embracing diversity
Changing demographics
Implications for managers
Recognizing and responding to difference
Improving Quality and Productivity
Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures

1.2 OB Aegis
Challenges-Contd
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Overseeing movement of jobs to countries with low-cost labor

It’s a Seamless World-Mc Donald’s

Coke
Metro
Nokia
Managers-Foreign Assignments—Transfers to actual Facilities
New Teams-Attitudes, Cultural Differences

1.2 OB Aegis
 Improving Quality and Productivity

Quality management (QM)

Process reengineering

 Overcrowded market in the same categories (home appliances,machinery,electronics)

 Shift pressure of production due to competition on to labor
 Excessive involvement of people into quality processes(6 sigma, benchmarking etc)
 Managing change

1.2 OB Aegis
Responding to the Labor Shortage

Changing work force demographics

Fewer skilled laborers
Early retirements and older workers

 Changing Economies(1990’s to 2000)

 Developed countries-layoff’s to outsourcing
 Ageing Europeans ,declining birthrates (shortage of employees)

1.2 OB Aegis
Opportunities from OB studies

Improving People Skills

Empowering People
Stimulating Innovation and Change
Coping with “Temporariness”
Working in Networked Organizations
Helping Employees Balance Work/Life Conflicts
Improving Ethical Behavior

1.2 OB Aegis
Improving Customer Service

Increased expectation of service quality

Customer-responsive cultures

 Technology driven processes

 Delivery mechanism
 From customer satisfaction to……….

1.2 OB Aegis
Learning Organizations

Modification of Behavior through Practice, Training or Experience

COMPONENTS

 Change (situations)
 All changes don’t reflect learning-Temporary
 Reflected in Behavior (potentially)
 Occurs as an Experience
 Should be reinforced
 Is ongoing

1.2 OB Aegis
The OB Model

1.2 OB Aegis
Psychology - Learning
Motivation
Personality
Emotions
Perception
Training ,Leadership, Job satisfaction
Decision making PA Attitude

Individual

1.2 OB Aegis
What is to be Learnt?

 Put learning aside, understand human (competent)

Performance

 Theoretical approaches :

Learning Outcomes
Stages of Learning
Expert-Novice Differences

1.2 OB Aegis
Indigo alters refund policy
Anshul Dhamija I TNN

Bangalore : Indigo has a new passenger friendly cancellation policy. Till Recently
Indigodid not allow cancellation of any tickets or even refunds. The only money the
passenger could salvage was the “passenger service” fee of Rs.225.But now, Indigo
offers more flexibility. Passengers get an option of an open ticket valid for 180 days
(equivalent to ticket costs with a nominal deduction of Rs.500 )against a ticket
cancellation.Further,Passenger can also cancel / reschedule tickets up to 2 hours
prior to departure.
“Our improved OTP (On time performance) has been attracting corporate travelers
and their concerns for greater ticketing flexibility was the reason we revisited our
cancellation policy". Said CEO,Ramki Sundaram.
OTP,according to the airline, has improved partly because of steps taken to Turn
around Aircrafts more quickly.Indigo’s current Turnaround time for ATR aircraft is 15
Minutes and Airbus aircraft is 25 minutes.
Source : The Times of India, Bangalore Friday 5th July 2010

1.2 OB Aegis
Theories of Personality

 Type theory-Physical, Psychological

 Trait Theory

 Psychoanalytic theory-
 Id theory (libido) unconscious,
 Ego-Conscious (reality)
 super Ego-Cultural upbringing (strives for perfection)

 Social learning-Learning: Any change in one’s behavior that occurs as a

result of experience
 Self Theory

1.2 OB Aegis
 The Big 5 TRAITS

 Agreeableness (High Low)

 (with others:Gentle,Cooperative,Forgiving,Good natured)

 Conscientiousness (High Low)

 (No of Goals Focused at a time : Many/Few, Organized,Systematic,responsible,self styled)

 Negative Emotionality (Less Neg More Neg)

 (People with Less Negative E: calm,poised,secure)
 Manage better-Job Stresses,Pressure,tension
 Extroversion ( Extroversion Introversion)
 (Comfort levels with relationships)
 E-Social,Talkative,assertive,open for new ideas,realtionships
 Openness (More Less)
 High : Willing for new ideas
 Changes own ideas
 Beliefs
 Attitudes
 Low : Few interests (Narrow)
 Less curious, Creative

1.2 OB Aegis
 Foundations of Individual Behavior

• Personality - Definition :
• “Is the relatively stable set of Psychological Attributes that distinguish one person from another”

• Nature or Nurture ?
• Biological or Environmental
• For Managers : U/s basic personality attributes
• Perception
• Attitude (in Situations)
• The Myers-Briggs Framework
• U/s Personalities in Organizations
• Basis- Intuiting
• Sensing
• Judging
• Perceiving
• MBTI-Questionnaire for all Corporate interviews
• Other Personality Traits @Work
• Locus of Control-Internal / External

1.2 OB Aegis
• Self Efficacy-Assessment
• Belief in their capabilities (High/low )
• self confident,image,looking glass self,real self

• Authoritarianism
• Expect instructions only from a higher authority
• Question things, disagreements
• Autocratic manager/Participative manager

• Machiavellianism (Nicoli Machiavelli)

• Gaining power, control behavior of others
• Self Esteem
• extent to which a person believes that He/She is worthwhile and deserving.
• High Esteem-Seek higher status jobs,confident

1.2 OB Aegis
 Points to Ponder

 Organizations should hire the Smartest people.

 Agree/Disagree
 How might Employees learn Unethical things at Work?

 Does Age,Gender,Race and Tenure affect performance?

1.2 OB Aegis
 Perception
“The set of Processes by which an individual becomes aware of-and interprets
information about the environment”

aabaa selective Perception aaaaa

abaaa ------------ -------- a a a a a
aabba aaa

screening out info that discomforts beliefs

aba --------------- Stereotyping -------- bbb

ba aaa
a

BASIC PERCEPTUAL PROCESS

1.2 OB Aegis
Basic Perceptual Processes

• Selective perception
• -Screening out information
• -Uncomfortable or contradictory to beliefs
• -Ex. Managers are fond of particular workers (Goof ups are forgiven)
• (when : Good/Bad)
• Stereotyping
• -Categorizing or labeling people
• -Ex Communication skills necessary for jobs
• -(Good/Bad ?)Race or gender
• -Costing an organization of both sets- Efficiency, opportunity, federal
law, unethical behavior

1.2 OB Aegis
Factors affecting Perception (Info processing by the mind)

 Internal factors- Needs and Desires

 Personality
 Experience
 External Factors-Size
 Intensity
 Frequency,Reception
 Contrast
 Status
 Movement

1.2 OB Aegis
1.2 OB Aegis
1.2 OB Aegis
Managing the perceptual Process

• Perceiving oneself accurately (awareness)

• Improve one’s self concept (maslow’s)
• Empathetic
• Positive attitude
• Avoiding Perceptual distortions

• Applications in Organizations
• -Interviews
• -Appraisal

1.2 OB Aegis
 Learning Process
• “Learning is a permanent change in Behavior as a result of experience”

• Components
• Learning involves change (Good/Bad)
• Change in behavior must be permanent
• (Not fatigue, temporary adaptations)

• Acquired Through Experience (directly thro’ practice, observation)

• Analytical skills, problem solving, Decision making

• Is a lifelong process

1.2 OB Aegis
• Determinants of Learning-(What determines change in behavior)

• Motive- Drives prompt a person to learn. Motives Leads to motivation

• Stimuli-Objects that exist in the environment where we live.
• General stimuli when events twice or more, the response is generalized
• (Late comers, Halo effect)
• Discriminatory stimuli : Responses vary from stimuli to stimuli
• (Student learning methodology)
• Responses-Can be seen as Attitudes,perception,behavior
• Reinforcement-conditioning of learning. increases strength of response and induces
• repetitions in behavior. (consumer buying)
• Retention-Capability of Reproducing the learning's
• Remembrance (learning that return is “Spontaneous recovery”)
• Forgetting (learning lost is “Extinction”)

1.2 OB Aegis
 Types of Reinforcements in Organizations

 Positive Reinforcement
Possibility of Pay rise-------- High performance----- pay rise awarded ----------- continued Perf
STIMULUS DESIRABLE BEHAVIOR PRESENTATION OF REPITITION OF

ATTRACTIVE CONSEQUENCE DESIRED BEHV

 Avoidance
THREAT OF PUNISHMENT FOR LAZINESS---------PUNCTUAL---------NO PUNSIHMENT-----------CONTINUED
PUNCTUALITY
STIMULUS DESIRED BEHV REMOVAL OF REPITITION OF
AVERSIVE CONSEQUENCE DESIRED BEHAVIOR

 Extinction
Possibility of---------------- Frequent Boasting ------- No Recognition ---------- less Frequent Boasting
Promotion for Boasting
STIMULUS UNDESIRABLE BEHV NO CONSEQUENCE DECREASE IN
PRESENTED UNDESIRED BEHAVIOR
 Punishment
Threat of Punishment --------- smoking in office ---------- Reprimand given ---------- less smoking @work
for smoking in premises
STIMULUS UNDESIRABLE BEHV PRESENTATION OF DECREASE IN
UNDESIRABLE AVERSIVE CONSEQUENCE BEHAVIOR

1.2 OB Aegis
 Learning Theories
 CLASSICAL CONDITIONING Ivan Pavlov-Experiment with Dogs
 Unconditioned Stimulus-Food / Unconditioned Response-Increased Reaction
 Conditioned stimulus-only Bell sound
 Elicit-------Emit (employees coming on time)
 Examples-
 Crackers Bursting ,DDT,Cleaning of window panes
 (In organizations-it is more cause-effect conditioning)

 OPERANT CONDITIONING
 Suggests Behavior is an outcome of Consequences
 Learn to Behave to get something You like / avoid something don’t like
 Learned/Voluntary Behavior (instead of reflexive)
 Used in Organizations for –Reinforcement, Punishment and extinction

 COGNITIVE LEARNING
 Supposed to be the only theory that explains human learning happens to help in problem solving at work.
 COGNITION- is an individuals:Thoughts,interpretations,understanding,views of oneself (Monkey and the stick!)

 SOCIAL LEARNING
 Individuals learn from others (Role Models)-Parents,Teachers,Peers,Superiors,Motion pictures and Television.
 Following actions take place when individuals imitate a role model :1.Attention Process. 2.Retention Process.
 3.Motor reproduction process. 4.Reinforcement process
 Shaping Good/Bad Behaviors in Organizations ?
1.2 OB Aegis
Principles of Learning

 Reinforcement-Positive : Rewards (Bonus)

 Negative : Punishment/Reprimand (Late coming)

 Reinforcement Patterns:
 1.Continous Reinforcements (Targets-Empathize on some occasions and
forgive)

 2.Intermittent Reinforcement (Between intervals)


 Fixed Intervals (Ex : rewards are announced after only consignments)
 Variable intervals (unannounced visits of Corporate audits)

1.2 OB Aegis
 LEARNING CURVES
 A diagrammatic representation of the amount of learning happened in
relation to time.Types of Learning Curves:

1.2 OB Aegis
1.2 OB Aegis
Behavioral Management

 Almost all Human Behaviors is LEARNED !

 Learning helps Managers change human Behavior in Organizational

situations such as –
 # Reducing Absenteeism
 (Lottery system rewarding 100% attendance category, reduced 30%overall absenteeism)

 # Substituting well-Pay for sick Pay

 ( wellness or full attendance instead of Paid Sick leave: Forbes magazine)

 # Delegating/Inviting employee to train in inductions
 (Rewarding most disciplined employees: HP)

 # Improving employee Discipline

 (From Managing to leading: Mr.Mannivanan)

1.2 OB Aegis