Organizational Behaviour

(M-215)

By

SK Puri.
 What is OB
• Organization Behavior is a field that investigates the impact
that individuals, groups and structure have on behavior within
organizations ,for the purpose of applying such knowledge
toward improving an organization’s effectiveness.
• Organization behavior is an applied behavioral science that is
built upon contribution from a number of behavioral
disciplines . The predominant areas are psychology, sociology,
social psychology, anthropology, and political science.
• Management thought has moved over a period of time top
the contemporary management thought.
 Methodology of Teaching
1. It has more of laboratory orientation for personal
and professional development.
2. It has conceptual pin up but will deal with the
human processes of Following:
3. Personality, Perception, Learning, Motivation,
Teamwork, leadership, Conflict Management and
Determinants of Organization Design
It is experience sharing, sampling real life
incidents ,cases, role plays, videos , lectures ,
syndicate work, brainstorming.
 Managerial skills
Managerial skills and the organizational
hierarchy giving relative importance of these
skills identified by Robert l. Katz into a model
These were identified as :
1. Technical skills
2. Human skills
3. Conceptual Skills
The evolution of Management Thought

• Let us understand the evolution of

Management Thought starting from Taylor to
Contemporary Management thought.
• This will give us how the various Management
Thinkers thought and how the thought moved
on with evolution as a process of Human
Growth
Scientific Management : Taylor 1856-1915

• Developed standard method for performing

each job.
• Provided wage incentives to workers for
increased output.
• Productivity & efficiency in production

Criticisms
Did not appreciate social context of work and
higher needs of workers.
 Douglas McGregor Theory X & Y
1906-1964

• Theory X – Human being dislike work & will

avoid it –coerced, controlled, directed
• Theory Y- Work is normal, people will exercise
self direction, self control
 Henri Fayol 1916
Formulated 14 principles of management
It explained
• Unity of command
• Span of control
• Authority
• Responsibility
 Hawthorne Studies-Elton Mayo-1933

• Ten year study- Western Electric Company

• Test pointed to factors other than illumination
for productivity
• Influence of social attitudes of work groups in
performance
• Factor that increased output, Human Relations
 Humanistic Perspective
Emphasized understanding human behavior,
needs, and attitudes in the workplace

●Human Relations Movement

●Human Resources Perspective
●Behavioral Sciences Approach
 Human Relations Movement

Emphasized satisfaction of employees’

basic needs as the key to increased
worker productivity
Human Resource Perspective

Suggests jobs should be

designed to meet higher-
level needs by allowing
workers to use their full
potential
 Behavioral Sciences Approach
• Applies social science in an organizational
context- Psychology and social Psychology
• Draws from economics, psychology, sociology,
anthropology, and other disciplines
– Understand employee behavior and
interaction in an organizational setting
– OD – Organization Development
 Maslow’s
Hierarchy of Needs
Management Science Perspective

Applied mathematics, statistics, and other

quantitative techniques to managerial
problems

Operations Research – mathematical modeling

Contemporary thoughts in Management

● Systems Theory

● Contingency View

● Total Quality Management (TQM)

 Systems Approach
• Organization does not exists in vacuum
• Internal and external environment
Planning premises-the anticipated environment
in which plans are expected to operate-Nano
• Subsystems interacting and effecting the
system
• Different functions and departments
interacting
• CFT- Cross Functional teams
 Contingency View

• Contingency factors have always been

realized, realizing the situational factors to be
considered in communication, leadership or
other aspects of management
• The situational factors- the leader the
followers and the situational
variables-”Ganaur “,Theory X and Y, Education
professors, Commander
• Globalization has further enhanced the
cultural diversity as a contingent factor
 TQM
TQM is an integrated organizational approach
in delighting customers ( both external and
internal ) by meeting the expectations on a
continuous basis through everyone involved
with the organization working on continuous
improvements in all products, services and
processes along with problem solving
methodology.
 Principles of TQM

1. The customer defines quality , Customer satisfaction is on top

priority
2. Top management must provide the leadership for quality
3. Quality is a strategic issue and require a strategic plan
4. Quality is the responsibility of all employees at all levels of the
organizations
5. All functions of the company must focus on continuous quality
improvement to achieve strategic goals
6. Quality problems are solved through co-operation among
employees and management
7. Problem solving and continuously quality improvement using
SQC methods
8. Training & education of all employees are the basis for
continuous quality improvements
 Some additional Management Thought
• Employee performance(not satisfaction)
• Employee engagement & management activities for
effectiveness-Achievement of objectives,efficiency is
with less resources. Objectives are to be clear with
vision.
• Employee engagement is a property of the
relationship between an organization and its
employees. An "engaged employee" is one who is
fully absorbed by and enthusiastic about their work
and so takes positive action to further the
organization's reputation and interests.
 Emotional Intelligence as emerging field of
study
• Decision making is not through application of
logic but intuition or gut feeling is also
important. Cognitive and affective skills both
required.
• EI, EQ
• Mindfulness-Mindfulness, which, among other
things, is an attentive awareness of the reality
of things (especially of the present moment) is
considered as such a 'power'
 Creativity and innovation
• Creative problem solving
• Challenges vs problems
• Rapid change
• Creative leadership
• Brainstorming
• Collaboration.
 Globalization
• Management practices are to be based on the
trend of globalization
• Managers Have to think globally
• Global competition has further increased the
need for enhancing Quality and productivity
• Education has to make the professionals ready
for globalised environment with cultural
diversity and issues of global nature
 Creative Leadership

The ability to deliberately engage one’s

imagination to define and guide a group
toward a novel goal – a direction that is new
for the group. This has profound influence on
workplace ,community ,school, family and
individuals as such
Affective Management
Thought leaders
“Lead without a Title” by Robin
Sharma
“Focus-The Hidden Driver of
Excellence "by Danial Goleman
“On becoming a Person” by Carl
Rogers
 Personality and Emotions & Perception and
Individual Decision Making
• Personality: The sum total of ways in which an individual
reacts and interacts with others
• The Big Five Model:
• Extraversion-comfort level with relationship
• Agreeableness- cooperative, warm and trusting
• Consciousness-
reliability,responsible,organized,dependable and
persistent.
• Emotional stability – stress management
• Openness to experience- novelty, creative, takes unfamiliar
 Attributes influencing OB
• Locus of control- The degree to which people believe they
are masters of their own fate
• Machiavellianism-Degree to which an individual maintains
emotional distance and believes that ends can justify means.
• Self esteem
• Self monitoring, self regulation Self aware, Self
reflection, having relationship skills- 3 “R” s
• Risk taking,
• Type “A” Personality
 Emotions
• Emotions are intense feelings that are directed at
someone or something
• EI- What is the emotion, Cause of emotions, intensity
of emotions .
• Body language, tone and words inn communication
• Emotional intelligence as a fundamental requirement
on the job and in the interaction skill.
• Empathy and compassion, degree of desire to
understand the other. Carl Rogers work on client
center approach in Health Care.
 Perception
Perception- A process by which individuals organize and interpret
their sensory impressions in order to give meaning to their
environment
Person Perception : Making judgment about others
Shortcuts in Judging others
1. Selective Perception- On the basis of their interests,
backgound,experience and attitudes
2. Halo Effect-Drawing impression on the basis of a single
characteristic- Teacher in a trial class
3. Projection-attributing one’s own characteristics to other people-
you think everyone wants challenges if you want challenges
4. Stereotyping- to which group he belongs- A “phatan”
RECAP
 Values and attitude
• “ Discriminating is wrong” is a value
statement. Such an opinion is the cognitive
component
• Attitude are less stable than values
• Emotional component is the most important
component
 Components of Attitude
They are evaluative statements or judgments
concerning objects, people or events
1. Cognitive component
2. Affective component-emotional or feeling segment
3. Behavioral component
Example-Attitude towards Housekeeping or Beef eating
Advantages of viewing as three components

• It is helpful toward understanding their

complexity

• Understanding the potential relationship

between attitude and behaviour
 CONSUMER BEHAVIOUR AND
ADVERTISEMENT
• Advertising messages attempt to change your
attitudes towards a certain product or services
• If Maruti can get you hold a favourable feeling
towards “swift”
 CONSUMER BEHAVIOUR AND
ADVERTISEMENT
“Daag achey hain” by surf excel---- comment on
the attitudinal change
 Job related attitudes
• Attitude Employees hold about work
environment
• Job involvement-identification with the job
• Ethics
• Organizational commitment - identification
with the organization
• Attitude towards quality or customer service
Productivity is an attitude of mind. It is a
mentality of progress of the constant
improvement of that which exists. It is the
certainty of being able to do better today
than yesterday and continuously. It is the
constant adaptation of economic and
social life of changing conditions; it is the
continual effort to apply new techniques
and new methods, it is the faith in human
progress.
E.P. AGENCY
 Leadership
• Leaders make substantial difference in organizations.
• Basic diff. Between successful and unsuccessful
organization is due to effectiveness of leadership.
• In today's dynamic world, we need leaders to
challenge the status quo, to create vision of the
future and to inspire org.members to want to
achieve
 Major characteristics of Leader.
1. Clarity of vision.
2. High need for achievement.
3. High need for Integration.
What Is Leadership?
Leadership

The ability to influence a

group toward the
achievement of goals

Management

Use of authority inherent in

designated formal rank to
obtain compliance from
organizational members
 Trait Theories
Traits Theories of Leadership

Theories that consider

personality, social, physical,
or intellectual traits to Leadership Traits
differentiate leaders from
• Extraversion
non leaders
• Conscientiousness
• Openness
• Emotional Intelligence
(Qualified)
 Trait Theories

Limitations
• No universal traits found that predict leadership
in all situations
• Unclear evidence of the cause and effect of
relationship of leadership and traits
• Better predictor of the appearance of leadership
than distinguishing effective and ineffective
leaders
 Behavioral Theories
Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate

leaders from nonleaders

Behavioral Theory
Leadership behaviors can be taught.
vs.
Trait Theory
Leaders are born, not made.
 Behavioral Approach
• Ohio State Studies/University of Michigan
– Initiating Structure/Production Orientation
– Consideration/Employee Orientation
• Assumption: Leaders can be trained
• Goal: Develop leaders
• Problem: Effective behaviors do not generalize
across situations.
 University of Michigan Studies
Employee-oriented Leader

Emphasizing interpersonal relations; taking a personal

interest in the needs of employees and accepting
individual differences among members

Production-oriented Leader

One who emphasizes technical or task aspects of the

job
 The
Managerial
Grid
(Blake and Mouton)

Assumptions

E X H I B I T 12–1
 Contingency Approach: Hersey and
Blanchard Situational Model
• Considers Leader Behaviors (Task and
Relationship)
– Assumes leaders can change their behaviors
• Considers Followers as the Situation
– Follower task maturity (ability and experience)
– Follower psychological maturity (willingness to
take responsibility)
Framing: Using Words to Shape
Meaning and Inspire Others
Framing

A way to use language to

manage meaning

Leaders use framing

(selectively including or
excluding facts) to influence
how others see and interpret
reality.
 Check yourself on leadership scale
• Willingness to take personal risk
• Self promoting personality
• Minimum internal conflict
• Any other quality ?
• Willingness to take personal risk
• Self promoting personality
• Minimum internal conflict
• Any other quality ?
Transactional Vs. Transformational Leader
 Transformational leaders inspire followers to transcend their
own self interest for the good of the organization and who is
capable of having a profound and extra ordinary effect on his
or her followers.
 They pay attention to the concern and developmental needs
of the individual followers, they change their awareness of
issues by helping them to look at old problems in new ways.
 They are able to excite, arouse and inspire followers to put
out extra effort to achieve group goals. They bring significant
change in organization
 Transactional Leader
• Contingent Reward: Contracts exchange of rewards for
effort , promises rewards, for good performance,
recognize achievements.

Transformational Leader
 Charisma: Provides vision, sense of mission, instills pride ,
gains respect and trust.
 Inspiration: Communicates high expectation.
 Intellectual stimulation: Promotes intelligence and
rationality
 Individualized consideration: Gives personal attention,
coaches and advises.
 They have vision , energy and entrepreneurship
 TRANSFORMATIONAL LEADER
• CHARISMA &TRANSFORMATIONAL LEADERSHIP ARE CLOSELY
INTERWINED
• CHARISMA IS A GREEK WORD MEANING DIVINITY INSPIRED
GIFT .IT MAKES MANY WANT TO BE LED
• ALL CHARISMATIC LEADERS ARE NOT TRANFORMATIONAL-
UNLESS YOU SIGNIFICANTLY CHANGE AN ORGANISATION ,
YOU ARE NOT A TRANFORMATIONAL LEADER!
Inspirational Approaches to Leadership
Charismatic Leadership Theory

Followers make attributions of heroic or extraordinary

leadership abilities when they observe certain behaviors.

Charismatic leaders:
1. Have a vision.
2. Are willing to take personal risks to achieve
the vision.
3. Are sensitive to follower needs.
4. Exhibit behaviors that are out of the
ordinary.
 Playing charismatic ..(Tutor able)
1. Undergraduate students were asked to “play”
charismatic”.
2. Researchers found students could learn
charisma!!!!!
3. Hence, charisma can be a - “Learned
behaviour”?
4. BUT KNACK CANOT BE IMITATED OR TAUGHT IT DEVLOPED
INSIDE IT IS NEITHER A SCIENCE OR AN ART
 COMMUNICATION STYLE OF TRANSFORMATIONAL
LEADERS

• Management by Inspiration
• Metaphors and analogies
• Gearing language to different audience taking
care diversity and globalization
• Management by anecdote
Case Studies…Transformational leadership
in action…

1. V.Krishnamurthy

2. N.R.Narayanmurthy
(Infosys technologies)

3. Mohandas Kramchand Gandhi

4. V. KURIEN

5. DHIRUBHAI AMBANI
 V . KRISHNAMURTHY
• TRANFORMATION OF THREE PUBLIC SECTOR
ORGANISATIONS
• SAIL,BHEL AND MARUITI
• He said – “Managing change effectively is the key to
success. If you fail to handle change , most probably
both the personal and professional life would
become miserable.
 N.R. NARAYAN MURTHY
• He built a world class software company –Infosys technologies
• Put India on the global software map
• Created history by becoming the first Indian registered company to list
on American stock exchange
• Did M.Tech at IIT/Kanpur where he got introduced to computer
• Turned down well- to- do-job offers from AIR INDIA,HMTJK ECIL, TELCO
and joined IIM(Ahmedabad)
• ASPIRATIONS-Ever higher targets
• Launched infosys consultant in July 1981
 MOHAMDAS KARAMCHAND GANDHI

• GANDHI- THEY CANNOT TAKE AWAY OUR SELF

RESPECT IF WE DO NOT GIVE IT TO THEM
• GANDHI WAS OUT IN THE RICE PADDIES , QUIETLY
SLOWLY, EXPANDING HIS CIRCLE OF INFLUENCE WITH
FIELD LABOURER
Creative Leadership in Health Care
By SK Puri
Creative
LEADERSHIP
Skills That Drive Change
 Creativity
• Every human is a creator – in manufacturing,
services ,art, literature ,music, humor.
• Airplanes, cars ,light bulbs, telemedicine…..
• Organizations becoming Agile creative for
better world
• World solutions/innovations (accepting
challenges)
• Creativity and flow of ideas-idea generation
 Traditional vs Creative frame
• Traditional frame-Authority & position-I have
all the answers
• Creative frame-
Inspirational,creative,brainstorming,collabora
tive,integrative,cross
functional ,interdisciplinary &
interdependence
• Both exits in everyone. Left and right brain, Yin
and yang ,Head and tail- same coin
 Why creative leadership
• Organizations and communities to respond to change
• Leaders skills demand now creative thinking and to
foster it in others through influence/change
management/fostering change

• Effective leader is to have skills of creativity

• Flexible adaptive thinking to proactively introduce

change
 Defining Creative leadership

The ability to deliberately engage one’s

imagination to define and guide a group
toward a novel goal – a direction that is new
for the group. This has profound influence on
workplace ,community ,school, family and
individuals as such
 Differences between group and team
A Group Team
• Occasional / unplanned • Planned
• No defined role • Clear purpose
• Loose structure • Organised & Lead
• Diverse • Shared Perception
• Cooperates
• Supports and develop
members

73
 What is a team?
A real team is a small number of people with
complimentary skills, equally committed to a
common purpose to which they hold
themselves accountable
Katzen b smith

74
 Advantages of Team Work
1. opportunity to learn with and from each other
2. sharing of expertise and ideas
3. growth of individuals and professional development
4. creation of energy and enjoyment
5. building common goals and better decision making
6. improvement in standards
involvement and commitment
 A team agrees to clear, challenging objectives
 A team has a synergy
 A team learns from experience
 Stages of Team Development
• Forming- Intro, Basic objectives
• Storming- Conflicts & Disagreements
50% teams fail
• Norming- Tolerance,
At least “Agree to Disagree”
Good Working relationship & Productivity
• Performing- Appreciative for others views,ideas. High
productivity.
 Defining Motivation
• The processes that account for an individual’s
intensity, direction, and persistence of effort
toward attaining a goal
• We will concentrate on organisational goals
 Four early theories of motivation
• Maslow’ s hierarchy of Needs

• Theory X and Theory Y theory

• Two factor theory – also called motivation –
hygiene theory

• Mc claelland’ s theory of needs –

n Ach,nPow and nAff
 Two main approaches to Team Motivation
• Negative Team motivation-Belittling employees, fear factor
principle, shouting at them. These are short term

• Positive Team Motivation- It is based on positive reinforcement :

1. Understand individual strengths & weaknesses and how they

effect when operating in team
2. Building self esteem of both the team & individuals
3. Each member is valued-seeking their opinion, sharing
information & allowing their contribution to play a role in team
decisions.
Barriers to Change.

Why do people resist change?

1. The status quo provides a certain
comfort zone
2. Need for stability
3. Need for predictability
4. Fear of the unknown
5. Others???
 WHY CHANGE..

Most organizations have been designed

to solve yesterday’s problems, rather
than capitalizing on today’s opportunities
to effectively confront the issues of
tomorrow.
CONFLICT MANAGEMENT
The delicate balance

BY
Satinder.Krishan Puri
 DEFINITION OF CONFLICT
• IT IS A PROCESS THAT BEGINS WHEN ONE PARTY
PERCEIVES THAT ANOTHER PARTY HAS NAGETIVELY
AFFECTED OR IS ABOUT TO NEGATIVELY AFFECT,
SOMETHING THAT THE FIRST PARTY CARES ABOUT.
 TYPES OF CONFLICT
• TASK CONFLICT

• RELATIONSHIP CONFLICT

• PROCESS CONFLICT
 TRANSITION IN CONFLICT THOUGHT
• Traditional View: Conflict was bad, viewed as negative &
harmful and to be avoided.

•Human Relation View: Argued that conflict was natural

occurrence in all groups and organizations and is inevitable.
Hence, advocated acceptance of conflict.

•Interactionist View: Encourages a minimum level of conflict

to keep the group viable, self – critical and creative.
 FUNCTIONAL Vs. DYSFUNCTIONAL CONFLICT

• Functional Conflict is constructive form of conflict.

It support the goals of the group and improves its
performance.

• Dysfunctional Conflict is destructive form of conflict

and hinders group performance.
 CONFLICT HANDLING
INTENTIONS/STRATIGIES
• COMPETING

• COLLABORATING

• COMPROMISING

• ACCOMMODATING

• AVOIDING
 Barriers to conflict management-I
• Deficits in relationship skills and inability to maintain goodwill
• Not able to find a win- win solution
• Poor orientation to conflict – they are problems that can be handled
constructively or destructively.
• You should not act impulsively but should be prepared to work through
the problems posed.
• Poor confrontation skills
• Poor timing
• Lack of openness. State the real reason for the conflict
• Creating a negative climate
• Poor follow-up skills
• Combative rather than collaorative frame of mind
 Organization Design
Organizational design is a step-by-step methodology which
identifies dysfunctional aspects of work flow, procedures,
structures and systems, realigns them to fit current
business realities/goals and then develops plans to
implement the new changes. The process focuses on
improving both the technical and people side of the
business.
Excellent customer service
Increased profitability
Reduced operating costs
Improved efficiency and cycle time
A culture of committed and engaged employees
A clear strategy for managing and growing your business
 Structural and non structural changes

Considerations for business design

• Environment-internal and external-planning premises;
strategy considering core competency, vision, mission and
objectives provides direction; Technology not only process
technology but systems like ERP;People and culture involving
behavior aspects (OD). Products, types of business, new
markets, centralized or decentralized structure( example BHEL
SAS region wise ),Product/region or even matrix structures,
selection of technology.
 Power and Politics
Types of Power and playing of politics in an organization to gain
;limited distribution like tour ,opportunity for expansive
training etc.
1. Coercive Power-Power based on fear
2. Reward Power-ability to distribute power
3. Legitimate power- it is due to your position in the formal
hierarchy
4. Expert power- Influence based on special skills or
knowledge
5. Referent Power- Influence based on desirable resources or
personal traits- Amitab Bachan endorsing