Organizational behaviour BY Suhan Mendon Professor Manipal Institute of Management Manipal University.

Organizational behaviour is a field of study

that investigates the impact that individuals, groups and organizational structure have on behaviour within the organization, for the purpose of applying such knowledge towards improving an organizational effectiveness".

 The scope of the organizational behaviour is as

under: Impact of personality on performance Employee motivation Leadership How to create effective teams and groups Study of different organizational structures Individual behaviour, attitude and learning Perception Design and development of effective organization Job design Impact of culture on organizational behaviour

 Management of change Management of conflict and stress

Organizational development
Organizational culture Group behaviour, power and politics

Job design
Study of emotions

Importance of OB
Organizational change: stress environment Understand and predict organizational life: different

people different behaviour OB theories and concepts influence on organizational events Improves interpersonal relations :APLC Motivation: Human problem need to be tackled: A) Employee on strike B) Employee slow in work

 Marketing

Career in management
Economical change

shortcoming:
Wrecks in personal life Interpersonal relationship: jealousies, back-

stabbing, harassment, inequalities in rewards. Repeat in history. Difference between manager and subordinates: common uniforms, shared canteens and open offices.

 OB is Selfish and exploitative Manager expect quick fix solutions

OB will not totally abolish conflict and

frustration. Ideas under different situations: Will conflict resolution strategies work? Will the motivational model be relevant? Will the leadership styles be practicable?

Contemporary of OB
Psychology: Personality, perception, attitude, learning,

motivation, job satisfaction, training, leadership effectiveness, performance appraisal, employee selection, work design and work stress. Sociology: Group dynamics, communication, leadership, conflicts, power and politics, formal and informal organization, organizational culture and change. Social psychology: Behavioural and attitude change, group processes and decision making, communication. Anthropology: Individual and organizational culture and organizational environment

Political science: Organizational power, politics and

conflicts

Foundations of individual behaviour

Personal factors:

1. Age
2. Sex 3. Education: specialized and general 4. Ability:

number aptitude(accountant), verbal comprehension(plant manager), perpetual speed(fire extinguisher), inductive reasoning(marketing researcher), deductive reasoning(supervisor), spatial visualization(interior decorator) and memory( sales person)

5. Marital status 6. Number of dependents 7. Creativity: background experience, personal traits and cognitive abilities. 8. Emotions and moods: a) Highly focused b) Expression of emotions are universal c) Culture and emotions expression

2. Environmental factors:
Economic environment: employment level, wage

rates and technological changes. Cultural environment: work ethics, achievement needs, reward expectations. Ethics and social responsibility: 3. Organizational systems and resources: Facilities Organization structure and design Leadership Reward system

Personality
Hereditary
Environment Family Socialization Situational change

The Myers-Briggs type indicator

1. Extraverted versus Introverted: E- outgoing and sociable I- quiet and shy 2. Sensitivity versus Intuitions:

S- practical, prefer routine and order

I- rely on unconscious processes 3. Thinking versus Feeling: T- use reason and logic to handle problems F- rely on personal values and emotions.

 4. Judging versus Perceiving: J- want control and prefer their world to be ordered. P- flexible and spontaneous.

INTJ: They are visionaries

Critical, independent, determined and often

stubborn ESTJ: They are Organizers. Realistic, logical, analytical and decisive. ENTP: They are conceptualizers. Innovative, individualistic, versatile and attracted to entrepreneurial ideas.

The big five personality model

1. Emotional stability: less negative thinking and

emotions- higher job and life satisfaction, lower stress level 2. Extraversion: better interpersonal skills, greater social dominance and more emotional expressivehigher performance, enhanced leadership and higher job and life satisfaction. 3. Openness: increased learning, more creative and more flexible and autonomous- training performance, enhanced leadership and more adaptable to change

 4. Agreeableness: better linked, more compliant

and conforming- higher performance and lower levels of deviant behaviour. 5. Conscientiousness: greater effort and persistence, more drive and discipline and better organized and planning- higher performance and enhanced leadership .

Other personality traits

Authoritarianism

Locus of control
Machiavellianism Introversion- Extroversion

Achievement orientation
Self- esteem

Risk taking
Self- monitoring Type-A and type-B

 Moving, walking, eating, restless, many

things at a time, cannot cope up with leisure

Perception
Perception is a process by which individuals

organize and interpret their sensory impression in order to give meaning to their environment. Factors that influence perception: 1. Factors in the perceiver: a) Attitudes: Hospital b) Motives: Boy and Girl c) Interests: Marketing d) Experience: Mobile e) Expectations: Baby and Mother

2. Factors in the target: a) Novelty: New building to MIM b) Motion: Fan and Movies c) Sounds: Movies d) Size: Person Size e) Background: Individuals f) Proximity: Oasis g) Similarity: Picture of person 3. Factors in situation: a) Time: b) Work setting: IIM, IIT c) Social setting: Certain Community Thinking

The process of interpreting

Stereotyping: group of people
Halo effects: more marks to someone Projection: traits of others in them Perceptual set: lazy workers and manager Attribution : nurse dropping try

Attribution Theory
Attributions - are the reasons we give for our own

and others behaviors. Fritz Heider argued that there are two general types of attributions that people make: 1. Personal attributions 2. Situational attributions

Personal attributions
Explanations in terms of personal

characteristics. For example: The baby must be a happy baby. Other examples: He scored well on the exam because he is smart. She tripped because she is clumsy.

Situational attributions
Explanations in terms of situational factors.

For example: Someone must have just played with the baby . Other examples: He scored well because it was an easy test. She tripped because a squirrel ran in front of her.

Self-serving bias
People do not make objective situational / personal

attributions for their own behavior, though. They tend to attribute their successes to dispositional factors, and their failures to situational factors. For example: I did well on the test because I am smart, or I did poor on the test because I didnt get enough sleep.

How do people make attributions?

Kelley argued that people take three factors into account

when making a personal vs. situational attribution: Consistency: Is the degree to which a person engages in the same behaviour at different times. Is the baby always smiling? Distinctiveness: Is the degree to which a person behaves similarly in the different situations. Are there occasions on which the baby doesnt smile? Consensus: Is the degree to which other people are engaging in the same behaviour. Do all babies smile?

Why Marketers are Concerned about How Consumers Learn

1. Marketers want to teach consumers about their products product attributes where to buy them how to use and dispose of them 2. They want to know how effective they have been in communicating with the consumer directly, through advertisements Indirectly, through product appearance, packaging, price and distribution channels

What is Learning?
Generally, learning is a process by which changes occur in

the content or organization of an individuals long-term memory From a marketing standpoint, learning can be thought of as the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior High involvement: consumers are highly motivated to process the information Low involvement: consumers have little or no motivation to process the information

Classical Conditioning

Operant Conditioning
Instrumental conditioning process- behaviour-

consequences-future. Coffee vending machine Individual- works- is paid Individual- enters a restaurant- obtains food Individual-enters library-finds book Individual- complete difficult assignmentsreceives praise and promotions.

Cognitive theory

Maslows Hierarchy of Needs Model

 Physiological needs:

Peruvian Airline crash Salary and basic working conditions Safety needs: income, insurance and own house Natural calamities Job security, salary increase, safe working conditions, unionization, pension scheme, gratuity, PF, grievance and insurance etc. Social needs: family and reference group. Work group, peer acceptance, professional friendship and friendly supervisor. Self-esteem need: self respect and esteem. Prestige, status, recognition, attention, acceptance, appreciation

Job title, merit pay increase, peer/supervisory recognition, publicity in company, challenging work and responsibility. Self-actualization needs: desire to become everything that one is capable of becoming. Talents, capacity and potentials highest level Exceling in ones job, advancing an important idea and successfully managing a unit.

Herzbergs 2-Factor Theory

Determinants of Job Dissatisfaction are Hygiene* Factors: Pay, fringe benefits Working conditions Quality of supervision Interpersonal relations Company policy and administration Status and security Job Environment Factors *
Poor hygiene can make you, sick, but good hygiene wont necessarily make you healthy

 Determinants of Job Satisfaction are Motivator

Factors: Work itself Responsibility Advancement Recognition Growth Achievement

1. when did you feel good about your job? 2. when did you feel exceptionally bad about your

job?

McGregor theory X and Y

McGregor looked at the way in which

employers and employees traditionally viewed work The employer paid the money and gave instructions, and the worker did the job without asking questions (THEORY X)

 Theory X workers: Dont like working

Do as little as they can get away with

Dont like things to change Need to be told what to do Cant be trusted to make a decision Are only interested in MONEY

Must be closely watched

Cant be trusted or relied upon

 Theory Y workers:
Enjoy their work

Will work hard to get rewards

Want to see new things happening Will work independently Can be trusted to make decisions Are motivated by things other than money

Can work unsupervised

Group Dynamics
Group Characteristics:
Interaction among members Common interests or goals People see themselves as members Two or more people are needed to form

groups Crowd on a street and whole organization

Types of groups
A standing task group: command

Task group:
Interest group: working mother and day care facility Friendship group:

Open and closed groups: changing membership,

frame of reference and time perspective. In groups and out groups: neighbour gangs and wars

Why do people join groups?

Proximity Interaction Influence Security

Esteem
Affiliation Power Identity

Stages of group development

Forming:

Awareness, commitment and acceptance Storming: Conflict, clarification and belonging Norming: Co-operation, development and support Performing: Productivity, achievement and pride Adjourning : Separation, recognizing and satisfaction

Stages of group development

Mutual acceptance
Communication and decision making Motivation and productivity Control and organization

Determinants of group behaviour

Organization strategy Authority structure Formal regulations Organizational resources

Procurement of personnel
Performance appraisal and reward system Organizational culture Personality characteristics

Group Cohesiveness:

Organizational culture and change

Individual initiative Risk tolerance Direction Integration

Management support
Control Identity Reward Conflict tolerance

Communication patterns

 Levels of cultures: National culture Organizational culture

Occupational culture
Business culture Authoritarian culture Participative culture Sub culture

Strong culture
Weak culture Unhealthy culture

Attitudes
Components of attitudes:

1. Affective: 2. Cognitive: 3. Behavioural: ABC model of attitude Formation of attitude Functions of attitude Changing attitude

Stress
Individual level stressor
Group level stressor Organizational stressor Extra-organizational stressors

Stress management

Power and authority

Power dynamics
Indicators of power Sources of power Types of political activity

Decision making
Nature of decision making
Types of decision making Models of decision making Barriers of effective decision making

Conflict and negotiation

Nature and process of conflict
Levels of conflict:

Intra individual conflict Inter personal conflict Intra group conflict Inter group conflict Strategies for resolving group conflict: Negotiation