ORGANIZATIONAL BEHAVIOUR

Dr. Pramod M

What is mgmt
Management
Art of

Seeing that

knowing exactly what u want to do

it is done in the cheapest and best way.

4 aspect-

economic performanceDirecting peopleDecision makingExecutive functions9/2/2013

high operation efficiency making people work making decisions POSDC

Nature and characteristics of mgmtMgmt is a process- series of interrelated activities in sequence-POSDC It is an abstract phenomenon- cannot be seen or touched Decision making- success depends on quality and timeliness of decisions Nature and characteristics of mgmtWorking with and through peopleleading and motivating people

Goal oriented- achieves goals with given resources and time

Universal and multi disciplinary Integrates 9/2/2013activities
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Is mgmt an art or science?

practical knowhow Needs experience ART ARTFUL SCIENCE

Needs creativity
Personal element knowledge developed systematically Fact based SCIENCE

Impersonal and unbiased results

Clarity of concepts Empirical evidence Universal Cause and effect relationship

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Levels in mgmt
Top level
BOD, CHAIRMAN,CEOS:- Determine objectives, policies, rules and procedures , Analyses and evaluate business environment and responses , Finalize strategic decisions , Decide structure , Deal with legal , financial and tech issues

Middle level
upper middle level and lower middle level:- Dept headsefficient functioning of their respective dept, they plan operations, guide employees, coordinate efforts, manage resources, maintain relations , Deputy mgrs- they assist UML

Bottom level
Supervisor, sales officer :- more relevant to production/ operation and marketing activities , Prepare and implement plans for day to day activities , Maintain discipline , Manage materials and facilities , Report performance and problems
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Classification of mgmt functionsPlanningplanning function, thinking process, determines what to do, why to do, when to do, how to do, who to do, best solution among alternatives, forecasting and DM

Organizingdepends on the type of plan, defines the structure, people, task, responsibility, authority of a particular plan. Determines the activities, groups. prepares the organization charts and manuals

Staffingfilling the positions created by organizing, acquiring , maintaining and developing HR for the smooth function of various operations, manpower planning, selection and recruitment, T and D, wage and salary determination, promotion and transfer, performance apprise.

Controllingcritical/ regulatory function, ensures the plan has been implemented successfully and the objectives accomplished. Corrective actions are taken. Planning is meaningless without a proper control and controlling is not possible without a good 9/2/2013 plan.

Directinginstructing, guiding, inspiring, supervising people to make them work, leadership qualities, motivation, communication , supervising are 6 necessary.

Mgmt objectives and roles

Social, economic

Mgmt objectives

human national.

Managerial roles

views of MINTZBERG

figurehead, leader, liaison Interpersonal

10 roles in 3 sets Informational Decisional monitor, disseminator, spokesperson entrepreneur, disturbance handler, resource allocator, negotiator
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Schools of mgmt thought

The different views on mgmt given by experts are known as mgmt thought and the teams of persons who develop these thoughts are known as schools of mgmt

scientific mgmt, administrative mgmt behavioral and human relations school

Classification of SMT

Classical school Neo classical school Modern school Others

system school, social system and social tech system school, contingency school

empirical, mgmt process, decision theory , mathematical, HR school

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Classical School
Classical schoolFW Taylor, Henri Feyol, Gilberth, Gantt

Scientific mgmt
Gantt chart by Gantt- graphical representation of duration of tasks against time. FW Taylor considered as the father of scientific mgmt ContributorsWork study and psychology of work by gilberth, division of labor, time study techniques, quality control by charles baggage, importance of productivity and way to improve it by FW tylor. FW tylor was the first to define managerial problem in a scientific way.

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Elements of SM
Separation of planning and doingJob analysis- best way of doing a job Differential wage systemfunctional foremanship Time study, motion study, method study, rest and fatigue study

Standardization

Elements of SM

Scientific selection and training Mutual revolutionFinancial incentives Economic perspective-

associate wages with productivity mutual cooperation between mgmt and workers increase efficiency by decreasing cost and wastage

Replacing rule of thumb with science Harmony in group not discord Cooperation , not chaotic individualism
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Administrative Mgmt
Administrative mgmt
He classified adm. Mgmt into 4 groupsclassification of business activities:Henry fyol is considered the father of administrative mgmt Managerial qualities:general principles of mgmt::- technical, accounting, commercial, financial, managerial, security physical, mental, moral, educational, technical, experience

elements of mgmt:-

planning, organizing, commanding, coordinating and controlling

division of labor, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual to general interest, remuneration, centralization, scalar principle, order, equity, stability, initiative, esprit de corps 9/2/2013

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Neoclassical school
Neoclassical school
Interpersonal relations and inter group behavior

also known as human relation school

Very similar to behavioral school of mgmt

pioneered by Elton mayo and teamhawthorn experiments

Learning, perception, attitude , personality elements

Transactional analysis and ego state Change and conflict mgmt Group dynamics

Highlights the importance of human factors in organization, the complex nature of humans at work, the balance between inducements and contributions

Main areas of neoclassical school

Leadership, motivation, communication and supervision elements (LMCS)

Work design and org climate

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Main points
Makes mgrs to treat humans as valuable assets Authority if not accepted, cannot make people work- participation, decentralization, recognition, and acceptance.

Solve human problems; make workers happywhich increases productivity.

Main points

Informal groups are very powerful and uncontrollable- they affect performance and relations, informal communications and informal relations are very necessary. Directing techniques- LMCS- are very important

Behavior can be generated, studied, shaped, modified, and controlled. Mgr should sincerely try these to increase productivity.
Proper work climate is essential. 9/2/2013

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Modern school
Modern school
focuses on more contemporary situations- problems, environmental forces and opportunities.

system school

contingency school

social system and social technical system school

What is a system? set of interrelated, interconnected and interdependent elements interacting continually both internally and externally to form a complex entity

combination of many subsystems, and views organization s a unified and purposeful system of interrelated parts

Classical school failed because it had a narrow vision, inability for integration and inability to view mgmt as a whole.
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Modern school
Systems and subsystems interact continuously.

Main highlights

System generates synergy- parts working as a system contribute more than if each of them works independently

System needs to be open, dynamic, multi dimensional, a multidisciplinary

System is highly probabilistic

Pioneer of system school is Chester Bernard

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Social / Social tech. system schoolSocial systems school

More emphasis to social and cultural relations and cooperation based mgmt system Need for formal and informal communication is highlighted considers mgmt as a social system Chester Bernard and vilfredo pareto are the pioneers gives importance to sociological studies rather than psychological studies as in behavioral school importance to informal groups is duly noted.

Social technical system school-

- here mgmt study and practice are not limited to social issues

The technology and production methods affect the social system thereby affecting the attitudes, satisfaction and behavior of the workers.
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Contingency school
most relevant and modern thought Implies that mgmt practices are purely situational. Joan woodward, mintzberg are the main contributors Best fit approach in one situation may not be valid for another situation.

Contingency school-

Mgr is to identify which technique is the beat for a particular situation at a given time The main situational factors are environmental, organizational and individual.. understand the environment and make required adjustments on continues basis to develop and excel
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Organizing v/s organization

to divide work into activities

Organizing
a systematic attempt

to group these activities to assign activities and delegate authority

Organization

to define and establish relationship among groups

to harmonize and coordinate efforts of people to achieve desired results effectively

is a structure of complex interrelated interconnected parts

that provides a basis for the implementation of plans and achievement of desired goals.

whereas Organizing is a process

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organization is a structure

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Organizing
Assigning responsibilities
Specifying objectives

Determining activities to be performed

Grouping activities Delaying authority Preparing organizational charts and manuals

Organizing process:-

Establishing interrelationships

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Significance of an organization
Tool for mgmt action Achievement of objectives efficiently Specialization

Promotion of healthy relations and creativity

Optimum use of resources

Significance

Reputation and good will Provision for all activities Delegation of authority / effective work assignment Clarity and reduced conflicts Better coordinating, satisfaction and morale Flexibility and balance
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effective organization
Simplicity structure should be simple to understand and free from complications capable of coping with the ever changing business environment. Easily able to make the necessary changes both internal and external basic structure must be permanent

Flexibility

Main features

Stability

Suitability

structure should be suitable to the overall conditions of the business unit top mgmt should be present to guide, supervise coordinate and control the efforts of all dept
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Provision for top mgmt

effective organization
should be capable to meet human needs, motivate them and control their behavior to get things done in an efficient manner Human element similar types of activities performed under one function which results in increased efficiency clear and unbroken line of authority from top to bottom which facilitates speedy action and better coordination every subordinate should get orders, direction and guidelines from one superior and is responsible to only that superior. there should be a balanced approach between responsibility and authority. 22

Specialization

Main features

Scalar chain

Unity of direction

Balance

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effective organization
Absoluteness ultimate responsibility should be fixed for the final outcome

Main features

Staff function

proper use of staff members

Minimum levels

as far as possible there should be minimum levels which facilitate smooth communication and less complications optimum span of control should be maintained.

Span of control

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Organization structure
It is an effective mechanism that helps coordinate employees efforts for accomplishing goals

Vision and goal, Objectives and targets Decision making, Formal relation Communication, Delegating and decentralization Span of control, Organization climate Leadership styles, Physical facilities, Human resources
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Key elements-

Organization structure:- Types

Types of organizational structures
Entrepreneurial Line

Line and staff

Functional Management by objectives Management by exception Management by participation Project

Matrix

Management by situations

Assignment 1

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Organizational Behavior
organizational- related to organization Consists of two words

Organizational behavior

behavior- observable / measurable response and reaction.

Systematic study of human behavior in an organization for improving managerial decision making and productivity

Its multidisciplinary
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psychology, anthropology, sociology, politics, economics.

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Objectives of OB
Objectives:To describe human behavior To understand behavior To predict behavior To modify and control behavior

OB is concerned with describing, understanding, predicting, shaping, modifying, identifying and controlling human behaviorindividual or group- in an organization
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Characteristics of OB
Systematic and scientific study of humans at work Can study, shape, describe, predict, modify, control human behavior Performance oriented Its a major part of mgmt,

CharacteristicsStudies the relationship between behavioral causes and resulting outcomes

Multidisciplinary and universal Input to decision making and not a direct solution to any human problems
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What is human nature?

It refers to the distinguishing characteristics which include ways of thinking, feeling and caring. It is always unpredictable and difficult to comprehend.

Same type of organs and systems Different in looks and strengths Same culture Different values

Attitudes, motivation, perception Different according to nature and situation

Physical featuresSame senses

Similarities and dissimilarities in individuals:-

CultureDifferent interpretation

Psychological factors Sensation and interpretation Needs Human virtues

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Same needsphysiological, safety, esteem Intensity and ways to satisfy these needs vary Same virtues Different intensity and meanings 29

Importance of OB
Importance of OB
Most organizational problems are human problems and can be brought to an end by understanding humans. Helps analyze complex nature of humans at work, understands workforce and cultural diversity to improve performance Avoids assumptions about people and suggest right approach to manage them Prevents/minimizes unexpected events, improves productivity, reduces wastages Easily exercises motivation, leadership communication and supervision activities.

Contributing disciplines
Anthropology, psychology, sociology, social psychology, political science, economics, IT
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Different models of men at work

Economic man- works for money, evaluates his effort, contribution and commitment against money Social man-likes to built, improve and maintain social relations for satisfying social needs like affiliation, belongingness, acceptance etc

Different models of men at work

Self actualizing man- attempts to do something better, something different and something special to remain self satisfied. Achievement is a source of satisfaction Organization man- prioritizes organizational needs over personal needs. Committed and loyal to org, extends cooperation, involves in interactions with others and keeps association with organizational members
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Different models of men at work

Emotional/ impulsive man- reacts immediately. Not calculated or rational. Emotional or passionate behavior

Different models of men at work

Compulsive man- exerts most desirable behavior, behaves deliberately and consciously to satisfy others expectations. His behavior is regulated by original policies, rules and personality aspects. Behavior seems calculated t influence others Complex man- difficult to understand or predict. Anytime a mix of above models. Behavior do not take place in a predetermined cause and effect manner.

Each successive model is an extension of the previous on and not a replacement.

Man models at workhuman behavior----------------------------group influence, mgmt influence, organization influence----OB 9/2/2013

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Organizational culture
Org culture
It is a pattern of beliefs and expectations shared by the members of the org. The beliefs and expectations produce normsthat powerfully shape the behavior of individuals and groups in an org.

Org culture includes:-

Routine behaviors when people interact (rituals , ceremonies and languages) Norms that are shared by the teams throughout the org(guidelines) Dominant values held by the org(profit /service/quality etc) Philosophy that guides the org
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Levels of organizational culture

Exist in different levels,
Least visible or deepest level is shared assumptions:which differ in visibility and resistance to change

represents belief about the org represents collective beliefs , feelings and assumptions which tend to persist over time represents norms , easier to change and visible words, symbols, pic or gestures that have a particular meaning
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Next level is that of cultural values:Next level is that of shared behavior:-

Most superficial level is that of symbols / artifacts :-

Developing Org. culture

External adaptation and survival:how the org finds a upper hand in this ever changing competitive business environment

Mission and strategy, goals, means and measurement Formed in response to two challenges that confront every org

Internal integration:-

establishment and maintenance of effective working relationships

Language and concepts, group and team boundaries, power and status, rewards and punishments

Members share knowledge and assumptions as they discover and develop way of coping with issues of external adaptation and internal integration.

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Factors that shape org. culture

12 casual factors which shape a companys culture

Influence of a dominant leader History and tradition Technology products and services Industry and competition Customers Expectations Information and control system Legislation and company environment Procedures and policies Reward and measurement system Org and resources Goals values and beliefs

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maintaining Org. Culture

Methods of maintaining org culture What managers and teams pay attention to: - process and behaviors, events that gets noticed and commented upon. Reactions to incidents and crisis;-manner in which crisis are dealt with can either reinforce a culture or bring out a new one. Role modeling, teaching and coaching:- incorporating cultural aspects into training programs and day to day coaching Allocation of rewards and status:- what is rewarded and what is punished convey the priorities and values of the org Recruitment , selection, promotion and removal: Rites, ceremonies and stories:9/2/2013 37

Changing Org. Culture

Changing org culture Very difficult as assessing the existing culture is complex, difficult and time consuming Some org have more than one culture.. These multiple cultures are called subcultures Mainly 3 types----operating culture, engineering culture and executive culture

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How to change Org. Culture

How to change an org culture

Understand old culture thoroughly Set realistic goals Find the most effective subculture and use as an example Make changes from top down Include employees Execute in small steps and not attacking head on

Resistance to cultural change = magnitude of change * strength of prevailing culture

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Types of Org. Culture

Org culture have some common characteristics, Vertical axis reflects the relative control orientation:- stable to flexible, Horizontal axis reflects the relative focus of attention:internal functioning to external functioning, Within these there are 4 pure types of org culture: Bureaucratic Clan Entrepreneurial Market

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Types of Org. Culture

Bureaucratic: org that values formality, rules, std operating procedures and hierarchical coordination Long term concerns like predictability, efficiency and stability Formal behavioral norms Managers will be good coordinators, organizers and enforcers of written rules and standards Clearly defined tasks, responsibilities and authorities

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Types of Org. Culture

Clan: Org values tradition, loyalty, personal commitment, socialization, teamwork, self management, Workers understand that contributions to the org exceed beyond contractual agreement or salary Hold themselves accountable to the org Members take pride in their clan membership , strong sense of identification and interdependence Depending on the type of norms , this may or may not foster risk taking behavior or innovation

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Types of Org. Culture

Entrepreneurial: It values risk taking, dynamism, creativity Always committed to experimentation, innovation Creates change and quickly adapts to it Effectiveness is measured by new and improved products/services and growth Individual initiative, flexibility and freedom create growth and are well rewarded

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Types of Org. Culture

Market:

Org values achievement of measurable and demanding goals especially those which are financial and market based High competition and profit orientations prevail Relationship between individual and org is contractual Here org does not promise security and the individual does not promise loyalty Absence of long term commitment weak socializing Superiors interaction highly negotiating Often tied to monthly, yearly performance goals based on profit

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Performance & Org. Culture

Good culture can enhance org effectiveness, individual satisfaction, and problem solving but if culture gets out of hand effectiveness can be hindered. Seen that culture and performance are directly related Strong org culture facilitates goal alignment:- few problems of coordination and control, good communication, effective resource allocation High levels of employee motivation:-strong culture encourages people to identify with it and incorporates practices which make working for them rewarding. Helps effective problem solving:- due to strong norms , rituals ceremonies and stories, people can easily interpret issues and events and problems based on past experience
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Managing Cultural Diversity

Org becoming very divers in terms of gender, race, ethnicity and nationality This diversity can lead to improved DM, creativity and innovation These also bring great costs and concerns *** Main guidelines: People should understand that diversity will bring in different perspective and approaches to work- value the variety of opinion and insights Leader should recognize both the learning opportunities and challenges this diversity represent Should create an expectation for high performance Should stimulate personal development , openness, importance, Org should have a non bureaucratic structure

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