1. Management Thought and OB for class Adj.pptx

mba

1. Management Thought and OB: Definition of Management, Approaches to Management: Classical, Behavioral , Quantitative. Management Principles of Taylor, Weber, Fayol; Hawthorne Studies, F ields contributing to OB, Managers’ roles and functions, OB in the context of globalization, W orkforce diversity. (3)

2. What is Organizational Behavior? According to Stephen P Robbins - “Organizational behavior is a field of study that investigates the impact that individuals, groups, and structure have on behaviors within the organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness ”.

3. Why OB? Responding to Economic Pressures Responding to Globalization Increased Foreign Assignments Working with People from Different Cultures Overseeing the Movement of Jobs to Countries with Low-Cost Labor Manager understands the organizational impacts of individual and group behaviors. Managers are more effective in motivating their subordinates. Relationships are better between management and employees. Managers are able to predict and control employee behavior. The organization is able to make optimally efficient use of human resources . Organizational benefits when managers have a strong foundation in OB:

4. Classical Approach S cientific Management A dministrative Management B ureaucratic Management Behavioral Approach (Neo-classical) Maslow’s Need Theory Theory X & Theory Y Hawthorne studies Quantitative Approach Management Science Operations Management Management Information System Major Classification of Approaches to Management Modern Approach The Systems Theory The Contingency Theory Classical Process Behavioural People Modern Integrative – (People, Process, Environment) AFTER WORLD WAR II INTER-WAR PERIOD INDUSTRIAL REVOLUTION TO WORLD WAR I

5. Industrial Revolution to World War 1

6. THE CLASSICAL SCHOOL OF MANAGEMENT Core Ideas 1. Application of science to the practice of management. 2. Development of basic management functions. 3. Articulation and application of specific principles of management . Evolved in response to the shift from handicraft to industrial production. Emphasis is on the economic rationality of people and organizations; motivated by economic incentives, they make choices that yield the greatest monetary benefits.

7. Frederick Taylor – 1911 - Time and Motion Studies “Principles of Scientific Management” - The Scientific School of Management Proposed to identify “the one best way” of doing a job using scientific selection and training methods; cooperation and clear division of responsibility between managers and workers ; pay for performance. Taylor believed that if the amount of time and effort that each worker expends to produce a unit of output can be reduced by increasing specialization, redesigning the work process and division of labor, the production process will become more efficient. Codify the new methods of performing tasks into written rules and standard operating procedures.

8. Frank & Lillian Gilbreth 1912 - 1924 Time and Motion Studies Disciples of Frederick Taylor , their time and motion studies helped lay the foundations for Scientific Management – the best possible way for a worker to complete a job. The expected results are employee satisfaction, productivity, and efficiency. Scientific Management

9. Henry Gantt 1910 - 1915 Project Scheduling – The Gantt Chart An associate of Frederick Taylor, he designed a project scheduling model for increasing the efficiency of project execution and completion. Scientific Management

10. Criticisms of The Classical School of Management No one is entirely driven by economic motivations. People’s choices and behavior are dictated by other factors such as social needs, security, and self-esteem. There is no such thing as “the best way” to do a job. Extreme division of labor tends to produce monotony and reduce overall skill levels. People managed like machines. The introduction of newer machines led to job elimination.

11. Henri Fayol 1916 - The Administrative School of Management Managers need specific roles in order to manage work and workers. Fayol’s Principles of Management - He enumerated 6 functions/roles of management. 1 . Forecasting 2. Planning 3. Organizing 4. Commanding 5. Coordinating 6. Controlling

12. Fayol’s Principles of Management 1. Division of Labour 2. Authority and Responsibility 3. Unity of Command 4. Line of Authority 5. Centralization 6. Unity of Direction 7. Equity 8. Order 9. Initiative 10. Discipline 11. Remuneration of Personnel 12. Stability of tenure of Personnel 13. Subordination of Individual Interests to the Common Interest 14. Esprit de Corps (Union is Strength (teamwork)

13. Max Webber 1905 ( Theory of Bureaucracy) Developed the principles of bureaucracy- a formal system of organization and administration designed to ensure efficiency and effectiveness. A major contribution is his “bureaucracy” theory, a formalized and idealized view of organizations, comprising major principles. A Manager’s formal authority derives from the position he holds. Positions to be given on basis of performance, not on social standing or personal contacts. Scope of each position’s formal authority & task responsibilities and its relationship to other positions in an organization, should be clearly specified. To effectively exercise authority positions should be arranged hierarchically , so employees are aware of the line of reporting. Managers to create a well-defined system of rules, SOP, and norms to effectively control behavior.

14. Clearly specified System of task and Role relationships Selection and evaluation System that rewards Employees fairly and Equitably. System of written rules and SOPs that specify how Employees should behave Clearly specified Hierarchy of authority A bureaucracy Should have

15. Rules Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals. Rule: At the end of the day employees are to leave their machines in good order. Standard Operating Procedures Specific sets of written instructions about how to perform a certain aspect of a task. SOP: Specifies exactly how they should do so, and which machine parts should be oiled or replaced. Norms Norms are unwritten, informal codes of conduct that prescribe how people should act in particular situations. E.g.: An organizational norm in a restaurant might be that waiters should help each other if time permits.

16. Inter-war period Neo-Classical Period

17. THE BEHAVIORAL SCHOOL OF MANAGEMENT - 1920 - 1930 Core Concepts - Grew in reaction against the Scientific Theory of Management which emphasized standardization of jobs, processes, and technologies to maximize economic return. Focus shifted to the human side of organizations. The study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed. 1 . The best way to motivate, structure, and support employees. 2. The need for workers to find intrinsic value in their jobs. 3. The positive impact of social relationships on worker productivity. 4. The fulfillment of the emotional needs of workers is important in achieving economic goals. 5. Employee satisfaction and working conditions are important in achieving worker productivity. 6. Workers are intrinsically motivated to work when they feel a sense of belonging and participate in decision-making. 7. Workers desire diverse and challenging work.

18. Abraham Maslow – 1954 – “Motivation and Personality”

19. Douglas McGregor – 1960 - “Human side of Enterprise” His t heory X and Theory Y proposed two sets of assumptions about how work attitudes and behaviors not only dominate the way managers think but also affect how they behave in organizations. Theory X Managers Workers must be coerced and controlled to work towards organizational goals. Workers are inherently lazy, lack ambition , and prefer to be directed rather than take responsibility. Workers are self-centered and only care about themselves, not the organization. Workers dislike change and will resist it at all costs. Theory Y Managers On encouragement to develop their full potential will work towards achieving organizational goals. With appropriate incentives and support, workers will seek out and fulfill responsibilities on their own. Workers will apply their ingenuity, creativity, and hard work to meet organizational goals. Caution: Self-Fulfilling Prophecy - Workers behave as expected by managers due to the manager’s own behavior and actions.

20. Managers Who Accept Theory X To keep performance high, workers must be supervised closely and their behaviors be controlled by means of “the carrot and stick”-rewards and punishments Design and shape work setting to maximize control over workers’ behaviors. Minimize the workers’ control over the pace of work. Focus is on the development of rules, SOPs, and a well-defined system of reward and punishment to control behavior. Managers see little point in giving autonomy to solve their own problems. Managers see their role as closely monitoring workers. Managers Who Accept Theory Y Decentralize authority More control of workers over their jobs Remain accountable for their jobs Managers’ role is not to control but to provide support and advice and to evaluate them on their ability

21. To Summarize - Behavioral School is a logical extension of the Human Resource School. They are largely concerned with the motivation of workers. Workers are diverse in their needs and want challenging work, participative decision-making, self-direction, and control. Managers must help workers deal with situational constraints and social aspects of organizational and environmental changes .

22. The Hawthorne Studies

23. The Hawthorne experiment - ELTON MAYO -FATHER OF HUMAN RELATION APPROACH It was conducted on workers at the Hawthorne plant of the Western Electric Company, Chicago by Elton Mayo and Fritz Roethlisberger and T.N. Whitehead in the 1920s. Original aim was to study the relationship between productivity and physical working conditions. The research was conducted in 4 phases : PHASE 1: ILLUMINATION EXPERIMENT (1924-27) PHASE 2: RELAY ASSEMBLY TEST ROOM EXPERIMENT (1927-28) PHASE 3: MASS INTERVIEWING PROGRAMME (1928-1930) PHASE 4: BANK WIRING OBSERVATION ROOM EXPERIMENT (1931-1932)

24. PHASE 1: ILLUMINATION EXPERIMENT (1924-27) Experiments were conducted on 2 groups of workers to find out how varying levels of illumination affected productivity. One group was exposed to varying intensities of illumination. Since this group was subjected to experimental changes, it was termed the experimental group. Another group, called the control group , continued to work under constant intensities of illumination. As illumination was increased in the experimental group, both groups increased production. When the intensity of illumination was decreased, the production continued to increase in both groups. The production in the experimental group decreased only when the illumination was decreased to the level of moonlight. The decrease was due to light falling much below the normal level. I t was concluded that illumination did not impact productivity but something else was interfering with it. It was inferred that the human factor was important in determining productivity but which aspect was affecting it, it was not sure. Thus, another phase of experiments was undertaken

25. PHASE 2: RELAY ASSEMBLY TEST ROOM EXPERIMENT (1927-28) It was designed to determine the changes in various job conditions on group productivity. The researchers set up a relay assembly test room and two girls were chosen who were asked to choose four more girls as coworkers. The work related to the assembly of telephone relays . Each relay consisted of a number of parts that girls assembled into finished products. Output depended on the speed and continuity with which girls worked . The experiments started by introducing numerous changes in sequence with a duration of each change ranging from four to twelve weeks. An observer was associated with girls to supervise their work. Before each change was introduced, the girls were consulted. They were given the opportunity to express their viewpoints and concerns to the supervisor. The incentive system was changed so that each girl's extra pay was based on the other five rather than the output of a larger group, say, 100 workers or So . The productivity increased as compared to before.

26. Two five-minute rests, one in the morning session and the other in the evening session were introduced which were increased to ten minutes . Productivity increased. The rest period was reduced to five minutes but the frequency was increased . The productivity decreased slightly and the girls complained that frequent rest intervals affected the rhythm of the work. The number of rest was reduced to two of ten minutes each , but in the morning, coffee or soup was served along with a sandwich and in the evening, a snack was provided. Productivity increased . Changes in working hours and workday were introduced, such as cutting an hour off the end of the day and eliminating Saturday work. The girls were allowed to leave at 4.30 p.m. instead of the usual 5. 00 p.m. and later at 4.00 p.m. Productivity increased. As each change was introduced, absenteeism decreased, morale increased and less supervision was required.. It was assumed that these positive factors were there because of the various factors being adjusted and making them more positive. At this time, the researchers decided to revert back to the original position, that is, no rest and other benefits. Surprisingly, productivity increased further instead of going down. P roductivity increased not because of positive changes in physical factors but because of a change in the girl's attitudes towards work and their workgroup. They developed a feeling of stability and a sense of belongingness. Since there was more freedom of work, they developed a sense of responsibility and self- discipline.The relationship between supervisor and workers became close and friendly.

27. PHASE - 3 MASS INTERVIEWING PROGRAMME (1928-1930) About 21,000 interviews were conducted to determine employees’ attitudes towards the company, supervision, promotion, and wages. Initially, these interviews were conducted by means of direct questioning such as 'do you like your supervisor? or is he in your opinion fair or does he have favorites? etc. Since this method had the disadvantage of either stimulating antagonism or the oversimplified 'yes ' or 'no’ responses could not get to the root of the problem , the method was changed to non-directive interviewing where the interviewer was asked to listen instead of talking, arguing, or advising. During the course of interviews, it was discovered that workers’ behavior was influenced by group behavior. However, this conclusion was not very satisfactory and, therefore, researchers decided to conduct another series of experiments

28. PHASE - 4 BANK WIRING OBSERVATION ROOM EXPERIMENT (1931-1932) It was carried out with a view to analyzing the functioning of small groups and its impact on individual behavior. A group of 14 male workers was employed in the bank wiring room- 9 wiremen, 3 solder men and 2 inspectors The work involved attaching a wire to switches for certain equipment used in a telephone exchange. Hourly wage rate for the personnel was based on average output of each worker while bonus was to be determined on the basis of average group output. The hypothesis was that in order to earn more, workers would produce more and in order to take the advantage of group bonuses, they would help each other to produce more. However, this hypothesis did not prove right. Workers decided the target for themselves which was lower than the company’s target, for example, the group’s target for a day was connecting 6000 terminals against 7000 terminals set by the company.

29. Workers’ reasons for restricted output: Fear of Unemployment. The basic reasoning of workers was that if there would be more production per head, some of the workers would be put out of employment. Fear that once standard production was reached it would be raised further . Protection of Slower Workers By not overproducing – had family responsibilities, fear of retrenchment Satisfaction on the Part of Management. W orkers believed, that management seemed to accept the lower production rate as no one was being fired or even reprimanded for restricted output. The workers in the group set certain norms of behavior including personal conduct. The workers whose behavior was in conformity with both output and social norms were most preferred. This study suggested that informal relationships are an important factor in determining human behavior.

30. IMPLICATION OF HAWTHORNE EXPERIMENT It introduced a new chapter in management by suggesting Management through good human relations . ( motivating people to develop teamwork for achieving organizational goals) Group Influence : Workers being social beings, create groups that may be different from their official group. The group determines the norm of the behavior of members. Any deviation from the group norm will make a worker unacceptable to the group. Conflicts: The informal relation of workers creates groups , and there may be a conflict between organizations and groups so created due to incompatible objectives between the two. Leadership: is important for directing group behavior, and an important managerial function. At times the informal leader is more important in directing group behavior because of his identity with group objectives.

31. Supervision : Supervisory climate is an important aspect in determining efficiency and output. Friendly to the workers, attentive, genuinely concerned supervision affects productivity favorably. Communication : Workers can be explained the rationality of a particular action, Participation of workers can be sought in decision-making concerning the matter of their importance. Problems faced by them can be identified and attempts can be made to remove these. A better understanding between management and workers can be developed by identifying their attitudes opinions and methods of working and taking suitable actions on these.

32. CRITICISMS OF HAWTHORNE EXPERIMENTS 1. It did not give sufficient attention to the attitudes that people bring with them to the workplace. They did not recognize such forces as class consciousness, the role of unions, and other external forces on the attitudes of workers. 2. The Hawthorne plant was not a typical plant because it was a thoroughly unpleasant place to work. So, the results could not be valid for others. 3. It considered the worker as a means to an end, and not an end himself . L ooked at the worker as someone to be manipulated by management. ▪ In spite of these shortcomings, Hawthorne’s experiments will be known for discovering the importance of the human factor in managing the organization.

33. The Hawthorne Effect Productivity increases when workers believe that they are being observed closely. Employees perform better when managers and co-workers make them feel valued. Financial rewards are not necessarily conducive to increasing worker productivity. Workers care about self-fulfillment, autonomy, empowerment, social status and personal relationships with co-workers.

34. The Quantitative School of Management Combines classical management theory and behavioral science through the use of statistical models and simulations . It combines rational thought with intuitive insight to resolve management concerns such as cost, production, and service levels. A major focus is on the process with which decisions are made, to ensure informed results.

35. Characteristics of Management Science Approach: Functional relationships examination from an overview of systems. Interdisciplinary approach. Understand and uncover different problems for studies . Using the modeling process approach for solving problems . Application of science to decision-making.

36. Operations Management Operations Management - Operations management theory is the set of practices companies use to increase efficiency in production. Operations management is concerned with controlling the production process and business operations in the most efficient manner possible. They do this in majorly in four different ways known as the Four V’s,- Volume, Variety, Variation, and Visibility

37. Management Information System (MIS) - is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. It involves people, processes, and technology in an organizational context. There are 4 types of MIS Transaction Processing System (TPS), - processes the routine transactions associated with a business. Example transactions include payroll processing, order processing, such as for an e-commerce business, and invoicing. Management Support Systems (MSS), - store and organize data, enabling end-users to generate reports and analyze data to address business needs and inform planning . A data warehouse is an example of a Management Support System. Decision Support Systems (DSS), which analyze business data to assist managers with decision making. For example, a DSS could project revenue figures based on new product sales assumptions. Expert Systems, which provide managers with insights and advice, using artificial intelligence (AI) to simulate the expert knowledge of a human in a particular field.

38. THE MODERN SCHOOL OF MANAGEMENT Core Concepts Dealing with complexity is the core of modern management theory. Organizations, Workers, Environment, and the interactions between them. It is a synthesis of several theories. Behavioral science, mathematics, statistics, operations / quantitative research, and computing technologies. Management is an exercise in logic applied to situations. Situations can be measured. Computers have an increasing role to play. Application of management knowledge is extended to non-business areas. Education, government, health care, and others.

39. The Systems School of Management - Ludwig von Bertalanffy 1937 (General Systems Theory) The Environment in which the system operates. Environmental elements have the potential to affect all or part of the system ORGANIZATION AS AN OPEN SYSTEM

40. Systems Approach A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. A system is basically a combination of parts (subsystem). Each part may have various sub-parts. An organization is a system of mutually dependent parts , each of which may include many subsystems. The systems approach implies that decisions and actions in one organizational area will affect other areas. For example , if the purchasing department does not acquire the right quantity and quality of inputs, the production department won’t be able to do its job. This approach recognizes that an organization relies on the environment for essential inputs. Further, the environment serves as an outlet for its outputs.

41. Primary Characteristics of an Organizational System? Sub-Systems - Each organization is a system made up of a combination of many sub-systems. These sub-systems are interrelated. Holism – Each sub-system works together to make up a single whole system . Decisions made in any subsystem affect the entire system. Synergy – The collective output of the whole system is greater than the sum of the output of its sub-systems. Closed and Open Systems - The whole organization is an open system made up of a combination of open and closed sub-systems. Closed systems - are not influenced by and do not interact with their environment (all system input and output is internal). Open systems - Dynamically interact with their environments by taking in inputs and transforming them into outputs that are distributed into their environments. System Boundary - The organization is separate from the external environment made up of other systems.

42. Advantages of a Systems Approach It aims at the meaningful analysis of organizations and their management. It facilitates the interaction between an organization and its environment. It guides managers to avoid analyzing problems in isolation and to develop an integrated approach. Disadvantages This approach is somewhat abstract and vague. It can be difficult to apply to large and complex organizations. It does not provide any tool and technique for managers . It is not a prescriptive management theory , as it does not specify tools and techniques for practicing managers It does not address power and social inequalities and their causes. It does not specify the nature of interactions and interdependencies.

43. The Contingency Theory - It claims that there is no best way to organize a corporation, lead a company, or make decisions. Instead, the optimal course of action is contingent (dependent) on the internal and external situation. The basic assumptions of contingency theories of leadership are that  a leader's effectiveness depends on the leadership style required by the situation . The theory is that a leader can be effective in one situation and ineffective in another, depending on what the situation requires. They include : Fiedler's Contingency Theory, Situational Leadership Theory, Path-Goal Theory, and Decision-Making Theory. Modern Approach The Systems Theory The Contingency Theory

44. Fiedler Contingency Model – Created in the 1960s by Fred Fiedler, The model states that there is no one best style of leadership. Instead, a leader’s effectiveness is based on the situation. • This is the result of two factors – "leadership style" and "situational favorableness“ (later called "situational control"). Fiedler distinguished the following three factors: 1. Makeup of the group 2. Nature of the task 3. Power of the leader

45. LEADERSHIP STYLE Fiedler believed that leadership style is fixed , and it can be measured using a scale he developed called Least-Preferred Co-Worker (LPC) Scale. • The scale asks you to think about the person who you've least enjoyed working with. This can be a person who you've worked with in your job, or in education or training. • You then rate how you feel about this person for each factor, and add up your scores . • If your total score is high, you're likely to be a relationship-orientated leader. If your total score is low, you're more likely to be a task-orientated leader.

46. Least Preferred Co-worker (LPC) Scale

47. LEAST-PREFERRED CO-WORKER SCALE The model says that task-oriented leaders usually view their LPCs more negatively, resulting in a lower score. Fiedler called these low LPC leaders. • He said that low LPCs are very effective at completing tasks. They're quick to organize a group to get tasks and projects done. Relationship-building is a low priority. • However, relationship-oriented leaders usually view their LPCs more positively, giving them a higher score. • These are high-LPC leaders. High LPCs focus more on personal connections, and they're good at avoiding and managing conflict. They're better able to make complex decisions.

48. SITUATIONAL FAVORABLENESS Next, we determine the "situational favorableness" of your particular situation. This depends on three distinct factors: • Leader-Member Relations – This is the level of trust and confidence that your team has in you. A leader who is more trusted and has more influence on the group is in a more favorable situation than a leader who is not trusted. • Task Structure – refers to the type of task: clear and structured, or vague and unstructured. Unstructured tasks, or tasks where the team and leader have little knowledge of how to achieve them, are viewed unfavorably. • Leader's Position Power – the power to direct the group and provide reward or punishment. Higher power means a more favorable situation.

49. Fiedler’s Contingency Theory of Leadership

50. Applying Feilder Contingency Model Step 1: Identify your leadership style Step 2: Identify your situation Step 3: Determine the most effective leadership style

51. Criticism Lack of flexibility. Fiedler believed that because our natural leadership style is fixed, the most effective way to handle situations is to change the leader. He didn't allow for flexibility in leaders. If a low-LPC leader is in charge of a group with good relations and doing unstructured tasks and he has a weak position (the fourth situation), then, according to the model, the best solution is to replace him with a high-LPC leader – instead of asking her to use a different leadership style. There is also an issue with the Least-Preferred Co-Worker Scale – if you fall near the middle of the scoring range, then it could be unclear which style of leader you are.

52. The Situational Leadership Theory - Hersey-Blanchard According to this theory, the most effective leaders are those that are able to adapt their style to the situation and look at cues such as the type of task, the nature of the group, and other factors that might contribute to getting the job done. Hersey and Blanchard suggested that there are four primary leadership styles: Telling (S1): In this leadership style, the leader tells people what to do and how to do it. Selling (S2): This style involves more back-and-forth between leaders and followers . Leaders "sell" their ideas and message to get group members to buy into the process. Participating (S3): In this approach, the leader offers less direction and allows members of the group to take a more active role in coming up with ideas and making decisions. Delegating (S4): L ess involved, hands-off approach to leadership. Group members tend to make most of the decisions and take most of the responsibility for what happens.

53. Matching Styles and Levels Low Maturity (R1) — Telling (Top to down approach (S1) Medium Maturity (R2) — Selling(buy people into the process/ clarify purpose) (S2) Medium Maturity (R3) — Participative Style (employees are asked to give their inputs and suggestions) (S3) High Maturity (R4)—Delegating (S4)

54. Path-Goal Theory In 1971, Robert House introduced his version of a contingent theory of leadership known as the Path-Goal theory.

55. It describes how should a leader adjust his leadership style based on the different subordinates’ preferences and the environmental factors

56. Leadership Styles Directive – These leaders tell their subordinates precisely what they want them to do how they should do it and the deadline for completing the task the leader makes unambiguous rules and regulations which must be followed by the subordinate. S upportive – Such leaders create a warm and friendly environment and show concern . They are friendly and approachable and they do their best to make work pleasant for their followers. P articipative – These have a collaborative approach and involve subordinates in decision-making by welcoming their ideas and their input and considering this information before making any final decision. Achievement-oriented – These leaders challenge their subordinates to strive for excellence continuously . They establish a high baseline for performance and expect continuous improvement from there. They also d isplay confidence in their subordinates to achieve those high standards and goals.

57. G ood leaders will create congruence between their leadership style and their subordinate’s characteristics. Leaders need to pick the style that's most likely to boost performance  Need for affiliation - this describes subordinates who need to belong within a group so subordinates with a strong need to belong prefer working with supportive leaders as this makes them feel more a part of the team. Conversely, achievement-oriented leadership may work better where subordinates have a low need for affiliation P reference for a structure - describes a subordinate’s preference for structure and rigidity in their working practices and relationships. They are more suited to directive leadership. Desire for control - refers to whether a subordinate has an internal or external locus of control. Subordinates with an internal locus of control believe they have control over the events which happen to them whereas subordinates with an external locus of control primarily think events happen to them. Former prefer a participative leadership style and that's because it makes those types of subordinates feel that they are a vital part of the decision-making process and conversely then subordinates with an external locus of control prefer a more directive style of leadership. Self-perceived level of task ability - this refers to how good as subordinate believes they are at performing a task. The less good they believe they are performing a certain task the more they're going to prefer a directive style of leadership.

58. Leaders shouldn't duplicate the environmental factors that are already present within an organization. For example, if formal Authority systems are robust and rigid then managers should avoid a directive leadership style so managers should look to boost low-performers by providing what is not already present in the environment. Task structure - refers to how structured tasks are. If tasks are highly structured then leaders should avoid a directive leadership style and conversely, unstructured tasks may create the need for a more directive leadership style. Formal Authority systems - refer to the policies & rules that control the organization. These instruct employees on what to do and what not to do in different situations. If the formal Authority structure is clear then leaders should really avoid a directive style of leadership and vice versa. P rimary workgroup - this refers to the level of support the subordinate receives from the people around them. If they don’t receive much support from their colleagues then a supportive leadership style can be very appropriate.

59. The effectiveness of each leadership style will be contingent on the characteristics of the subordinates

60. Decision-making theory It is a theory of how rational individuals should behave under risk and uncertainty. The theory suggests that decision-making means the adoption and application of rational choice for the management of a private, business, or governmental organization in an efficient manner. Types of Decisions Programmed decision is one that is fairly structured or recurs with some frequency (or both). Non-programmed decision is one that is unstructured and occurs much less often than a programmed decision.

61. Decision-Making Conditions Decision Making Under Certainty Decision Making Under Risk Decision Making Under Uncertainty

62. The Classical Model of Decision Making

63. The Administrative Model of Decision Making Herbert A Simon, a Nobel Prize winner in Economics, developed the model to describe how decisions are often made rather than to prescribe how they should be made. Argues that decision-makers have incomplete and imperfect information , are constrained by ‘bounded rationality , and tend to ‘satisfice’ when making decisions. Bounded rationality suggests that decision-makers are limited by their values and unconscious reflexes, skills, and habits.

64. Behavioral Aspects. . . Satisficing is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency. Rather than conducting an exhaustive search for the best possible alternative, decision-makers tend to search only until they identify an alternative that meets some minimum standard of sufficiency.

65. Behavioral Forces Influencing Decisions Risk Propensity – the extent to which a decision-maker is willing to gamble when making a decision. Organizational culture is a prime ingredient in encouraging different levels of risk. Ethics

66. Fields contributing to OB

67. Psychology - is the science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. Social psychology - is an area within psychology, but it blends concepts from psychology and sociology . It focuses on the influence of people on one another. • Sociology - Whereas psychologists focus on the individual, sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to other human beings . • Anthropology - is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments, for instance, has helped us understand differences in fundamental values, attitudes, and behavior between people in different countries and within different organizations . • Political science - studies the behavior of individuals and groups within a political environment . Specific topics of concern include structuring of conflict, allocation of power, and the manipulation of power for individual self-interest

68. Managers’ roles and functions Henry Mintzberg in his classic book, The Nature of Managerial Work , describes a set of ten roles that a manager fills. These roles fall into three categories:

69. Manager’s function

70. Planning According to KOONTZ , “ Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of action. Organizing - as a process involves: Identification of activities. Classification of / grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

71. Staffing It is the function of manning the organization structure and keeping it manned . It has assumed greater importance in recent years due to the advancement of technology, increase in the size of business, the complexity of human behavior, etc. The main purpose of staffing is to put the right man on the right job. Staffing involves: Manpower Planning (estimating manpower in terms of searching, choosing the person, and giving the right place). Recruitment, Selection & Placement. Training & Development. Remuneration. Performance Appraisal. Promotions & Transfer.

72. Directing Direction deals directly with influencing, guiding, supervising, and motivating sub-ordinate for the achievement of organizational goals. Its elements: Supervision - implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation - inspiring, stimulating, or encouraging the subordinates with zeal to work. Positive, negative, monetary, and non-monetary incentives may be used for this purpose. Leadership – may be defined as a process by which a manager guides and influences the work of subordinates in the desired direction. Communications - is the process of passing information, experience, opinion, etc from one person to another.

73. Controlling “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired are being accomplished”. Steps: Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.

74. Effective Vs Successful Managerial Activities Allocation of Activities by Time

75. Workforce diversity DE&I “Workforce diversity is a workforce consisting of a broad mix of workers from different racial and ethnic backgrounds of different ages and genders, and of different domestic and national cultures.” It also signifies that the organizations are becoming a more heterogeneous mix of people in terms of gender, age, ethnicity, and sexual orientation.”

76. Elements of Diversity Age Gender Ethnicity Race Physical Ability Sexual Orientation Physical Characteristics Income Education Marital Status Religious Beliefs Geographic Location Parental Status Personality Type

77. Reasons for the emergence of diversity Changing the demographic structure of the workforce Government, legislation & lawsuits alleging discrimination Enhanced competitiveness of firms Increase globalization of firms Recognition and desire for diverse viewpoints

78. Top 10 Benefits of workplace diversity Higher innovation Better decision making Higher employment engagement Better company reputation Faster problem solving Reduced employee turnover 7. Increased creativity 8. Increased profits 9. Improved hiring results

79. Challenges of Diversity in the Workplace Communication Resistance to change Implementation of diversity in the workplace policies Successful Management of Diversity in the Workplace

80. Managing Diversity Managing Diversity is defined as the “planning and implementing organizational systems and practices to manage people so that the potential advantages of diversity are maximized while its potential disadvantages are minimized”

81. How to Manage Diversity in the Workplace Creation of a family-friendly workplace Providing diversity training to employees Developing mentoring programs for employees Implementation of diversity in the workplace plan Foster an attitude of openness in your organization Promote diversity in leadership positions

82. Tips for managing workplace diversity: 1. PRIORITIZE COMMUNICATION : Policies, procedures, safety rules, and other important information should be designed to overcome language and cultural barriers by translating materials and using pictures and symbols whenever applicable. 2. TREAT EACH EMPLOYEE AS AN INDIVIDUAL: Treat e ach employee as an individual & judge successes and failures on the individual’s merit rather than attributing actions to their background. 3. ENCOURAGE EMPLOYEES TO WORK IN DIVERSE GROUPS: This can help break down preconceived notions and cultural misunderstandings.

83. 4. BASE STANDARDS ON OBJECTIVE CRITERIA: Set one standard of rules (ex – discipline) for all groups of employees regardless of background. 5. BE OPEN-MINDED: Recognize, and encourage employees to recognize, that one’s own experience, background, and culture are not the only thing of value to the organization . Look for ways to incorporate a diverse range of perspectives and talents into efforts to achieve organizational goals. 6. HIRING: Hire talent from a variety of backgrounds. Overcome bias in interviewing and assessing talent.

84. Tips for hiring a diverse workforce: Diverse interview panel to ensure candidates are chosen solely on suitability for the position. Managers should be trained on what can and cannot be asked in an interview . For example , questions about an applicant’s personal life, such as which church they attend, their romantic life, and political beliefs, are off-limits. Get creative when recruiting . For example , if an organization would like to hire more women in any department, they could reach out and advertise in professional groups that cater to women in that department.

85. Globalization in OB As organizations have become more global, their workforce has become culturally diverse. From the OB point of view , the biggest con­cern for globalization is the impact and influence of multinational companies that have expanded international communication and im­ported various cross-cultural issues. Changes in the operational environment not only require focus on new products or service developments, but also on the skills and competency sets, attitudes, values, and cultures of the people. Such changes are primarily at­tributable to the shift in the expectations of customers and the behavior of competitors.

86. The consequential effect of globalization on organizations is an increase in alliances and partnerships rather than on authority and control. This is characterized by the breakdown of tall hierarchies, increase in the use of teams, reorganization of functional departments into cross-functional groups , reduction in centralized control, and allowing more local autonomy. Another key aspect, is the harvesting of the knowledge of the people . This is facilitated by knowledge management practices, using various tools, techniques, and values. Globalization has also changed the nature of managerial work, requiring managers, in the globalized era, to increase their judgmental power, use persuasion and influence, shaping of the behavior of the people, etc.

87. Topics Approaches to Mgt. – Classical Approaches to Mgt. – Behavioral Approaches to Mgt. – Quantitative, Globalization in OB Approaches to Mgt. – Modern, Interdisciplinary approach in OB Hawthorne Studies Decision-making Theory Manager’s Roles and Functions, Diversity