Introduction to Organisational Behaviour.pptx

Organizational behavior (OB) is the study of how people behave within organizations, examining individual, group, and structural dynamics to improve workplace effectiveness and create a positive work environment.

1. Module No. 1: Introduction To Organization Behavior Overview Meaning Definition Importance Nature , Scope of OB Conceptual Models of OB Factors affecting OB, Theories of OB

2. Let’s Begin

3. Some of the words Cooperation Collaboration Coordination Collective Effort Can these words be associated with Organization Yes

4. So, in that case can you define, what is an organization ? Group of people coming together to achieve a common goal In our day to day life organizations play a very important role Organizations knowingly or unknowingly play a very important role in our day to day life.

5. The word organization comes from the term organizing. Five functions of management.

6. Functions of Management Planning Organizing Directing Controlling Coordinating Organizing is a key activity in any organization. So the major thing organizations does is, organizing things within the system

7. What is organizing? Organizing is nothing, but arranging. So , what is arranged within an organization ? People Specific designations , Tasks Materials machines Authority or power to execute those tasks.

8. Organizing : Arranging the activities of the enterprise in such a way that they systematically contribute to the enterprise’s goals. A deliberate arrangement of people to accomplish some specific purpose Keeping the above point tin mind let us define Organization

9. Organization An organization is a consciously coordinated social entity with an identifiable boundary that functions on a relatively continuous basis to achieve a common goal or set of goals Let us understand the first term ‘Consciously coordinated’ Consciously coordinated ’- Deliberately arranged

10. Let us understand, what is deliberate arrangement ? A deliberate arrangement is nothing but a very rational way of or very logical way of arranging all these things. Can Family become an example for Organization ?

11. So it all happens through a flow, isn’t it? people in a family assume this is what they have to do, they understand each other without clearly prescribing, many a times clearly prescribing what is expected out of each other and they do their task. But in an organization , everything is like deliberately arranged; which means everything is like clearly written down, clearly defined, and planned beforehand. In that sense it is not by random things happen.

12. “ Consciously coordinated social entity with an identifiable boundary that functions on a relatively continuous basis to achieve a common goal or set of goals Let us into the term social entity

13. The second word is social entity. So what is social entity? Social entity means, organizations are social groups or organizations have people (within or outside). (Networking) In that sense they are also a social entity, they are also consciously coordinated

14. The third term is ‘ identifiable boundary ’; which means organization should have boundaries. When we say boundary, it can be a physical boundary or it can be a social boundary or both .

15. Physical boundary is when there be a place from which they operate which differentiates one organization employee with other organization employee Social boundary is sense of belongingness. A sense of belongingness is difficult to quantify; because it is more subjective in nature; it is more psychological in nature.

16. Organizational Behavior What is Behavior It is response of an organism or system to various stimuli , or inputs whether internal or external , conscious or subconscious , overt or covert and voluntary or involuntary

17. Behavior can be voluntary or involuntary The way person conducts -Voluntary Your Sneezing, yawning- Involuntary

18. Behaviors can be overt or covert . Overt means visible behavior which is well expressed Covert behavior is something which happens within a person and never visible to others as such

19. Behavior can be conscious or subconscious . Conscious means we know what we are doing. Subconscious means, we may not even know what we are doing or why we are doing it. So , behaviors can be conscious, behaviors can be subconscious; behaviors can be external, behaviors can be internal.

20. what is organizational behavior ? Organizational behavior is understanding human behavior at work Organizational Behavior is the systematic study of human behavior in organizational settings

21. Definition “OB is a field of study that investigates the impact that individuals, groups and structures have on behavior within organizations for the purpose of applying such knowledge towards improving an organization's effectiveness .” - Stephen P. Robbins

22. OB : Multi-disciplinary / Contributing Disciplines to the field of OB Organizational behavior is multidisciplinary in nature.

23. Contribution of Psychology The contributions of psychology have been mainly at the individual or micro level of analysis. Psychology is the “science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.” The contributions of the psychologists include areas like learning , motivation, personality, emotions, perception, training, leadership effectiveness, job satisfaction , decision-making processes, performance appraisal, attitude measurement, employee selection techniques, work design and work stress.

24. Contribution of Sociology While psychology focuses on the individual, sociology studies people in relation to their social environment or culture . Sociologists have contributed to the field of OB through their study of group behaviour in organisations , particularly formal and complex organisations . Sociology has contributed to research on organisational culture, organisational structure, organisational technology, communications, power and conflict

25. Contribution of Social-psychology Social psychology is an area within psychology that blends the concepts from psychology and sociology. It mainly focuses on the influence of people on one another. The social psychologists have made significant contribution in the areas of behavioral change, attitude change, communication, and group decision making.

26. Contribution of Anthropology Anthropology is the “ study of societies to learn about human beings and their activities .” It has contributions in the areas like comparative values, comparative attitudes , and cross-cultural analysis , organisational culture and organisational environment

27. Contribution of Political Science Political science is the “ study of behavior of individuals and groups within a political environment .” The contributions of the political scientists are in the areas like conflict, intra-organizational politics, power and authority.

28. Contribution of Industrial Psychology Industrial psychology applies the theories and principles of psychology to the organizational context. Industrial psychology is defined as the study of human behavior in the work-related aspects of life and the application of knowledge of human behavior to the minimization of human problems It has contributed to OB by providing various attitude measurement techniques , selection devices , and concepts for understanding the individual differences

29. Nature of Organizational Behavior

30. 1. A Separate Field of Study and not a Discipline Only By definition, a discipline is an accepted science that is based on a theoretical foundation. But , O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical background.

31. 2. An Multidisciplinary Approach It is a dynamic and multidisciplinary field that seeks knowledge of behavior in organizational structure by properly studying individual, group and organizational processes It tries to integrate the relevant knowledge drawn from related disciplines like psychology, sociology and anthropology to make them applicable for studying and analyzing organizational behavior.

32. 3 . An Inter-disciplinary Approach Interdisciplinary means it analyzes, synthesizes(blends) and harmonizes (standardizes) links between disciplines into a coordinated and coherent (meaningful) whole. Organizational behavior is essentially an interdisciplinary approach to study human behavior at work.

33. Organizational behavior is essentially an interdisciplinary approach to study human behavior at work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology, sociology, and anthropology to make them applicable for studying and analyzing organizational behavior thereby giving a complete meaning to OB.

34. Suggest the best title for the picture

35. 4 . An Applied Science The very nature of O.B. is applied. What O.B. basically does is the application of various researches to solve the organizational problems related to human behavior.

36.  A Normative Science Organizational Behaviour is a normative science also. OB prescribes how the findings of applied research can be applied to socially accepted organizational goals. Thus, OB deals with what is accepted by individuals and society engaged in an organization. G B Pant Social Science Institute

37. 5. A Humanistic and Optimistic Approach Organizational Behavior applies humanistic approach towards people working in the organization . It , deals with the thinking and feeling of human beings. O.B . is based on the belief that people have an innate desire to be independent, creative and productive . It also realizes that people working in the organization can and will actualize these potentials if they are given proper conditions and environment. Environment affects performance or workers working in an organization.

38. 6. Total System Approach

39. In the Total Systems Approach to OB views the organization as a united , purposeful system composed of interrelated parts . This approach gives managers a way of looking at the, whole person , whole group , and the whole social system.

40. The system approach is one that integrates all the variables , affecting organizational functioning . The systems approach has been developed by the behavioral scientists to analyze human behavior in view of his/her socio-psychological framework . Man's socio-psychological framework makes man a complex one and the systems approach tries to study his/her complexity and find solution to it .

41. Scope of Organizational Behavior

42. Organization Behavior has an important role in the achievement of organization objectives. Scope of organization behavior is as explained below:

43. Improves The Contentment Of Employees Improving Satisfaction among Employee Reduce The Chances Of Conflicts Increases better employee-employer Relation Facilitates Management Helps In Motivation Increases Organisational Efficiency Develops Positive Attitude Helps In Performance Appraisal

44. Improves The Contentment Of Employees Organization behavior is mainly concerned with understanding the nature of people working in the organization. It gives the complete idea of how people will respond to the organization. Employees also get to work as per their interest and better working conditions. This helps employers in treating their employees properly and providing them with better facilities. Managers handle every employee differently as per their nature.

45. Working Environment. Fair Policies and Practice. Caring Organization. Appreciation. Pay. Age. Promotion. Feel of Belongings Initiation and Leadership Feel of Being Loved Safety and Security. Challenges. Responsibilities. Creativity in Job. Personal Interest and Hobbies. Respect from Co-Workers. Relationship with Supervisors. Nature of work I mproving Satisfaction among Employee

46. Reduce The Chances Of Conflicts Conflict is dangerous for successful functioning and growth of every organization. Every organization aims to avoid conflict with their employees. Organization behavior helps in developing better relations among employees and also among employer and employee .

47. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario . Strong employee relation depends upon healthy and safe work environment, complete involvement and commitment of all employees, incentives for employee motivation, and effective communication system in the organization .

48. Employee relations must be strengthened in an organization. To do so, following points must be taken care of:- Fair and just treatment Avoid Employee favoritism Do not make job monotonous . Maintain a continuous interaction Employees must be rewarded and appreciated Encourage employee feedback Fair Pay Maintain a good rapport Increases better employee-employer Relation

49. Facilitates Management Organization behavior is considered as an important and integral part of the management process . It is basically concerned with managing and influencing the individuals working in an organization. Managers find it easy to manage all the staff when they have a better understanding and knowledge regarding their subordinates. Organization behavior does a systematic analysis of people working in the organization and provides all the required information to employers.

50. Helps In Motivation Companies develop a better system of motivating their employees through organizational behavior. Through organizational behavior, complete information regarding employee’s need and requirement is well understood .

51. Increases Organisational Efficiency It aims at increasing the efficiency of the organization through maximum utilization of resources . Attempts to reduce the wastage of resources. It helps in the identification of the right type of human skill required for the organization for better productivity. Accordingly , the selection and recruitment process is conducted to hire the right people . It also helps to recognize the skills and knowledge of different employees working within the organization.

52. Develops Positive Attitude Organizational behavior develops a positive working environment within the organization. It leads to co-operation and mutual trust among people working in the organization. Organization can accordingly focus on employee’s needs and work for their betterment to increase their satisfaction level. Employees also develop a sense of belongingness towards the organization when treated properly.

53. Helps In Performance Appraisal Performance appraisal is an important element for improving the performance of the employees . Employees when awarded for their good performance feel motivated to work better. They look forward to being appraised for their good performance. Organizational behavior helps to understand the nature and the manner in which people react in the organization. It enables it to predict how peoples are working as an individual and as a group. Their performance can be measured easily and accordingly, they can be appraised.

54. Levels of Organizational Behavior

55. Organizational behavior is concerned with the study of human behavior in organizations, the relation between people and organization, H ow they influence each other , and developing productive relations between them to realize desired goals. Organizational behavior studies human behavior in the organization on three main levels . The three levels are individual level, group or team level, and organizational level . At all these levels OB analyses the behavior of people on how, why, and what causes their behavior in organizational settings.

56. O.B. is the study of human behaviour at work in organizations. Accordingly, the scope of O.B. includes the study of individuals, groups and organization/structure. Let us briefly reflect on what aspects each of these three cover.

57. Individuals Organizations are the associations of individuals. Individuals differ in many respects. The study of individuals, therefore, includes aspects such as personality, perception, attitudes, values, job satisfaction, social values, beliefs learning and motivation.

58. Groups of Individuals The organization also consists of different  groups  and teams. OB studies the Behavior of people at the group level , How groups work , Why they interact in group work Collaboration Group decisions Sociology , social psychology, and anthropology play an important role in studying at this level. OB analyses group dynamics, organizational conflicts, politics, communication, etc.

59. Organizational Level At this last level organizational behavior analyses how the organization works. It mainly studies how people interact with organizational structure , how the organization interacts with them , and how the external environment forces interact with the organization.

60. Conceptual Model Of Organization Behavior

61. Models of Organizational Behavior

62. A conceptual model is the framework for understanding organizational behavior In Organizational Behavior, there are five organizational behavior models these are Autocratic Model Custodial Model Supportive Model Collegial Model System Model

63. Autocratic Model This model has evolved in the period of industrial revolution of 1800 and 1900s . It gives all the owners and manager’s power to dictate and employees are bind to obey their orders . Model believes employees need to be instructed and motivated to obey their managers while managers do all the thinking and decision making. The whole process is formalized with the managers and authority power has the right to give to administer the command to the individuals

64. An autocratic business model involves management and owners controlling the work and workers in their patrol.

65. Custodial Model The custodial model is based around the concept of providing economic security for employees – through wages and other benefits – that will create employee loyalty and motivation. The custodial model mainly focuses on the financial reward aspects of being employed by the organization. The underpinning concept of this model is that employees become quite dependent upon the package of wages and other benefits provided by the organization . As a result, they look to improve their performance for the firm in order to maintain their position and be promoted over time.

66. In the 1930s, these welfare programs evolved in many fringe benefits to provide security to the employees which resulted in the development of the Custodial model of organizational behavior .   A successful custodial approach depends on providing economic security to its employees Many companies are now offering high pay scale, remunerations in the form of health benefits, corporate cars, financial packaging and many other forms of incentives. 

67. Supportive Model Unlike the two earlier approaches, the supportive model is focused around aspiring leadership . It is not based upon control and authority (the autocratic model) or upon incentives (the custodial model), but instead tries to motivate staff through the manager-employee relationship and how employees are treated on a day-to-day basis. .

68. Quite opposite to the autocratic model, this approach states that employees are self-motivated and have value and insight to contribute to the organisation , beyond just their day-to-day role. The intent of this model is to motivate employees through a positive workplace where their ideas are encouraged and often adapted . Therefore, the employees have some form of “buy-in” to the organisation and its direction

69. Collegial model The collegial model is based around teamwork – everybody working as colleagues (hence the name of the model). The overall environment and corporate culture need to be aligned to this model, where everybody is actively participating – is not about status and job titles – everybody is encouraged to work together to build a better organization .

70. System model The final organizational model is referred to as the system model. This is the most contemporary model of the five models discussed in this article. In the system model, the organization looks at the overall structure and team environment , and considers that individuals have different goals, talents and potential. The intent of the system model is to try and balance the goals of the individual with the goals of the organization.

71. Overview of Models of Organizational Behavior

72. Key Forces Affecting Organizational Behavior

73. These key forces are; People. Structure. Technology. Environment. There is an interaction of people, structure, and technology and these elements are influenced by the environment .

74. People People make up the internal social system of the organization. That system consists of individuals and groups and groups may be large and small, formal and informal.  Groups are dynamic . Group form, change and disband. Since the organization is a combination of a group of people, managers must handle the people in the right direction .

75. This is very challenging to guide people or employees who have different educational backgrounds, talent, and perspectives. So managers must understand predict and control the people. They build up a relationship among the employees and motivate themselves.

76. Structure The structure defines the formal relationship and use of people in the organization. There are managers and employees, accounts assemblers to accomplish different kinds of activities. They are related structurally so that their work can be effectively coordinated . Because there is no organization can be successful without proper coordination .

77. Many organizational structures have become flatter . This downsizing and restructuring have occurred as a result of the pressure to lower costs while remaining competitive. Other structures have grown more complex as a result of mergers, acquisitions, and new ventures. Finally , many firms have moved from a traditional structure to a team-based one

78. Some key concepts of organization structure are Distribution /Delegation of authority Authority grants the position holder certain rights, to give orders, punish and rewards Division of Labour Responsibilities are divided and activities are divided and assigned to different member Span of Control

79. Technology Technology provides the resources with which people work and affects the tasks that they perform that they cannot accomplish work with their bare hands. The technology used has a significant influence on working relationships . The great benefit of technology is that it allows people to do more and better work, but it also restricts people in various ways’ It has cost as well as benefits .

80. And the need to respond to societal demands for improved quality of goods and services at acceptable prices. If any person has a lack of technological knowledge he/she cannot work. Moreover, technology decrease per unit cost and improve the quality of the products and services.

81. Environment All organizations operate within an internal and external environment . A single organization does not exist alone. An organization is a part of a larger system that contains many other elements, such as the government, the family, and other organizations . Numerous changes in the environment create demands on organizations. Citizens expect organizations should be socially responsible

82. There is a direct impact of several trade unions of organizations. So all the elements of environments influence the attitude and provide competition. It must be considered in the study of human behavior in an organization.

83. Theories of Organizational Behavior

84. Classical management theory is the oldest management theory. First coined in the industrial age , this theory seeks to create standards to increase production output . It considers compensation to be the major motivation of employees. Thus , a leader that implements this strategy will reward high-performing team members with incentives, such as wages and bonuses, as a means to boost output.

85. In the early 1900s, Frederick Taylor performed controlled experiments to measure his workers' productivity . He found that a scientific approach was the most accurate predictor of efficiency in the workplace . His research formed the basis of the scientific management theory. It put great emphasis on the following three principles: Standardisation Specialisation Supervision Scientific Theory

86. Principles of Scientific Management Theory 1.  Select methods based on science, not “rule of thumb .” 2.  Assign workers jobs based on their aptitudes . 3.  Monitor Workers performance   4.  Properly divide the workload between managers and workers

87. Principles of Scientific Management Theory 1 .  Select methods based on science, not “rule of thumb.”   Rather than allowing each individual worker the freedom to use their own “rule of thumb” method to complete a task, organization should instead use the scientific method to determine the “one best way” to do the job. 2.  Assign workers jobs based on their aptitudes . Instead of randomly assigning workers to any open job, assess which ones are most capable of each specific job and train them to work at peak efficiency.

88. 3.  Monitor Workers performance . Assess your workers’ efficiency and provide additional instruction when necessary to guarantee they are working productively. 4.  Properly divide the workload between managers and workers . Managers should plan and train, while workers should implement what they’ve been trained to do.

89. Administrative Theory The Administrative Theory of Management was first generalized by Henri Fayol   Administrative Theory is based on the concept of departmentalization , which means the different activities to be performed for achieving the common purpose of the organization should be identified and be classified into different groups or departments , such that the task can be accomplished effectively.

90. The main focus is on how the management of the organization is structured and how well the individuals therein are organized to accomplish the tasks given to them

91. Bureaucracy Theory The bureaucratic theory is a way of understanding organizations as systems that are primarily characterized by hierarchical chains of command and control. Max Weber, a German scientist, defines bureaucracy as  a highly structured, formalized, the model believes   organization must have a clear structure rules, regulations, and lines of authority which govern it.

92. The principle of hierarchy & discipline, which requires that everyone follow orders from their superiors without question

93. Neo-Classical Theory Neo-Classical theory is called human relations and behavioral science approach. Classical theory concentrated on job content and management of physical resources . Neo-Classical theory gave greater emphasis to man behind the machine and stressed on the importance of individual as well as group relationship in the plant or workplace.

94. Neo-Classical approach may be analyzed in two parts, namely — 1.Human Relation Movement 2. Behavioural Approach.

95. Human Relation Movement Human Relations management theory is a premise of organizational psychology from the early twentieth century, which suggests that employee productivity and motivation can be increased through positive social bonds in the workplace and acknowledgement of the worker as a unique individual.

96. He proved that Positive Social Bonds in workplace and acknowledgement if the worker would increase productivity was proved through Hawthorne Experiments

97. Elton Mayo and his team conducted a research activity in Hawthorne Electric Plant in 1924 to research effect of physical conditions on productivity called Hawthorne studies Research activities had been conducted between 1924-1932 Researchers tested the effects of: Lighting Heating Job Breaks Physical Arrangements On productivity. But, they could not find any relation between

98. Hawthorne Studies Airplane view of Hawthorne Plant

99. Elton Mayo and other researchers of Harvard Business School

100. Hawthorne Experiments Four Parts of Hawthorne Studies/Experiments Part 1-Illumination Experiments Part 2-Relay Assembly Test Room Study Part III- Mass Interviewing Programme Part 4- Bank Wiring observation room

101. Part 1-Illumination Experiments These experiments were performed to find out the effect of different levels of illumination (lighting) on productivity of labour. The brightness of the light was increased and decreased to find out the effect on the productivity to the test group. Surprisingly the productivity increased even when the level of illumination decreased. It was concluded that factors other than light were also important

102. Part 2-Relay Assembly Test Room Study Under these test two small groups of six female telephone relay assemblers were selected. Each group was kept in separate rooms. From time to time changes were made in working hours, rest periods, lunch breaks etc. They were allowed to choose their own rest periods and to give suggestions. Output increased in both the control rooms. It was concluded that social relationship among workers, participation in decision-making etc. had a greater effect on productivity than working conditions

103. No-Time Break Group With-Time Break Group

104. Part 3-Mass Interviewing Programme Employees were interviewed over a period of three years to find out reasons for increased productivity. It was concluded that productivity can be increased if workers are allowed to talk freely about matters that are important to them.

105. Part IV-Bank Wiring Observation Room Experiment A group of 14 male workers in the bank wiring room were placed under observation for 6 months A workers pay depended on the performance of the group as a whole The researchers thought that the group which had efficient workers would complete the task earlier and the group that had less efficient workers would not complete the task It was found that both the groups performed efficiently This was because the groups have their own established standards of output, and social pressure this was the reason why the group that had inefficient workers to performed well

106. Conclusion of Hawthorne Studies The socio-psychological factors are responsible for workers’ productivity and job satisfaction

107. The  Behavioral Science Approach  is actually an extension of the Human Relations Approach . Focuses on : It gives value to attitudes, behavior and performance of people and groups within the organizations . The advocates humans are much more complex than the economic man. The nature of work - degree to which - satisfy the human need . Emphasized on Scientific understanding- human behavior Development of human beings and organization – win-win Behavioural Approach

108. Integrated approach- . employee performance, communication, motivation, participative management, leadership and group dynamics Acknowledges the quality of leadership as a major element in management success.

109. Abraham Maslow, Fredrick Herzberg, Douglas McGregor, Victor Vroom, James March, Herbert Simon, Chester Barnard, etc., made significant contributions towards the Behavioural science approach.

110. Organization : Group of people Organization : Group of people coming together So let’s complete the sentence Group of people coming………. Together to achieve a common goal