OB - Session 1.pptx, Introduction of OB.

Good for all descipline

1. Organizational Behaviour & Management Thought

2. The concept of Management Management is the process of achieving organizational objectives by engaging in the five major functions, as mentioned below: Planning: defining goals, developing strategies and plans Organizing: identifying the tasks, allocating jobs Staffing: identifying and placing people at right positions Leading: motivating, directing, communicating employees Controlling: monitoring and correcting the deviations

3. Manager Manager is an individual who achieves goals through people and resources The main objective of all managers is to improve productivity , efficiency and effectiveness Perform all functions of management Manage all resources all levels of hierarchy

4. Management Process

5. Levels of Management

6. Top Level The people at this level are responsible for taking major decisions for the organization as a whole, overall activities of the business and are accountable for its impact on the society. Examples- Board of Directors, CEO, President, Senior Vice Presidents, Vice Presidents, etc.

7. Middle Level The people at this level deal with the actual operation of various departments in the organization and are directly responsible for the performance of the first level managers. Examples- Executive Directors, Chief Manager, Mangers, Department heads, etc.

8. First Level Managers The people at this level are directly responsible for the performance of employees in operations. Examples- Team Leaders, Supervisors, Clerk, Shop floor workers and technicians

9. Managerial Roles by Mintzberg Interpersonal Roles- (social in nature, relate to other people) Figurehead (taking visitors to dinner) Leader (hiring, training, motivating) and Liaison (managing suppliers)

10. Managerial Roles by Mintzberg Informational Roles- (information processing) Monitor (seeking value added information), Disseminator (transmitting information to others) and Spokesperson (speaks for the organization to outsiders)

11. Managerial Roles by Mintzberg Decision-Making Roles: Entrepreneur (innovator, initiator) Disturbance handler (settles disputes) Resource allocators (distributing resources among individuals and groups) and Negotiator

12. EVOLUTION OF MANAGEMENT THOUGHT 1. Classical Theory- Weber’s Ideal Bureaucracy - 1900 Taylor’s Scientific Management - 1910 Fayol’s Administrative Theory – 1910 2. Neo Classical Theory - Human Relations – E Mayo 1930 Behavioral Approaches- (Hawthorne studies, Mc Gregor’s Theory X and Theory Y and Ouchi’s Theory Z) – 1940 3. Modern Management Theory- Quantitative Approach Theory – Blackett 1950 Systems Approach Theory- Mc Clelland 1960 Contingency Theory - 1970

13. Elements of Max Weber’s Bureaucracy Theory Rules and Procedures : A consistent set of abstract rules and procedures to ensure uniform performance. Distinct Division of Labor : Each position should be filled by an expert. Hierarchy of Authority : The chain of command should be clearly established.

14. Elements of Max Weber’s Bureaucracy Theory Technical Competence : Employment and advancement based on merit. Segregation of Ownership : Professional managers, rather than owners, should run the organization. Documentation : A record of actions to be kept regarding administrative decisions, rules and procedures.

15. Scientific Management Theory: Taylor Focused only on efficiency and productivity: Scientifically select employees and train them to do the job Supervise employees to make sure that they follow the prescribed methods for performing their jobs Continue to plan the work but use workers to actually get the work done Explicit role was to get output from workers

16. Administrative Theory Principles-Henry Fayol Classical Organization Theory Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to general interest Remuneration

17. Administrative Theory Principles-Henry Fayol Classical Organization Theory Centralization Scalar Chain Order Equity Stability of tenured of personnel Initiative Sense of unity

18. Hawthorne Studies The Hawthorne studies were conducted between 1927 and 1932 at Western Electric’s Hawthorne plant near Chicago. Illumination experiments- effects of different levels of lighting on productivity (no influence on productivity) Relay room experiments- tested variables (working hours, rest time, payment- increased productivity) Bank wiring room experiments- (same group, targets set, incentives, no change in productivity)

19. Hawthorne Studies The reasons were: Small group Supervisor Earnings Novelty of situation Interest in the experiment Attention received Hawthorne effect : Individuals modify or improve an aspect of their behavior in response to their awareness of being observed.

20. Theory X and Theory Y: McGregor - Managerial views of employees Theory X assumes that- People do not like work and try to avoid it. Employees have to be either coerced by punishment or guided by means of financial rewards to make them work effectively People prefer to be directed, to avoid responsibility, to want security Employees are not too ambitious, seldom take risks and give high importance to their security needs

21. Theory Y assumes that- People do not naturally dislike work People are internally motivated to reach objectives to which they are committed. People are committed to goals to the degree that they receive personal rewards when they reach their objectives. Tight controls and punishments cannot make people deliver the goods People take responsibility, can solve their work related problems by using creativity and imagination People are bright, but under most organizational conditions their potentials are underutilized.

22. Theory Z by William Ouchi - (Japanese Management Style) Emphasizes on building close and trusting relationships among workers, managers and others Creating an environment for fulfillment of individual as well as organizational needs. Theory Z principles are: Mutual Trust: conflict is reduced to the minimum and employees cooperate Increasing employee loyalty to the company: methods to strengthen the bond between employees and organization Employee Involvement: participation in decision making Human Resource Development Strong focus on well-being of the employee

23. Systems Theory: components The systems approach : how the elements of an organization interact among themselves and with their environment. An organizational system has four major components namely: Input: Money, Materials, Men, Machines and informational sources are required to produce goods and services Transformation processes: Managerial and technical abilities are used to convert inputs into outputs Output: Products, services, profits and other results produced by the organization Feedback: Information about the outcomes and the position of the organization relative to the environment it operates in

24. Contingency Theory There is no one best way to manage all situations The response “ It depends” holds good for several management situations The task of managers is to identify which technique will, in particular situation, under particular circumstances and at a particular time, best contribute to the attainment of management goals

25. Definition of Organizational Behavior Organization- It is a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or a set of goals. Behavior- It is the way in which one acts or conducts oneself, especially towards others. OB is defined as “the study and application of knowledge about how people as individuals and as groups act within organizations” OB includes understanding, predicting and managing of human behavior in organizations.

26. Significance of OB Effective Management- Helps managers better understand why others in the organization behave as they do. Helps mangers to better understand their own as well as others needs, motives, behaviors, and feelings, which will help them improve decision making capabilities and work efficiently. Organizational Performance- Provides a set of insights and tools that all managers can use to carry out their jobs more effectively. Development of Skills

27. Assumptions of OB Organizations are social systems People are motivated by many needs People depend on each other for work Attitudes and performance of workers are determined by informal work group Job roles are more complex than job descriptions

28. Assumptions of OB Communication channels should consider both organization and people’s interests Teamwork is essential for employees Job satisfaction gives rise to higher productivity For managing people effectively, managers also need good social skills

29. Interdisciplinary Approach Psychology- Individual behavior, motivation, personality and perception Social Psychology- Change implementation Industrial Psychology- Individual differences and physical environment influence Sociology- Group dynamics, culture and socialization Anthropology- Cultural factors’ impact, value systems, interactions and cross cultural analysis Economics- Economic growth and resource allocation Political Science- Conflict structure, power, politics and administration

30. Towards OB Discipline

31. OB Model- SR Model Inputs, Processes, Outcomes Individual level Inputs: diversity, personality, values Processes: motivation, stress, decision making, perception Outcomes: productivity, performance, absenteeism, attitude, stress, employee satisfaction, citizenship behavior Group level Inputs: group roles, team responsibilities Processes: Communication, leadership, power, politics, conflicts, negotiation Outcomes: productivity, performance, norms, cohesion, group satisfaction Organiza tional level Inputs: structure, culture, design Processes: HRM, climate, change Outcomes: productivity, performance, stakeholder satisfaction

32. Situation-Organism-Behavior – Accomplishment SOBA -Model Interactionalism suggests that individuals and situations interact continuously to determine individuals’ behavior. Organizational problems/situations lead to behavior When people enter an organization, their own behaviors and actions shape that organization in various ways Organization itself shapes the behaviors and actions of each individual who becomes a part of it

33. Biographical characteristics Refer to the personal characteristics- Age Gender Disability Marital status Nationality Tenure of employment Impact- Performance of employees at work Productivity, satisfaction, absenteeism and turnover rates etc.

34. Biographical Foundations Heredity- It is the process by which characteristics are given from a parent to the child through the genes Biological development of the individual- Physiological aspects and level of maturity Cognitive processes- Thinking and Problem solving

35. Diversity at workplace Diversity is the presence of members of different ages, genders, ethnic groups and/or educational backgrounds in an organization Composition of the workforce has been changing over the past few years

36. Reasons for Diversity at Workplace

37. Diversity Management Creation of employee-friendly workplaces Providing Diversity training to employees Developing Mentoring programs for employees Learning Empathy Mentoring Alternative work schedules

38. Challenges in OB Changing environment Diversity Globalization Technology Employment Relationships Changes in organizational structures Innovative work approaches for special needs of employees Working with people with different cultures