organisational behaviour compiled all.ppt

Organisational behaviour

1. OrganisationalBehaviour
Semester 2
Rizvi Institute of Management Studies and
Research, Mumbai
Session 1 –January 16, 2024

2. Welcome to Semester
2

3. Attendance
Have you received the case study
titled “General Power Ltd”?

4. Semester 1 –Organisational Behaviour
•Fundamentals of Organisational Behaviour (OB)
•Manager’s role, functions, skills, activities
•Diversity –age, gender, tenure
•Physical and intellectual ability
•Learning and shaping of behaviour
•Attitude
•Job satisfaction
•Emotions and moods
•Personality and values
•Perception and individual decision making
•Motivation –from concepts to application
•Business communication, interview readiness

5. Semester 2 –Scope of OB
•Foundations of groups and group behaviour
The Case Study method*
Emotional intelligence*
Understanding work teams
Leadership
•Organisational Power and POSH
•Organisational Politics
•Organisational Conflict
•Organisational Negotiation
•Mid-term test
•Foundations of organisational structure
•Organisational culture
•Organisational change
•Stress management

6. Semester 2 –Administrative details
•Topics covered in Sem 1 are major reference points
•20 lectures (January 16 to April 13)
•Duration2 hours each
•No breaks for 4T –Tea, Toilet, Tobacco, Telephone
•Subject treatment –based on case studies and corporate stories,
and much more intensive
•Mid-term written test –after 9-10 lectures
•Semester-end evaluation process
–60 marks Semester 2 Examination (written test)
–40 marks Internal assessment
•30 marks Mid-term written test
•10 marks
–Classroom behaviour, late-coming, lecture involvement
and participation, improved learning and interest,
periodic assignments, responses to classroom questions

7. Q& A

8. Today’s agenda
Manager
Business, Organisation, Management
Groups and group behaviour

9. Manager by DESIGNATION
•Your personal career aspirations
–Your CTC, benefits, perquisites, entitlements
–Your status, social position, esteem, visible
wealth, superiority
–You want to hire and fire people, tell them
what to do, and punish them for not doing
what they are supposed to do
•So, your real ASPIRATION is to 1
st
become a
MANAGER, with all it’s “shaan and shauqat” –
the sahab, madam, HOD, Big Boss, In-charge
•Work? Someone will do it

10. Designations are seriously misleading
•Manager = To supervise, direct, control….
•Everyone who is inferiorto you = employees, labour,
juniors, subordinates, workers, inferiors
•Others = lowerin status, level, CTC, benefits,
facilities, entitlements
•American/Western jargon for MANAGER and
MANAGEMENT = anyone who manages“work”
•Actually, work means MANAGING all factors of
production, includingpeople
•Capital? Technology? Money? Systems?
Processes? Office and/or Factory space?
Machinery? Equipment?
•Not me

11. Manager by ROLE
•Aspirations of the business owner, CEO, MD
–I must get all the work done, to achieve business
objectives, results
•Know whatis the work to be done
•Utilise ALL 3 business resources to achieve business
objectives, results
–Material= machinery, equipment, technology, raw
material, systems, processes, methods
–Money= investors, owners, FDI, FII, shareholders
–Employees= everyone is paid to do work; ensure
that they do it
•MBA teaches howto do the work

12. Is BUSINESS= ORGANISATION =
MANAGEMENT?
Yes? No?
If No, what is the difference?
MBA = ?
Master ofBusinessAdministration =
you become a MASTER of HOWto
ADMINISTER a BUSINESS
By doing WHAT and HOW?

13. Business –5W 1H?
To earn money,
•Whatto do?
•Whowill do it?
•Whereto do it?
•Whento do it?
•Whyshould it be done?
•Howto do it?

14. What is a business?–page 1
•Any activity, work, task that earns money
•So, selling (= “item, service, maal bechna”) to any
CUSTOMER is the basic business idea of earning money
•2 ways to do a dhanda, vyapaar:
1.Makeand “sell” a product
–Manufacturing
2.Buyand “sell” a service
–Trading
•Hence, in any business, the CUSTOMER is most important
–Whoever buysyour product/service, and pays for it
–Money is criticalto the owner, CEO, MD, “badaa seth”;
hence, market, earnings, savings, revenue, sales,
outstandings, recoveries, collections, credit are all crucial

15. What is a business?–page 2
•Make or sell a product or service
–To make/create money
•Right–legal and moral –socially acceptable
–Convert raw material into finished product/service
–Create products and services which society wants/needs
–Serve society and social causes
–Make reasonable profits
–Adhere to Indian laws
•Wrong–Illegal and immoral –socially unacceptable
–Swindle, fraud, over-charged price
–Criminal activity –robbery, dacoity, rape, murder,
favouritism, unfair means, telling lies for advantage

16. What is an organisation?
•Organisation means something that is ORGANISED, i.e.
any activity that has systems, methods, processes
•What?
1.A consciously coordinated social unit
2.Hierarchy of authority and responsibility
1.Chain of command
2.Unity of command
3.Division of effort amongst two or more people who are
working together
•Why?
•Purpose is to integrate all employees’ efforts, to achieve
the organisation’s common goals, targets, objectives,
KRAs

17. Different kinds of organisations
Which of these are businesses?
Company
Partnership
Multinational corporation (MNC)
Kirana store
Shopping mall
Paan-bidi shop
Cooperative housing society
Government office or department
Public Sector Undertaking (PSU)
Ration office
BMC ward office
NGO

18. “Business” is NOT an “Organisation”, unless……
•A business MIGHT
–Be a consciously coordinated*social unit
–Have a hierarchy of authority and responsibility
•Chain of command
•Unity of command
–Have a division of effortamongst two or more people
who are working together
–Integrate everyone’s efforts, in order to achieve the
organisation’s commongoals
•But, a business is NOT an organisation if making money is
its ONLY common goal, despite being based on everyone’s
efforts
•*Coordination = step-by-step methods, systems, processes
and controls

19. So…….
•Step-by-step, principles-based and ethics-based methods, systems and
processes are fundamentalto a businessbecoming an organisation
•In an organisation, making money is a meansto achieve an end, NOT
an endin itself
•Therefore, the principlesand theoriesof OB teach us how to behave in
an organisational setting, while ensuring that the right systems,
methods and processes are used
•Organisational goals MUST go BEYOND just making money
•MBO = Management By Objectives
–Goal/s = target/s = objective/s = KRA/s
•Thus, the study, knowledge and application of OB help you and your
employees to achieve and surpass your organisation’s goals by
applying step-by-step, principles-based and ethics-based methods,
systems and processes
•Strong correlation between “behaviour” and “goal/s”
•If you understand “organisational behaviour”, it helps you to manage
your drive and desire towards achieving the “organisational goal/s”

20. What is management?
•WHATare the various step-by-step, principles-based
and ethics-based methods, systems and processes that
can BEST help the business to run?
•HOWto apply these methods, systems and processes to
a specific organisation?
•ORGANISATION = consciously coordinatedset of
structure, systems, processes and methods which
enable the socialbeings (= employees) to achieve its
commonends (= organisational goals), by understanding
the significance of, and applying the principles of:
–Hierarchy
–Unity of command
–Chain of command
–Division of effort amongst two or more employees

21. So, in any MBA programme, you will learn…
•Purpose of OBis to integrate all employees’ efforts –correlation
between EMPLOYEE BEHAVIOUR and EMPLOYEES’ EFFORTS
•Marketing
–HOW to manage the market, product, sales, sales promotion,
PR, customers, advertising, profit improvement plans
•Finance
–HOW to manage money, cash, credit control, savings,
outstandings, revenue, costs, balance sheet, P&L accounts
•Operations
–HOW to manage making and delivering your products or
services –quality, cost and deliveries
•Systems
–HOW to manage processes, systems, methods in all areas
•HR
–HOW to manage employees –cradle to grave

22. Q& A

23. Origins of OB are in Human Behaviour
•We first studied and understood
individualOB in Sem 1
•We will now focus on, learn and
understand groupOB in Sem 2

24. 5W 1H about Groups
1.What is a group?
2.Howdo people make a group –method/s?
3.Whydo people make a group –reason/s?
4.How does a group develop?
5.How do people behave, in a group?
6.What is the role of group behaviour?
7.Why do people behave differentlywhen alone
and in a group?
Purpose of OB –How can group behaviour
benefit an organisation’s goals, results?

25. Contours of any Group
•Twoormorepeoplecometogether
•Theywanttotogetherdosomethingspecific
•Theycommunicatewithoneanother
•Theyareinter-dependent
•Keyissuestounderstand
–Eachpersoninagrouphasdifferentupbringings,beliefs,
culture,attitudeandbehaviour
–Despitethat,everyemployee’sbeliefs,culture,attitudes
andbehavioursmustbemodifiedandimprovedtosuitthe
group,anorganisation’senvironmentandexpectations
•Management’smostimportanttaskistoensurethat“every
employeeintheorganisationunderstands,agreeswithand
strivestoachievethegoals,objectives,KRAsandresultsof
theorganisation’sbusiness”
•Humanbeingsandtheirbehaviourisunpredictable

26. Foundations of group behaviour
•Group
–Types of groups
–Whyand howdoes a group get formed?
–Whyand howdoes a group develop?
•All the people in a group behave depending upon their
–Roles, responsibilities
–Norms, standards
–Status
–Size
–Cohesiveness
•How can a group’s members’ behaviour be controlled
and coordinated, to help meet the organization’s goals?

27. Why do people form groups?
4 reasons –“Social identity” theory
1.Similarity
–Converging (= similar) upbringings, beliefs,
cultures, attitudes, behaviours
2.Distinctiveness
–Uniqueness, speciality, exclusiveness
3.Status
–Esteem, social position
4.More certainty
–More reassurance and, therefore, less uncertainty
about expectations, roles and norms

28. Types of groups
Types of groups
1.Formal
–Command group
–Task group
2.Informal
–Interest group
–Friendship group

29. Key aspects of group behaviour –page 1
•Human nature –people preferto live as member of
a group since “no human is an island”. Hence,
1.People are much happierliving and working in
groups, than alone
2.Their individual upbringings, beliefs, cultures and
attitudes influencetheir workplace behaviour
3.Group members’ behaviour significantly influences
an organisation’s ability to perform and give better
business results
4.Functional, departmental, locational and business
domain groups createa basis for howwell the entire
group works

30. Key aspects of group behaviour –page 2
•So, howand whata group does, is a combination of
what all the people in the group can do together, i.e.
–Collectively, and
–By collaborating
•To improvethe group members’ behaviour, their
upbringings and beliefs cannot be changed
•But, their culturesand attitudescan certainly be
modified, correctedand improved
•This is every manager’s primary task
•As a manager, your ASKs will always be tested by your
ability to make these changes, modifications and
improvements happen

31. Q& A

32. Stages of group development
1.Forming
2.Storming
3.Norming
4.Performing
5.Adjourning*

33. 5 key aspects of human behaviour in groups
1.Role
–What work, tasks or activities does each group member do, that
are relevant and help to achieve a business process?
2.Norms
–What standards of behaviour must all group members observe,
demonstrate and adhere to?
3.Status
–What are the perceptions of each group member, about his/her
own status and other members’ status?
4.Size
–How many people should be in one group?
–Is there an “ideal” group size?
–How to judge what is the “ideal size”?
5.Cohesiveness
–What attracts all the group members to stay and work together?

34. Rolerequirements/expectations changein
differentsituations/groups
•Role perception
–What is my view of myrole?
•Role expectations
–What are otherpeoples’ expectations of myrole?
•Role conflict
–Do myASKs, opinion and views agree with what and
how otherssee, as myrole? Compliance issues

35. Normsand statusinfluencean individual’s
behaviourin a group
•Conformance = adherence to the group’s norms
•Deviant workplace behaviour
•Status characteristics theory
–Power
–Ability
–Personal characteristics
•Status inequity

36. Sizeof the group affects it’s performance
•Smaller than needed
–Control costs
–All group members are stressed due to
overwork
•Bigger than needed
–Some group members will not be fully loaded
with work
–Expensive = some employees do not
contribute anything towards achieving the
goals
–Result = “social loafing”

37. Cohesiveness in the group
•How attractedare group members towards
being together in the group for long?
•How motivatedare group members to continue
working in the group?
•How productiveare group members within the
group? Do they help and support one another?

38. Case study technique
Lecture –January 23, 2024
•General Power Ltd
•Performingstage
•Top Management’s dilemma
–Shahnawaz Shaikh
–Hardik Ganatra
–Lokesh Pant
–Pragati Thakur
–Naina Bhargava
–Ajay Singh
•Diverse roles, responsibilities, performance standards
•Norms, status, size, cohesiveness
•Different perceptions, personalities

39. General Power Ltd –page 1
1.IfyouareShahnawazShaikh
a.Whereistherealproblem?
b.Whatwillbethereactionsof
membersofyourBoD,investors,
financingagencies?Howwillyou
managethem?
c.Pressureofperformance?Why?
d.Fearoffailureandconsequentjob
loss?Why?
e.Noincentivestoworkharder?
Why?
f.Notenoughrecognitionfor
successstories?Why?
1.IfyouareHardikGanatra
a.Whatwillbetheimpactonallyour
businessprocesses?
b.Willyoursitestaffexpectrevisions
intheirsiteallowancestoo?How
willyouhandlecasesofpeople
refusingtodoworkunlesstheir
allowancesarealsorevised?
c.Nofreedomofdecision-making
amongsttheprojectsstaff?Why?
d.Ifyourmechanical,electricaland
civilsub-contractorsdemanda
hikeintheircontractrates,how
willyousatisfytheirexpectations?

40. General Power Ltd –page 2
1.IfyouareLokeshPant,
a.Whilenegotiatingwithcustomers,
howinvolvedareyoursalesstaff?
b.Whatencouragementandsupport
doyougive,toyoursalesstaff?
c.Canyoursalesstaffoffertrade
discountsdirectlytocustomers,
withoutyourpermission?Upto
whatlimits?
d.Ifyouagreetoanychangesin
theirsalariesandallowances,
whatwillyouexpectasquidpro
quos?
e.Whatrestructuringmustyoudo,to
improveyourrevenuegeneration
process?
1.IfyouarePragatiThakur,
a.Doesyourcompany’sfinancialstate
permitanyincreaseinsalariesand
allowances?Howfarcanyougo?
b.Howwillitimpactthecompany’s
earnings,expensesandprofitability?
c.Isincreaseinsalariesandallowances
theonlypossiblesolution?
d.Isvolumeorvalueofsalesmore
importanttoyou?Why?
e.Howwillitchangeyourfinancial
policies,processesandcontrols?
f.Shouldthesalesstaffchangetheir
reportingsystem,particularlyfor
outstandings, collectionsand
receivables?Howwillthischange
improvethemarketscenario?

41. General Power Ltd –page 3
1.IfyouareNainaBhargava,
a.Whomwillyoublameforthisissue?Why?
b.DoesHRhavethewrongCTCstrategy?If
so,whatistherightstrategy?
c.Hascostoflivingreallyrisen?Ifso,what
canHRdoaboutit?
d.MusttheCTCchangesbeonlyforthe
salesstaff,orthroughoutthecompany?
e.Howwillthecompany’scompetitionlook
atyourchanges?Shouldyoudoaregion-
cum-industrysurvey,tofindoutwhereyou
reallystand?
f.HastheCEOgivenyoutheauthorityto
makechangesinsalaries,withouthis
approval?If“Yes”,whatchangeswillyou
recommendtomanagement?If“No”,what
willbeyouralternate,remedialsteps?
g.Whatrecommendationswillyoumake,to
theCEO,toreduceattrition?
1.IfyouareAjaySingh
a.Whatimpactwillincreasein
employees’CTCshave,onyour
erection-and-commissioningcosts
andexpenses?
b.Whatdoesyourcost-benefit
analysistellyou?
c.Willyoursparepartsalesbe
affected?How?Why?
d.HowwillyoureviseyourAMCs
andotherratecontracts?
e.Willcustomersacceptthis
revision?Ifnot,whatareyour
remedialsteps?

42. Q& A

43. Next lecture
January 17
Group decision making
Understanding workplace teams

44. OrganisationalBehaviour
Semester 2
Rizvi Institute of Management Studies and
Research, Mumbai
Session 2 –January 17, 2024

45. Case study technique –January 23
•General Power Ltd
•Top Management dilemma
–Shahnawaz Shaikh
–Hardik Ganatra
–Lokesh Pant
–Prakash Thakur
–Naina Bhargava
–Ajay Singh

46. Attendance
GroupDecision-making

47. Reminders from Sem 1

48. Decision making process –page 1
•Requires application of mind and intelligence
–To select oneoption, out of severalother options
•Analysethese options against specific criteria, based on
the strengthsand weaknessesof each criterion
–Costs
–Benefits
–Advantages
–Disadvantages
•Outcome –a problem solved, or a planned action,
activity, recommendation or an opinion
•Alignment with preferencesof all the employees who are
involved, and who are likely to be affected by the
decision

49. Decision making process –page 2
•Make a choiceby identifying and considering
various alternativesto reach a decision
•Gather all relevant, related and connected
information, facts, data, past records,
established practices, opinions, points of view
•Create step-by-stepprocessesto arrange the
information systematically
•Define and assess different alternatives to make
a more deliberate and considereddecision
•Select the best preferredsolution

50. Rational decision making –the 6-step model
1.Define the problem
–Understand the problem clearly
–Is it the REAL or APPARENT problem?
2.Identify the decision criteria
–All relevant, viable options and their respective consequences
3.Allocate weightages to these criteria
–Based on their criticality, importance and urgency
4.Develop different alternatives
–Ensure constancy of weightages and preferences
5.Evaluate all these alternatives
–Obtain full information about all criteria and their respective
positive and negative consequences
6.Select the best possible alternative
–Select the alternative with the highest perceived value and
yield

51. Q& A

52. Sem 2

53. Issues in
Group Decision-making
•How does decision making differ from individualto group?
•How does a GROUP make decisions in an organisation?
•What are the obvious differences between groupand
individualbehaviour in an organisation, while deciding any
issue?
1.Disagreement on ideas
2.Not having the same perceptions
3.Poor communication
4.Uneven division of work
5.Compromise decisions
6.Lack of specific responsibility
7.Expensive

54. Issues in group decision-making
MMS B
•62
•72
•82
•92
•102
MMS A
•2
•12
•22
•32
•42

55. Key aspects of Group decision-making –1
•Groupdecision-makingisaprocesswhereagroupof
individualscollectivelymakeadecision
•Thedecisionisusuallyreachedthroughdiscussionand
consensus
•Thistypeofdecision-makingisoftenusedinbusiness
settings,asitallowsformultipleperspectivestobe
consideredbeforeafinaldecisionismade
•Whenindividualscometogethertomakedecisions,they
aremakingsuchdecisionscollaboratively
•Consequently,theoutcomeofthedecision-making
processcannotbeattributedtooneindividualasthe
decisionisnotanyonegroupmember’sdecision

56. Key aspects of Group decision-making –2
•Membershavetoselectasolutionormakeachoice
fromthemanyalternativesavailabletothem
•Groupdecision-makingcommonly known as
collaborativedecision-makingisasituationfacedwhen
individualscollectivelymakeachoicefromthe
alternativesbeforethem
•Thedecisionisthennolongerattributabletoany
individualgroupmemberasalltheindividualsandsocial
groupprocesseslikesocialinfluencecontributetothe
decisionoutcome
•Thedecisionsmadebygroupsaremostlydifferentfrom
thosemadebyindividuals.Forexample,groupstendto
makedecisionsthataremoreextremethanthosemade
byindividualmembers,asindividualstendtobebiased

57. Group decision-making –page 1
•One person alone cannot accomplish the tasks/activities
of several people, based on various criteria
–Size, complexity, time constraints, manpower
availability
•Group members togetherdecide, to do
1.Some work, task or activity, or
2.A series or sequence of several connected (= related,
relevant) work, tasks and activities
•Hence, specific work, task or activity is usually assigned
to each group member, based on his/her respective
ASK’s (Aptitude, Skills, Knowledge) and personal
preferences and interests

58. Group decision-making –page 2
Strengths
•More complete
information
•More diverse views
•Acceptance of
solution
Weaknesses
•Time consuming
•Pressures to
conform
•Dominance of few
•Ambiguous (=
confusing)
responsibility

59. Group decision-making –page 3
Effectiveness and efficiency
•Group decision making
•Generally more accurate
•Tends to be more creative
•Is more easily accepted
•Takes more time
•Primary criterion = precision?
•Individual decision makingis faster
•Primary criterion = time saving?

60. Q& A

61. Groupthink –page 1
•As group members, we find it more convenient to be in
agreement with the majority, than to become a disruptive
force, even if disruption is necessary for improved and
more effective decision making
•Thus, we fall into the “group think” trap. Why?
•Group pressures for conformity deter the group from
making a more critical appraisal
•Norm for consensus (= agreement) does NOT allow
1.Realistic appraisal of alternatives, and
2.Full expression of deviant, unusual or unpopular
views
•Individual’s mental efficiency, reality testing and moral
judgment deteriorate due to group pressures

62. Groupthink –page 2
•Clear group identity
•Uphold and protect positive group image
•Tendency to suppress dissent and encourage conformity
•Managers can minimise groupthink by
1.Controlling group size
2.Encouraging team leaders to play impartial roles during
discussions
3.Actively seeking inputs from all members before hand
4.Avoid giving their own opinions
5.Appointing a “devil’s advocate”
6.Stimulating active discussions about diverse alternatives
without threatening the group

63. Group shift
•Special case of groupthink
•Group shift = group polarisation
•Dominant decision making norm shifts towards
greater caution, or more risk
•Discussion makes the members more
comfortable with one another
•Members are more willing to express more
extreme views
•Group diffuses responsibility; so, more extreme
position can be taken

64. Group decision making techniques
1.Interacting groups
2.Brainstorming
3.Nominal group technique
4.Electronic meetings

65. 1. Interacting groups
•Members meet face-to-face
•Rely on verbal and non-verbal interactions
to communicate with each other
•Members often censure themselves
•Members often pressurise weaker
members to conform (= agree) to a
dominant opinion

66. 2. Brainstorming
•Overcomes pressures of conformity
•Idea-generation process to encourage all
alternatives, without criticism
•Group leader states problem clearly
–Members free-wheel all alternatives
–No criticism allowed
–All alternatives are recorded
–Think the unusual
–Production blocking –interference

67. 3. Nominal group technique
•Members meet in a group
•Write their idea independently > then,
speak one-by-one > members discuss all
ideas for clarity and evaluation > each
member rank-orders them silently and
independently
•Highest aggregate ranking determines
final decision
•Does not restrict independent thinking

68. 4. Electronic meetings –MS Teams, Google
Duo, Zoom, virtual meetings
•Members type their responses into their
respective computers
•Individual comments are displayed on screen
•Participants remain anonymous, honest and
speedy
•Studies show decreased group effectiveness,
since more time is taken to decide, resulting
in reduced member satisfaction

69. Q& A

71. Next lecture
Case study technique –January 23
•General Power Ltd
•Top Management dilemma
–Shahnawaz Shaikh
–Hardik Ganatra
–Lokesh Pant
–Prakash Thakur
–Naina Bhargava
–Ajay Singh

72. OrganisationalBehaviour
Semester 2
Rizvi Institute of Management Studies and
Research, Mumbai
Session 3 –January 23, 2024

73. Attendance

74. The Case Study Method
General Power Ltd

75. General Power Ltd
20 minutes
MMS A
•3Lokesh (Mktg)
•13Pragati (Fin)
•23Naina (HR/Admin)
•33Hardik (Projects)
•43Ajay (After Sales)
•Adnan –Shahnawaz
•Solution required
MMS B
•53Lokesh (Mktg)
•63Pragati (Fin)
•73Naina (HR/Admin)
•83Hardik (Projects)
•93Ajay (After Sales)
•Saad –Shahnawaz
•Solution required

76. What is a case study?
•Detailed study of a business story
–Person, group, team, event, situation, organisation,
place
•Case study research design includes
–Quantitative methods
–Qualitative methods
•A business problem has to be solved, or a decision has
to be made, about the case, by
–Understanding
–Describing
–Comparing
–Evaluating

77. Studying a case
•Beginning
–Builds up the scenario/situation
•Main story
–Critical actions, activities, decisions which cause a result
–One prima donna (primary actor) who takes actions,
steps, decisions; s/he faces the consequences
–Other actors may add to the story/scenario/situation
•Current/present state of the dilemma
–Consequence is “felt”, or is “likely” to be felt
–“Behaviour = (Fn) Consequence?
•So, obviously, a BUSINESS PROBLEMexists, and a
BUSINESS DECISIONhas to be taken

78. Problem solving? Decision making?
•Every problem is solved by making a decision
•Every decision taken solves a problem
•Apply all the 6 steps of the Rational Decision Making
model:
1.Define problem/issue
2.Identify possible causes and decision criteria
3.Allocate weightages to all criteria
4.Develop alternatives/solutions
5.Evaluate all alternatives/solutions
6.Select best alternative/solution and finalise decision
which will solve the problem

79. 3 action steps, in studying a case
1.Stepintotheshoesoftheprimadonna.
Onlythenwillyouknowwheretheshoe
pinches
2.ImaginethatyouALONE(nooneelse)
havetomakethedecision/s,tosolvethe
problem/sand/orfullyresolvetheissue
3.Then,explainindetailwhatmethods,
systemsandprocessesyouwilluseand
thevariousstepsyouwillfollow

80. 5W 1H in a case study
•Who?
–Critical actors in a specific story, to ensure focus towards solving
the problem, or deciding the next step/s
•What?
–Explore and understand the most critical characteristics,
meanings and implications of the story
•When?
–As detailed in the story
•Where?
–As detailed in the story
•Why?
–To gain concrete, contextual, in-depth knowledge about the story
•How?
–By applying your ASKs

81. Step 1 –Understand the case
•Problem statement
–Hypothesis (= remember your SIPs)
•Research questions. You must
–Provide new insights into the subject
–Challenge existing assumptions and theories
–Propose a practical action plan to resolve the
problem; something that can really be done
–Identify new areas which need to be researched
•Random sampling, or representative sampling is not
required; only your own analytical abilities

82. Step 2 –Build theoretical framework
•Stories (cases) have actual details, not general
theories
•Usually, some theory connects with the case
•Thus, the case is not an isolated description, but
integrates itself into the existing knowledge/theory
about the subject, which you should have studied
–Exemplify the theory
–Expand the theory
–Challenge the theory
•Review the theoretical literature by checking out
other textbook knowledge to match the theory with
the case

83. Step 3 –data collection
•Qualitative methods
–Information from interviews, observations,
analysis
–Employees’ perceptions and experiences
•Quantitative methods
–Facts, company documents, statements, track
records, rates, revenue, targets
–Absolute and incontrovertible data
•Primary and secondary sources

84. Step 4 –describe and analyse the case
•Bring together all relevant and operational
facts and information, to give a more
complete picture
–Methods, results, discussion
–Contextual and discourse analysis
•Connect your analysis back to the
literature and theory you have studied
•Discuss how this case helps you to better
understand the literature and theory

85. Q& A

86. Film –Interviewing with
McKinsey & Co
https://www.youtube.com/watch?v
=nGzYzq3Wsos

87. What are the keyaspects of the
McKinsey & Co interview?

88. Q& A

89. Next lecture –January 24, 2024
Emotional intelligence

90. OrganisationalBehaviour
Semester 2
Rizvi Institute of Management Studies and
Research, Mumbai
Session 4 –January 24, 2024

91. Attendance

92. Emotional Intelligence

93. Today’s Agenda
•Introduction to Emotional Intelligence (EI)
•How to read emotions and emotional hints?
How does this help, at work?
•5 key components in EI:
1.Self perception
2.Self expression
3.Inter-personal skills
4.Decision making
5.Stress management

94. Emotional Intelligence (EI) –introduction
•Functioning and operating within our social environment, taking
into account the emotions and feelings of everyoneinvolved
•Components of EI
1.Self perception–how (and how well) do we understand and
recogniseour own emotions?
2.Self expression–how (and how well) do we express ourselves,
controlling our feelings, when we are affected by our emotions?
3.Interpersonal skills–how (and how well) is our ability and
comfort in communicating with others, when affected by our
emotions?
4.Decision making–how (and how well) do we make decisions
when we are emotionally affected?
5.Stress management–how (and how well) do we manage our
stressknowing our own emotional state?
•Steps to manage emotions
1.Impact at work
2.Strategies for action

95. How to read emotions and emotional hints?
How does this help, at work?
In any human transaction, i.e. where 2 or more people are
involved, we use our Emotional Intelligence (EI), i.e. one
person’s ability to
1.Notice and recogniseone’s ownemotions and feelings as one
experience them, and
2.Notice and recogniseemotions and feelings in other people,
and
3.Make sense out of this emotional information and these hints
People who can read and understand their own emotions well
and can also read others’ emotional hints well, are naturally
more effective and successful, when working in teams
EI plays an important role in performing well any job where
human interaction is involvedamongst 2 or more persons

96. 5 basic components of EI
1.Self perception
–What and How do I perceive myself?
2.Self expression
–How do I display my verbal and non-verbal language
3.Inter-personal skills
–How well do I develop and nurture my inter-personal
relationships?
4.Decision making
–How well do I recognise my and other people’s emotions and
personal biases?
–Can I control being impulsive, and resist the temptation to act?
5.Stress management
–How well do I adjust my emotions, thoughts and behaviours to
unknown situations?
–How well can I cope with stressful or difficult situations?

97. 1. Self perception
•Self-regardisrespectingoneselfwhileunderstanding
andacceptingone’sownstrengthsandweaknesses.
Self-regardisoftenassociatedwithfeelingsofinner
strengthandself-confidence
•Self-actualisationisthewillingnesstopersistentlytryto
improveoneselfandengageinthepursuitofpersonally
relevantandmeaningfulobjectiveswhichcanleadtoa
richerandmoreenjoyablelife
•Emotionalself-awarenessincludesrecognisingand
understandingourownemotions.Thisincludesthe
abilitytodifferentiatebetweensubtletiesinourown
emotions,whileunderstandingthe(1)causeofthese
emotions,and(2)impacttheycanhaveonourand
others’thoughtsandactions

98. 2. Self expression
•Emotionalexpressionisopenlyexpressingone’s
feelingsverballyand/ornon-verbally,i.e.through
ourbodylanguage
•Assertivenessinvolvescommunicatingfeelings,
beliefsandthoughtsopenly,anddefendingour
ownpersonalrightsandvaluesinasocially
acceptable,non-offensive,andnon-destructive
manner
•Independenceistheabilitytobeself-directedand
freefromemotionaldependencyonothers.
Decision-making,planninganddailytasksare,
thus,completedautonomously

99. 3. Inter-personal skills
•Interpersonalrelationshipsrefertotheskillsneededto
developandmaintainmutuallysatisfyingrelationshipswhich
aremainlycharacterisedbydevelopingandmaintaininghigh
levelsoftrustandcompassion
•Empathymeansrecognising,understanding,andappreciating
howotherpeoplefeel.Empathyinvolvesbeingableto
articulateandcommunicateourunderstandingofanother
person’sperspectiveandbehavinginawaythatrespectsthat
otherperson’sfeelings.Empathy,therefore,acknowledges
theotherperson’sfeelings,beyondthespokenwords,i.e.
listeningactively
•Socialresponsibilityistheabilitytowillinglycontributetoour
ownsocietyandtooursocialgroups,andgenerallydedicates
itselftothewelfareofotherpeople.Socialresponsibility
requiresonetoactresponsibly,besociallyconscious,andto
showconcernforthelargercommunityandourenvironment

100. 4. Decision making
•Problemsolvingistheabilitytofindsolutionsto
problemsinsituationswhereemotionsare
involved.Problemsolvingincludestheabilityto
understandhowemotionsimpactdecision-making
•Realitytestingisthecapacitytoremainobjective
byseeingthingsastheyreallyare.Thiscapacity
involvesrecognisingwhenemotionsorpersonal
biascancauseonetobelessobjective
•Impulsecontrolistheabilitytoresistordelayan
impulse,driveortemptationtoactandavoidsrash
behaviourandunwisedecisionmaking

101. 5. Stress management
•Flexibilityistheabilitytoadjustandadaptour
emotions,thoughtsandbehaviourstounfamiliar,
unpredictableanddynamiccircumstancesorideas
•Stresstoleranceistheabilitytocopewithstressful
ordifficultsituationsandtobelievethatonecan
manageorinfluencesituationsinapositive
manner
•Optimismindicatesaperson’spositiveattitude
andoutlooktolife.Itinvolvesremaininghopeful
andresilient,despiteoccasionalsetbacks

102. Class exercise (30 minutes)
Write your name and Roll no on the Right side
top of a blank page
Write your answers NOW, relating to EACH of
the 5 key components of EI
1.How does EI adversely impact
you, in your relationships with
your friends?
2.What strategieswill you apply, as
correctiveaction, or to improve
yourself?

103. Sample answer
DO NOT COPY
Self perception

104. Self perception
•Self-regardisrespectingoneselfwhileunderstanding
andacceptingone’sownstrengthsandweaknesses.
Self-regardisoftenassociatedwithfeelingsofinner
strengthandself-confidence
•Self-actualisationisthewillingnesstopersistentlytryto
improveoneselfandengageinthepursuitofpersonally
relevantandmeaningfulobjectiveswhichcanleadtoa
richerandmoreenjoyablelife
•Emotionalself-awarenessincludesrecognisingand
understandingone’sownemotions.Thisincludesthe
abilitytodifferentiatebetweensubtletiesinone’sown
emotionswhileunderstandingthe(1)causeofthese
emotionsandthe(2)impacttheyhaveonone’sownand
others’thoughtsandactions

105. Impact at work

106. Self perception –page 1
•EmotionalImplications.
–Yourresultmaymeanthat,onanemotionallevel,youaredrivento
achieveyourfullestpotential,haveamorepositiveoutlookonyour
capabilities,andaremoreconfidentinexpressingyourselfthanthose
withaverageself-regard.Thepotentialchallengeisthatyoucouldlose
touchwithobjectiveassessmentsofyourcapabilities.Drawonreality
testingbehaviorstomaintainahealthyself-perception.
•SocialandBehavioralImplications
–Yourwillingnessandabilitytounderstandandacceptyourstrengths
andweaknessesisoftenperceivedbyothersasconfidence.People
mayfrequentlygravitatetowardyou,looktoyouforadvice,andseek
yourleadership.Becauseyourstrengthsareconfidentlydemonstrated,
youmaybegivenopportunitiesorpromotionsthatmaximizethese
talents,butitisalsoimportanttoseekoutopportunitiesthatstretchyour
lessdevelopedskillsaswell.Toavoidpotentialnegativeconsequences
ofoverlyhighself-regard,useempathyandanappropriatelevelof
assertivenesstoavoidappearingoverconfident.

107. Self perception –page 2
•SocialandBehavioralImplications
–Yourwillingnessandabilitytounderstandandaccept
yourstrengthsandweaknessesisoftenperceivedby
othersasconfidence.Peoplemayfrequentlygravitate
towardyou,looktoyouforadvice,andseekyour
leadership.Becauseyourstrengthsareconfidently
demonstrated,youmaybegivenopportunitiesor
promotionsthatmaximisethesetalents,butitisalso
importanttoseekoutopportunitiesthatstretchyour
lessdevelopedskillsaswell.Toavoidpotential
negativeconsequencesofoverlyhighself-regard,
useempathyandanappropriatelevelof
assertivenesstoavoidappearingover-confident.

108. Strategies for corrective action

109. Self perception –page 1
•Self-RegardProfile
•Seekingothers’feedbackonyourstrengthsandweaknesses
demonstratesawillingnesstolearnandgivesyouobjective
datatoconfirmwhetheryourself-beliefsareinlinewithwhat
otherssee
–Identifythoseatwork(colleague,boss,superior)who
knowyouwellenoughtocommentonyourstrengthsand
weaknesses
–Askthemtolistyourstrengthsandweaknesseswith
specificobservationsorexamples
–Withoutlookingattheirlist,writewhatyoubelieveyour
strengthsandweaknessesare.Thencomparelists.Look
fordisconnectsandsimilaritiesbetweenlists.Arethere
examplesofwhereothersdidn’tagreewithyourlisted
strengths?

110. Self perception –page 2
•Own-uptoyourweaknesses
•Althoughchallenging,openlyadmittingyour
weaknessescanhelpkeepyourSelf-Regardin
checkwithhowyourcolleaguesseeyou
–Recordyourreactiontoanymistakesorerrorsyoumake
overthenextfewweeks.Ifyoufindyourselfblaming“the
system”orothersforyourmistakes,youmightwantto
startopenlyadmittingyourpointsofweaknesses
–Ratherthanplacingblame,usemistakesasopportunities
toshowthatyouknowandacceptyourweaknessesand
applyspecificstrategiesthatcanmanagethem,rather
thanpretendingthattheydon’texist.

111. Q& A

112. Next lecture –January 30, 2024
Power and the POSH Act

113. OrganisationalBehaviour
Semester 2
Rizvi Institute of Management Studies and
Research, Mumbai
Session 5
January 30.2024

114. Attendance

115. Today’s agenda
Power
POSH Act

116. Power

117. Power
•Power is a natural process and a reality in any organisation
•Power is A’s ability to influenceB’s behaviour, so that B behaves
just as A wants
–Ability to “influence” a person’s behaviour = to affect, change,
correct, improve, modify, remove anything unwanted, add what
is needed
•“Influence” can be right or wrong, good or bad, wanted or unwanted
•To fully understand OB, you must know howpower is acquired,
exercised and enforced
•The greater that B dependson A, the greater is A’s influence and
power in his/her relationship with B
–Dependence is based on the (1) alternativesand (2) importance
that B perceives on those alternatives which (3) A finds
accessibleand can control
•So, person A can onlyhave power over person B, if A possesses
and controlssomething which B wants

118. Sources of power
•Where does power come from?
•What gives any person (or any group) the
capacity to exercise influence over others?
•Formal(official) power –based on A’s formal
position in an organisation
–Legitimate power
–Coercive power
–Reward power
•Personal(informal) power –based on A’s
personal characteristics
–Expert power
–Referent power

119. Influence
•We try to
1.Get what we want?
2.Meet our needs?
3.Reach our goals?
•We use skills which we know and understand
–How/when to use them
–How these will benefit us
•By persuasion, using direct, action-based
suggestions, to convince others
•Show consequences –good and/or bad

120. Dependency –page 1
•Whenyoupossesssomethingasyourownexclusive
propertyandsomeoneelsewantsit,thisotherperson
becomedependentonyouand,therefore,yougain
poweroverhim/her
•Dependencyisinverselyproportionaltoavailability
–Ifsomethingisavailableeasilyandyoualsohaveit,
yourpossessingitdoesnotincreaseyourpower
–Ifeveryoneinagrouplooksintelligent,intelligence
isnotanadvantage
–Similarly,amongallthesuper-richpeople,money
doesnothaveanyinfluenceandpowerforthe
super-rich

121. Dependency –page 2
•Ifyoucancontrolknowledge,information,facts,data,
prestige,ownership,belongingsoranythingelsethat
othersmaydesire(want),youcreateamonopolyand
theseothersbecomedependentonyou
•Conversely,themorethatyoucanexpandyouroptions,
alternativesorchoices,thelessisthepoweravailableto
others
–Thisexplains,forexample,whymostorganisations
developmultiplesuppliers,ratherthanawarda
contracttoonlyonesupplier
–Italsoexplainswhyyoungpeopleaspireforfinancial
independence,whichreducesthepowerthatothers
(parents?)canhaveoverthem

122. Q& A

123. Dependence –key to power
•What causes dependency?
1.Importance
2.Scarcity
3.Non-substitutability (= Cannot be
substituted)

124. Importance
•Ifnoonedesireswhatyouhave,youcannotcausedependency.Tocreate
dependency,therefore,whateveryoupossessandcontrolmustbe
perceivedasbeingdesirableand,therefore,important
•Organisationsactivelytrytoavoiduncertainty*
•*Uncertainty
–Doubt,suspicion,mistrust,skepticism
–Lackofsurety,certainty,definiteness,assurance,guarantee,conviction
•Therefore,individualsorgroupswhocanabsorb(orreduce)an
organisation’suncertaintywillbeperceivedascontrollinganimportant
resource
•Forinstance,aresearchstudyofsomeindustrialorganisationsfoundthat
themarketingfunctioninthoseorganisationswereconsistentlyratedas
beingthemostpowerful.Theresearcherconcludedthatthemostcritical
uncertaintyfacingthesefirmswassellingtheirproducts
•EngineersasagroupareconsideredmorepowerfulatSiemensoratL&T,
beingheavilytechnologically-oriented,thanatJ&JoratProcter&Gamble,
wheremarketingisthenameofthegame

125. Scarcity
•Ifsomethingisplentiful,it’spossessionwillnotincreaseyourpower.Ifa
resourceisperceivedasscarce,itcreatesdependency
•Lower-ranked(junior)employeesinanorganisationoftenhaveaccess
toimportantworkorbusinessknowledge,information,facts,dataor
documentswhicharenotknownto(oravailableto)higher-ranked
(senior)managersandexecutives.Thus,theselower-rankedmembers
gainpoweroverthehigher-rankedmembers
•Possessionofascarceresourcesuchasimportantdata,workor
businessknowledgeautomaticallymakesthehigherrankingmember
dependentonthelowerrankingmemberand,so,reducestheirpower
•Therearecasesworld-wideoflower-rankedmembers(1)destroying
proceduresandmanualswhichexplainhowajobisdone,(2)refusing
totrainfreshersintheirjobs,(3)notshowingothershowtheydotheir
job,(4)ratingspecialisedlanguageandterminologyassecrets,which
preventothersfromunderstandingtheirjobs,or(5)evenoperatingin
suchcomplicatedsecrecythatataskoranactivityappearsevenmore
difficult/complicatedthanitreallyis

126. Non-substitutability (= cannot be substituted)
•Thescarcity-dependencyrelationshipisfurtherenhancedinthepowerof
certainoccupationalcategories
•Individualsinspecificoccupations,wherethesupplyofcapablepeopleis
lowrelativetodemand,cannegotiatehighercompensationandbenefit
packageswhicharefarmoreattractivethanthoseinotheroccupations
wherethereareabundantcandidates
•Theresultisthatthebargainingpowerofsuchcategoriespermitsthese
specificoccupationstocommandandnegotiatehighersalaries,lighterwork
loads,andotherbenefits
•Ifanemployeecannotbeeasilyreplaced,his/herpowerisgreater
•Whenacompany’sresourcesorcapabilitiesmeetcertainminimumcriteria
theyarecalledcorecompetencies.Ifaresourceorcapabilitymeetsthose
criteria,itcontributestoafirm’scompetitiveadvantageoverrivalsandhelps
thefirmtobecomemoreprofitable
•Aresourceorcapabilityisacorecompetencyifitisvaluable,rare,
expensive,costlytoimitateand,therefore,non-substitutable

127. Q& A

128. Power tactics
1.Rational persuasion–logical arguments, factual
evidence
2.Legitimacy–authority, policies, rules
3.Inspirational appeals–emotional appeal to one’s
values, needs, hopes, aspirations
4.Consultation–increasing support by involvement
5.Exchange–rewarding with benefits or favoursin
exchange
6.Personal appeals–seeking compliance based on
friendship, loyalty
7.Ingratiation–using flattery, praise, friendly behaviour
8.Pressure–using warnings, demands, threats
9.Coalition–enlisting others’ aid and support

129. Leadership and power
“Leaders” use “power” to achieve goals
Leadership
1.Goals must be
compatible with
organisationalgoals
2.Direction of influence of
leadership
3.Support / tactics to
ensure compliance with
the organisationalgoals
which the leader wants
to achieve
Power
1.Power is used only to
achieve personal goals
2.No direction, no
purpose, except to
achieve superiority
3.To dominate alone,
irrespective of whether
organisationalgoal/s
must be achieved or
not

130. Prevention of Sexual
Harassment Act
(POSH Act)

131. Origins of the POSH Act
•TheVishakaJudgement
–In1992,BhanwariDevi,adalitwomanemployedwith
theruraldevelopmentprogrammeoftheGovernment
ofRajasthan,wasbrutallygang-rapedonaccountof
hereffortstocurbthethenprevalentpracticeofchild
marriage
–Thisincidentrevealedthehazardsthatworking
womenwereexposedto,onaday-to-daybasis,and
highlightedtheurgencyforsafeguardstobe
implementedinthisregard
•Everyemployermustprovideamechanismtoredress
grievancespertainingtoworkplacesexualharassment

132. POSH Act
An Act to provide protection:
1.Against the sexual harassment of women at
workplace,
2.For the prevention and redressal of complaints of
sexual harassment, and
3.For matters connected therewith, or incidental
thereto
A committee investigates the sexual harassment
complaint, and
If the committee can't complete the enquiry process
within 90 days, the enquiry will not be rejected as
invalid

134. Sexual harassment (SH) –page 1
•Unwanted activity of sexual nature, that
–Adversely affects an individual’s employment
–Creates a hostile work environment
•Role of dependence
–Concept of power is central to sexual
harassment
–Pervasive activity
–Unequal power at workplace
–Large power differential
–Formal power –reward and coercion

135. Sexual harassment (SH) –page 2
•Reporting harassment doesn’t improve matters –
organisation’s response is usually unhelpful
•Victim suffers from (1) lower job satisfaction, and (2)
reduced organisational commitment, both of which (3)
undermine mental health, and (4) lower team productivity
•Managerial responsibility to protect employees
•POSH Act
–Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act 2013
•The POSH Act has been enacted with theobjective
ofpreventing and protecting women against sexual
harassment at their workplace and to ensure effective
redressal

136. Sexual harassment (SH) –page 3
•The POSH Act states that any organisation employing 10 or
more women employees must mandatorily constitute an Internal
Committee (IC) to handle and resolve all sexual harassment
complaints
•The duties of employers in enforcing the Act and its guidelines
are:
–Provide a safe working environment.
–Display the penal consequences of workplace sexual
harassment.
–Employees should undergo POSH training at least once a
year.
–Conduct orientation programmes for the IC.
–Assist in any manner required to enable the aggrieved
woman to receive justice according to the law.
–At least one half of the IC should be women

137. Sexual harassment (SH) –page 4
•Ifthecompanyfailstocomplywiththeprovisionsofthis
Act,afineofuptoRs50,000canbeimposed
•Ifthecompanystilldoesn’tcomply,evenafterpayingthe
fine,thefineamountcanbedoubled.Inaddition,the
governmentcancanceltheworkinglicenceofthe
company
•FailuretocomplywiththeActanditsguidelineswillalso
leadtoseriouslossofthatorganisation’sreputation
•POSHActdefinestheworkplaceas“anyplacevisitedby
theemployeearisingoutoforduringthecourseof
employment,includingthetransportationprovidedbythe
employerforthepurposeofcommutingtoandfromthe
placeofemployment”

138. Q& A

139. Today, in summation
•Power –what it means
•Different types of power
•Sources of power –formal and personal
•Importance of dependence –importance,
scarcity, non-substitutability
•Leadership and power
•Sexual harassment
•POSH Act

140. Next lecture –Session 6
January 31, 2024
Organisational Structure

141. Rizvi Institute of Management Studies
and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 6 –January 31, 2024

142. Attendance

143. Organisational structure?

144. Organisation
What?
•A consciously coordinated social unit
•Hierarchy of authority and responsibility
–Chain of command
–Unity of command
•Division of effortbetween two or more people
working together
Why?
•Purpose –to integrateall humaneffort to
achievethe organisation’s commongoals,
targets, objectives, KRAs

145. Structure –page 1
•Systematic arrangementof inter-relatedparts,
elements or segments in any person, object or
system
•Materialstructures include all man-made parts such
as (1) buildingsand machinery,and (2) natural parts
such as biological/living beings, minerals and
chemicals
•Abstractstructures include data structures in
computers and musical forms
•Structures include examples like an organisational
hierarchy, a WA network, or electrical connections
between components of any system

146. Structure –page 2
•Structure of any building
•Columns, beams, systems, connections
•House, office, theatre, auditorium, classroom,
residential tower, stadium, factory, bridge
•Structure of any organisation
1.Strength
2.Size
3.Shape
4.Design
•Purpose
•Why does it exist? What will it be usedfor?

147. Q& A

148. What is organisational structure? –page 1
•The structure of an organisation
•Purpose = why does the organisation exist?
•An organisation’s purpose determines the various
methods, systems and processeswhich we apply, to
the organisation’stasks, activities and work, which
are therefore formallydivided, groupedand
coordinated
•So, these methods, systems and processes in an
organisation are the lifelines/connections (= bones,
muscles, joints, blood vessels, etc) of the
organisational structure
•“Management” is the art and science of managing all
these lifelines/connections

149. What is organisational structure? –page 2
•Anorganisationalstructureisasystemthatoutlineshow
certainactivitiesaredirectedinordertoachieve
organisationalgoals
•Theseactivitiesincluderules,rolesandresponsibilities
•Theorganisationalstructurealsodetermineshowinformation
flowsbetweendifferentlevelswithinthecompany
•Businessorganisationsofalltypes,shapesandsizeshave
organisationalstructures,whichdefineaspecifichierarchy
withintheorganisation
•Awell-designedorganisationalstructureclearlydefineseach
employee'sjobandhowitfitswithintheoverallsystem
•Putsimply,theorganisationalstructurespellsoutwhodoes
what,inordertoenablethecompanytomeetitsobjectives

150. Correlations in the organisational structure
•Purpose
–Methods, systems and processes
–Organisation’stasks, activities and
work
–Formal division, grouping,
lifelines/connections and coordination
•Management
–What you are supposed to learn in this
MMS programme

151. Unique features in organisational structures
1.Complexity
–Extent of differentiation –specialisation,
division of labour, levels and hierarchy,
geographical, functional and skills dispersion
2.Formalisation
–Standardisation, dependence on rules,
regulations, methods, systems and
processes
3.Centralisation
–Decision-making authority at specified levels

152. Q& A

153. Why different types of organisation structure?
•Bases for different types of structures:
•Methods/systems/processesby which an organisation’s
tasksare formallydivided, groupedand coordinated?
1.Work specialisation –Different jobs/activitiesare sub-divided into
different departments
2.Departmentalisation –Similarjobs –which jobs are grouped
together?
3.Chain of command –Who (roles, authority, responsibility) is the
head (in charge)?
4.Span of controland hierarchy–How many people can one person
IDEALLY manage, direct, coordinate, control and supervise?
5.Centralisation –What level and who (roles, authority, responsibility)
makesdecisions?
6.Formalisation –What rulesand regulationsgovernits working–
systems, methods, processes and connections?

154. 1. Work specialisation
•Division of labour –organisational activities are sub-
divided into separate jobs
–Different tasksgiven to different people, depending
on what their aptitude, skills, knowledge and
competenciesare, i.e. what they are capable of doing
•Advantages of specialisation–constantly improving
work skills, less time needed, more efficiency, greater
productivity
•Disadvantages of specialisation–monotony, boredom,
fatigue, stress, low productivity, poor quality, increased
absenteeism, high turnover

155. 2. Departmentalisation
1.By specialisation
–Knowledge, skills, functions and/or aptitudes/competencies
–Efficiencies gained from putting specialists together
2.By products and/or services offered to the market
–Improved accountability for performance
3.By geography –region, area and/or territory
–When customers are scattered and have similar needs
based on their location
4.By methods, systems and/or processes
–For processing customers’ specific needs/expectations
5.By types (categories) of customers
–Customers having a common set of problems/needs which
can be best met by having specialists in each segment

156. 3. Chain of command
Line of authority
•“Who” reports to “whom”?
•Guidance, directions, advice, instructions
•Roles, responsibilities, rights and authorities are inherent
in any managerial position
Unity of command
•One person who decides and instructs his/her
subordinates on all important dimensions of each
task/activity
–Whatto do?
–Howto do it?
–Whowill do it?

157. Reporting to……?

158. 4. Span of control & hierarchy
•How many people can be effectivelyand efficiently
managed by onemanager?
•4?
•6?
•8?
•Wider (= larger) span of control dilutes (= reduces)
effects and impact of command and control
•Awareness of the need for command and control
determines the number of levels, managers and
other subordinate staff
•All things being equal, the wider the span, the more
efficient is the organisation

159. 5. Centralisation and decentralisation
•Decision making
•Formal authority –“command group”
•Centralisedorganisations
–Top managers make all the decisions
–Action takes longer to commence and complete
•Decentralisedorganisations
–Decision making is pushed down to junior-most
managers and supervisors –those who are closest to
the action
–Organisation acts more quickly to solve problems
–More people provide inputs to decision making
–Employees are less likely to feel alienated

160. 6. Formalisation
•Standardisation of jobs. Hence,
1.Minimal discretion and supervision
2.Consistent and uniform output
3.Explicit job descriptions
4.Organisational rules and controls
5.Clearly defined work procedures

161. Q& A

162. Why do structures differ? –page 1
Structure follows strategy? Or, does strategy follow structure?
Build an organisationaround people; don’t build people around
an organisation
Four key reasons
1.Structure–methods to help management to achieve its
objectives
•Current strategies
•Innovation(Organic)
–Flexibility
•Cost reduction(Mechanistic)
–Efficiency & Stability
•Imitation(Organic & Mechanistic)
–Tight control & Low costs

163. Why do structures differ? –page 2
1.Organisation size
–Significantly affects structure
–More specialisations, more departments, more vertical levels,
more rules/regulations
2.Technology
–How are inputs (=efforts) transferred to outputs (= results)?
–How to convert financial, human and physical resources into
products or services?
–Routinisation –rules, job descriptions, documentation,
formalisation
3.Environment
–Institutions or forces outside the organisation impact/affect its
performance
–Suppliers, customers, competition, governmental and regulatory
agencies, politics, public pressure groups
–Environmental uncertainty –Covid 19

164. Structures in traditional (older) organisations
•Simple structure
–Flat organisation
–Centraliseddecision making
–Specialisation
–Functional or skill-based
–Product, customer, market or domain-based
•Bureaucracy
–Standardisation–dominated by rules and procedures
–Chain of command
•Matrix structure
–Specialists together
–Breaks unity of command concept
•One employee has two or more bosses

165. Structures in newer (more recent) organisations
•Virtual organisation
–Network, modular –small core organisation, with
outsourced business functions
–Consider Amazon, Zomato and Ola
•Boundary-less organisation
–No vertical and horizontal boundaries
–No geographical barriers
–Strategic alliances –holding companies
•Leaner organisation
–Downsized
–Fewer locations, reduced staff, sell-off businesses
which do not make money

166. Q& A

167. Sem 2 Mid-term class test
MMS A & B
Tuesday, February 27, 2024

168. Next lecture –Session 7
February 6, 2024
Four different types of
organisational structures
No lectures on February 7 and 13, 2024

169. Rizvi Institute of Management Studies and
Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 7
February 6, 2024

170. Attendance

171. Semester 1 exams
Answer any 6 out of 8 questions
What do you understand by:
1.Frederick Herzberg two-factor theory?
2.Job Characteristics Model?
3.David McLelland?
4.Social learning theory?
5.Attitude shapes behaviour?
6.Job satisfaction?
7.MBTI?
8.Rational decision-making model?

172. Learning diary
•What is organisational structure (OS)?
•Understanding the importance of arrangement, inter-
related parts, integration, division of effort, purpose,
methods, systems, processes, formal divisions,
grouping, coordination
•Unique features of OS –complexity, formalisation and
centralisation
•6 different bases (= foundations) –(1) work
specialisation, (2) departmentalisation, (3) chain of
command, (4) span of control and hierarchy, (5)
centralisation, (6) formalisation
•Why different bases?
•Older and newer OS’s

173. 4 Kinds of organisational structure

174. Today
•5W 1H = Who? What? When? Where?
Why? How?
•Functional, departmental goals
•Business goals
•4 kinds of organisational structures
1.Functional structure
2.Divisional structure
3.Matrix structure
4.Flat structure

175. Explaining the 5W 1H of an organisation
•Howdoes the organisation earn money –revenue model?
•Howdoes the company work –systems, methods and
processes?
•Whomanages whatsystems, methods, processes?
•Howdoes work flow step-by-step –start to finish?
•Who doeswhat work?
•Whomdo employees report to?
•Howare their roles and responsibilities organised?
•Howare business decisions made?
•Which(1) functions, (2) markets, (3) products, (4)
geographies and (5) processes are crucial to achieve
organisational success?
•When, where andwhyare irrelevant questions, in this context

176. Basic elements of organisational structure
•Chain of command
–Howare the work, tasks and activities assigned?
–Howare the work, tasks and activities approved?
–Whoinstructswhom, about what work is to be done?
–Howare work-related instructions, requests, issues and
proposals communicated, up and down the hierarchy?
•Span of control
–Whoreportsto whom?
–Whatworkis who’sresponsibility?
•Centralisation
–At whatlevel in the hierarchy are whichdecisionsmade?
–Whoand whichdepartments have a say in each decision?
–Whoor whichdepartment is responsible for carrying out
actions flowing from each decision?

177. Q& A

178. 1. Functional structure

179. Functional structure
•An organisation has differentfunctions, called departments
•Each department is headed by an HOD (= Head of
Department), who directs, controls, coordinates, supervises
and assesses the work, tasks and assignments of all
employees who report to him/her
•Differentpeople are bunched together in different
departments, to carry out differentfunctions
•Each department’s distinguishing marks are the (1) unique
specialisations, (2) specific Aptitudes, Skill-sets, Knowledge
(ASK’s) required, for (3) doing similar or related tasks
•All employees of each department focus their efforts on
carrying out their roles withinthat specific department
•All departments’ efforts and results convergeto achieve the
organisation’s overall goals, results

180. Advantages and disadvantages of a
functional structure
•Advantages
–Quick decision-making happens, since all members have similar
•Skill-sets
•Better understanding of the work to be done, and
•Learn from one another
–People communicate more easily since they are familiar with one another
and have similar workplace interests
–High degree of specialised knowledge amongst employees
•Disadvantages
–Creates barriers between different functions within the organisation
–Limits peoples' knowledge and awareness of (and communication with)
other departments
–Issues about lack of clarity often occur at lower levels in the hierarchy, but
discussions about this happen only at the HODs’ level
•Very little inter-departmental communication
•Employees develop “tunnel-vision”
–Can be inefficient and ineffective if large variety of different products or
target markets are to be managed

181. Functional structure

182. 2. Divisional structure

183. Divisional structure
•Many large business houses (Tata, Birla, Ambani, Adani)
have a parent holding company and each division
operates as an independent businees, based on specific
–Products and/or services
–Markets and/or geographies
–Customer categories and their unique business needs
•Each division is a part of a large business organisation
–Autonomous, operating like an independent company
–Each division and its employees work together, have
a set of common, specific business functions and
purposes
–Each division controls and manages its own financial,
technical and human resources

184. Product/s and/or Service/s
•Multiple, smaller, functional organisation structures
represent divisions, all within a larger organisation
•Advantages
–Ideal for multiple products
–Shorter product development cycles
–Quicker movement into the markets
•Disadvantages
–Different divisions might make and develop new but
similar, inter-related offerings to the market
–Could result in duplication of resources and effort
–Raises issues like differing financial accounting and
HR practices

185. Structure by Product/s and/or Service/s –page 1
Wartsila Diesel India Ltd (PowerDivision)
•Diesel engine+ Electrical generator = Power-plant
•Marketing
–Customers require power –continuous process
industries (= cement, petrochemicals, refineries)
•Manufacturing –Khopoli plant
•Projects
–Erection and Commissioning
•After Sales Service
–AMCs and Spare parts sales
–Repairs, maintenance and overhauls
•Powerplants

186. Structure by Product/s and/or Service/s –page 2
Wartsila Diesel India Ltd (MarineDivision)
•Diesel engine+ Drive shaft + Propeller = Marine engine
•Marketing
–Shipping companies –ship building companies (=
ocean-going tankers, freighters, battleships)
•Manufacturing –Khopoli plant
•Projects
–Installation and Commissioning
•After Sales Service
–AMCs and Spare parts sales
–Repairs, maintenance and overhauls
•Marine applications

187. Structure by markets, industries or customers
•Based on a wide variety of markets, industries or
customer types
•Advantages
–Products and/or services unique to specific market
segments
–Big benefits if the organisationhas advanced
knowledge of those segments
–Keeps business constantly aware of demand changes
•Disadvantages
–Too much autonomy can lead to division’s developing
systems that are incompatible with one another
–Duplication of effort could result

188. Divisional markets-based structure

189. Geographies
•Each geography is unique with a unique culture and
unique ways of doing business
•So, Castrol BP offers petroleum products to Asia-Pacific,
EMEA, North America (USA, Canada and Mexico) and
South America (Brazil, Argentina, Uruguay, Paraguay,
Chile, Peru, Colombia, West Indies, etc)
•Advantages
–Need to be near the sources of supply and/or
customers (for deliveries or on-site support)
–Brings together different forms of business expertise
•Disadvantages
–Multiple autonomies of decision-making
–Multiple campaigns amongst competing divisions

190. Geographical structure

191. Q& A

192. 3. Matrix structure

193. Matrix structure –page 1
•Does not necessarily follow the hierarchical model
•Combines the elements of functional and divisional structures
–More complex business framework
–Needs lots of planning and coordination
•Employees must clearly know and understand their respective
roles, responsibilities and work priorities
•Team members
–Have more autonomy
–Are expected to take more responsibilities
•Support functions like Finance and HR have bold and dotted
line reporting relationships, i.e. report to multiple bosses –
duality of accountability –who’s the final authority?

194. Johnson & Johnson India (1980s)
Divisions Manufacturing Marketing/Sales HR Finance
Consumer
(Baby products)
Mulund 1 All India HO & Plants HO & Plants
Personal
(Sanitary
products)
Bhandup All India HO & Plants HO & Plants
Permacel
(Industrial tapes)
Andheri All India HO & Plants HO & Plants
Hospital (POP,
Crepe bandages,
Face masks)
Mulund 1 All India HO & Plants HO & Plants
Ethicon (Sutures) Dharavi All India HO & Plants HO & Plants
Janssen (Pharma
products 1)
Mulund 2 All India HO & Plants HO & Plants
Cilag(Pharma
products 2)
Mulund 2 All India HO & Plants HO & Plants
Diagnostics
(Serums & EPT
kits)
Worli All India HO & Plants HO & Plants

195. Matrix structure –page 2
•Advantages
–Matrix structure increases team productivity and fosters
greater innovation
–Employees can share knowledge across different
functional divisions, thereby leading to their professional
growth
–Allows managers freedom to take decisions and solve
problems more easily, through group interactions
–Better communication and understanding across each
function’s role
•Disadvantages
–If roles, responsibilities and work priorities are not
clearly defined, confusion and conflict can result about
who to report to –functional boss, or divisional boss?
–Frustration over authority about who is responsible for
what

196. Matrix structure

197. 4. Flat structure

198. Flat structure
•Typical small businesses, like kirana, retail stores or hosiery shops
•There is only one boss –Owner, CEO, MD, Chairman, franchisee
•All employees report to him/her
•Limits the steps in the hierarchy
–No work-related approvals from higher-ups
•Decision making is centralised
•Advantages
–All employees take their own decisions, based on their knowledge,
skills, judgment and aptitude
–No bureaucracy, hierarchy or red-tape
–Problem solving and decision making is much faster
–Large scope for innovation and creativity
•Disadvantages
–Executive decisions and approvals are difficult to make, unless the boss
is available to approve every time
–Every employee’s career depends on the impressions of the boss
–Anyone who disagrees, is outcast

199. Q& A

200. No OB lectureson February 7 and 13
Next lecture –Session 8
February 14, 2024
Organisational Politics

201. Sem 2 Mid-term class test
MMS A & B
Tuesday, February 27, 2024

202. OrganisationalBehaviour
Semester 2
Session 8 –February 14, 2024
Rizvi Institute of Management Studies and
Research, Mumbai
Organisational politics

203. Attendance

204. Reminders about the last lecture
•Explaining the 5W 1H of an organisation
•Basic elements of an organisational structure
–Chain of command
–Span of control
–Centralisation
•4 kinds of organisational structures
1.Functional
2.Divisional
3.Matrix
4.Flat

205. Politics = ?

206. Politics
•People, by nature, have preferences over how
scarce and valued resources appear and how
these are allocated
•People therefore use their own personal
methods, strategies and tactics to resolve
allocation problems when all other normal
methods, such as a new system, new
information or a simple majority rule, fail to
satisfy
•So, politics comprises activities, or ploys, which
people acquire, develop and exercise –to obtain
one’s preferred outcomes, desires, or wants

207. Politics and power
•Power is a store-house of potential influence by using
which the results of events, circumstances or situations
can be affected or altered
•Politics uses those activities or behaviours through which
power can be developed and used in a given setting, to
satisfy personal preferences
•Poweris the property of a system at rest; politicsis
power in action
•A person, group, team or department might have power
within a specific context, at some time or other
•Politicsinvolves the use of powerto achieve something,
to expand the power that s/he already possesses, or
how far it can be exercised to suit personal preferences

208. Organisationalpolitics = ?
•Irrational, unreasonable, wrong, unfair behaviour,
to gain advantage
•Informal, unofficial, behind-the-scenes efforts to
sell (or convince) ideas, influence, increase, or
achieve one’s personal desires or wants which
do not adhere to the organisation’s established
and operative processes, methods or systems
•Diverse, competing interests
•Working hard? No
•Politics to gain advantage, attention or even
impress? Yes

209. Basics of organisational politics
•Organisationalpoliticsreferstotheirrationalbehaviourof
employeesattheworkplace,inordertogainadvantageswhichare
normallybeyondtheircontrol
•Organisationalpoliticsareinformal,unofficialand,sometimes,
behind-the-sceneseffortstosellideasorinfluenceinan
organisation,increasepower,orachieveotherpreferred,targeted
objectives
•Organisationalpoliticsstemsfromdiverse,competinginterests
whichHAVEtoberesolvedinsomeway
•“Rational”decision-makingalonewillnotworksinceinterestsare
fundamentallyincongruent.Therefore,politicalbehavioursand
influencetacticsfirsttakeshapeinthemind
•Employeeswhodonotbelieveinworkinghardoftendependon
organisationalpoliticstomaketheirownpositionsecureatwork
•Employeesmightalsoplaypoliticssimplytoprojectthemselvesinto
thelimelight,togainundueattentionandappreciationfromtheir
seniors,HODorotherinfluentialpersons

210. Why organisational politics?
1.Gaining power
2.Boosting productivity
3.Gaining recognition
4.Resolving disputes
5.Promoting personal objectives
6.Protecting self-interest
7.Earning money and income
8.Developing power contacts

211. Problems due to organisational politics
•No person ever benefits from playing politics; instead, it
creates a negative ambience at the workplace
•Politics is the negative use of power
•So, organisational politics is
–Any activity associated with using influence to
improve an employee’s personal or organisational
interests
–Behaviour is obviously self-serving
–Potentially destructive force
–A deliberate influencing process to gain benefits
•People use political power and networking skills, to (1)
gain personal power, and (2) manage stress

212. Role of power in politics
1.Personal influence using informal networks
2.Individual interactions with people who have
formal authority over organisational systems,
methods or processes
3.Attempts to deviate from implicit norms, hidden
assumptions and unspoken routines
•Power in action –people in groups; power will
be exerted; converting power into action
•Political behaviour tries to influence the
distribution of advantages, or disadvantages,
within an organisation

213. Using a power base for advantage
1.Withholding key information, facts, knowledge
2.Joining a coalition
3.Whistle-blowing
4.Spreading rumours
5.Leaking confidential information outside the
organisation
6.Exchanging favours for mutual benefit
7.Lobbying on behalf of a particular person,
situation or an organisational decision

214. Realities of organisational politics
•Necessary evil
•Organisation= individuals and groups, with diverse
values, goals, preferences and interests
•Conflict and tussle over limited resources –budgets,
funds, space, responsibilities, salary differentials
•“Facts and data” used for resources allocation are
open to interpretation, e.g.
1.Performance
2.Improvement
3.Unsatisfactory
•Ambiguous ground of organisationallife
•Created by “facts” which do not support themselves
•Consequence –“politicking”

216. Consequences of political behaviour
Individual factors
•High self-monitors
•Internal loss of control
•High Macho
personality
•Organisational
investment
•Perceived job
alternatives
•Expectations of
success
Organisationalfactors
•Reallocation of resources
•Promotion opportunities
•Low trust
•Role ambiguity
•Unclear performance
evaluation system
•Zero-sum reward
practices
•Democratic decision
making
•High performance
pressures
•Self-serving senior
managers

217. Negative aspects of organisational politics –page 1
•Decrease in overall productivity
–Politics lowers the output of an individual and eventually affects the productivity
of the organization.
–Common observation says that individuals who play politics at the workplace pay
less attention to their work.
–They are more interested in leg pulling and back biting. They spend most of their
times criticizing their fellow workers.
–As a result of politics at the workplace, employees fail to achieve targets within
the stipulated time frame. Work gets delayed in such an organization.
•Affects Concentration
–Individuals find it difficult to concentrate on their work. They are more interested
in spoiling the other person’s image in front of the superiors.
–An individual involved in politics is bound to make more mistakes as his focus is
somewhere else.
•Spoils the Ambience
–Politics leads to a negative environment at the workplace.
–It spoils the relationships amongst individuals. An individual playing politics at the
organization is disliked by all.

218. Negative aspects of organisational politics –page 2
•Changes the Attitude of employees
–Politics changes the attitude of the employees.
–Even the serious employees lose interest in work and attend office just for the
sake of it.
–Internal politics do not allow employees to give their hundred percent at work.
–No matter how much hard work an employee puts in, it goes unnoticed in a
politically driven organization.
•Demotivated employees
–A non performer can be the apple of his boss’s eye simply due to politics, thus
demotivating the performers.
–Discussions are essential at the workplace to extract the best out of employees.
Evaluating the pros and cons of an idea always helps in the long run. Employees
playing politics always look for an opportunity to tarnish the image of the fellow
workers.
–Employees feel demotivated when they are not rewarded suitably or someone
who has not worked hard gets the benefits due to mere politics.

219. Negative aspects of organisational politics –page 3
•Increases Stress
–It is rightly said that problems evaporate if discussed. Individuals find it
difficult to confide in any of their fellow workers due to the fear of secrets
getting leaked.
–Politics increases the stress level of the employees. Individuals are not
machines who can work continuously for 8-9 hours without talking to
others. It is important to have friends at the workplace who help you
when needed.
–Individuals fail to trust each other.
•Wrong Information
–Employees indulged in politics manipulate information and it is never
passed on in its desired form.
–Superiors get a wrong picture of what is actually happening in the
organization.
–A wrong person walks away with the credit in an organization where
employees are indulged in politics

220. Impressions management
•Attempt to control the impressions that people
form about them
•Conformity
•Favours
•Excuses
•Apologies
•Self-promotion
•Enhancement
•Flattery
•Exemplification

221. Overcoming organisational politics
1.Createathematicgoal.Thegoalshouldbesomethingthateveryone
intheorganisationbelievesin,e.g.inahospital,givingthebestmedical
caretoallpatients.Thisgoalshouldbeasinglegoal,qualitative,time-
bound,andshared
2.Createasetofdefiningobjectives.Thisstepmustincludeobjectives
whicheveryoneagreeson,andwhichwillhelptoachievethethematic
goal
3.Createasetofongoingstandardoperatingobjectives.Thisprocess
shouldbedonewithineachbusinessareasothatthebestoperating
standardsaredeveloped.Theseobjectivesshouldalsobeshared
throughouttheorganization,sothateveryoneisclearlyawareofthem
4.Createmetricstomeasurethem.Measuringwhetherthestandard
operatingobjectivesaremetornot,isavitalstepintheprocess.Rather
thansomeoneelsepointingoutwhatisn’tworking,allthepeoplewithin
thedepartmentwillhavetheinformationnecessarytocometothis
conclusionandcorrecttheproblembecause,ultimately,everyoneinthe
organisationcaresaboutachievingthethematicgoal.Thisway,wecan
focuseveryone’sattentionawayfrompolitics

222. Ethics of behaving politically
•Distorting information to create favourable
impression
•Taking credit for someone else’s work
•Does political behaviour balance out any harm to
anyone else?
1.Is it just?
2.Is it equitable?
3.Unfair means?
4.Is playing politics worth that risk?
5.Will it harm others?
•Recognise the ability of power to corrupt

223. How to manage organisational politics?
1.Improve your people skills
2.Communicate openly and honestly
3.Put yourself in your employees’ shoes and understand the
landscape
4.Collaborate respectfully with all departments
5.Maintain positive working relationships with all colleagues
6.Don’t have favourites or give preferential treatment to anyone
7.Change your approach if something’s not working correctly
8.Ensure that your employees feel valued and noticed and know
they have career opportunities ahead
9.Monitor any problems or issues which you notice
10.Encourage employees to reach out with their concerns
11.Step-in when necessary and needed
12.Set a positive example for your team to follow

224. Next lecture
February 20, 2024
Foundations of Organisational
Culture

225. Sem 2 Mid-term class test
MMS A & B –different questions
Tuesday, February 27, 2024
Scope:
1.Groups and group behaviour
2.Group decision-making
3.Case study method
4.Emotional Intelligence
5.Power and the POSH Act
6.Organisation structures (2)
7.Organisation politics
8.Foundations of organisational culture

226. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 9 –February 20, 2024

227. Attendance

228. Culture

229. Write your name and Roll no on the Right-
hand Top Corner
What is “culture”?
Max. 400 words–30 minutes

230. What is Culture?
•Peoplesense,recogniseandidentifywithwhathappens(=
situations,events,behaviours)aroundthem,provided
thesehappeningsconcernthosepeople,orrelatetothem
•Dependingonwhetherthesehappeningscauseapositive
ornegativeimpact,theygeneratearelevantresponse
•Accordingly,anyhappeningCREATEmeaningswithin
people’sminds,providedthepeopleunderstandwhatand
howtheyusuallythink,say,doandbehave
•So,culturedevelopsinthemindsofpeople
•Then,themultipliereffectkicks-in,amongstthepeople
•Thereafter,“My”culture?“Our”culture?“His”culture?“Her”
culture?“Your”culture?“Their”culture?“Different”culture?
•Aremeaningsdifferent?Whicharecommonmeanings?
•“Shared”meaning

231. “Shared” meaning
•Sharedmeaninghelpsusto(1)establishcommonground,
(2)solvelife’sproblemsand(3)makedecisions
•Inorganisations,“Thisishowwedothingshere”
•Anorganisation’sculturalmapgetsdrawnandevolves,based
onthis“sharedmeaning”withallits“geographical”elements
andcontourslikeitsrivers,mountains,fertileandaridland,
desert,seashores,volcanoes,earthquakes,snowandice
•EdgarHSchein,asocialpsychologist,definescultureas….
•“Patternsofsharedbasicassumptionsthatagroup
learns,asitsolvesitsproblemsofexternaladaptation
andinternalintegrationthathasworkedwellenoughto
beconsideredvalidandthereforemustbetaughttonew
membersasthecorrectwaytoperceive,thinkandfeelin
relationtothoseproblems”

232. What does Edgar H Schein mean?
•Patterns
•Shared, basic assumptions
•Group(of employees in an organisation)learns
•Solves problems (by developing methods, systems,
processes, rules and regulations to make decisions)
1.External adaptation
2.Internal integration
•Worked well enough to be considered valid
(understood and accepted)
•Therefore, it must be taught to new members*
•Correct way to perceive, think and feel in relation to
those problems

233. *New members
New entrants into any societal group= process of transition and
evolution
•New-born infant
•Transition through KG, 10
th
Std, 12
th
Std, college, university
•Women entering into newfamilies after marriage
•People, when they move to a differentenvironment, house, town,
region, country –education, work, vacation, migration
•People who are afflicted by terminal, medical problems
•Freshers in their first jobs
•Every person joining his/her newjob
•Any changein environment or circumstance reflects changein
what and how we ALL commonly think,say, do andbehave
•We accept, adjust, compromise, acclimatisetoand adoptnew
attitudes, behaviours, reference (anchor) points of life

234. Culture describes “noticed” happenings
1.Personal culture? Family culture?
2.National culture? Regional culture? Language culture?
3.Organisational culture? RIMSR culture?
4.Departmental, functional, team, group culture?
5.Professional culture?
•People perceive other people’s behaviour and identify
distinctive, descriptivecharacteristics
•Description –not ‘like’ or ‘dislike’
•Culture building is dominated by people’s core values
–Numerous sub-cultures
–Reflects common problems
–Seeks and finds “commonly accepted” solutions
–Common experiences

235. What is goodand badculture?
•Working in soaring
skyscrapers?
•Studying in English medium or
“convent’ schools
•Showing-off corporate power?
•Upwardly mobile people?
•Expensive dressing?
•Visibly rich tastes and
possessions?
•Status-conscious people?
•Speaking stylish, high-flown
English?
•Travelled abroad?
•Living in rental or cramped
accommodation?
•Studied in municipal schools?
•Doing manual labour or clerical
jobs?
•Earning low salary?
•Wearing scrappy, torn clothes?
•Eating poor quality food?
•Staying unclean?
•Wasting precious resources?
•Speaking poor English?
•Irresponsible, or brash
behaviour?

236. Organisationalculture

237. Typical “culture” practices in organisations
•Tangibles
•Assumptions
•Myths
•Heroes
•Symbols
•Beliefs
•Ways to greet
•Shared feelings
•Shared perceptions
•Value systems
•Morals
•Rituals
•Dress norms
•Language
•Stories that people tell
•Ways of doing work
•Rules, regulations and
procedures
•Formal codes of
behaviour
•Jargon
•Jokes that only insiders
understand

238. Four (4) aspects of organisational culture
•Power–ability to create dependence and
influence behaviour
•Role–duties and responsibilities of a
person doing any job
•Task–work and activities to be done in
any job
•Person–individual traits, characteristics

239. Aspect of Powerculture
1.Effectiveness of power culture depends on trust
2.Emphasizes the importance of personal communication
3.Little need for bureaucracy
4.Centre “controls” through key individuals
5.Decisions are made by political maneuvering, not by logical reasoning
6.Reactions are quick; whether s/he is right or wrong depends on the
inherent qualities of the leader
7.Source of power is resources and charisma
8.There is low/no concern for risks
9.Culture can break, if it is stretched too far; so, it must limit it’s actions
and activities to manageable proportions
10.Power thrives in tough competitive atmosphere
11.There is more emphasis/focus on individual, than on group
12.‘Ends’ justify the ‘means’
13.There is low morale and high turnover in middle management, and
they have no interest in competing

240. Aspect of Roleculture
1.Bureaucratic –logic and rationality
2.Rules and regulations are primary cornerstones and
predominant; so, they will always prevail
3.Promotions and increments depend on the achievement of
prescribed standards
4.Source of power is position, status, designation, “hayseeyat”
5.Role culture is successful in stable environment; very
efficient
6.Appropriate where economies of scale are more important
than innovation, adaptability and flexibility
7.People who like predictability and security, feel ‘at home’
8.Does not adapt easily to changing circumstances
9.Ambitious and innovative people and high achievers find this
culture stifling

241. Aspect of Taskculture
1.Power is based on expertise
2.Power is dispersed
3.Cross-functional culture
4.Organisation has a matrix structure
5.Right teams must be formed
6.People are more flexible and adaptable
7.Appropriate for changing and competitive
environment, where short product life-cycles
and constant innovation exists
8.Difficult to exercise control

242. Aspect of Personculture
1.The individual is all-important
2.Collective and mutual support
3.People take common advantage, while
developing personal goals and ambitions
4.Groups of professionals –architects, lawyers,
consultants, nursing home specialists –are
more successful
5.Almost complete autonomy
6.Power is shared and based on expertise
7.Control and management is difficult

243. Key elements of organisational culture
1.Innovation
2.Risk-taking
3.Attention to detail
4.Result orientation
5.People orientation
6.Team orientation
7.Aggressiveness
8.Stability

244. Strong and weak culture
•Strongculture
1.Core values –intensely held and widely shared
2.Influence on group behaviour
•Weakculture
1.Disagreement of POS
2.Negative moods
3.Poor team performance

245. Functions and roles of organisational culture
•Culture defines the boundaries of what is
acceptable, and what is NOT acceptable
•Culture defines the rules of attitude and
behaviour:
1.Sense of identity
2.Facilitates commitment to organisational good,
rather than individual self-interest
3.Enhances stability of social system
•Culture shapes, controls and guides employees’
values, attitudes and behaviours

246. Culture creates organisational climate
•Shared perceptions
•Positive work climate
–Improved job satisfaction, commitment,
involvement and motivation
–Higher customer satisfaction
–Better financial performance
•Fundamental to “Employee Engagement”
•Cultural climates interact with one another to
produce inter-personal skills and behaviour
•Climate also influences people’s habits

247. Culture –a liability?
1.Institutionalisation
–Rules, regulations, set and rigid patterns= lakeer ke
faqeer, J&J hiring
2.Barriers to change
–Functional > divisional organisation
3.Barriers to diversity
–Supporting (or not supporting) people from different
regions, states, education, status, languages, castes,
localities
4.Barriers to Mergers and Acquisitions
–WDIL > WNSDIL, Debashish Majumdar
5.“We are like that only” = Hum nahin sudharenge

248. Building an organisational culture
•How do new employees learn culture?
–Stories
–Rituals
–Material symbols
–Language
•Role of founders, owners, CEOs, bosses, HODs
–Hiring employees who think and feel as they do
–Indoctrinate and socialise their ways
–Founders encourage employees to identify and
internalise their beliefs, values and assumptions

249. Building an ethicalorganisational culture
•Become a visiblerole model, displaying
ethical behaviour
•Communicate ethical expectations –every
superior’s responsibility
•Provide ethics training; rewind and replay
•Reward ethical acts, behavioursand
practices –and make a noise about it
•Punish unethical acts and practices –and
make a noise about it
•Provide “protective” and “preservative”
mechanisms for supporters of ethics

250. Remaining OB subjects still to be covered
•Conflict management and resolution (2)
•Negotiation skills
•Organisational change (2)

251. Next lecture
February 21, 2024
What is HR?

252. Sem 2 Mid-term class test
MMS A & B –different questions
Tuesday, February 27, 2024
Scope:
1.Groups and group behaviour
2.Group decision-making
3.Case study method
4.Emotional Intelligence
5.Power and the POSH Act
6.Organisation structures (2)
7.Organisation politics
8.Foundations of organisational culture

253. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 11 –February 28, 2024

254. Attendance

255. Write your Name and Roll no on the
Right-handTop Corner
“How to resolve a conflict?”
Jhagda, sangharsh, viruddh, ladai
Max. 300 words–20 minutes

256. Conflict?
•Serious, protracted, active disagreement between 2 or
more persons (or groups of people)
•(1) Serious, (2) protracted, (3) active, (4) disagreement
•They cannot easily and happily co-exist (= live together)
•Result = anger, frustration, emotional disturbance,
dislike, alienation, violence, destruction, struggle, battle
•Opposing or differing beliefs, needs, facts, opinions,
principles, outlook or points of view
•Human mind = villain
•A conflict must be resolved ASAP, because an
unresolved conflict quickly escalates like a festering
wound, and the resultant outcome can be serious and
disastrous

257. What is organisational conflict (OC)?
•OC(orworkplaceconflict)isasituationofdiscontent,discord,
misunderstandingordisagreement,betweentwoormore
organisationmembersorgroupssincetheyareforcedto
–Sharescarceorganisational(=technical,financialorhuman)
resources,orworkplaceactivities
–Havedifferingstatus,goals,valuesorperceptions
•OCisaworkplaceinteraction,inwhichoneparty(A)perceivesthat
anotherparty(B)negativelyaffectssomethingthatAcaresabout
positively
•Organisationalmembersoritsfunctions,departmentsordomains
areindisagreement,andwanttheirowncauseorpointofviewto
prevailoverothers’pointsofview
•OCcanbeattheindividual,group/departmentororganisationlevel
•OCadverselyaffectsworkeffectivenessandtheefficiencyofthe
individual,grouportheorganisation;asaresult,productivitydrops

258. Inter-locking episodes in OC –page 1
•Latent (potential) conflict
–Latent conflict provides the necessary antecedent conditions
for conflict in organisation. People involved only anticipate
potential opposition, or incompatibility
•Perceived conflict
–Due to the persons’ or parties’ misunderstanding of each
other’s true position, there is differing cognition and
personalisation. Such a conflict can be resolved by improving
and correcting communication gaps between the persons or
parties
•Felt conflict
–A person X becomes aware that there is serious disagreement
with Y over some policy, procedure or rule, which makes X
tense and negatively affects his relationship with Y. So, the
Intentions of conflict are felt by both, but a conflict arises only
after the differences become personalised or internalised (felt)

259. Inter-locking episodes in OC –page 2
•Manifestconflict
–Thisisthestageforopenconflict.Ittakestheformofopen
aggressivebehaviour,sabotage,apathy,withdrawal
•Conflictaftermath
–Fortheopposingindividuals,groupsororganisations,the
outcomesofaconflictmaybeeithersatisfactoryornot,
dependingonhowtheconflictisactuallyresolvedandwho
benefitsmore/less
–Iftheconflictisresolvedtothesatisfactionofalltheparties
involved,thefoundationforamorecooperativerelationship
canbelaid
–Ontheotherhand,iftheconflictisnotfullyresolvedor
merelysuppressed,thepotentialconflictcanbeaggravated
andcouldexplodeinamoreseriousandviolentform,ata
laterstage

260. Any questions?

261. Levels of organisational conflict (OC)
1.Individual level
–Two persons may compete for the same
promotion
–Differences of opinion may arise between two
or more people, about available work
resources
2.Group, departmental, functional, team level
–Differences of opinion or perspectives in goals,
work activities, power, prestige, resource
allocation, reward system
3.Organisation level
–Actual or perceived divergence of interests,
hierarchical, management vs union, line vs
staff

262. Sources of organisational conflict (OC)
•Facts
–Differingunderstandingofdata,information,problemareas
•Goals
–What,whenandhowworkandrelatedactivitiesshould/should
notbedone
•Methods
–Howtoachievetheintendedbusinessgoals
–Procedures,systems,processesandstrategiestofollow
•Values
–Disagreementoverethics,exerciseofpower,assumptionsabout
justiceandfairplay
•Psychologicalfactorsnodoubtcontributepredominantly.Afeelingof
insecurityisapotentcausefortensionandconflict.Conflictscan
alsoariseduetolackofconsiderationorappreciation,
misunderstandingorbadhandlingofsituationandproblems

263. Traditional view of OC
•Conflict is bad, harmful and must be avoided,
because it causes violence, destruction and
irrationality
•Conflict is dysfunctional, as it results from
poor communication, lack of openness,
no/low trust between people, managerial
failure or unwillingness to respond to
employees’ needs and aspirations
•Solution –(1) identify cause/s and (2) correct
the malfunctions

264. Interactionist view of OC
•Encourage conflict
•Any harmonious, peaceful, tranquil, cooperative
group can become static, apathetic and
unresponsive
•Minimal level of conflict keeps the group viable,
self-critical and creative
•Typical organisational conflicts:
1.Task= 5W 1Hof work? Purpose? Reason?
Achievement of goals, objectives and/or KRAs
2.Process= howthe work is being done
3.Financial = who’spocket is being pinched?
4.Relationship= inter-personal relationships

265. Resolution-focused view of OC
•Conflict is inevitable
–Not productive
–Relationships are affected
–Hurt feelings
–Anger
–Produce stress
•Manage the whole context of the conflict
–Focus on preparing people for conflict, developing
resolution strategies, facilitating open discussion
–Recogniseimpediments like hidden emotional
attachments, social identities, cultural variables

266. Any questions?

267. Preventivemeasures to resolve OC
•Develop effective leadership
•Participative decision making
•Two-way communication process
•Improve inter-personal relationships
•Create, review and revise more
opportunities to establish, nurture and
develop informal groups, where
communication happens more effectively

268. Curativemeasures to resolve OC
•Get full details of the conflict and identify
which stage is the conflict at = whether
preliminary or advanced
•Moreefforts are required to resolve a
conflict in an advancedstage
•Issues involved in the conflict must be
analysedand understood
•Conflict could be due to disagreements on
facts, goals, methods or values

269. Conflict-handling modes
•Problemsolving–Maybedonebythe
management,ormutuallybytheparties
involvedinconflict
•Mediationthroughpersuasion.Management
mayattempttosweep-outthedifferences
andsmoothentheissue
•Bargaining–negotiating
•Politics–maligning
•Lettheconflictingpersonsorgroupssettle
theirownscores,iftheyadoptarigidattitude
anddonotseereasonoracceptanyappeal

270. Resolving an OC
1.Set-upaformal“grievanceprocedure”thatwill
listentoalltheissuesandtakeappropriatesteps
tofindaviablesolution
2.Alltheinvolvedpartiesmustbegiventhe
necessarytimeandopportunitytospeakand
statetheircase
3.Makesurethatallconflictsareviewedand
handledpositively
4.Concentrateonthecauseandnottheeffect,
whilefindingasolutiontoresolvean
organisationalconflict
5.Activeparticipationandthedesiretofinda
solutioncanpavethewayforstepstomanage
andresolveanyorganisationalconflict

271. Any questions?

272. Next lecture
March 5, 2024
Negotiation skills

273. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 12 –March 5, 2024

274. Attendance

275. I trust you have all read my
noteonNegotiation Skills
You will be tested today

276. Instructions for your class today
•Negotiation = Bargaining
•You will be part of a group, to discuss a given subject
•In this GD and later, in any GD, use a step-by-stepprocess
i.Introduction (10% time)
ii.Critical arguments to support your point of view (70% time)
iii.Conclusion/s (20% time)
•No leadership role here
•Establish scope and boundaries of the subject
•Stick to the subject –do NOT stray from the core topic
•Speak clearly, to convince and support one another in your group
•Use examples to substantiate your point of view
•Conclude effectively
–Justify “why” NEGOTIATIONis an important skill for all

277. Any questions?

278. “Negotiation Skills”for success
A.Preparation
B.Patience
C.Active listening
D.Emotional control
E.Verbal communication
F.Problem solving
G.Ethics and reliability

279. Define Negotiation = Bargaining
Typical organisationalresources >
•Money, manpower, material, equipment,
technology, space, methods, processes
Negotiation happens when 2 persons or parties
have to decidehowscarce resources should be
assigned, owned or allocated
•Long term, or short term?
Implications at the workplace -
1.Relationship is affected
2.How do the parties feel about themselves?
3.Intensity of interactions
4.Maintain the social relationship
5.Ethical behaviour

280. Good negotiators are also experts in…….
•EI
•Inter-personal skills
•Communication skills
•Trust
•Challenging circumstances
•Maintain integrity
•Problem solving and decision making
•Focus

281. Any questions?

282. Next lecture
Negotiation Skills –part 2

283. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 13
March 12, 2024

284. Attendance

285. Scope of today’s lecture
•Understanding “negotiation”
•The negotiation process
•Know human behaviour
•Importance of trust
•Bargaining strategies
–Distributive bargaining
–Integrative bargaining
•Bargaining zones
•3
rd
party negotiations
•Assumptions*

286. Negotiation? –Page 1
•Bargaining process
•Formal exchange of wants, expectations, aspirations
•Between two or more people, parties, groups, teams,
organisations, communities or even countries
•QUAD?
•India, USA, Japan, Australia –China’s threat in the Pacific
•Identify common ground viz. areas of mutual concern and
interests, as well as non-negotiables
–Feltneeds, aims, viewpoints
•Effort is to reach agreement, or resolve conflicting views
•Different intentions, expectations can be counter-productive
•Negotiation affects every member of the negotiating group
or organisation

287. Negotiation? –Page 2
Pre-requisites for successful negotiation –minimum qualifiers
1.The issue mustbe possible to negotiate
2.The negotiators mustbe willing to (1) give and take
something, (2) exchange value for value, and (3) be willing to
compromise, i.e. meet half-way
3.The negotiating parties musttrust each other
Scarce (= limited) resources
•Negotiation is NOT a game; game assumes* equality
•Interactions between parties must show implicit trust and a
common understandingof the issues involved:
1.Maintain social relationship
2.Behave ethically
3.Result of bargaining must be a “win-win” for BOTH parties!

288. The negotiation process –step-by-step
1.Preparation and planning
–Homework = preparation? Nature and history of conflict? People
involved? Their perceptions?
2.Definition of ground rules
–Rules and procedures? Who will speak? Date, time, place of talks?
Issues/scope? If no progress, next step? Exchange of initial proposals
3.Clarification and justification
–Explain, clarify, justify, amplify to educate one another on issues, their
importance and basis of demands and counter-demands
4.Bargaining and problem solving
–Actual give and take, accepting one another’s strengths and
weaknesses, clarifying earlier misinformation, etc with both parties
making concessions in trying to reach a settlement
5.Closure and implementation
–Formalise and document the specifics in a contract of agreement;
develop procedures and timelines to implement terms and continuously
monitor progress; leave nothing to assumptions*

289. Knowledge of human behaviour
•Negotiation cannot be casual; requires serious
preparation
•Relationships between parties
–Past
–Current
–Future
•Hidden assumptions*
–Own
–Other party
•Bargaining
–Distributive
–Integrative

290. Importance of trust in negotiations
•Trust –stepping stone to building
individual and organisational reputation
•Trust does not grow overnight
•Important actions/activities to build trust:
1.Build rapport
2.Understand EI
3.Identify emotions

291. Bargaining strategies
•Distributive bargaining
–Zero-sum conditions
–Limited resources
–Best/least acceptable outcomes
•Integrative bargaining
–Both parties must be confident and seriously
engaged –to ensure that bargaining will work
–Bonds negotiators together
–Focus on underlying interests of both parties,
rather than on issues

292. Bargaining strategies
Characteristics Distributive Integrative
Goal Get as much as possible, out
of limited resources available
Ensure that both parties are
satisfied–divide the resources
by mutual consent
Motivation Win-Lose Win-win
Focus Uptopoint of no return Why is the issue so important to
you/me?
Interests Opposed to each other Congruent with each other
Information
sharing
Low–since sharing
information allows otherparty
to take advantage
High–sharing information helps
both parties to understand and
accept opposing points of view
Duration of
relationship
Short term Long term

293. Bargaining zones in distributive bargaining
•Negotiating parties A and B
•What resources are at stake?
•Targetpoint –what both, A and B, want to achieve
•Resistancepoint –leastacceptable outcome for
each (A and B) = the limit outside which either party
will break-off negotiation
•Aspirationrange –from >>>>>>>>> to
•Settlement range –from > to
–Overlap between A’s and B’s aspiration ranges

294. Individual differences
•Personality traits
–Big 5 model –agreeableness, extroversion
•Emotions and moods
–Anger induces concession; disappointment generates
guilt; anxiety reduces outcomes
–Need to understand EI very closely
•Culture
–Different cultures have different negotiation styles;
awareness of culturaldynamics is essential
•Gender differences
–Affect outcomes; emphasise values on power, status,
recognition, compassion, relationships, economic
outcomes

295. 3
rd
party negotiations
•Stalemate –unable to resolve differences
•Third party
•Conciliator
–Mere communication conduit
–Fact finding
–Persuade disputants to develop agreements
•Mediator
–Facilitates using reasoning and persuasion, suggesting
alternatives
•Arbitrator
–Authority to dictate a settlement
–Voluntary or compulsory
–Results in settlement, most of the time
•Adjudicator –quasi-legal status –compulsion to agree/accept

296. “Negotiation”
https://www.youtube.com/watch?v=BegeGTBWMgE

297. What is an Assumption*?
•Old lady –young lady
•For your SIPs –Hypothesis = supposition = assumption
•Human beliefs, generally traceable to certain fundamental life principles
which, we “believe”, are true
•Predominant number (over 95%) of people believe that belief is not an
assumption
•Recruiting people from campus –reputation
•Beliefs are based on unconscious, hidden assumptions
•Assumptions are not learnt, but are bits and pieces of information or
misinformation, which we have gathered during our lifetime
•A long accepted procedure is valid, without any knowledge of the facts or
logic behind that procedure
•Chopping vegetables in the kitchen
•Hence, assumptions are often not subject to rational verification
•But we human beings put our weight on such an assumption
•If we think that an assumption is an absolute fact (and behave accordingly) ,
this can be risky

298. What do we assume, in communication?
•We receive a communication, read and interpret it as we guess it
•This 1
st
guess remains with us until it is disproved or modified
•Buying anything from the market
•During negotiation, facts are often distorted because one or both parties
are gripped by hidden assumptions
•Result = misunderstandings or ignorance of the facts in any matter
•August 15, in any other country exceptIndia
•If facts are really true, they can be verified, leading to a negotiated
solution which removes the misunderstanding
•A mediator (= negotiator) must always interpret and convey information
and facts correctly, to be successful
•If s/he assumes a guess or probability, but acts as if the assumption is a
certainty, he takes a calculated risk
•If s/he is influenced by a hidden assumption, that assumption stays as
an absolute fact in the mind, throughout the negotiation
•Traffic/overtaking cars

299. Categories of hiddenassumptions
1.Extentional world
–Environment, time, space, language
–Galileo –Leaning Tower of Pisa vs. science
2.Our own intentional world
–Our insideworld is our “accurate” image of the
outsideworld
–I “feel” that…. vs. I “think” that….
3.The other person’s/party’s intentional world
–Assuming and anticipating the otherperson’s
assumptions
–Import of L and R hand gloves vs. customs

300. Assumptions, impressions, judgments, biases
•Ourimpressions are based on ourjudgments and biases;
they cannot be the same as others’ impressions, judgments
and biases
•Ourideas = others’ ideas? No
•Our perceptionsdrive our assumptions
•Distinctionbetween ourintentional world and others’
intentional world?
•Depending on the intensity of the differences, points of view,
perceptions, anger, frustration, opinions and interpretation
begin to arise with proportionate speed and alacrity
•Emotions take over and deflect attention from the main
agenda
•In such circumstances, correct decisions cannot be taken
•Whois right?

301. Any questions?

302. Next lecture
March 13, 2024
Organisational Change –part 1

303. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 14 –March 13, 2024

304. Attendance

305. Today’s agenda
•What is “change”?
•Why do organisations need to change?
•Planned and unplanned change
•Resistance to change
•Types of change
•Theories of change
•Making the organisation ready for change

306. What is Change?
•Factors of production –machinery, methods, money,
people
•Shift from current practice vis-à-vis any of these factors
•Do things differently
•Plannedand unplannedchanges?
•Unplannedchange –Compulsion
–Covid 19, advent of AI, ML, ChatGPT
•Plannedchange –Business necessity
–When an organisation alters, changes, shifts,
transforms into something new, unknown, untested
and unproven
•Aura of uncertainty
•“Leap of faith”

307. What forces organisations to change?
1.Workforce demographics
2.Covid-19 Pandemic
3.Technology
4.Economic shocks
5.Competition
6.Social trends
7.World politics

308. What is “Change” in the OB context?
•Organisationalchangeoccurswhenanorganisationchanges
(=transforms)itsstructure,strategies,methods,cultureand
otherrelatedelements,toreorganiseandrestructurethe
organisation
•Itmeansspecificchanges(=alterations)inthe(1)
organisation’sstructuralrelationshipsandthe(2)rolesofall
theemployeeswithintheorganisation
•Anorganisationmustacceptandadoptthesechanges,or
elseitwilleither(1)beleftbehind,or(2)besweptawayby
theforcesofchange
•Aprogressiveculturecompelsanyorganisationtochange,
whenitstechnology,environment,structure,peopleandother
elementsarechanging
•Organisationalchangenaturallyrequiresthatemployee
behaviourmustalsoadjustandchangeaccordingly

309. If change is “unplanned”……
•No option
•Employees are caught by surprise
•Understand the significance of change
•Ease problems and problem areas
•Involve employees in problem solving and
decision making
•Revise working methods
•Have open conversations with employees
•Maintain focus on achieving business results,
despite various inhibitions

310. If change is “planned”……1
•Organisation’s top management usually
decides change
•Needs of business–Economic or
Organisational
•Employees face changes and must know
–5W 1H
•What changes? Who is impacted? Why
needed? Where? When? How?
•Resistance increases if employees are not
informed, involved or convinced
•Need to monitor employee behaviour
accordingly

311. If change is “planned”……2
•Change agents (= HR or external
consultants) canhelp employees to
visualise change, motivate and implement
a revised vision
•Identify spokespersons who can take
charge of change
1.Change threatens the status quo
–Need for open communication –
discussions and debates
2.Understand employees’ preferences to
manage resistance and modify changes
suitably

312. Major behavioural forces that resist change
•Individualforces
•Habit
•Security
•Economic factors
•Fear of the unknown
•Selective information
processing
•Organisationalforces
•Structural inertia
•Limited focus of
change
•Group inertia (=
group-think, group-
shift)
•Threat to expertise
•Threat to established
power relationships

313. Overcoming resistance to change
•Natural human tendency to stay with
his/her Comfort Zone
•Education and communication
•Participation and involvement
•Building support and commitment
•Developing positive relationships
•Implementing changes fairly
•Employing people who accept change
•Coercion

314. Harvard Business Essentials are
comprehensive, solution-oriented
paperbacks for business readers of all
levels of experience. Managing through
change and crisis is difficult in any
business environment, let alone one as
turbulent as managers face today. This
timely guide offers authoritative advice on
how to recognize the need for
organizational change, communicate the
vision, prepare for structural change such
as M&A, and address emotional responses
to downsizing. With tools for managing
stress levels and advice on gathering and
sharing information during a transition,
Managing Change and Transition is an
indispensable guide for managers at any
level of the organization.
https://www.amazon.in/Harvard-Business-
Essentials-Managing-
Transition/dp/1578518741/ref=tmm_pap_s
watch_0?_encoding=UTF8&qid=&sr=

315. Overcoming obstacles
•Organisational demands for greater
performance by overcoming obstacles
•Organisation’s response to 3 typical
challenges
1.New technologies
2.New competitors
3.New markets

316. Different types of organisational change
1.Structural change
2.Cost cutting change
3.Process change
4.Cultural change

317. Structural change
•Organisation is a set of functional (=
operational) parts –machine
•Reconfigure these parts to achieve greater
overall performance
•Examples
–Mergers, acquisitions, consolidation and
divestiture of operating units

318. Cost cutting change
•Elimination of non-essential activities, to
squeeze costs out of operations
•Example
–Activities and operations that get little
scrutiny in “profitable” years
–They draw the attention of cost-cutters
and get eliminated in “lean” years,
particularly when times get tough

319. Process change
•Change “how” things are done –method
change
•Make process faster, more effective, more
reliable, less costly
•Examples
1.Re-engineering a loan process
2.Approach to handling customer warranty
claims
3.How decisions are made

320. Cultural change
•Focus on human side of organisations
•General approach to doing business
•Relationship between management and its
employees
•Shift from command-and-control to
participative management
•Effort to re-orient a company from inward
looking to customer-centric

321. Any questions?

322. Theory E
•Economic approach, to increase shareholder
value
•Financial crisis
•Mechanisms likely to increase short-term cash
flow and share price –performance bonuses,
headcount reductions, asset sales, strategic
reordering of business units
•Implicit (= presumed) contracts are vulnerable
•Theory E change happens from the top

323. Theory O
•Organisationalcapabilities approach
•Goal is to develop culture to support learning
and high performance employee base
•To succeed, there must be
–High level of employee participation
–Flatter organisationstructure
–Strong bonds between organisationand its
people

324. Key factors in Theories E and O
Dimensions of
change
Theory E Theory O Both theories
combined
Goals Maximiseshareholder
value
Develop organisational
capabilities
Embrace the paradox
between economic
value and
organisational
capability
Leadership Manage change from
the top
Encourage
participation from the
bottom up
Set direction from the
top, but engage the
people below
Focus Emphasisestructure
and systems
Build up corporate
culture,employees’
behaviourand
attitudes
Focus simultaneously
on hard (structures
and systems) and soft
parts (corporate
culture)
Process Plan and establish
programmes
Experiment and evolvePlan for spontaneity
Reward system Motivate through
financial incentives
Motivate through
commitment –use pay
as a fair exchange
Use incentives to
reinforce change, but
not to drive it

325. Is the organisation ready for change?
•“Ready for change” means
–That both, people and structure, are prepared
for and capable of change
•Preconditions
1.That leaders are respected and effective
2.That people are personally motivated to
change
3.That the organisation must be non-
hierarchical
4.That people are used to working
collaboratively

326. 1. Leaders are respected and effective
•Bad bosses cannot retain and motivate good
employees
–Good pay, benefits, employee-friendly policies
induce loyalty and retention, but bad bosses
can spoil the party
–C grade bosses prefer C grade people and,
so, only hire other C grade employees
–Consequently, organisational performance
degenerates to C grade
•Identify and replace all C grade performers with
people who are effective and respected

327. 2. People are personally motivated to change
•Indicators
–Tangibledissatisfactionwithstatusquo
–Eagernesstodosomethingmuchbetter
•Clearsenseofurgencypervades
•Adversitybringsoutthebestinhumanbehaviour
–Qualityrevolution–WEdwardsDeming–SPC–Quality
becameanindustrialreligioninJapan
–Motorcycles,wristwatches,smallcars,consumerelectronics
–Computers,high-endwatches,luxurycars
–IntheUS,FordMotorCompany(FixOrRepairDaily)–GMwas
complacent–harshawakeninglaunchedchangeinGM
•Hierarchicalorganisationsbreedcomplacency
•Changeprogrammesgrowoutofcrisis

328. 3. Challenge complacency
•Why wait for a crisis, to change?
•To reduce complacency,
1.Use information about the organisation’s competitive
situation, to generate discussion with employees
about current and prospective problems
2.Create opportunities for employees to educate
management about the dissatisfaction and problems
they face
3.Create dialogue on data
4.Set high standards and expect people to meet them

329. 4. Organisation must be non-hierarchical
•Implementingchangeinahierarchical
organisationislikeswimming“up-stream”
•Hierarchydoesnotenablecollaborativework
•Hierarchydominates,becauseofwhichbosses
doallthethinking,controlaccesstoinformation
andtellotherswhattodo.So,collaborationisan
unnaturalhappening
•Possiblesolutions:
1.Decentralisedbusinessmodel,or
2.Cross-functionalteams

330. Any questions?

331. My Next Lecture
March 19, 2024
Organisational Change –part 2

332. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 16 –March 19, 2024

333. Attendance
OB2 –Revision 1

334. Sem 2 –Focus of OB on Group Behaviour
Revision 1 –today
•Groups and group behaviour
•OrganisationalPower and POSH
•OrganisationalPolitics
•OrganisationalConflict
Revision 2 –March 20
•Negotiation skills
•Organisationalstructure
•Organisationalculture
•Organisationalchange

335. Groups and Group Behaviour
•What is a Group?
•How and why does a group get formed?
•How does a group develop?
•How do people behave, in a group?
•What is the role of group behaviour?
•Why do people behave differentlywhen
alone and in a group?

336. Any questions?

337. Power and POSH
•What is Power?
–Formal power?
–Personal power?
•Importance of dependence –importance,
scarcity, non-substitutability
•Leadership and power?
•POSH Act?
•Sexual harassment?

338. Any questions?

339. Politics
•Basics
•Organisational politics
•Problems with politics
•Using power base to advantage
•Consequences
•Negative aspects
•Impressions
•Ethics and politics

340. Any questions?

341. Conflict
•Conflict –mind game
•How does organisational conflict arise –facts,
goals, methods, values?
•Organisational conflict –5 inter-locking phases
•Levels of conflict –individual, group,
organisational
•3 views –traditional, interactionist and
resolution-based
•Preventive and curative measures to resolve
conflict

342. Any questions?

343. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 17 –March 20, 2024

344. Attendance

345. Change –part 1
•Change?
•Forces which compel change
•Unplannedchange
–Coping with unplanned change
•Plannedchange
–Needs of the organisation
–Resistance to change
–Countering resisters; role of internal “change agents”
–Managing planned change
–4 types of planned change
–Theories E and O
–Making the organisation ready for change

346. Harvard Business Essentials are
comprehensive, solution-oriented
paperbacks for business readers of all
levels of experience. Managing through
change and crisis is difficult in any
business environment, let alone one as
turbulent as managers face today. This
timely guide offers authoritative advice on
how to recognize the need for
organizational change, communicate the
vision, prepare for structural change such
as M&A, and address emotional responses
to downsizing. With tools for managing
stress levels and advice on gathering and
sharing information during a transition,
Managing Change and Transition is an
indispensable guide for managers at any
level of the organization.
https://www.amazon.in/Harvard-Business-
Essentials-Managing-
Transition/dp/1578518741/ref=tmm_pap_s
watch_0?_encoding=UTF8&qid=&sr=

347. What forces organisations to change?
•Plannedand unplannedchanges?
1.Workforce demographics
2.Pandemic
3.Technology
4.Economic shocks
5.Competition
6.Social trends
7.World politics

348. Today
•What is Change Management (CM)?
•CM processes
•Different types of organisational change
•7 Rs of CM
•Benefits of CM for the organisation
•3 well-established models of change

349. Introduction to Change Management
Change Management (CM) is the set of tools, processes, and
techniques helps people to transition from the currentstate of the
organisationto a new,improved state
Change Management overview
The goal of CM is to (1) change an organisation’sgoals, processes or
technologies, (2) supervise and monitor change plans and (3) assist
employees to accept the proposed change
So, an organisationmust prepare for change by developing a well-
organisedmethods to:
1.Understand and manage a change
2.Respond to employees’ requests and preferences
3.Develop a mechanism to follow-up on implementing their requests
and preferences
4.Understand how the changed processes and systems will affect the
organisation

350. MandatoryChange Management processes
1.Plan the change
2.Test the change
3.Communicate the change
4.Schedule the change
5.Implement the change
6.Document the change
7.Evaluate the results
Documentation is important in CM because
recording the process helps in (1) monitoring it and
(2) also preparing to roll-back from the change, if
necessary

351. 3 Types Of Organisational Changes
Most important organisationalchanges are:
1.Developmental Change:This means any change at the
organisationallevel to developand improvea previously
establishedprocess, method or procedure
2.Transitional Change:The change which deals with
movingthe organisationfrom the existing state to a
completely new state, assuming that the organisationis
facing a business problemwhich might be solved by
changing the existing state
3.Transformational Change:It deals with the change that
fundamentally modifiesthe culture and operation of an
organisation

352. Any questions?

353. 7R’s Of Change Management –page 1
1.Raise
2.Reason
3.Returns
4.Risks
5.Resources
6.Responsibility
7.Relationship

354. 7R’s Of Change Management –page 2
1.Who RAISED the change? Many stakeholders are identified as
sources of change. It is mandatory to establish a system for collecting
all changes. Such a system must incorporate acceptable controls to
deal with any amendment hands-off, across all purposeful business
areas
2.What is the REASON for the change? First of all, we have to
understand whether the change can introduce risk without any business
benefits. Every major change should be analysed against an agreed-
upon portfolio analysis criteria
3.What RETURNS are expected from the change? It is mandatory to
understand whether the change can generate a financial payback
4.What are the RISKS involved in the change? Risks are classified into
(1) risks that may be accepted, or (2) risks that should be mitigated. A
crucial step in defining the danger involved is to analyse the impact of
change on the present infrastructure. One company is using the
concept of “severity” in potential risks and actual problems

355. 7R’s Of Change Management –page 3
1.What RESOURCES are required to deliver the change? When we are
discussing resources, we are thinking of people and IT assets which are
needed for the implementation of the change. From the people’s
perspective, we have to understand what are the skills needed to implement
the change. After we have understood the skills needed, we have to be sure
that those skills are available within the organisation
2.Who is RESPONSIBLE for the ‘build, test, and implement’ portion of
the change? Responsibilities for building, testing, and implementing the
changes should be divided according to the organisation’s compliance and
auditing requirements. Segregation of responsibilities should be traceable,
enforceable, and actionable across the whole “change-and-release”
management process
3.What is the RELATIONSHIP between this change and other changes?
An analysis of change relationships needs to be done from within and
across functional boundaries. The scheduling of planned changes should be
shared and, this way, (1) change impact analysis and (2) relationship
mapping can become part of an integrated Configuration Management Data
Base (CMDB)

356. Benefitsof CM for the Organisation
When change is a planned process, its benefits are usually known before
implementation and these serve to motivate employees for the whole process.
1.The organisation can respond more quickly to customer demands
2.All the resources can be aligned with the organisation’s goals
3.Employee performance improves when they feel supported and understand the
change process
4.Change can therefore be implemented without a negative impact on the day-to-
day business
5.Permits the organisation to rate the overall impact of a change
6.Organisation is more effective
7.Organisational efficiency is maintained
8.The time needed to implement change is reduced
9.The possibility of an unsuccessful change is reduced
10.Customer service is improved and the service to clients comes from confident
and knowledgeable employees
11.Increased Return On Investment (ROI)
12.Helps to plan useful communication strategies

357. Any questions?

358. 3 plannedchange models
Kurt Lewin’s 3 step model
Dr John Kotter’s 8-step model
Action research model

359. Dr Kurt Lewin

360. Dr Kurt Lewin –status quo
Equilibrium point
•Imagine a weighing scale (= ‘tarazu’) with the
gm or kg weights on one pan and the item you
are buying (= vegetables, meat, packed foods,
etc) on the opposite pan
•When the quantity of the foodstuff changes, the
other pan’s weights also change
Equilibrium pointis a constant(= not moving) field
due to equaland opposingforces
•Balanced, steady state
•Status quo
–Result of two equal and opposing forces
–Both forces “pulling”or “pushing” with equal
pressure

361. Dr Kurt Lewin –3-step model
1.Unfreezing (= Diagnostic)
–Psychological denial of earlier beliefs
–Causes imbalance (= disequilibrium)
–Create the motivation and readiness to change
–Unlock old behaviour/situation
2.Moving (= Intervention)
–Cognitive restructuring
–Changes in organisational structures or processes
–See, judge, feel and react to new/different situation
–Shift to new level of behaviour/situation
3.Refreezing (= Stabilisation –reach equilibrium pointagain)
–Integrate and reinforce into new organisational state,
such as culture, rewards and structure
–Settle into new, improved level of behaviour/situation

362. Unfreezing
•Introduces evidence which conclusively establishes
that a belief or hypothesis is NOT true
–Creates pain and discomfort
–Causes guilt and anxiety
–Motivates need/desire for change
•Change will happen ONLY if there is willingnessto
(1) acquire/learn/accept new methods and (2)
discard old methods
•People must develop sense of psychological safety

363. Movement
•People undergo cognitive restructuring*
•People acquire/get/learn information and
evidence showing that change is desirable
and possible
•People identify with the learnings and
experiences of those who have changed

364. Cognitive restructuring*
•Therapeutic** process that helps to discover,
challenge, modify or replace earlier negative,
irrational or distorted thoughts
•It helps people to reduce their stress through
cultivating positive thinking and habits
•Therapy** = treatment to cure human beings
of mental or physical illnesses, which
supplements but does not replace medicines
and/or drugs

365. Refreezing
•Integrate new behaviours into the people’s
minds, personalities and attitudes
•Stabilise the changes, after testing that
these changes fit the individuals’ social
environment
•Identify the significant relationships
amongst employees who really approve of
and support the change

367. Characteristics of the 3-step model
•2 equal forces maintain balance in any group activity
1.Constant efforts to maintain the status quo
2.Forces pushing for change
•When these 2 sets are equal and opposite, a quasi-
stationary equilibrium is created
–Balanced, steady state
–Constant state due to equal opposing forces
•Level of employee performance is stable (based on
group norms) vs. the superior’s pressures for higher
performance
•Change is an alteration/modification of the forces which
keep a system’s behaviours stable
•If the forces maintaining the equilibriumcan be reduced,
rather than increasing the forces for change, this is a
more effective change strategy

368. Any questions?

369. Dr John P Kotter

370. Dr John P Kotter
•Regardedbymanyastheauthorityonleadershipandchange,DrJohnP.
Kotterisabest-sellingauthor,awardwinningbusinessandmanagement
thoughtleader,businessentrepreneurandHarvardProfessor
•Hisideas,books,andcompany,Kotter,helpmobilisepeoplearoundtheworld
tobetterleadorganisationsinaneraofincreasinglyrapidchange.Professor
Kotter’sMITandHarvardeducationlaidthefoundationforhislifelongpassion
foreducating,motivatingandhelpingpeople.Hisaward-winningarticlesinThe
HarvardBusinessReviewhavesoldmorereprintsthananyotherauthor’s,and
his2012article,“Accelerate!”wontheMcKinseyawardfortheworld’smost
practicalandgroundbreakingthinkinginthebusiness/managementarena
•Hisbookshavereachedmillions,andhavebeenprintedinover150foreign
languageeditions.His1996book,LeadingChange,wasselectedbyTime
magazinein2011asoneofthe25mostinfluentialbusinessmanagement
bookseverwritten.Tosupplementhisbooksandexpandonhisideas,Kotter
hasreleasedseveralvideosonhisteachings,manyofwhichareaccessibleto
anyoneinterestedinhisworkviaYouTube.Kotter’sresearchandpursuitsin
education,business,andwritinghaveearnedtherespectofhispeers,helped
transformorganisationsaroundtheworld,touchedcountlesslivesandstill
inspireotherstoadopthismethodsandspreadtheword

371. The 8-Step Process of Successful Change
•30 years of research by the leadership guru, Dr. John P
Kotter, has proven that 70% of all major change efforts in
organisations fail
•Why do they fail? Because organisations often do not
take the holistic approach necessary to ensure that the
change happens
•However, by following this 8-Step Process, organisations
can avoid failure and become adept at change
•By improving their ability to change, organisations can
increase their chances of success, both today and in the
future. Without this ability to adapt continuously,
organisations cannot thrive

372. Steps 1 to 4
1.ActWithUrgencyExaminemarketandcompetitive
realities.Identifyanddiscusscrises,potentialcrisesor
majoropportunities
2.DeveloptheGuidingCoalitionAssembleagroupwith
enoughpowertoleadthechangeeffort.Encouragethe
grouptoworkasateam
3.DevelopaChangeVisionCreateavisiontohelpdirect
thechangeeffort.Developstrategiesforachievingthat
vision
4.CommunicatetheVisionbuy-inUseeveryvehicle
possibletocommunicatethenewvisionandstrategies.
Theguidingcoalitionshouldteachnewbehaviours

373. Steps 5 to 8
1.EmpowerBroad-basedActionRemoveobstaclestochange.
Changesystemsorstructuresthatseriouslyunderminethe
vision.Encouragerisk-takingandnon-traditionalideas,
activities,andactions
2.GenerateShort-termWinsPlanforvisibleperformance
improvements.Createthoseimprovements.Recogniseand
rewardemployeesinvolvedintheimprovements
3.Don'tLet-UpUseincreasedcredibilitytochangesystems,
structuresandpoliciesthatdon'tfitthevision.Hire,promote,
anddevelopemployeeswhocanimplementthevision.
Reinvigoratetheprocesswithnewprojects,themes,and
changeagents
4.MakeTheChangeStickArticulatetheconnectionsbetweenthe
newbehaviorsandorganisationalsuccess.Developthemeans
toensureleadershipdevelopmentandsuccession

375. Dr John Kotter’s 8 steps –page 1
•Create a sense of urgency
–Help others see the need for change through
a bold, aspirational opportunity statement
that communicates the importance of acting
immediately
•Build a guiding coalition
–A volunteer army needs a coalition of
effective people –born of its own ranks –to
guide it, coordinate it, and communicate its
activities

376. Dr John Kotter’s 8 steps –page 2
•Form a strategic vision and initiatives
–Clarify how the future will be different from
the past and how you can make that future a
reality through initiatives linked directly to the
vision
•Enlist a volunteer army
–Large-scale change can only occur when
massive numbers of people rally around a
common opportunity
They must be bought-in and urgent to drive
change –moving in the same direction

377. Dr John Kotter’s 8 steps –page 3
•Enable action by removing barriers
–Removing barriers such as inefficient
processes and hierarchies provides the
freedom necessary to work across silos and
generate real impact
•Generate short-term wins
–Wins are the molecules of results. They must
be recognized, collected and communicated
–early and often –to track progress and
energize volunteers to persist

378. Dr John Kotter’s 8 steps –page 4
•Sustain acceleration
–Press harder after the first successes. Your
increasing credibility can improve systems,
structures and policies. Be relentless with
initiating change after change until the vision
is a reality
•Institute change
–Articulate the connections between the new
behaviors and organizational success,
making sure they continue until they become
strong enough to replace old habits

379. Dr John Kotter’s model
Advantages
•It is an easy step-by-step
model which provides a clear
description and guidance on
the entire process of change
and is relatively easy for being
implemented
•Emphasis is on the
involvement and acceptability
of the employees for the
success in the overall process
•Major emphasis is on
preparing and building
acceptability for change
instead of the actual change
process
Disadvantages
•Since it is a step-by-step
model, skipping even a single
step might result in serious
problems
•The process is quite time
consuming
•The model is essentially top-
down and discourages any
scope for participation or co-
creation
•Can build frustration and
dissatisfaction among the
employees if the individual
requirements are given due
attention

380. Any questions?

381. Action research

382. Action research model –context
•To help the organisation to implement planned change
•Emphasis is on “planned change”, which is a cyclical
process
•Initial research > provides information to guide
subsequent action
•PDCA
•Results of action are assessed to provide further
information to guide furtheraction
•Involves crucial collaboration between organisation
members and OD practitioner
•Heavy emphasis on
1.Data gathering and diagnosis, prior to
2.Action planning and implementation

383. Action research model –steps
1.Problem identification
2.Consultation with a behavioural science expert
3.Data gathering and preliminary diagnosis
4.Feedback to the business group
5.Joint diagnosis of the problem
6.Joint action planning
–Kurt Lewin’s “Moving” process
7.Action
8.Data gathering afteraction

384. Process in the action research model –page 1
•1. Problem diagnosis
•The organisation development process begins by
recognizing problems. The method of diagnosis usually
takes the form of data gathering, assessment of cause,
as well as an initial investigation to ascertain options
•2. Feedback and assessment
•The feedback and assessment step often involves
proper investigation of identified problems so that there
is a deep understanding of the challenge at hand. This
can include an appraisal of documents,focused groups,
customer or employee surveys, hiring consultants, and
interviewing current employees. Information gathered is
used to re-evaluate the challenges in the first step
•
•

385. Process in the action research model –page 2
•3. Planning
•Once an organisation defines and understands its challenge, an
action plan is put together. The plan lays down all the intervention
measures that are considered appropriate for the problem at hand.
Usually, the measures include such things as training seminars,
workshops, team building and changing the makeup or structure of
teams. Additionally, measurable objectives, which define the
expected results, form an integral part of the overall plan
•4. Intervention and implementation
•Once a plan is in place, the intervention phase commences. Since
the organizational development process is complicated,
implementation processes are a key element of the model. As an
example, if training classes are preferred over other methods, test
results will form the basis upon which the training process is
evaluated. The objective at this point is to ensure the required
changes take place. If that is not the case, feedback is assessed
and used to bring about the required change

386. Process in the action research model –page 3
•5. Evaluation
•As soon as the intervention plan is complete, the outcome of
the change in the organization is assessed. If the required
change does not take place, the organisation looks for the
cause. Adjustments are made to ensure the obstacle is
eliminated
•6. Success
•Success denotes that the desired change took place. A
proper plan and efficiency standards are put in place to
ensure that the new switch is sustainable. Ongoing monitoring
is needed to ensure that implemented changes last.
Furthermore, as markets and organisations change, new
problems can arise, leading to the push for further
development. Great organisations evolve continuously

387. Any questions?

388. Attendance

389. Sem 2 –Focus of OB on Group Behaviour
Revision 1 –today
•Groups and group behaviour
•OrganisationalPower and POSH
•OrganisationalPolitics
•OrganisationalConflict
Revision 2 –March 20
•Negotiation skills
•Organisationalstructure
•Organisationalculture
•Organisationalchange

390. Groups and Group Behaviour
•What is a Group?
•How and why does a group get formed?
•How does a group develop?
•How do people behave, in a group?
•What is the role of group behaviour?
•Why do people behave differentlywhen
alone and in a group?

391. Any questions?

392. Power and POSH
•What is Power?
–Formal power?
–Personal power?
•Importance of dependence –importance,
scarcity, non-substitutability
•Leadership and power?
•POSH Act?
•Sexual harassment?

393. Any questions?

394. Politics
•Basics
•Organisational politics
•Problems with politics
•Using power base to advantage
•Consequences
•Negative aspects
•Impressions
•Ethics and politics

395. Any questions?

396. Conflict
•Conflict –mind game
•How does organisational conflict arise –facts,
goals, methods, values?
•Organisational conflict –5 inter-locking phases
•Levels of conflict –individual, group,
organisational
•3 views –traditional, interactionist and
resolution-based
•Preventive and curative measures to resolve
conflict

397. Any questions?

398. Rizvi Institute of Management
Studies and Research, Mumbai
OrganisationalBehaviour
Semester 2
Session 17 –March 20, 2024

399. Attendance
OB2 –Revision 2

400. Focus on OB in groups and group behaviour
Revision 1 –today
Groups and group behaviour
OrganisationalPower and POSH
OrganisationalPolitics
OrganisationalConflict
Revision 2 –March 20
•Negotiation skills
•Organisationalstructure
•Organisationalculture
•Organisationalchange

401. Negotiation skills
•Negotiation?
•Key skills for successful negotiations
•Negotiation process –step-by-step?
•Bargaining strategies
–Distributive
–Integrative
•Bargaining zones
•3
rd
party negotiation
•Assumptions

402. Any questions?

403. Organisation structure
•Structure?
•Unique features of organisation structure?
•Different types of structures?
•Why do structures differ?
•Kinds of structures?
–Functional?
–Divisional?
–Matrix?
–Flat?

404. What is organisational structure? –page 1
•The structure of an organisation
•Purpose = why does the organisation exist?
•An organisation’s purpose determines the various
methods, systems and processeswhich we apply, to
the organisation’stasks, activities and work, which
are therefore formallydivided, groupedand
coordinated
•So, these methods, systems and processes in an
organisation are the lifelines/connections (= bones,
muscles, joints, blood vessels, etc) of the
organisational structure
•“Management” is the art and science of managing all
these lifelines/connections

405. What is organisational structure? –page 2
•Anorganisationalstructureisasystemthatoutlineshow
certainactivitiesaredirectedinordertoachieve
organisationalgoals
•Theseactivitiesincluderules,rolesandresponsibilities
•Theorganisationalstructurealsodetermineshowinformation
flowsbetweendifferentlevelswithinthecompany
•Businessorganisationsofalltypes,shapesandsizeshave
organisationalstructures,whichdefineaspecifichierarchy
withintheorganisation
•Awell-designedorganisationalstructureclearlydefineseach
employee'sjobandhowitfitswithintheoverallsystem
•Putsimply,theorganisationalstructurespellsoutwhodoes
what,inordertoenablethecompanytomeetitsobjectives

406. Unique features in organisational structures
1.Complexity
–Extent of differentiation –specialisation,
division of labour, levels and hierarchy,
geographical, functional and skills dispersion
2.Formalisation
–Standardisation, dependence on rules,
regulations, methods, systems and
processes
3.Centralisation
–Decision-making authority at specified levels

407. Why different types of organisation structure?
•Bases for different types of structures:
•Methods/systems/processesby which an organisation’s
tasksare formallydivided, groupedand coordinated?
1.Work specialisation –Different jobs/activitiesare sub-divided into
different departments
2.Departmentalisation –Similarjobs –which jobs are grouped
together?
3.Chain of command –Who (roles, authority, responsibility) is the
head (in charge)?
4.Span of controland hierarchy–How many people can one person
IDEALLY manage, direct, coordinate, control and supervise?
5.Centralisation –What level and who (roles, authority, responsibility)
makesdecisions?
6.Formalisation –What rulesand regulationsgovernits working–
systems, methods, processes and connections?

408. Why do structures differ? –page 1
Structure follows strategy? Or, does strategy follow structure?
Build an organisationaround people; don’t build people around
an organisation
Four key reasons
1.Structure–methods to help management to achieve its
objectives
•Current strategies
•Innovation(Organic)
–Flexibility
•Cost reduction(Mechanistic)
–Efficiency & Stability
•Imitation(Organic & Mechanistic)
–Tight control & Low costs

409. Why do structures differ? –page 2
1.Organisation size
–Significantly affects structure
–More specialisations, more departments, more vertical levels,
more rules/regulations
2.Technology
–How are inputs (=efforts) transferred to outputs (= results)?
–How to convert financial, human and physical resources into
products or services?
–Routinisation –rules, job descriptions, documentation,
formalisation
3.Environment
–Institutions or forces outside the organisation impact/affect its
performance
–Suppliers, customers, competition, governmental and regulatory
agencies, politics, public pressure groups
–Environmental uncertainty –Covid 19

410. Any questions?

411. Organisation culture
•Culture?
•Shared meaning?
•Edgar Schein’s definition?
•Aspects of culture?
–Power?
–Role?
–Task?
–Person?
•How does culture create climate?

412. What is Culture?
•Peoplesense,recogniseandidentifywithwhathappens(=
situations,events,behaviours)aroundthem,provided
thesehappeningsconcernthosepeople,orrelatetothem
•Dependingonwhetherthesehappeningscauseapositive
ornegativeimpact,theygeneratearelevantresponse
•Accordingly,anyhappeningCREATEmeaningswithin
people’sminds,providedthepeopleunderstandwhatand
howtheyusuallythink,say,doandbehave
•So,culturedevelopsinthemindsofpeople
•Then,themultipliereffectkicks-in,amongstthepeople
•Thereafter,“My”culture?“Our”culture?“His”culture?“Her”
culture?“Your”culture?“Their”culture?“Different”culture?
•Aremeaningsdifferent?Whicharecommonmeanings?
•“Shared”meaning

413. “Shared” meaning
•Sharedmeaninghelpsusto(1)establishcommonground,
(2)solvelife’sproblemsand(3)makedecisions
•Inorganisations,“Thisishowwedothingshere”
•Anorganisation’sculturalmapgetsdrawnandevolves,based
onthis“sharedmeaning”withallits“geographical”elements
andcontourslikeitsrivers,mountains,fertileandaridland,
desert,seashores,volcanoes,earthquakes,snowandice
•EdgarHSchein,asocialpsychologist,definescultureas….
•“Patternsofsharedbasicassumptionsthatagroup
learns,asitsolvesitsproblemsofexternaladaptation
andinternalintegrationthathasworkedwellenoughto
beconsideredvalidandthereforemustbetaughttonew
membersasthecorrectwaytoperceive,thinkandfeelin
relationtothoseproblems”

414. What does Edgar H Schein mean?
•Patterns
•Shared, basic assumptions
•Group(of employees in an organisation)learns
•Solves problems (by developing methods, systems,
processes, rules and regulations to make decisions)
1.External adaptation
2.Internal integration
•Worked well enough to be considered valid
(understood and accepted)
•Therefore, it must be taught to new members*
•Correct way to perceive, think and feel in relation to
those problems

415. Four (4) aspects of organisational culture
•Power–ability to create dependence and
influence behaviour
•Role–duties and responsibilities of a
person doing any job
•Task–work and activities to be done in
any job
•Person–individual traits, characteristics

416. Culture creates organisational climate
•Shared perceptions
•Positive work climate
–Improved job satisfaction, commitment,
involvement and motivation
–Higher customer satisfaction
–Better financial performance
•Fundamental to “Employee Engagement”
•Cultural climates interact with one another to
produce inter-personal skills and behaviour
•Climate also influences people’s habits

417. Any questions?

418. Organisational change
•Change?
•Overcoming resistance to change?
•Planned and unplanned change?
•Different types of organisational change?
•Theory E?
•Theory O?
•Key factors?

419. What is Change?
•Factors of production –machinery, methods, money,
people
•Shift from current practice vis-à-vis any of these factors
•Do things differently
•Plannedand unplannedchanges?
•Unplannedchange –Compulsion
–Covid 19, advent of AI, ML, ChatGPT
•Plannedchange –Business necessity
–When an organisation alters, changes, shifts,
transforms into something new, unknown, untested
and unproven
•Aura of uncertainty
•“Leap of faith”

420. Overcoming resistance to change
•Natural human tendency to stay with
his/her Comfort Zone
•Education and communication
•Participation and involvement
•Building support and commitment
•Developing positive relationships
•Implementing changes fairly
•Employing people who accept change
•Coercion

421. If change is “unplanned”……
•No option
•Employees are caught by surprise
•Understand the significance of change
•Ease problems and problem areas
•Involve employees in problem solving and
decision making
•Revise working methods
•Have open conversations with employees
•Maintain focus on achieving business results,
despite various inhibitions

422. If change is “planned”……1
•Organisation’s top management usually
decides change
•Needs of business–Economic or
Organisational
•Employees face changes and must know
–5W 1H
•What changes? Who is impacted? Why
needed? Where? When? How?
•Resistance increases if employees are not
informed, involved or convinced
•Need to monitor employee behaviour
accordingly

423. If change is “planned”……2
•Change agents (= HR or external
consultants) canhelp employees to
visualise change, motivate and implement
a revised vision
•Identify spokespersons who can take
charge of change
1.Change threatens the status quo
–Need for open communication –
discussions and debates
2.Understand employees’ preferences to
manage resistance and modify changes
suitably

424. Theory E
•Economic approach, to increase shareholder
value
•Financial crisis
•Mechanisms likely to increase short-term cash
flow and share price –performance bonuses,
headcount reductions, asset sales, strategic
reordering of business units
•Implicit (= presumed) contracts are vulnerable
•Theory E change happens from the top

425. Theory O
•Organisationalcapabilities approach
•Goal is to develop culture to support learning
and high performance employee base
•To succeed, there must be
–High level of employee participation
–Flatter organisationstructure
–Strong bonds between organisationand its
people

426. Key factors in Theories E and O
Dimensions of
change
Theory E Theory O Both theories
combined
Goals Maximiseshareholder
value
Develop organisational
capabilities
Embrace the paradox
between economic
value and
organisational
capability
Leadership Manage change from
the top
Encourage
participation from the
bottom up
Set direction from the
top, but engage the
people below
Focus Emphasisestructure
and systems
Build up corporate
culture,employees’
behaviourand
attitudes
Focus simultaneously
on hard (structures
and systems) and soft
parts (corporate
culture)
Process Plan and establish
programmes
Experiment and evolvePlan for spontaneity
Reward system Motivate through
financial incentives
Motivate through
commitment –use pay
as a fair exchange
Use incentives to
reinforce change, but
not to drive it

427. Any questions?

428. Next lecture
March 26, 2024
Organisational change –Part 2