Understanding Organisational Behaviour

To understand Organisational Behavior meaning and importance,Organisation as social process,System and Contingency approach,Environmental Factors,Constraints over organization and managerial performance

1. Understanding Organisational Behaviour By Jayant Isaac Author I Academician I Speaker Contact No-9229156307 Email: [email protected]

2. Why Do We Study OB? • To learn about yourself and how to deal with others? • You are part of an organization now, and will continue to be a part of various organizations… • Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time • Some of you may want to be managers or entrepreneurs

3. WHAT IS AN ORGANIZATION? An organization is a collection of people who work together to achieve a wide variety of goals. Organizations exist to provide goods and services that people want. These goods and services are the products of the behaviors of workers . Jayant Isaac,Asso.Profesor

4. Organization Organization - collection of people, work together to achieve - Individual goals* - Organizational goals* Jayant Isaac,Asso.Profesor *Goals: An observable and measurable end result having one or more objectives to be achieved within a more or less fixed timeframe.

5. MANAGEMENT FUNCTIONS Managing is a process of getting things done through and with people in an organization . So, Management functions are: Jayant Isaac,Asso.Profesor

6. Management Roles Role is a pattern of behavior which is defined for different positions .( Mintzberg ) It (role) refers to the expected behavior of the occupant of a position . There are three(3) broad categories of roles a manager performs in an organization: Interpersonal Roles Informational Roles Decisional Roles Jayant Isaac,Asso.Profesor

7. FUNCTIONAL APPROACH & ROLE APPROACH PLANNING ORGANIZING DIRECTING CONTROLLING INTERPERSONAL ROLES INFORMATIONAL ROLES DECISIONAL ROLES Jayant Isaac,Asso.Profesor

8. Organisational Behaviour -Meaning Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups , and structure have on behavior within an organization , and then applies that knowledge to make organizations work more effectively . Specifically, OB focuses on how to improve productivity, reduce absenteeism and turnover, and increase employee citizenship and job satisfaction . Jayant Isaac,Asso.Profesor

9. Organizational behavior is the study of the many factors that have an impact on how individuals and groups respond to and act in organizations and how organizations manage their environments. Jayant Isaac,Asso.Profesor What people do orgANISATION Organisationa l Behaviour

10. NATURE OF ORGANIZATIONAL BEHAVIOUR OB is a field of study and not a discipline OB is an interdisciplinary approach OB is an applied science OB Is normative Science Humanistic and Optimistic Nature Oriented towards organizational objectives Total system approach Jayant Isaac,Asso.Profesor

11. Importance of OB 1. Understanding human behaviour Individual behaviour Group behaviour Intergroup behaviour 2. Influencing human behaviour Leadership Motivation Communication Organisational change and development Organisational climate Jayant Isaac,Asso.Profesor

12. Psychology seeks to measure, explain , and change behavior Sociology studies people in relation to their fellow human beings Social psychology focuses on the influence of people on one another Anthropology is the study of societies to learn about human beings and their activities Political science is the study of the behavior of individuals and groups within a political environment Contributing Disciplines

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14. Historical Development of OB & Theories of Organisation Classical Theory Max Weber’s Ideal Bureaucracy Taylor’s Theory Fayol, Gulik and Urwick Neo-Classical Theory Hawthorne experiments and human relations Modern Organisational Theory Social systems approach Human Behavior approach Systems and contingency approach Jayant Isaac,Asso.Profesor

15. THEORIES OF OB Scientific Management Fayol’s Administrative management Bureaucracy Hawthorne experiments and human relations Social systems approach Human Behavior approach Systems and contingency approach Jayant Isaac,Asso.Profesor

16. (1)Scientific Management(beg. of 20 th Century) Introduced by Frederic Winslow Taylor in USA. “Scientific management is concerned with knowing exactly what you want men to do and then see in that they do it in the best and cheapest way.” It described management as a science with employers having specific but different responsibilities. It encouraged the scientific selection, training, and development of workers and the equal division of work between workers and management. Jayant Isaac,Asso.Profesor

17. Elements & Tools of Scientific Management Separation of planning & doing Functional foremanship Job analysis Standardization Scientific selection and training of workers Financial incentives Economy Mental Revolution Jayant Isaac,Asso.Profesor

18. The following can be summarized in Taylor’s theory Mental Revolution Productivity Organisational Function Worker Level Motivation Jayant Isaac,Asso.Profesor

19. Principles of SM Replacing rule of thumb with science Harmony in group action Cooperation Maximum output Development of workers Jayant Isaac,Asso.Profesor

20. (2)FAYOL’S Administrative Management Given by Henry Fayol, a French mining engineer an industrialist, looked at the problems of managing an organization from top management point of view. He was also regarded as the father of Management Theory The General and Industrial Administration was written by him in 1916. Jayant Isaac,Asso.Profesor

21. Managerial Qualities :(physical, mental, educational, technical & experience) Elements of Management: (Planning, organizing, commanding, coordination,& Controlling) General Principals of Management: Fayols has given F ourteen P rincipals(14) of management, which is as follows Jayant Isaac,Asso.Profesor His approach of study divided management into three(3) parts:

22. General Principals of Management: 1. DIVISION OF WORK 8. CENTRALIZATION 2.AUTHORITY & RESPONSIBILITY 9.SCALAR CHAIN: Each communication going up or coming down must flow through each position in the line of authority. 3.DISCIPLINE 10.ORDER 4.UNITY OF COMMAND: Person should get orders & instructions from only one superior 11. EQUITY 5. UNITY OF DIRECTION: Each group of activities with the same objectives must have one head & one plan. 12.STABILITY OF TENURE 6.SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST 13.INITIATIVE 7.REMUNERATION OF PERSONNEL 14.ESPRIT DE CORPS: union is strength Jayant Isaac,Asso.Profesor

23. Gulik and Urvik edited the papers on ‘Science of Administration’ published by Institute of Public administration at Columbia University in 1937 and gave the following principles of Organisational Theories Fitting people to the Organisational structure Recognizing one top executive as source of authority Unity of Command Line and Staff Departmental Delegating and utilizing the exception principle Responsibility Span of Control Jayant Isaac,Asso.Profesor

24. Difference between Taylor & Fayol BASIS OF DIFFERENCE TAYLOR FAYOL Perspective Shop floor level Higher Management Level Focus Efficiency through work simplification & standardization Overall efficiency by observing certain principals Orientation Production & Engineering Managerial Functions Results Scientific observation & measurement Personal experiences translated into universal truths Overall Contributions Basis for the accomplishment on the production line Systematic theory of management. Jayant Isaac,Asso.Profesor

25. Span of Control The  span of control  is the number of subordinates for whom a manager is directly responsible . The two diagrams below illustrate two different spans of control: Wide Span of control: A span of control of 7 would be considered to be quite wide. Jayant Isaac,Asso.Profesor

26. Span of Control 2) Narrow Span of Control: Jayant Isaac,Asso.Profesor

27. Is there an ideal span of control? The answer is generally NO – a suitable span of control will depend upon a number of factors : The experience and personality of the manager The nature of the business . If being a line manager requires a great deal of close supervision, then a narrower span might be appropriate The skills and attitudes of the employees . Highly skilled, professional employees might flourish in a business adopting wide spans of control. The tradition and culture of the organisation . A business with a tradition of democratic management and empowered workers may operate wider spans of control Jayant Isaac,Asso.Profesor

28. Should spans of control be wide or narrow? Here is a summary of the relative advantages and disadvantages of each: Jayant Isaac,Asso.Profesor

29. (3)BUREAUCRACY The term "bureaucracy" was created from words : ‘bureau’ means “desk or office” and “ cracy or kratos ”   which means– rule or political power Bureaucracy is an administrative system designed to accomplish large-scale administrative task by systematically coordinating the work of many individuals. Given by Max Weber (1864-1920) , and he observed three types of power in the organizations: Traditional Charismatic (attractive or magnetic) Bureaucratic Jayant Isaac,Asso.Profesor

30. Features of Bureaucracy Ten (10) features of Bureaucracy are: Administrative Class Hierarchy Promotion Expert training Selection based on technical competence Division of Work Official Rules Interpersonal Relationships Official Records Specialization Jayant Isaac,Asso.Profesor

31. 4.HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS It is based on the approach of “ human relations approach of management.” In this Organizational situations should be viewed in social terms as well as in economic and technical terms. The social process of group behavior can be understood in terms of clinical approach. This approach was basically headed by Elton Mayo (psychologist) and conducted analysis in Hawthorne plant of Western Electric Company Chicago in the year 1924 Jayant Isaac,Asso.Profesor

32. Phases of the Experiment ILLUMINATION Experiments Relay Assembly & Test Room Experiments Mass Interviewing Programme Bank wiring observation room experiments Jayant Isaac,Asso.Profesor

33. 5.Social System Approach This approach was introduced by Vilfredo Pareto. His ideas were later developed by Chester Barnard. As per this approach an organization is essentially a cultural system composed of people who work in cooperation . Jayant Isaac,Asso.Profesor

34. 6.HUMAN BEHAVIOUR APPROACH It is an outcome of the thoughts developed by the behavioral scientist who looked at the organization as collectively of people for certain specified objectives. The approach emphasizes human resources in an organization more as compared to physical and financial resources. Jayant Isaac,Asso.Profesor

35. 7.Systems and Contingency Approach The System is a complex whole composed of parts and subparts in orderly arrangement according to some scheme or plan. SYSTEM NATURAL SYSTEM MANMADE SYSTEM PHYSICAL SYSTEM MECHANICAL SYSTEM SOCIAL SYSTEM a road system, railway system a machine An Organization Jayant Isaac,Asso.Profesor

36. Contingency Approach may be treated as an extension of systems approach. The basic idea for this approach is that there cannot be a particular action of managing human behavior which will be suitable for all situations. This is the reason why a particular action of managing human behavior becomes successful in one organization but fails in other organization. Jayant Isaac,Asso.Profesor

37. MODELS IN OB Models are developed in different fields to guide activities in those fields. Every organization develops a particular model in which behavior of the people takes place. “Davis” has described four(4) OB models which are as follows: Autocratic Custodial Supportive Collegial Jayant Isaac,Asso.Profesor

38. THE AUTOCRATIC MODEL The autocratic model is based on power . Under this model, the person who holds power has the authority to demand work from workers. This model was widely popular during the Industrial Revolution. It is based on the assumption that work can only be extracted by means of pushing, directing, and persuading the employees. Jayant Isaac,Asso.Profesor

39. THE AUTOCRATIC MODEL This model empowers managers with authority which might be used for unfair practices such as suspending the employees for not obeying the orders, giving low pay, etc. Such a work environment motivates very few employees to exhibit higher productivity . However, the autocratic model works well under certain conditions, particularly in times of an organizational crisis. Jayant Isaac,Asso.Profesor

40. THE CUSTODIAL MODEL In the custodial model, the emphasis is laid on providing job security to the employees . It has been observed that employees generally prefer jobs that promise job security. Therefore, employers offer fringe benefits to strengthen the employee’s confidence in job security. While this helps in retaining the employees , knowing that they are going to get incentives irrespective of their job performance might cause the employees to be more laid back in their approach toward work. Jayant Isaac,Asso.Profesor

41. THE SUPPORTIVE MODEL The supportive model emphasizes leadership rather than power or money. Under this approach, leaders promote an environment for the employees to grow while they help in achieving the organization’s objectives . Also the support extended by the management motivates the employees to work. The employees are self motivated to enhance their performance and are not compelled to do so. This model might not be effective for employees whose lower level needs are not satisfied . Nevertheless, the supportive model enhances the relationships between the employee and the employer. Jayant Isaac,Asso.Profesor

42. THE COLLEGIAL MODEL In the collegial model, employees are self-disciplined, self-satisfied, and have specific goals which motivate them to improve their performance . In this approach, the superior acts more like a leader who leads the way and motivates employees that to perform at their best. The term ‘collegial’ refers to a group of persons working for a common purpose. This approach is an extension of the supportive model. Jayant Isaac,Asso.Profesor

43. Model of OB AUTOCRATIC CUSTODIAL SUPPORTIVE COLLEGIAL Basis of model Power Economic Resources Leadership Partnership Managerial orientation Authority Money Supportive Teamwork Employee orientation Obedience Security & Benefits Job Performance Responsible Behavior Employee psychological result Dependence on boss Dependence on organization Participation Self-discipline Employees need met Subsistence Security Status & recognition Self actualization Performance result Minimum Passive Cooperation Awakened drives Moderate enthusiasm Jayant Isaac,Asso.Profesor

44. S-O-B-C Model The OB model based on the social learning approach is termed as the SOBC model, where “ S” stands for stimulus , “O” for organism , “B” for behavior , and “C” for consequence . The S-O-B-C model gives the basic framework rather than a complete explanation of OB. Jayant Isaac,Asso.Profesor

45. A Model of Organizational Behavior S – Stimulus: is an environmental variable that depicts the environmental situation, both contextual and organizational. O – Organism: is a cognitive variable that understands organizational participants which link the environmental situation and the resulting organizational behavior. B – Represents the organizational behavior. C – Consequence: is an environmental variable that depicts organizational and group dynamics and the consequences of previous interactions between environmental, personal and behavioral variables. Jayant Isaac,Asso.Profesor

46. Organization as a Social System, Socio technical System Social System Approach Systems and Contingency Approach Jayant Isaac,Asso.Profesor

47. Factors Influencing OB There are many factors here, but they can be broadly categorized into 4 groups: The individual  The group  The organization  The environment Jayant Isaac,Asso.Profesor

48. Environmental factors and its Constraints over organization & management performance Jayant Isaac,Asso.Profesor

49. Environmental Factors Many factors can be included in the category of environment factors – Social , Economic , Cultural , Geographical , Technological , Political Legal and Ecological factors ; in addition to government policies , labour factors , competitive market conditions , locational factors , emerging globalization and so on. Although there are many factors , the most important of the factors are socio- economic , technological , suppliers and government .

50. Social Factors There are many social factors which affect the policy and strategy of corporate management. Culture , values , tastes and preferences , social integration, and disintegration and so on must be part of the agenda of every business organization. While social institutions are closely linked with business organizations, business itself is a social institution.

51. Economic Factors Economic factors such as per capita income , national income , resource mobilization , exploitation of natural resources , infrastructure development , capital formation ,employment generation, industrial development and so on, influence the business environment.

52. Cultural Factors The cultural factors of a business environment should also be taken into consideration while scanning the environment and during the policy formulation. Managers and policymakers in global business can not be disregard cultural variables like social and religious practices , education, knowledge , rural community norms and beliefs and so on with special reference to India.

53. Geographical Factors In a global business environment , geographical locations , seasonal variations , climatic conditions and so on , considerably affect the tastes and preferences of customers and also prospects and the labor forces. The policies of the government regarding industrial locations are considerably influenced by the pace of development in various geographical locations.

54. Political Factors The philosophy and approach of the political party in power substantially influences the business environment. For example , the communist –ruled state of West Bengal had the largest number of industrial disputes.

55. Legal Factors Every aspect of the business is regulated by a law in India. Hence , the legal environment plays a very vital role in the business. Laws relating to industrial licensing,company information, factory administration, Industrial disputes , payment of wages , trade unionism , monopoly control , foreign exchange regulations , shops and establishments and so on are examples of what forms the legal business environment in India.

56. Ecological Factors Ecology deals with the study of the environment , biotic factors (plants, animals , and micro organisms ) abiotic factors (water , air , sunlight, soil,) and their interactions with each other. Industrial activities , automobiles , emission of fumes or smoke and influents and so on , result in an environmental degradation. Hence , environmental protection and preservation must be the responsibility of every organization. Pollution free industrial activity is , therefore , considered to be a necessary condition of industrial organizations.

57. The Government Policies The government policies provide the basic environment of the business. For instance , the government’s policy to open up the Indian economy to integrate it with the global economy has resulted in liberalization. Industrial policy resolutions , and licensing policies , trade policies , labor policies , locational policies , export-import policies , foreign exchange policies , monetary policies, taxation policies and so on , pave the way for business environment.

58. Labor Policies Although labor within the organization constitutes its internal environment, general labor policies and climate may from a part of the external environment. If militant trade unionism is widespread in a particular industrial location , Such militancy would become the labor climate and would make external element. At the same time , a specific organizations may have a committed labor forces , which could be the strength of the internal environment of the organization.

59. THANKS