Dr . SABIYA . MUFTI

What is an Organization?y An organization is

a collection of people who work together to achieve individual and organizational goals.

What is an OrganizationA

consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

What is Organizational Behavior?Organizational behavior (OB) is the study of factors that affect how individuals and groups act and in how organizations environments.

organizations manage their

Levels of AnalysisOrganizational Level Group Level Individual Level

Components of Organizational BehaviorUnderstanding organizational behavior requires studying

Individuals in Organizations

Group and Team Processes

Organizational Processes

What is Management?Management is the process of planning, organizing, leading, and controlling an organization s human, financial, resources effectiveness. material, to and other its

increase

The Functions Of ManagementManagementy process of working with people and resources to

accomplish organizational goalsy y

effective - achieve organizational goals efficient - achieve goals with minimum waste of resources

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PlanningOrganizing

Managers Job

Leading Controlling

Managers JobManagement Functions

y Organizing Henry Fayol a French y Determines what tasks are to Industrialist wrote that all managers perform four be done; management functions y Who is to do them; Planning Organizing y How the tasks are to be Leading grouped; Controlling y Who reports to whom; and Planning y Where decisions are to be Organizing made.Leading controlling

Managers JobManagement FunctionsHenry Fayol a French Industrialist wrote that all managers perform four management functions

Planning OrganizingLeading Controlling

Planning Organizing

y Leading y Motivating employees; y Direct their activities; y Select the most effective communication channels; or y Resolve conflicts among members.

Leadingcontrolling

Managers JobManagement FunctionsHenry Fayol a French Industrialist wrote that all managers perform four management functions

Planning Organizing

LeadingControlling

y Controlling y Monitoring performance; y Comparing performance with the set standard; y Making corrections, if necessary.

Planning Organizing

Leading

Controlling

Management LevelsTop-level managers

Middle managers

Frontline managers

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Management Levelsy MANAGEMENT LEVELy TOP-LEVEL MANAGERS

y senior executives responsible for overall management

of an organizationy y y

focus on long-term issues emphasize the survival, growth, and effectiveness of the firm concerned with the interaction between the organization and its external environment

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Management Levelsy Management level (cont.) y Middle-level managers (tactical managers)y

y

y

y

located between top-level and frontline managers in the organizational hierarchy responsible for translating strategic goals and plans into more specific objectives and activities traditional role was that of an administrative controller who bridged the gap between higher and lower levels growing role is that of a developmental coach to the people who report to them

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Management Levelsy MANAGEMENT LEVEL (CONT.) y Frontline managers (operational managers)y

y y

lower-level managers who supervise the operational activities of the organization directly involved with non management employees increasingly being called on to be innovative and entrepreneurial

y Working leaders with broad responsibilities y in leading small companies, managers have strategic, tactical, and operational responsibilities y have a knowledge of all business functions, are accountable for results, and focus on internal and external customers1-19

Managerial Rolesanager: Any person who supervises one or more subordinates. y Role: A set of behaviors or tasks a person is expected to perform because of the position he or she holds in a group or organization. Managerial roles identified by Mintzberg.yFigurehead Liaison Disseminator Entrepreneur Resource allocator Leader Monitor Spokesperson Disturbance handler Negotiator

Management Rolesy In 1960s, Mintzberg after studying 5 executives to

determine what those managers did on their jobs.y Mintzberg concluded

that mangers perform 10 or set of behaviors

different, highly interrelated roles attributable to their jobs.

Mintzberg s Managerial RolesRole InterpersonalFigurehead

Description

Symbolic head, required to perform a number of routine duties of a legal or social nature Responsible for the motivation & direction of employees Maintains a network of outside contacts who provide favors & information

Leader

Liaison

Mintzberg s Managerial RolesRole InformationalMonitor

Description

Receives a wide variety of information; serves as nerve centre of internal & external information of the organization Transmits information received from outsiders or from other employees to members of the organization Transmits information to outsiders on organization's plans, policies, actions, & results; serves as an expert on organization s industry

Disseminator

Spokesperson

Mintzberg s Managerial RolesRole DecisionalEntrepreneur

DescriptionSearches organization & its environment for opportunities & initiatives projects to bring about change Responsible for corrective action when organization faces important, unexpected disturbances Makes or approves significant organizational decisions Responsible for representing the organization at major negotiation

Disturbance handler

Resource allocator

Negotiator

Managerial Skillsy Conceptual Skills:

The ability to analyze and diagnose a situation and distinguish between cause and effect. y Human Skills: The ability to understand, work with, lead, and control the behavior of other people and groups. y Technical Skills: Job-specific knowledge and techniques.

Luthans Study of Managerial Activitiesy Four types of managerial activity:

y Traditional Management y Decision-making, planning, and controlling. y Communication y Exchanging routine information and processing paperwork y Human Resource Management y Motivating, disciplining, managing conflict, staffing and training. y Networking y Socializing, politicking, and interacting with others.

y Managers who promoted faster (were successful) did

different things than did effective managers (those who did their jobs well)

Wilson Managerial Skills ResearchStatistically validated profile of managerial skills: over 20 years research by Clark Wilson et al (2003)

y Dealing effectively with people is

what management is all about;y The 11 skills constitute a goal

creation/communication/feedba ck/reward/accomplishment cycle with human interaction at every turn.

y Managers with high skills

mastery tend to have better subunit performance & employee morale than managers with low skills mastery

Wilson Managerial Skills Research (cont.)Statistically validated profile of managerial skills: over 20 years research by Clark Wilson et al (2003)y Effective female & male managers do not have significantly different skill profiles, contrary to claims in the popular business press in recent years. y At all career stages, derailed managers (those who failed to achieve their potential) tended to be the ones who overestimated their skill mastery ( rated themselves higher than their employees did).

Research evidencey Concluding remarks of researcher:

when

selecting

individuals

for

promotion

to

managerial positions, those who are arrogant, aloof, insensitive, and defensive should be avoided

Skills exhibited by Effective Managery Clarifies goals & objectives for everyone involved; y Encourages participation, upward communication, &

suggestions;y Plans & organizes for an orderly work flow; y Has technical & administrative expertise to answer

organization-related questions;y Facilitates work through team building, training,

coaching, & support;

Skills exhibited by Effective Manager (Cont.)y Provides feedback honestly & constructively; y Keeps things moving by relying on schedules, deadlines, & helpfulreminders;

y Controls details without being arrogant;y Applies reasonable pressure

for goal accomplishment;

y Empowers & delegates key duties to others while maintaining goaltransparency & commitment;

y Recognizes good performance with rewards & positivecorroboration.

Managing For Competitive AdvantageCost Competitiveness Innovation

Competitive Advantage

Quality

Speed

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Managing For Competitive Advantagey Cost competitivenessy costs are kept low enough so that you can realize profits and price your products

at levels that are attractive to consumersy key is efficiency - accomplishing goals by using resources wisely and

minimizing waste

y Qualityy excellence of a product, including its attractiveness, lack of defects, reliability,

and long-term durabilityy importance of quality has increased dramatically y must identify specific elements of quality to correct problems, target needs, and

deliver world-class value

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Managing For Competitive Advantage (cont.)y Speedy y

often separates winners from losers in world competition speed became a vital requirement in the 1990sy

requirement has increased exponentially

y Innovationy y

the introduction of new goods and services important to adapt to changes in consumer demands and to new sources of competition

Best managers and companies delivering all four1-34

Organizational BehaviorA field of study that investigates the impact that individuals, groups, and structure have on behavior within

organizations, for the purpose of applying such knowledge toward improving an organization s effectiveness. Gregory Moorhead :2007

Organizational Behaviory The field of OB deals with human behavior in

organizationsy OB is the multidisciplinary field that seeks

knowledge of behavior in organizational settings by systematically studying individual, groups, and organizational processes. Jerald Greenberg:2008

Organizational Behaviory This knowledge is used both by scientists

interested in understanding human behaviour & by practitioners interested in enhancing organisational effectiveness & individuals well being. Robert A .Baron:2008

Organizational BehaviorOrganisation Behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the

performance of the organisation.Robbins: 1998,9

Organizational BehaviorOB highlights four central characteristics of the field.y It is firmly grounded in the scientific method. y It studies individuals, groups & organisations. y It is interdisciplinary in nature. y It is used as the basis for enhancing organisational

effectiveness & individual well-being.

Organizational BehaviorThe study of Organisational Behaviour involves:y consideration of the interaction among the formal structure

(organisational context in which the process of management takes place)y the technology employed and the methods of carrying out work y the behaviour of people y the process of management y the external environment

Organizational BehaviorInterrelated dimensions influencing behaviour:y The Individual - working environment should satisfy individual

needs as well as attainment of organisational goals.y The Group - formal and informal. Understanding of groups

complements a knowledge of individual behaviour.y The Organisation - impact of organisation structure and design,

and patterns of management, on behaviour.y The Environment - technological and scientific development,

economic activity, governmental actions.

Intuition and Systematic Studyy Intuitiony Gut feelings y Individual observation y Common sense

y Systematic Studyy Looks at relationships y Scientific evidence y Predicts behaviors

y The two are complementary means of predicting behavior.

An Outgrowth of Systematic StudyEvidence-Based Management (EBM)y Basing managerial decisions on the best available scientific evidence. y Must think like scientists:y y y

Pose a managerial question Search for best available evidence Apply relevant information to case

Intuition and Systematic StudyThe trick is to know when to go with your gut. Jack Welch y Intuition is often based on inaccurate information y Faddism is prevalent in management y Systematic study can be time-consumingUse evidence as much as possible to inform your intuition and experience. That is the promise of OB. Managers Should Use All Approaches

Behavioral science

ContributionsL r i M ti ti P r lit Em ti P rc pti Tr i i L r ip ff cti J ti f cti I i i l ci i m ki P rf rm c ppr i l m r m t Attit Empl l cti W k i W rk tr B i r lc Attit c C mm ic ti Gr p pr c Gr p ci i C mm ic ti P w r C flict I t r r p

Unit of analysis

Output

P

c

l

I

i i

l

S ci l p c l

m ki

Gri r i ti t lt c l lc l c lt r r

p

St r i

f ti i r

l

S ci l

F rm Or Or Or

l i i i

r ti ti ti

Or

i

C mp r ti l C mp r ti ttit Cr -c lt r l l

ti t m

l

i m t

A t r p l

Or i p w r Or i

ti ti

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ir

l c lt r

Four Contributing Disciplinesy Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.y Unit of Analysis:

Individualy Contributions to OB: y Learning, motivation, personality, emotions, perception y Training, leadership effectiveness, job satisfaction y Individual decision making, performance appraisal, attitude measurement y Employee selection, work design, and work stress

Four Contributing Disciplinesy Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.y Unit of Analysis:

Groupy Contributions to OB: y Behavioral change y Attitude change y Communication y Group processes y Group decision making

Four Contributing DisciplinesSociologyThe study of people in relation to their fellow human beings. Unit of Analysis:

Organizational System Group

Contributions to OB:y y y y y y

Group dynamics Work teams Communication Power Conflict Intergroup behavior

Formal organization theory y Organizational technology y Organizational change y Organizational culturey

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Four Contributing DisciplinesAnthropologyThe study of societies to learn about human beings and their activities.Unit of Analysis:Organizational System--

roComparative values Comparative attitudes Cross-cultural analysis

Contributions to OB:Organizational culture y Organizational environmenty

SIGNIFICANCE OF OBy Road map to our lives in organizations y Helps us understand and predict organizational life y Influences events in organizations y Helps understand self and others better y Helps a manager get things done better y Helps maintain cordial relations y Highly useful in the field of marketing y Helps in career planning and development

LIMITATIONS OF OBy Knowledge about OB does not help an individual manage personal

life bettery Qualities of OB are mysterious y Has become a fad with managers y Is selfish and exploitative y Managers expect quick-fix solutions-not possible y Principles and practices may not work in the events of declining

fortunesy Cannot eliminate totally conflict and frustration

Challenges & Opportunities for OBy Responding to Globalization y Managing Workforce Diversity y Improving Quality and Productivity y Improving Customer Service y Improving People Skills y Stimulating Innovation and Change y Coping with Temporariness y Working in Networked Organizations y Helping Employees Balance Work-Life Conflicts y Creating a Positive Work Environment y Improving Ethical Behavior1-52

OB Challenges

Globalizationy Refers to the economic, social and cultural

connectivity within people in other parts of the world. y It is all about the ongoing process of increasing interdependence with each other around the planet, whether through trading goods & services, sharing knowledge or interacting with people from different cultures & locations in the world.

Challenges and Opportunities for OBy Responding to Globalization y Increased foreign assignments y Working with people from different cultures y Overseeing movement of jobs to countries with lowcost labor y Managing people during the war on terror

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Why Globalization?y Access to additional resources (including skilled y y y y y

workforce) Low cost Economies of scale Favorable regulations & tax systems Direct access to new and growing markets Ability to customize products to local tastes & styles

Workforce DiversityWorkforce diversity means that organisations are becoming a more heterogeneous mix of people in terms of gender , age , race , physical ability etc . A diversity workforce e.g. may include , Women Color of people The physically disabled Senior citizens etc.

Workforce Diversity in IndiaIndian organisations have accommodate a very diverse social group of employees based on socioeconomic, cultural and linguistic composition. Scheduled castes & Scheduled tribes Other Backward castes Bonafide members of the state Ex-defense & paramilitary personnel Disabled persons Gender issues

DiversityDiversity enhances creativity and innovation (Adler, 1997;Jackson et al., 1992), and produces competitive advantages(Coleman, 2002; Jackson et al., 1992). Diverse teams make it possible to enhance flexibility (Fleury, 1999) and Rapid response and adaptation to change (Adler, 1997; Jackson et al., 1992.

The Four Layers of DiversityFunctional Level/ Classification

Geographic Location Mgmt. Status Marital Status Income Work Content/ Field

Age

Parental Status

Race

Personal Habits

PersonalityAppearance

Union Affiliation

Ethnicity Physical Ability Educational Background Work Location

Sexual Orientation

Recreational Habits

Division/ Dept./ Unit/ Group

Work Experience

Religion

Seniority

Test Your Knowledgey Sam is a 55 year-old, male Sales

Manager for XYZ corporation. He likes to drive fast cars and is Native American. Which layer of diversity has not been mentioned about Sam?A. B. C. D.

Personality Internal External Organizational

Challenges and Opportunities for OBy Managing Workforce Diversityy The people in organizations are becoming more

heterogeneous demographically (disability, gender, age, national origin, non-Christian, race, and domestic partners) y Embracing diversity y Changing demographics etc.

Primary and Secondary Dimensions of Diversity

Impact of Diversityy Organizational culture y Calls for diverse approaches to managing people

including training the staff in desired skillsy For example, people with adequate programming skills

are not available in US & UK markets (HR Head, Infosys, Economic Times, 2009)

Prominent world level companiesy McDonaldy Founded in 1967 in Canada y Operating income 50% earned from outside US

operations (2005)y Every three hrs. a new McDonald opens somewhere

on earthy 2/3rd of its workforce non-US

Prominent world level companiesy Coca-Colay Operates in more than 200 countries y 80% of its workforce are non- US citizens y Has 500 trained personnel to go anywhere in the

world to offer advice and expertise concerning operational and customer service problemsy 70% of its operating income comes from operations

out side of US

Prominent world level companiesNokia y the cell phone giant from Finland employs over 1000 foreign workers in Finland & over 60% of its 53000 employees are non-fins Philips y an electronic giant employs 83% of its workforce outside of its headquarters in the Netherlands IBM y employ almost 80000 people in India (Eco. Times, April, 2010)

Prominent world level companiesTCS y an Indian IT giant is planning to increase its nonIndian workforce to 20000 from present 10000 over the next 5 years Infosys & Wipro y could see non-Indians account for 10-15% of their total employee base in next 3-5 years, from around 5% presently (Economic Times, 27th April, 2009)

Increased Workforce Diversity Womeny Glass Ceiling y Invisible barrier blocking women and minorities from top management positions y Women CEO s (as of 2/2007): y 10 of Fortune 500 y 23 of Fortune 1000 y What helps break the ceiling?

Increased Workforce Diversity - Racey Racial

minorities are growingy 2006

1,016 race-based charges of discrimination to EEOC

Education and Personal Income

Increased Workforce Diversity - Age

Benefits from Managing DiversityXerox y plants using diverse work teams are now 30 per cent more productive than conventional plants. Procter & Gamble y achieves 30-40 per cent higher productivity at its 18 diverse team-based plants than at its non-diverse plants. Motorola y beat its competition by producing the worlds most efficient and high-quality cellular phones which are produced almost exclusively by diverse work teams. Research has shown that organizations that proactively recruit, develop, and leverage multinational leaders are in better positions in the global marketplace.

Benefits from Managing Diversity

GE Power Systems achieved 13 per cent productivity gains from cross-functional and multicultural teams versus homogeneous teams.

Numerous empirical studies of work teams demonstrate that when tasks are complex and not clearly defined, heterogeneous teams outperform homogeneous teams. Super teams, those that were diverse in numerous respects and selected because of their differences, outperformed those that were homogeneous.

Benefits from Managing Diversityy

Unlike other MNCs, diversity for us is a business imperative and not an issue of legal compliance. We want HLLs management to be representative of our diverse customer base so that they understand the needs of the customer better. If a manager understands the brand she is handling, the learning curve is that much shorter. For instance, in marketing, if the target audience is women, it is an advantage if a woman is incharge of the brand. Says Prem Kawath, HR Manager, HLL.4

Leaders in Diversityy Pepsi s CEO & direct

reports are each assigned different employee group (e.g., GLT, Asian, women of color) y Responsible for: y Understanding the issues these employees face y Facilitating their growth and development y Hold themselves accountable

Evolution of Organizational BehaviourT r i ific t Er :

T

Cl

ic l Er (1880-1930)

Administrative theory Scientific Management

T

B

i r l Er (1930-1960) The Hawthorne Legacy )

T

M r Er (1960 w r Contingency Approach

A Brief History of OB Classical approach to management (scientific

management and administrative management) Hawthorne studies (workers respond to attention) Human relations movement (treat workers well to

boost productivity) contd.

A Brief History of OBContd. The contingency approach (examine individual

and situational differences before taking action) Positive organizational behavior (focus on

measurable strengths of workers to improve performance)

The classical approachy The focus of scientific management was the

application of scientific methods to increase individual worker s productivity.y

According to the principles of scientific management, there is a division of work between managers and workers.

The classical approachTAYLOR S PRINCIPLES y the development of a true science for each person s work y the scientific selection, training and development of the workers y co-operation with the workers to ensure work is carried out in the prescribed way y the division of work and responsibility between management and the workers.

The classical approachy Administrative management was concerned

primarily with how organizations should be managed and structured.y

The core of management knowledge lies within the classical school, including the framework of planning, organizing, and controlling.

The classical approachHenry Fayol classified all the business activities into six functions: y Technical activities y Commercial activities y Financial activities y Security activities y Accounting activities y Managerial activities

The Hawthorne Studiesy During the 1920s, attention began to focus on social factors at

work, groups, leadership, the informal organisation and behaviour of people.y Behavioural and informal are alternative headings sometimes

given to this approach.y Turning point came with the famous Hawthorne experiments at

the Western Electric Company in America (1924-32)y One of the researchers (leader) was ELTON MAYO (1880-1949)

The Hawthorne StudiesFour Main Phases to the Hawthorne Experimentsy The Illumination Experiments - level of production

was influenced by factors other than changes in physical conditions of work.y The Relay Assembly Test Room - attention and

interest by management reason for higher productivity.

The Hawthorne Studiesy The Interviewing Programme -20,000 interviews. Gave

impetus to present-day personnel management and use of counselling interviews. Highlighted the need for management to listen to workers.y The Bank Wiring Observation Room - Piecework

Incentive Scheme. Group pressures stronger than financial incentives offered by management

The Hawthorne Studiesy

A major conclusion from these studies was the workers reacted positively because management cared about them (the Hawthorne effect).

y The Hawthorne effect is the tendency of people to

behave differently when they receive attention because they respond to the demands of the situation. contd.

The Hawthorne Studiescontd.

y

The Hawthorne studies also led to many other conclusions, such as the fact that effective communication with workers is critical to managerial success

The Human Relations Movementy The human relations movement was based on the

belief that an important link exists among managerial practices, morale, and productivity.y Key points of the movement are that satisfied

workers are more productive and that, given the proper working environment, virtually all workers would be highly productive.

Contingency Approachy Writers in the 1950s and 1960s who adopted a more

psychological orientation.

y Major focus was the personal adjustment of the individual

within the work organisation and the effects of group relationships and leadership styles.

y Main contributors: MASLOW, HERZBERG AND McGREGOR.

Contingency ApproachMASLOW S HIERARCHY OF HUMAN NEEDSGeneral Examples NEEDS Examples Achievement SELF-ACTUALISATION Status ESTEEM Friendship Stability Sustenance Organisational Challenging Job Job Title Friends in the Work Group Pension Plan Base Salary

socialSECURITY PHYSIOLOGICAL

Contingency ApproachHERZBERG isolated two different sets of factors affecting motivation and satisfaction at work. 1. Hygiene or Maintenance Factors - concerned basically with job environment. Extrinsic to the work itself. 2. Motivators or Growth Factors - concerned with job content. Intrinsic to the work itself. Goal of managers is to achieve a state of no dissatisfaction by addressing Hygiene Factors. Task of improving motivation is then by addressing the Motivators.

Contingency Approach

McGREGOR argued that the style of Management adopted is a function of the manager s attitudes towards human nature and behaviour at work.

He put forward two suppositions called Theory X and Theory Y which are based on popular assumptions about work and people.

Contingency ApproachTHEORY X ASSUMPTIONSy People do not like work and try to avoid it. y People do not like work, so managers have to control, direct,

compel, and threaten employees to get them to work toward organisational goals.y People prefer to be directed, to avoid responsibility, to want

security, and have little ambition.

Contingency ApproachTHEORY Y ASSUMPTIONS People do not naturally dislike work; work is a natural part of their

lives. People are internally motivated to reach goals to which they are

committed. People are committed to goals to the degree that they receive personal

rewards when they reach their objectives. People will seek and accept responsibility under favourable

conditions. People have the capacity to be innovative in solving organisational

problems. People are bright, but generally their potentials are under-utilised.

Contingency Approachy A cornerstone of the human relations movement is Theory X and Theory Y of Douglas McGregor. y Theory X is the somewhat stern and pessimistic traditional assumptions about worker capabilities. y Theory Y is an alternative, and optimistic, set of assumptions

The Contingency Approachy The

contingency approach to management emphasizes there is no one best way to manage people or work.

y The contingency approach is derived from the

study of leadership styles.

y The strength of the contingency approach is that

it encourages managers and professionals to examine individual and situational differences before deciding on a course of action.

Milestones in the History of Organization BehaviourIndustrial RevolutionRobert Owen, Andrew Ure and J.N. Tata provided certain welfare facilities. The ideas degenerated into paternalistic approach.

Scientific Management

Taylor believed in rationalizing production. He believed Early 20th Century that human behaviour was based on rabble hypothesis.

Human Relations Movement

Great Depression, labour movement and during 1920s to 1940s Hawthorne led to the movement. The movement subsequently became a fad Organisational behaviour 1950 s

Contingency Approach

The contingency approach is that it encourages managers and professionals to examine individual and situational differences before deciding on a course of action-1960 onwards.