Organisational Behaviour-1 (3)

8/13/2019 Organisational Behaviour-1 (3)

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ORGANISATION

WE ARE BORN IN ANORGANISATION,EDUCATED BY

ORGANISATIONS & MOST OF US SPENDMUCH OF OUR LIFE WORKING INORGANISATIONS - AMITAI ETIZIONI



What is an Organisation ?

• An organisation is a group of individuals ,who

come together to realise their goals .

• An organisation requires –

• People

• Goals

•

Relationships• Organisations are created and

maintained by people .



Definition

• Mooney and Reily- , “Organisation is the formof every human association for the attainmentof common purpose”.

• McFarland ,- “An identifiable group of peoplecontributing their efforts towards theattainment of goals”.

•

Oliver Sheldon,- “ The process of combiningthe work which individuals and groups have toperform” is an organisation.



Characteristics of an Organisation

• 1.Social Unit –An organisation consists of people.According to Amitai Etizioni ,an organisationcomes into existence in the circumstances

described below:• a.When there are persons who are able to

communicate with each other.

• B.When there are people who are willing to

contribute collectively and individually

• C.When there are people who are desirous ofsatisfying personal and social needs.



• 2. Goals – Goals are the desired state of affairs,ultimate purpose and performance of an organisation .Goals are derived from the needs ,desires,purpose andgoals of people.(Individual goals—earning livelihood)

• Mutually agreed goals become organisational goals.Members of an organisation contribute their potentialtowards realisation of common goals.

• CONGRUENCE (DISSIMILARITY ) arises when

there is conflict (difference) between individual andorganisational goals



• 3. Substitution of Personnel – Organisation has along term existence .But people working thereare continuously replaced—

promotions,transfers,resignation,retirement,death etc.

• The poem “The Brooke” by Lord

Tennyson describes the brooke by saying’ “men

may go,men may come ,but I go on foreever”. • So also the organisation it is constant but people

working may come and go .



• 4. Structure – A structure is an orderly arrangement ofactivities .It is used to developroles,tasks,relationship,positions,authority,accountability etc.

• 5.Divisions of labour – It is the sub-divisions of tasks .

• ie -goals subdivided into sub goals-

• tasks identified to workout goals –

•

tasks divided into manageable component-• each task assigned to a position-

• performed by people



• 6. Existence of power – Organisations assign

authority to persons occupying various

positions to use it to direct the organisational

resources in the pursuit of goals.Every

department or division will be given power

.There will be many power centres in

organisation.



• 7.Rules and regulations –These are the writtendirections to be followed without any deviations.Theseare guidelines .If broken will be penalised /punished.

• 8.System –Organisations are a systems of interrelatedand inter dependent sub-systems.The elements areinput,process and output.

• Inputs are-physical,financial ,human resources.

• Output are –the productivity ,sales,profit etc

• Processes are –

planning,organising,staffing,directing,controlling etc.



• 9. Co-operation & Communication-

• Co-operation implies sharing of efforts.Tocomplete tasks there must be proper

coordination.Leads to better harmony• Communication is –sharing of feelings ,it is

the transmission of direction of the top

management to the lower levels and reportingthe performance to the top level .(the chainof command)



• 10.Openness – Organisations as systems receiveexternal inputs and export their outputs.

• Internal factors like goals,policies,resources,managerial behaviour are internal to theorganisation

• External factors like political ,economical,technological ,legal etc are outside managerialcontrol.

• So organisations need to be open anddynamic to interact with and coordinate both theexternal and internal factors



Functions of an organisation

• 1.To facilitate management

• 2.To optimise the utilisation of resources

•

3.To encourage growth• 4.To manage the environment

• 5.To economise on costs

• 6.To stimulate creativity.



Classification of organisation

• Talcott Parson classification

• On FUNCTIONAL BASIS

• ECONOMIC –INDUSTRIAL /COMMERCIALBUSINESS ORGANISATION.

• POLITICAL –PARLIAMENT/LEGISLATIVEBODY/POLITICAL BODIES/ASSOCIATIONS/GROUPS

• RELIGIOUS-TEMPLES,MOSQUES,CHURCHES,WAKF

BOARDS,TRUSTS• MAINTENANCE-MAINTAINING PEACE/JUSTICE—

POLICE/JUDICIAL



• SOCIAL –developing social groups to create

values-CLUBS –GATHERING/ASSOCIATIONS

• MUTUAL BENEFITS –regulate trade ,upkeep

dignity /protect interests of members-TRADE

UNION/PROFESSIONAL BODIES

• SERVICE –providing service integral to

society-Schools ,universities,hospitals,welfare

bodies



• Chester I Bernard classification Oforganisation –

• On FORMALITY BASIS -

• FORMAL –REALISING COMMON OBJECTIVESTHROUGH A STRUCTURE – REGISTEREDCOMPANIES /BODIES

•INFORMAL –PROVIDING SOCIALSATISFACTION –GROUPS FOUND IN FORMALORGANISATIONS



Principles of an organisation

• Principle of objectives

• Principle of specialisation

• Principle of co-ordination

• Principle of authority and responsibility

• Principle of span

• Principle of continuity(ongoing concern)

• Principle of balance

• Principle of exception



The Men/People

/Personnel/Human Capital/Social

Capital

The Managers –Subordinates -Colleagues



Terms used to describe people

(employees) in an organisation

• Thus at first employees were considered Cost

• Then Human Resource ,now widelyrecognised as Human captial (

education,training ,experience ,skill)• Investing in human capital results in

increases productivity and customer

satisfaction.• Even going beyond this is the recent term

• “Social capital”



• Ie social capital (who you know-

networks,connections,friends)

• and

• “Positive Psychological capital” ( who you are

–confidence,hope,optimism etc) and (who you

are in terms of confidence ,hope etc )and

(who you can become in terms of the above

characteristics)



ORGANISATIONAL BEHAVIOUR

(OB)

Sam Walton (Founder Wal-Mart)-

“PEOPLE ARE THE KEY” forsuccessful organisations



Behaviour

• Behaviour is the actions and reactions of an individual in a situation

• Eg- if you meet a friend the smile on your face reflects emotionalfeelings,if angry you might bang on furniture or yell .

• These outward expressions provide an understanding of behaviour.Inorganisations human resources are precious and their behaviour is unique.

•

Understanding of their interactions is important to integrate human effortto realise goals of the organisation.Lewins --

• B=f(P,E,O)

• B=individual behaviour

• P=person

• E=environment• O=Organisation





DEFINITION

• FRED LUTHANS – “Organisational behaviour isdirectly concerned with the understanding,production and control of human behaviour in

organisations”. • NEWSTROM & DAVIS – “Organisational

behaviour is the study and application ofknowledge about how people act within an

organisation .It is a human tool for human benefit.It applies broadly to the behaviour of people inall types of organisation”.



OB is

• Meaning –It tries to understand the behaviour,attitudes and performance of the people inorganisations

• Scope –It is the micro –study of the people’s

behaviour• Area of emphasis –It emphasises on applied

psychology in organisation

• Nature –It is predictive in nature

• Aim -To explain and predict the behaviour ofindividuals and groups in organisations



Characteristics /Features of OB

• 1.Behavioural approach to management

• 2.Cause and effect relationship

• 3.It is a branch of social sciences

• 4.Three levels of analysis (ie individual behaviour,inter-individual behaviour and behaviour oforganisation )

• 5.Its a science as well as an art (systematic knowledgeof human behaviour is science and its application of

behavioural knowledge and skills is an art)• 6.A rational thinking process

• 7.Beneficial to both individuals and organisations



Key elements/Forces of OB

• 1.People

•

2.Structure

• 3.Technology

• 4.Environment



Goals of OB

• 1.Describe

•

2.Understand

• 3.Predict

• 4.Control





• A. Understanding human behaviour –

•

1.Individual behaviour• 2.Interpersonal behaviour

• 3.Group behaviour

•4.Intergroup behaviour



• B. Influencing the human behaviour –

• 1.Leadership

•

2.Motivation• 3.Communication

• 4.Organisational change and development

•5.Organisational climate



Approaches which influenced OB

• Behavioural Approach –

• 1. Group influences ---Mary Parker Follet.

• 2.Hawthorne studies —Elton Mayo

• 3.Maslow’s needs theory –Abraham Maslow

• 4.Theory X and Theory Y –Douglas McGregor

• 5.Model 1 versus Model II values –Chris

Argyris.



THE HAWTHORNE STUDIES

• A large research programme conducted between

1927 and 1932 at WESTERN ELECTRIC ‘S

HAWRHORNE PLANT near Chicago

• Plant produced various parts for telephoneswitching systems

• Several management bigwigs like ----

• ELTON MAYO, FRITZ ROETHLISBERGER ,HARVARDFACULTY members and WILLIAM DICKSON (chief

of Hawthorne’s Employer relations research dept)



• They conducted series of experimental and

observational studies in the plant and conducted

employee interviews between 1924 and 1932 .

• They were –

• Illumination Experiment (1924-27)

• Relay Assembly Test Room Experiments(1927-28)

• Experiments in interviewing workers(1928-31)

• Bank wiring room experiment(1931-32)



ILLUMINATION EXPERIMENT

• The first major experiment

• The purpose was to study the different levels

of lighting on productivity.

• The experimental design used a control group

and test group.

• Control group –lighting was not varied

• Experimental (test)group –changes in lighting



• Result of the experiment –

• As lighting for experimental group was

increased productivity went up,

• Also subsequently when lighting was reduced

,the productivity again went up

• For control group there was no change in

lighting ,but still productivity went up



• Conclusion of the study was baffling to the

researchers –

• SIMPLY BEING PART OF THE EXPERIEMENT

,WHICH FOCUSED NEW AND GREATER

ATTENTION ON THE WORKERS INCREASED

PRODUCTIVITY



Relay Room Experiments

• The research was undertaken to study the workerssegregated on the basis of a different range of workingconditions variables.

• The study tested the effect of thirteen variables like --

• EFFECT OF WORK PLACE

• METHOD OF PAYMENT

• REST BREAKS

•

LENGTH OF WORK DAY• WORK SCHEDULES ETC

• ON PRODUCTIVITY



• The same control and experimental design

was used and the researcher found the results

to be practically identical to the illumination

experiment .

• ie—EVERY TEST PERIOD RESULTED IN

HIGHER PRODUCTIVITY- (WORKERS FELT

IMPORTANT WHEN ATTENTION WAS FOCUSEDON THEM)



EXPERIMENTS IN INTERVIEWING

WORKERS

• Here the researchers directly started going tothe workers to talk about ,what was in theiropinion important to them (kept various variablesof previous experiments aside)

• 20,000 thousand workers were interviewed overa period of 2 years

• There were no preconceptions as-

• The interviewers set out to skillfully listen whatthe workers was saying about himself and the job.



• The researchers skillfully listened to what the

workers was saying about himself and the job

• Thus the experiment discovered INFORMAL

ORGANISATION AND ITS RELATION TO

FORMAL ORGANISATION

• ALSO LEAD TO BETTER UNDERSTANDING

OF THE SOCIAL AND INTERPERSONALDYNAMICS OF PEOPLE AT WORK



BANK WIRING ROOM EXPERIMENTS

• This experiment was done in the bank wiring room

• Based on observational analysis of informal workgroups

• It helped to understand that behavioural norms set bythe work group had a powerful influence over theproductivity of the group.

• The higher the norms greater the productivity and viceversa

• Helped to understand the power of peer group andthe importance of group influence on workersbehaviour and productivity .



• Thus workers gave the following reasonswhy productivity increased –

• Small group

• Type of supervision• Earnings

• Novelty of the situation

• Interest in the experiment• Attention received in the test room



Human Relations Approach

• The Hawthorne studies led to laying thefoundation for the human relations approach.

• The BASIS OF THIS APPROACH WAS THAT

PEOPLE RESPONDED PRIMARILY TO THEIRSOCIAL ENVIRONMENT

• THAT MOTIVATION DEPENDS MORE ONSOCIAL NEEDS THAN ECONOMIC NEEDS ANDTHAT SATISFIED EMPLOYEES WORK HARDERTHAN UNSATISFIED EMPLOYEES.



• The values of HUMAN RELATION APPROACH

WAS EXEMPLIFIED IN THE WORK OF -

• DOUGLAS McGREGOR an MIT

psychologist who proposed two sets of

assumptions about human motivation that an

manager can hold.

• He called these assumptions THEORY X ANDTHEORY Y

‘



Douglas McGregor ‘s Theory X and

Theory Y (assumptions & beliefs )**• As per this a manager’s behaviour towards his

workers and his management style will differ based onthe assumptions guiding his behaviour .

• THEORY X –

•1.THE AVERAGE PERSON DISLIKES WORK AND WILLAVOID IT IF POSSIBLE

• 2.BECAUSE PEOPLE DISLIKE WORKING ,MANAGERSHAVE TO CONTROL ,DIRECT AND COERCE ANDTHREATEN EMPLOYEES TO GET THEM TO WORKTOWARDS ORGANISATIONAL GOALS

• 3.THE AVERAGE PERSON WANTS SECURITY ,AVOIDSRESPONSIBILITY and HAS LITTLE AMBITION



• THEORY Y - (more positive andoptimistic view of employees)

• 1.THE AVERAGE PERSON DOES NOT LIKE DISLIKEWORK ,IT IS AS NATURAL AS PLAY

• 2.PEOPLE ARE INTERNALLY MOTIVATED TOREACH OBJECTIVES TO WHICH THEY ARECOMMITTED

• 3.PEOPLE ARE COMMITTED TO GOALS TO THEDEGREE THAT THEY RECEIVE PERSONALREWARDS WHEN THEY REACH THEIROBJECTIVES.



• 4.PEOPLE WILL BOTH SEEK AND ACCEPTRESPONSIBILITY UNDER FAVOURABLE CONDITIONS

• 5.PEOPLE HAVE THE CAPACITY TO BE INNOVATIVE INSOLVING ORGANISATIONAL PROBLEMS

• 6.PEOPLE ARE BRIGHT ,BUT UNDER ORGANISATIONALCONDITIONS THEIR POTENTIALS ARE UNDERUTILISED.

• (So these assumptions or beliefs about human

motivation strongly affects management behaviour.)

Ab h M l ’ Th f



Abraham Maslow’s Theory of

Motivation (1943)

• Abraham Maslow’s theory assumes that motivationarises from a hierarchical series of needs.

• As the needs at each level are satisfied the individualprogresses to the next higher level

• Maslow’s heirarchy of needs –

• 1.Physiological needs

• 2.Safety needs

•

3.Social needs• 4.Esteem needs

• 5.Self Actualisation needs

OB i fl d b h f ll i



OB influenced by the following

trends:

• The systems approach

• The socio – technical approach

• The democratic approach

• The contingency approach

• The interactional approach



• Systems approach –this theory viewsorganisations as complex systems consistingof interrelated elements like materials

,information,finance, etc which interact witheach other to produce profits and products.

• Democratic approach – Here importance wasgiven to workplace ,human

dignity,participation and involvement ofemployees as means to increase productivity.



• The socio-technical approach – Important workwas done at Tavistock institute in England wherethe term “socio-technical system” coined .Here itwas demonstrated that TECHONOLOGY was

important determinant in firms, which would orcould influence culture and structure of theorganisation.

• Trist and his colleagues demonstrated that

changing technology from small group work tothree shift working disrupted workers output andproductivity.



• Contingency approach – As per this approach the

aqppropriate managerial behaviour in a situation

depends on the elements of that situation.

• Interactional approach – This approach statesthat relationship is not simple and one-way.

There is continuous interactions ie-causes and

effects .Eg-There is a relation between workplace

experiences and the attitudes of employees



Behaviourist Theories

• The classical behaviorist who based their study onpsychology were –

• Russian pioneer –Ivan Pavlov

• American –John B.Watson

They attributed learning to the association orconnection between STIMULUS and RESPONSE ( S-R) ieit deals with respondent conditioning /classicalconditioning

Classical conditioning is a type of conditioning inwhich an individual responds to some stimulus thatwould not ordinarily produce such a response



• The OPERANT BEHAVIORISTS -THE WELLKNOWN AMERICAN PSYCHOSLOGISTB.F.SKINNER -gave more attention to the rolethat CONSEQUENCES/RESPONSE PLAY IN

LEARNING OR• THE RESPONSE –STIMULUS (R-S)

• It deals with operant conditioning /instrumentalconditioning

• Operant conditioning is a type of conditioningin which desired voluntary behaviour leads to areward or prevents a punishment



Classical Conditioning

• The individual• Stimulus (S) Response (R)

• 1.Is struck by pin 1. flinches

•

2.Is tapped below• Kneecap 2. flexes lower leg

• 3.Is shocked by electric

• Current 3. jumps/screams

• 4.Is surprised by loud• sound 4. jumps/screams



Operant conditioning

• The individual• Response (R) Stimulus (S)

• 1.Work 1. is paid

• 2.Talks to others 2. meets people

• 3.Enters a restaurant 3. obtains food• 4.Enters a library 4. finds a book

• 5.Increases productivity 5. receives merit pay

• 6.Completes a difficult

• Assignment 6. receives praise and

• promotion

Albert Band ra ‘s Social Co niti e



Albert Bandura ‘s Social Cognitive

Theory

• Social learning states that the position thatbehaviour can be best explained in terms of acontinuous reciprocal interaction amongcognitive ,behavioural and environmental

determinants• i.e The person and environmental situations do

not function as independent units but inconnection with behaviour itself reciprocally

interact to determine behaviour.• (Cognitive means related to knowledge or

opinion )

Social Cognitive Theory (SCT) Albert



Social Cognitive Theory (SCT)-Albert

Bandura

• 1.Symbolizing

• 2.Forethought

• 3.Observational

• 4.Self-regulatory

• 5.Self-reflective



• Symbolizing—Employees process visualexperiences (Customer named –Mr.Applegate)into Cognitive model (Apple) that then serves asfuture guides for action (ie remembering hisname easily )

• Forethought – Here employees plan theiraction(what am I going to do ?) Anticipate the

consequences(What am I going to get for it )anddetermine the performance (What myperformance goal is )



• Observational - Employees learn byobserving the performance of referent (peersor supervisors) and the consequence they

receive for their actions (What they get for it)• Self –regulatory –Employees self control their

actions by setting internal standards (aspiredlevels of performance )and then by evaluating

the set standard with the achievedperformance in order to improve it .



• Self-reflecting – Employees reflect back on

their actions (how did I do ?) and determine

how strongly they believe they can

successfully accomplish the task in the future



Models of OB

• Authocratic Model

• The custodial Model

• The supportive Model

• Normative Model

• Empirical Model

•

Ecological model• Ideographic Model etc.



Challenges & Opportunities for OB

• Some critical Ob issues affecting managers

are –

• Managerial challenges

• Workplace challenges

• Organisational challenges

• Global challenges

• Environmental challenges



Managerial challenges

• Workforce diversity

• Demographics of workforce

• Dual career couples

• Growing no of youngsters

• Gender factor



Workplace challenges

• Employee privacy

• Employee rights

• Unionism

• Changed employee expectations



Organisational Challenges

• Improving quality and productivity

• Managing technology and innovations

• Coping with temporariness

• Ethical behaviour



Global challenges

• 1.Managing global environment• 2.Managing cultural diversity

• 3.Environmental challenges(these are )-

• a.Ecology

• b.Air,water and soil pollution• c.Personnel policies

• d. Consumerism

• e.R&D

• f.International policies

• g. National economy



• Bill Gates observed , “The inventory

,the value of my company ,walks out the

door every evening”



• Thank you



Questions relevant to the topic

• 1.Review the fundamental concepts that form the basis oforganisational behaviour.which concepts do you think aremore important than the others?Explain

• 2.Organisational behaviour is selfish and manipulative,because it serves only the interests of management’s

.Comment• 3.Define OB.Explain the key elements in understanding OB

• 4.How is an organisation a social system ?Explain in detail

• 5.Give some Eg’s of problems a manager might face for

which a knowledge of organisational behaviour might provebeneficial for finding solutions.

Documents

Organisational Behaviour-1 (3)