Organizational Behaviour

People are special

• Two approaches to handling people:- A resource to be managed rationally like other

resources, to produce more or less predictable set of outputs.

- Emphasize the unique characteristics of people – mgnt has to create conditions under which people can contribute most effectively.

• Both views must be balanced appropriately.• Unlike units of capital equipment, people will not

produce a contribution which is fixed and determinate, but rather will be more or less productive depending on such intangibles as their motivation.

People are special

• People in orgns in terms of numbers, roles and abilities, are not a given which you then proceed to ‘manage’. Rather they are an essential part of the choices managers have to make once they have determined the objectives of the orgn, about the means by which they can achieve those objectives.

• As part of this choice, the use of people, and what kinds of people to use must be considered at the same time as a consideration of other resources, such as capital equipment and raw materials.

• What is it to be a human resource?• People can sell their physical, mental abilities,

psychological makeup, time availability, skill, knowledge, creativity, expertise, reputation.

People are special

• Managing people is an ongoing process and, as people are more complex than machines, managing people must match their fundamental complexity.

• One aspect of this complexity is motivation- People can be more or less productive, creative or

effective to the extent that they are motivated.- Motivation is a crucial psychological aspect of people

which other resources do not share.- As a manager you will need an understanding of how

people are motivated in order to be able to design and pursue policies that are likely to succeed.

People are special

• Another key difference between human resources and other resources is the inherent sociability of people:

- Machines can be isolated in isolation, or brought together with predictable consequences

- Placing two people together unleashes a social dynamic- The dynamic becomes more complex with larger groups

of people and when some are given positions of authority and power over others.

• Mechanistic approaches to management often ignore these real complexities.

• Social processes, comm skills, alternative ways of combining individuals and groups, notions of leadership, must all be considered by a practicing manager.

People are special

• Another crucial factor which distinguishes managing people from managing other resources is the moral dimension:

- Applies both to the managers and the managed.- While m/cs, and raw materials can be marshalled in ways

which precisely meet the objectives of the orgn, managing people is especially subject to moral and cultural constraints

- Thus, there are certain things you would not ask your staff to do, however beneficial to meeting your orgn’s objectives

- You may have to apply the notions of fairness and equality.- People who report to you may have their own moral codes

which may conflict with your own.

People are special

• Most resources are consumed in the process. Not human resources. They can only be transformed.

• While m/c’s will start at peak performance and decline as parts wear off, the perf of people will generally improve as they become familiar with their roles.

• People, unlike m/cs can be equipped with new skills and capabilities which will allow them to carry out new, increasingly valuable responsibilities.

• Why will human resources be becoming an increasingly important determinant of the organization’s success.

• In managing people in orgns, develop & implement policies so not group or individual are discriminated against unfairly.

Concepts

OB is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations for the purpose of applying such knowledge towards improving an orgn.’s effectiveness.It is concerned with the study of what people do in orgn.’s and how the bahaviour affects the perf. of the orgn.Behaviour generally is predictable if we know how the person perceived the situation and what is important to him/her.While people’s behaviour may not appear to be rational to an outsider, there is reason to believe it usually is intended to be rational and it is seen as rational to them.

Concepts

An observer often sees behaviour as non-rational because the observer does not have access to the same info. or does not perceive the environment in the same way.Individuals are different. Placed in the same situation, they will behave differentlyThere are certain fundamental consistencies underlying the behaviour of all individuals that can be identified and then modified to reflect individual differences.A systematic study: looking at relationships, attempting to attribute cause and effects, and drawing conclusions based on scientific evidence.Intuition: A feeling not necessarily supported by research.

4 managerial activities

Traditional management: Decision making, planning, controlling, etc.Communication: exchanging routine info. Processing paperwork, etc.Human Resources Management: motivating, disciplining staff, managing conflict, training, staffing, etc.Networking: Socializing, politicking, interacting with outsiders, etc.

Skills exhibited by effective managers

Clarifies goals and objectives for everyone involvedEncourages participation, upward communication and suggestionsPlans and organizes for an orderly work flowHas tech. and admin. expertise to answer orgn. related questions.Facilitates work through team building, training, coaching & supportProvides feedback honestly and constructivelyKeeps things moving by relying on schedules, deadlines and helpful remindersControls details without being overbearingApplies reasonable pressure for goal accomplishmentEmpowers and delegates key duties to others while maintaining goal clarity and commitmentRecognizes good performance with rewards and positive reinforcements

People centered activities – successful companies

Job security – to eliminate fear of layoffsCareful hiring – emphasizing a good fit with the company culturePower to people – decentralization and self-managed teamsGenerous pay for performanceLots of trainingLess emphasis on status – to build a ‘we’ feelingTrust building – through the sharing of critical information

New employment contract

You are all self-employed – “Me Inc.”For employees committed to life-long learning, working smarter rather than harder, and making their own opportunities, the new employment contract is a positive situation.Orgn life will give them more opportunities to grow and be rewarded for creating value for internal and external customersLess promotions because of flatter orgn structuresLateral moves from project to project will provide learning and satisfactionYou will not get paid for just showing up at workA shift from “relational contract” to “transactional contract”.

Contributing principles to OB

1. Psychology:A science that seeks to measure, explain and sometimes change the behaviour of humans and other animals- Psychologists concern themselves with studying and attempting to understand individual behaviour.- Contributions include in the areas of learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision making processes, perf appraisal, attitude measurement, employee selection techniques, work design and job stress.

2. Sociology: study people in relation to other fellow humans.- Group behaviour, orgn structures, orgn culture, comm.

Contributing principles to OB

3. Social Psychology: Blends the above two. - Focuses on influence of people on one another- Change – how to implement it, reduce barriers to its acceptance, understanding changing attitudes, comm patterns, group decision making processes.

4. Anthropology: Study of societies to learn about human beings and their activities.- Work on culture and environment to understand differences in fundamental values, behaviours, etc. I people in diff countries.; differences among national cultures

5. Political science: Studies behaviours of individuals & groups within a political environment.- Conflict, power, manipulation for self-interest.

Challenges and Opportunities for OB

Responding to GlobalizationManaging Workforce DiversityImproving Quality and ProductivityEmpowering PeopleCoping with TemparorinessStimulating Innovation and ChangeImproving Ethical Behaviour – defining right & wrong

OB Model

Individual LevelGroup LevelOrganizational Level

OB in an E-World

• E-commerce, e-business, transacted on the net, electronically

• Use internets, intranets, extranets – only selected persons can access

• Uniqueness of the e-organization:- There are no generally accepted rules- Players forced to experiment- Victory goes to the quick, not necessarily to the big- Location doesn’t matter- Integrated information is everything

OB in an E-World

• E-orgns and Individual behaviour:- Emotion: people work from separate places and at

separate times – create social isolations- Ethics and Privacy: Electronic surveillance, monitoring

individual behaviour, monitoring phone calls, computer files, e-mail messages

- Motivation: Unique challenges: employees susceptible to distractions that can undermine their work effort and reduce productivity

- Salary issue: difficult to keep good people

OB in an E-World

• Organizations and Behaviour:- Decision Making:

- E-group, typically team based committees- no proven business model for e-orgns- Speed is important, no time for fine tuning

- Communication:- Enables individuals to communicate directly without having to go through channels – breaks down historical status- Virtual meetings enable people in geographically dispersed areas to meet regularly.- Communications overload

OB in an E-World

• Leadership: fast decisions, no direct contacts• Building trust• Politics and Networking• Work/Life balance• Work design• Organization structure• Employee selection