Professional Documents
Culture Documents
Session 4.1
Organising and Fundamentals of
Organisational Behaviour
Session Speaker
Lokesh A C
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Session Objectives
At the end of session students will be able to
understand
The fundamental characteristics of organizing,
Work specialization, chain of command, span of
management, and centralization versus decentralization
Role of human resource management and importance of
Strategic HRM
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Session Objectives
Identify how structure can be used to achieve an
organizations strategic goals
Illustrate how organization structure can be designed
to fit environmental uncertainty
Identify elements of organisational behaviour which
affects individual/group performance
Need for organisations to plan for change
management
M.S Ramaiah School of Advanced Studies - Bangalore
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Session Contents
Organization Structure an Over view
Responsibility, Authority and Delegation
Centralization versus Decentralization
Managers and Managerial Roles
Strategic Human Resource Management and planning
Introduction to Organisational Behaviour
Importance, Challenges and Opportunities in OB
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Organization
A consciously coordinated social entity, with a
relatively identifiable boundary, that functions on a
relatively continuous basis to achieve a common
goal or set goals
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Organization
Organization is a purposeful system with several
subsystems where individual and activities are
organized to achieve certain predetermined goals
through division of labor and co-ordination of
activities
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Planet
resources
Health & Safety,
equity
Planet
People
Profit
Economic growth
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Elements of Organization
1. Co-ordination
2. Common goals
3. Division of labor
4. Integration
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Functions of Organizations
Allocate tasks to employees
Instruct employees
Use technology and other resources
Collect and transmit information
Exert power and control
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Technical
Support
Middle
Management
Administrative
Support
Technical
Core
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Goals and
Strategy
Size
Environment
Structure
Culture
1.
2.
3.
4.
5.
6.
Technology
Formalization
Specialization
Hierarchy of Authority
Centralization
Professionalism
Personnel Ratios
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Organization Theory
Study of function, structure, and performance of
organization
Groups and individuals working
Guide for decision making
Working relationships & their consequences
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Raw
Materials
People
Information
resources
Financial
resources
Subsystems
Transformation
Process
Output
Input
Boundary
Spanning
Production,
Maintenance
Adaptation,
Management
Products
and
Services
Boundary
Spanning
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Institutions
Investors
NGOs
Individuals
Businesses
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Organization Structure
Formal system of task and authority relationships
Facilitates effective response to problem of coordination
and motivation
People co-ordinate actions and resources for goals
It can be changed and managed through organization design
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Organization Design
Process a structure and manage elements of structure
It controls the activities necessary to achieve its goals
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Evolution of Organizational
Structures
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Importance of Structure
It facilitates management
Encourages growth and diversification
Optimum use of technological improvement
Encourages proper use of human resources
Stimulates creativity
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Consequences of Incorrect
Organization Design
Decline of the organization
Talented employees quit the organization
Resource become harder and harder to acquire
Whole process of value creation slows down
It influence structural change
Derails company's s strategy
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Strategic Direction
Define
mission,
official
goals
CEO, Top
Management
Team
Internal Situation
Strengths
Weaknesses
Distinctive Competence
Leadership Style
Past Performance
Organization
Design
Select
operational
goals,
competitive
strategies
Structural Form
learning vs.
efficiency
Information and
control systems
Production
technology
Human resource
policies,
incentives
Organizational
culture
Inter-organizational
linkages
Effectiveness
Outcomes
Resources
Efficiency
Goal attainment
Competing values
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Responsibility
Being dependable and making good choices
Responsibility comes with privileges
Responsible people are accountable, pursue
excellence, and exercise self-control
An accountable person thinks before acting, and
accepts responsibility for the consequences of his/her
choices
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Accountability
Accepting the blame or credit for ones choices or
behaviors
An accountable person doesnt make excuses, or blame
others for mistakes personally made
An accountable person sets a good example for others to
look up to
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Span of Management
It is also called span of control and span of supervision
It is the number of subordinates that a manager directs
and supervises
The number of subordinates varies
The smaller or narrower the span, the more levels of
management will be required
Some managers are able to supervise more subordinates
than are others
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Authority
It is the key to the managerial job
It is the lifeblood of the managerial position
It gives legitimate power to the manager or
supervisor to give directives to subordinates
It is limited in scope by both internal and external
factors
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Authority
Authority :
Is the right to make decisions, to direct the work of
others, and to give orders.
Line Managers:
A manager who is authorised to direct the work of
subordinates and is responsible for accomplishing
the organisations jobs
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Authority
Staff Manager:
Are authorised to assist and advise line managers in
accomplishing the organisations jobs.
They may advise on recruiting, hiring, and
compensation
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Line Authority
Authority is based on superior-subordinate
relationships and is managerial in nature
Authority to give orders to subordinates
The authority to direct subordinates and require them
to comply to decisions, policies, plans, and objectives
Generally follows the principle of unity of command
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Staff Authority
Authority is based on expertise in specialty areas
Provides information, counsel, advice, and guidance in
specialty areas and is not managerial in nature
The authority to make recommendations to line
organization
The recommendations can be accepted, rejected, or
altered by the line organization
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Functional Authority
The CEO or administrator gives a staff member
special limited right to command
The right is based on expertise in a specialized area
It allows maximum effective use of staff specialists
It violates the principle of unity of command
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Delegation of Authority
Authority to make business decision
Support accountability and governance
Responsibility / accountability / authority
Forms the basis of decision escalation process
Single source of truth or guiding principles
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Delegation of Authority
Successful organisations exhibit characteristics of
structural clarity through formal and informal accountabilities
Informational accountabilities - (Underpinned by leadership style,
culture, trust, operating principle/values etc)
Formal accountabilities
Clearly defined and documented
Assigned to expertise with ability to act
Congruent across multiple dimensions
Open and robust communication
Constant learning and educating from failure
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Benefits of Delegation
Empowers employees
Provides or builds on internal structure
Protects assets from undue risks or liabilities
Provides alignment of resources to decision making
Embeds risk appetite and tolerance throughout the
organisation
Provides greater clarity on what is truly important to
an organisation
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Challenges of Delegation
Complexity of DoA
Misalignment of DoA and business processes
DoA not aligned with organisational structure /
decision making
Ineffective decision making structures
Lack of staff awareness and inappropriate training
Failure to enforce (e.g. code of conduct breach)
Poorly managed when staff in temporary roles
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Managers
Managers get things done through other people
They Plan, Organise, Lead and Control
Firms, Industries, Schools, Hospitals, Churches,
Temples, Police dept, etc, are ALL Organisations and
Managers have to work in an organisation
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Role of Managers
1. Plan: defining goals & strategies
2. Organising: who does what task, how they are
grouped, who reports to whom etc
3. Leading: motivating, resolving conflicts, directing
activities of others etc
4. Controlling: monitoring, comparing, correcting,.
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Role of Manager
1. Traditional management
Decision making, planning, and controlling
2. Communications
Exchanging routine information and processing
paperwork
3. Human resource management
Motivating, disciplining, managing conflict, staffing,
and training
4. Networking
Socializing, politicking, and interacting with others
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Inference
One common thread runs through functions, roles,
skills activities and approaches to management
Managing people is crucial
Managers need to develop their people skills if they
are going to be effective and successful
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HRM Functions
Conducting job analysis
Planning labour needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages & salaries (Compensating)
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HRM Functions
Providing incentives and benefits
Appraising employees
Communicating (Interviewing, counselling, &
Disciplining)
Training and developing
Building employee commitment
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Importance of HR Management
Firm can avoid:
Hire the wrong person for the job
High turnover
People not doing the best
Wastage of time with useless interviews
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Importance of HR Management
Firm can avoid:
Have company cited under occupational safety laws for
unsafe practices
Have some employees think their salaries are unfair and
inequitable
Allow a lack of training to undermine effectiveness
Commit any unfair labour practices
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Strategic Planning
Plan of an organisation to match its interior
strengths and weaknesses with external threats and
opportunities in order to maintain a competitive
strategy
To address Where are we now as a business and
where we do want to be?
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HR Strategy
Strategy: It a course of action
The various strategies of company such as HR, sales,
marketing, finance, and manufacturing need to support
the companys strategic plan.
Example of HR Strategy: To boost employees quality
consciousness through improved screening and Training
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SHRM: Challenges
1. The need to support corporate productivity and
performance improvement efforts
2. Employees play an expanded role in employers
performance improvement efforts
3. HR must be involved in designing - not just executing
- the companys strategic plans
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SHRM: Activities
Formulating and Executing HR systems
Formulating HR Policies and Activities
Assess Employee competencies and behaviors based
on the Company needs to achieve its strategic aims
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1.
2.
3.
1.
2.
Companys HR strategies
Recruiting, training
Appraising and Compensation
Organisational Performance
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Importance of SHRM
Traditional HR Practice
Emerging HR Practice
Administrative role
Strategic role
Reactive
Proactive
Production focus
Service focus
People as expenses
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Importance of SHRM
Distinction Point
Traditional HRM
Strategic HRM
Focus
Employee relations
Role of HR
Transformational change
leader and initiator
Initiative
Time Horizon
Short-term
Control
Job design
Key investments
Capital, products
People, knowledge
Accountability
Cost centre
Investment, centre
Responsibilities for HR
Staff selection
Line managers
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Organizational Change
Organizational change is the process by which
organization move from their present state to some
desired future state to increase effectiveness
When an organization system is disturbed by some
internal or external forces change frequently occur or
any alteration which occur in the overall work
environment of an organization
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Organizational Change
Change can be due to internal and/or external forces in
the organization
Change in any part of the organization affect the whole
organization
Change may affect people, structure, technology, and
other element of the organization
Change also affect the rate of speed and degree of
significance of the organization
Change may be reactive or proactive
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Change Forces
External Forces
INTETRNAL FORCES
Work force
Managerial personnel
Management structure
Avoid developing
Change
forces
Technology
Marketing conditions
Social changes
Political forces
inertia
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Change Forces
Companies Responses to Pressures
for Green Policies and Practices
Managerial
Advice
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Change Agents
Persons in organization responsible for managing
change activities
Can be managers or non managers, current
employees, newly hired employees or outside
consultants
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Unfreezing
Refreezing
Provide information
Implement new
change
Create minor levels
of guilt/anxiety about
not changing
Create sense of
psychological safety
concerning change
evaluation systems
Implement new hiring
and promotion systems
Kurt Lewin
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Speed of Change
Urgency
Degree of support
Criteria to
Consider
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Resistance to Change
Effort to block new
ways of doing things
Individual
Resistance
Group
Resistance
Organizational
Resistance
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Individual Resistance
Economic factors
Habits
Insecurity
Lack of communication
Extent of change
Psychological factors
Social factors
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Group Resistance
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Organizational Resistance
Conservative organizations may resist new ideas. The major
reason for organizational resistance are: Threat to power
Group inertia
Organizational structure
Threat to specialization
Resource constants
Sunk costs
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Minimizing Resistance to
Change
Communication
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Minimizing Resistance to
Change
Communication
Training
learning
Helps break old routines and adopt
new roles
Problems -- potentially time
consuming and costly
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Minimizing Resistance to
Change
Communication
Training
fear of unknown
Employee
Involvement
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Minimizing Resistance to
Change
When communication, training, and
Communication
Training
Employee
Involvement
Stress
Management
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Minimizing Resistance to
Change
Communication
Training
Employee
Involvement
Stress
Management
Negotiation
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Minimizing Resistance to
Change
Communication
Training
Assertive influence
Employee
Involvement
Stress
Management
Negotiation
Coercion
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Organisational Behaviour
Organization: A structured social system consisting of
groups and individuals working together to meet some
agreed upon objectives
Organisational Behaviour investigates the impact that
individuals, groups, and structure have on behaviour
within organisations, for the purpose of applying such
knowledge towards improving an organisations
effectiveness
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Organisational Behaviour
The field of OB has Four Main characteristics:
i.
ii.
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Organisational Behaviour
Is based on Behavioural Science
Seeks to develop knowledge by using an empirical
research based methodology
It is based on systematic observation and measurement of
the Behaviour or phenomenon of interest
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Organisational Behaviour
OB researchers have shed light on:
How can goals be set to enhance peoples job
performance?
How can leaders enhance their team effectiveness?
What can be done to improve organisational
communication?
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Organisational Behaviour
Three levels of analysis need to be considered:
1. Individual perceptions, attitudes, motives
2. How people communicate and co ordinate activities in
work groups
3. The way the organization is structured and operated in an
environment which effects individual and groups
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Organisational Behaviour
OB draws upon a wide variety of social sciences i.
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Organisational Behaviour
iv. Anthropology: Study of societies - Why values, habits,
attitudes, behaviour are different in different countries
v. Economics: Decision making, Negotiation
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Organisational Behaviour
Theory Y
Modern approach, employees are not lazy, will work hard if
right conditions prevail
Assumes people have a psychological need to work and
seek achievement and responsibility
Ability to innovate is widely spread and not solely those of
managerial class
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Organisational Behaviour
Theory X
Employees dislike work, so will attempt to avoid it
So they need to be coerced, controlled, punished to achieve
Employees avoid responsibility & seek direction always
Most employees place security above all needs and display
no ambition
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Organisational Behaviour
Theory X assumes that the average person:
Resists change
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Organisational Behaviour
Theory Y makes the following general assumptions:
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Importance of OB
OB will help Managers to:
a) Motivate employees
b) Keep them satisfied and productive
c) Communicate effectively
d) Make teams work effectively
e) Design jobs
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History of OB
Frederick Taylor:
Addressed OB in a Steel Mill
Time and Motion Study and scientific management was
born to design a job and select and train the right
person.
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History of OB
Mayo:
Environment and human treatment dramatically increased
performance -illumination, rest, duration of work day etc.
Social Forces at Work were found as important as physical
factors
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History of OB
Division of Labour work divided into specialized tasks
and whom each worker should be responsible
Bureaucracy (Fayol and Weber) application of set of
rules where the higher authority is in changer of lower
ranking workers
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Rising Expectations
Social Factors have changed employees expectations
Flexi hours due to nuclear families
Temporary workers
Compressed work weeks
Corporate Social Responsibility unethical work practices
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Rising Expectations
Customers demands have made TQM mandatory
Total Employee Involvement
Continuous Improvement
Customer Focus
Environmental concerns Global Warming
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Decision making
Communications
Interpersonal behaviour
Influencing others
Organization culture,
creativity and Innovation
Leadership
Organizational processes
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Challenges and
Opportunities in OB
Change Management
Globalisation
Empowering people
Workforce Diversity
Innovation fostering
Temporariness
Productivity
Work-Life balance
Labour shortage
Ethics
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Organisational Culture
Organisational culture describes the psychology,
attitudes, experiences, beliefs and values (personal and
cultural values) of an Organisation.
The specific collection of values and norms that are
shared by people and groups in an Organisation and
that control the way they interact with each other and
with stakeholders outside the Organisation
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Organisational Culture
Beliefs and ideas about what kinds of goals
members of an Organisation should pursue and ideas
about the appropriate kinds or standards of behavior
Organisational members should use to achieve these
goals.
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Organisational Culture
Organisational values develop into Organisational
norms, guidelines or expectations that prescribe
appropriate kinds of behavior by employees in
particular situations and control the behavior of
Organisational members towards one another.
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Goals of OB
A. Describe: To describe, systematically how people behave
under a variety of conditions. Achieving this goal allows
managers to communicate about human behavior at work
using a common language.
B. Understand: To understand why people behave as they
do. The managers would be frustrated if they could talk
about behavior of their employees, but not understand the
reasons behind those actions.
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Goals of OB
C. Predict:
The managers would have capacity to predict which
employees might be dedicated and productive or which
ones might have absent, cause problem.
Thus the managers could take preventive actions.
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Goals of OB
D. Control:
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Forces affecting OB
1. People
2. Structure
3. Technology
4. Social system
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People
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Structure
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Technology
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Social System
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Summary
Organization is a
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Summary
Basic parts of an organisations are- top management,
middle management, technical core, administrative and
technical supports
Organisation structure is a formal system of task and
authority relationships
Organisation design controls the activities necessary to
achieve its goals
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Summary
Factors affecting organization design are- technology,
strategy, environment, size, life cycle, culture
Role of top management is to provide strategic directiondefine mission, official goals, ..
Responsibility is being dependable and making good
choices and accountable
Accountability is accepting the blame or credit for ones
choices or behaviors
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Summary
Span of management is the number of subordinates that a
manager directs and supervises
Authority is the right to make decisions, to direct the
work of others, and to give orders
Line authority
Staff authority
Delegation: empowering employees to make business
decisions
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Summary
Managers get things done through other people
They plan, organise, lead and control
HR functions are;
Conducting job analysis
Planning labour needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages & salaries (Compensating)
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Summary
SHR Planning: Plan of an organisation to match its
interior strengths and weaknesses with external threats
and opportunities in order to maintain a competitive
strategy
SHRM Activities are
Formulating and Executing HR systems
Formulating HR Policies and Activities
Assess Employee competencies and behaviors
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Summary
Organizational change is the process by which
organization move from their present state to some
desired future state to increase effectiveness
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Summary
Resistance to change is Effort to block new ways of
doing things
1.
Individual resistance
2.
Group resistance
3.
Organisational resistance
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Summary
Organisational Behaviour investigates the impact that
individuals, groups, and structure have on behaviour
within organisations
Three levels of analysis are carried out- individual,
group and organisational
OB draws upon a wide variety of social sciences
psychology, sociology, social psychology, anthropology
and economics
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Summary
Theory Y
Employees are not lazy, will work hard if right conditions
prevail, have psychological need to work, seek
achievement and responsibility and have ability to
innovate
Theory X
Employees dislike work, so will attempt to avoid it, need to
be coerced, controlled, punished to achieve, avoid
responsibility & seek direction always
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Summary
OB will help Managers to:
a)
Motivate employees
Communicate effectively
Design jobs
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Summary
Goals of OB
To describe, systematically how people behave under a
variety of conditions
To understand why people behave as they do
To predict which employees might be dedicated and
productive or which ones might have absent, cause
problem
To improve results through the actions they and their
employees take
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