Jimsr Ob 01

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED
Study Material for Students PGDM Programme : 2011-13

Jagan Institute of Management Studies Rohini, Delhi
Corporate Consulting Learning, Development and Education Human Resource Policies Placement
Paper Organisational Behaviour

Unit I: Introduction to Organisational Behaviour Topics Nature & Determinants; Need for Studying Organisational Behaviour
Resource Person
Sumit Chaudhuri
Visiting Faculty and Chairman and Managing Director THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED tmbra2000@gmail.com
Management Mindset
1. Moving away from syllabus / examination orientation 2. Every moment is a learning moment (good and bad experiences all contribute) 3. Taking responsibility rather than blaming others 4. Result orientation as opposed to activity orientation 5. Managerial versus clerical orientation 6. Objective Focused Approach
Working of an Organisation
People
Raw Material Purchase
Product / Service
Sales
Accounts
Manpower Materials Manufacture / Service Market
Money
Human Resource
(Personnel)
Materials
Manufacturing / Service Finance & Accounts
Marketing
Organisational Behaviour
Organisational Behaviour is the study and application of knowledge about how people as individuals and as groups act within organisations. It strives to identify ways in which people can act more effectively.
Importance of Organisational Behaviour

An organisation is a unique living organism whose basic component is the individual and this individual is our fundamental unit of study. Problems of conflict that we face cannot be solved by scientific and technical skills alone; they require social skills. Many of our most critical problems are not in the world of things but in the world of people.
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Role of Organisational Behaviour in Work Systems

1. Knowledge x Skills 2. Attitude x Situation 3. Ability x Motivation Human Performance = Ability = Motivation = Potential
4. Human Performance x Resources = Organisational Productivity

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Organisation
An organisation is a systematic arrangement of people and technology to accomplish some purpose. Organisations are social units deliberately created to seek specific goals. An entire company is an organisation, so is a division, department or section of several persons within a larger organisation.
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Organisation Contd. An ideal organisation might be seen as one that operates with maximum efficiency, profitability and employee satisfaction.
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Behaviour
Behaviour is anything a person or animal does that can be observed in some way. It means more that just bodily movements. Behaviour could include feelings, attitudes, thoughts and other mental processes. Behaviour is essentially goal oriented. Our behaviour is generally motivated by a desire to attain some goal.
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Behaviour Contd.
The specific goal is not always consciously known by the individual. The reason for our action is not always apparent to the conscious mind. The basic unit of behaviour is an activity. All behaviour is a series of activities. To predict behaviour, managers must know which motives or needs of people evoke a certain action at a particular time.
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Goals
1. Describe how people behave in a variety of conditions. 2. Understand why people behave as they do. 3. Predict future human behaviour 4. Control and develop human activity at work.
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Key Elements
1. People make up the internal social system of the organisation. 2. Structure defines the official relationships of people in organisations. 3. Technology provides the physical and economic resources with which people work. 4. Environment All organisations operate within an internal and an external environment.
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The Nature of People

1. Individual differences (Including Perceptions) 2. Whole person 3. Motivated behaviour 4. Desire for involvement 5. Value of the person (Human Dignity / Ethical Treatment)
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The Nature of Organisations

1. Social Systems Organisations are social systems and consequently activities here are governed by social and psychological realities. Just as people have psychological needs, they also have social roles and status. Their behaviour is influenced by their group as well as their individual drives.
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The Nature of Organisations Contd.

1.Social Systems Contd. Two types of social systems exist side by side in organisations. One is the formal (Official) social system and the other is the informal social system. 2.Mutual Interest / Psychological Contract Organisations need people and people also need organisations.
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Organisational Behaviour Model

Ability Factors (Mental Factors, Skills, etc.) Personality Factors (Values, Interests, Motivation, etc.)
Work and Environment Selecting for Special Training Variables (Equipment, (Amount and Method) Methods, etc.) Designing for Training for Organisational Variables Experience (Leadership, (Amount and Type) Incentives, etc.)
Effective Behaviour and Work Performance

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Four Models of Organisational Behaviour

Parameters Autocratic Custodial Economic Resources Money Security and Benefits Supportive Leadership Support Collegial Partnership Teamwork Basis of Model Power Managerial Orientation Employee Orientation Employee Psychological Result Employee needs met Performance result Authority Obedience
Job Responsible Performance Behaviour Participation Selfdiscipline Selfactualisation Moderate enthusiasm

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Dependence Dependence on Boss on Organisation Subsistence Minimum Security Passive Cooperation
Status and Recognition Awakened drives
Contributing Disciplines to the OB

Organisational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. The predominant areas are psychology, sociology, social psychology, anthropology and political science. As we shall learn, psychologys contributions have been mainly at the individual or micro level of analysis, while the other four disciplines have contributed to our understanding of macro concepts such as group processes and organization.
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Contributing Disciplines to the OB Contd.

Psychology Psychology is the science that seeks to measure, explain and sometimes change the behavior of humans and other animals. Psychologists concern themselves with studying and attempting to understand individual behavior. Those who have contributed and continue to add to the knowledge of OB are learning theorists, personality theorists, counseling psychologists and most important, industrial and organizational psychologists.
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Psychology Contd. Early industrial and organizational psychologists concerned themselves with problems of fatigue, boredom and other factors relevant to working conditions that could impede efficient work performance. More recently, their contributions have been expanded to include learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee selection techniques, work design and job stress.
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Sociology Whereas psychologists focus their attention on the individual, sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to their fellow human beings. Specifically, sociologists have made their greatest contribution to OB through their study of group behavior in organizations, particularly formal and complex organizations. Some of the areas within OB that have received valuable input from sociologists are group dynamics, design of work teams, organizational culture, formal organization theory and structure, organizational technology, communications, power and conflict.
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Social Psychology Social psychology is an area within psychology, blending concepts from both psychology and sociology. It focuses on the influence of people on one another. One of the major areas receiving considerable investigation from social psychologists has been changehow to implement it and how to reduce barriers to its acceptance. Additionally, we find social psychologists making significant contributions in the areas of measuring, understanding and changing attitudes; communication patterns; the ways in which group activities can satisfy individual needs; and group decisionmaking processes.
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Anthropology Anthropology is the study of societies to learn about human beings and their activities. Anthropologists work on cultures and environments, for instance, has helped us understand differences in fundamental values, attitudes and behavior among people in different countries and within different organizations. Much of our current understanding of organizational culture, organizational environments and differences among national cultures is the result of the work of anthropologists or those using their methodologies.
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Political Science Although frequently overlooked, the contributions of political scientists are significant to the understanding of behavior in organizations. Political science studies the behavior of individuals and groups within a political environment. Specific topics of concern here include structuring of conflict, allocation of power and how people manipulate power for individual selfinterest.
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Challenges and Opportunities for OB

Understanding organizational behavior has never been more important for managers. A quick look at a few of the dramatic changes now taking place in organizations supports this claim. For instance, the typical employee is getting older; more and more women and nonwhites are in the workplace; corporate downsizing and the heavy use of temporary workers are severing the bonds of loyalty that historically tied many employees to their employers; and global competition is requiring employees to become more flexible and to learn to cope with rapid change.
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Challenges and Opportunities for OB

Contd.
In short, there are a lot of challenges and opportunities today for managers to use OB concepts. In this section, we review some of the more critical issues confronting managers for which OB offers solutionsor at least some meaningful insights toward solutions.
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Responding to Globalization
Organizations are no longer constrained by national borders. Burger King is owned by a British firm and McDonalds sells hamburgers in Moscow. Exxon, a socalled American company, receives almost 75 percent of its revenues from sales outside the United States. Toyota makes cars in Kentucky; General Motors makes cars in Brazil; and Ford (which owns part of Mazda) transfers executives from Detroit to Japan to help Mazda manage its operations. These examples illustrate that the world has become a global village. In turn, managers have to become capable of working with people from different cultures.
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Responding to Globalization Contd.

Globalization affects a managers people skills in at least two ways. First, if you are a manager, you are increasingly likely to find yourself in a foreign assignment. You may be transferred to your employers operating division or subsidiary in another country. Once there, youll have to manage a workforce that is likely to be very different in needs, aspirations and attitudes from the ones you were used to back home.
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Responding to Globalization Contd.

Second, even in your own country, youre going to find yourself working with bosses, peers and other employees who were born and raised in different cultures. What motivates you may not motivate them. Your style of communication may be straightforward and open, but they may find this style uncomfortable and threatening. To work effectively with these people, youll need to understand their culture, how it has shaped them and how to adapt your management style to their differences.
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Managing Workforce Diversity

One of the most important and broad-based challenges currently facing organizations is adapting to people who are different. The term we use for describing this challenge is workforce diversity. Whereas globalization focuses on differences among people from different countries, workforce diversity addresses differences among people within given countries. Workforce diversity means that organizations are becoming more heterogeneous in terms of gender, race and ethnicity. But the term encompasses anyone who varies from the so-called norm.
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Managing Workforce Diversity Contd.

In addition to the more obvious groupswomen, African Americans, Hispanic Americans, Asian Americansit also includes the physically disabled, gays and lesbians and the elderly. Moreover, its an issue in Canada, Australia, South Africa, Japan and Europe as well as the United States. Managers in Canada and Australia, for instance, are having to adjust to large influxes of Asian workers. The new South Africa will increasingly be characterized by blacks holding important technical and managerial jobs.
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Women, long confined to low-paying temporary jobs in Japan, are moving into managerial positions. And the creation of the European Union cooperative trade arrangement, which opened up borders throughout much of western Europe, has increased workforce diversity in organizations that operate in countries such as Germany, Portugal, Italy and France. We used to take a melting-pot approach to differences in organizations, assuming people who were different would somehow automatically want to assimilate.
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But we now recognize that employees dont set aside their cultural values and lifestyle preferences when they come to work. The challenge for organizations, therefore, is to make themselves more accommodating to diverse groups of people by addressing their different lifestyles, family needs and work styles. The melting-pot assumption is being replaced by one that recognizes and values differences. Havent organizations always included members of diverse groups? Yes, but they were a small part, ignored by large organizations.
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Moreover, it was assumed that these minorities would seek to blend in and assimilate. For instance, most members of the U.S. workforce prior to 1980 were male Caucasians working full-time to support a nonemployed wife and school-aged children. Now such employees are the true minority! Currently, 46 percent of the U.S. labor force are women. Minorities and immigrants make up 23 percent. As a case in point, Hewlett-Packards workforce is 19 percent minorities and 40 percent women. A Digital Equipment Corporation plant in Boston provides a partial preview of the future.
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The factorys 350 employees include men and women from 44 countries who speak 19 languages. When plant management issues written announcements, they are printed in English, Chinese, French, Spanish, Portuguese, Vietnamese and Haitian Creole. Workforce diversity ahs important implications for management practice. Managers will need to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that will ensure employee retention and greater productivity while, at the same time, not discriminating.
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This shift includes, for instance, providing diversity training and revamping benefit programs to make them more family friendly. Diversity, if positively managed, can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. When diversity is not managed properly, there is potential for higher turnover, more difficult communication and more interpersonal conflicts.
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Improving People Skills

As you proceed through this presentation, I will present relevant concepts and theories that can help you explain and predict the behavior of people at work. In addition, youll also gain insights into specific people skills that you can use on the job. For instance, youll learn a variety of ways to motivate people, how to be a better communicator and how to create more effective teams.
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Empowering People
If you pick up any popular business periodical nowadays, youll read about the reshaping of the relationship between managers and those theyre supposedly responsible for managing. Youll find managers being called coaches, advisers, sponsors, or facilitators. In many organizations, employees are now called associated. And theres a blurring between the roles of managers and workers. Decisions making is being pushed down to the operating level, where workers are being given the freedom to make choices about schedules and procedures and to solve workrelated problems.
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Empowering People Contd.

In the 1980s, managers were encouraged to get their employees to participate in work-related decisions. Now, managers are going considerably further by allowing employees full control of their work. An increasing number of organizations are using selfmanaged teams, where workers operate largely without bosses.
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Empowering People Contd.

Whats going on? Whats going on is that managers are empowering employees. They are putting employees in charge of what they do. And in so doing managers are having to learn how to give up control, and employees are having to learn how to take responsibility for their work and make appropriate decisions. In the coming slides, I will show hoe empowerment is changing leadership styles, power, relationships, the way work is designed and the way organizations are structured.
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Case Study 1
How is This Stuff Going to Help Me?
Anjali Srivastava wants to be a manager and so she joined the management programme of a reputed management institute. She enjoyed her accounting, finance and marketing courses. Each of these provided her with some clear cut answers. Now the professor in her behavioural management course is telling her that there are really very few clear cut answers when it comes to managing people. He has discussed some of the history of behavioural management and says that behavioural science concepts play a big role in the course.
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Case Study 1
Contd.
How is This Stuff Going to Help Me? Contd. Anjali is very perplexed. She came to the management institute to get answers on how to be an effective manager but this course sure does not seem to be heading in that direction.
Questions 1. How would you relieve Anjalis anxiety? 2. How is a course in organisational behaviour going to make her a better manager? 3. Why did the professor start off with a brief history of organisational behaviour? 4. How does a course in organisational behaviour differ from courses in field such as accounting, finance or marketing?
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Case Study 2
Too Nice to People
Pankaj Agarwal has just completed the Business Administration course from University of Delhi and has joined his familys small business which employs twenty five semi-skilled workers. In the first week on the job, his father called him and said, Pankaj, I have had a chance to observe you working with men and women for the past two days and although I hate to, I feel I must say something. You are just too nice to people. I know they taught you that Human Relations stuff at the university but it just does not work here. I remember when the Hawthorne studies were first reported and everybody at the university got all excited about them, but believe me, there is more to managing people than just being nice to them.
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Case Study 2
Too Nice to People
Contd.
Contd.
Questions 1. How would you react to your fathers comments if you were Pankaj? 2. Do you think Pankajs father understood and interpreted the Hawthorne studies correctly? 3. What phases of management do you think Pankajs father has gone through in the family business? 4. How would you explain to your father the new perspective that is needed and how the study of organisational behaviour will help the business to be successful ?
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My grateful thanks
to
Professor N.R. Chatterjee Late Dr. P. Ghosh Dr. Abdul Aziz Mr. Joseph Mani Mr. S.C. Kapoor Ms. Hemaa Vaswani Ms. Trisha Chaudhuri
and many others from whom I have learnt immensely
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My grateful thanks also

To
Professor J. K. Goyal, Dr. Madan Mohan and all other faculty members and staff of
Jagan Institute of Management Studies
for providing the opportunity of interacting with you all.

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And, most importantly, thanks to all of you for being such wonderful students !
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THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Study Material for Students PGDM Programme : 2011-13

Paper Organisational Behaviour

Raw Material Purchase

Manpower Materials Manufacture / Service Market

Manufacturing / Service Finance & Accounts

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Importance of Organisational Behaviour

Role of Organisational Behaviour in Work Systems

4. Human Performance x Resources = Organisational Productivity

The Nature of People

The Nature of Organisations

The Nature of Organisations Contd.

Organisational Behaviour Model

Effective Behaviour and Work Performance

Four Models of Organisational Behaviour

Job Responsible Performance Behaviour Participation Selfdiscipline Selfactualisation Moderate enthusiasm

Dependence Dependence on Boss on Organisation Subsistence Minimum Security Passive Cooperation

Status and Recognition Awakened drives

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Contributing Disciplines to the OB

Contributing Disciplines to the OB Contd.

Contributing Disciplines to the OB Contd.

Contributing Disciplines to the OB Contd.

Contributing Disciplines to the OB Contd.

Contributing Disciplines to the OB Contd.

Contributing Disciplines to the OB Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Challenges and Opportunities for OB

Challenges and Opportunities for OB

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Responding to Globalization Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Responding to Globalization Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Managing Workforce Diversity

Managing Workforce Diversity Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Managing Workforce Diversity Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Managing Workforce Diversity Contd.

Managing Workforce Diversity Contd.

Managing Workforce Diversity Contd.

Managing Workforce Diversity Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Improving People Skills

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Empowering People Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

Empowering People Contd.

THIRD MILLENNIUM BUSINESS RESOURCE ASSOCIATES PRIVATE LIMITED

My grateful thanks also

for providing the opportunity of interacting with you all.

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