UNIT I

ORGANIZATIONAL BEHAVIOUR

WHAT ARE ORGANISATIONS

Organisations are as old as human race itself. Organisations are sets of people who work together to achieve shared goals. They are groups of people who work independently towards some purpose. Organisations are not physical structures, rather, they are people who work together to achieve a set of goals. People who work in organisations have structured patterns of interactions. They expect each other to complete certain task in an organised way.
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WHY DO ORGANISATIONS EXIST?

1.
2. 3. 4. 5.

Organisations play five different roles. It allows people jointly : To increase specialization and division of labour To use large scale technology. To manage the external environment. To economize on transaction costs. To exert power and control.

NATURE OF ORGANISATIONS

Few things touch our daily life as much as organisations do. We depend on organisations for education, employment, food, clothing, shelter, health, wealth, recreation, travel and much more. They touch every aspect of human life, from birth to death. Infact life becomes unlivable without organisations. But still most of us have a casual attitude towards organisations, we notice their importance when they fail to deliver their goods and services to us. Therefore it is essential for us to understand what these organisations are, how do they function and how to make them more effective in the functioning.
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ORGANIZATIONAL BEHAVIOUR

OB is the study of human behaviour at work / in organizational settings. It is the study of what people think, feel, and do, in and around organizations. OB is a discipline that deals with the study & application of knowledge about how people as individuals & as groups act within organizations. Fred Luthans- OB is directly concerned with the understanding, prediction & management of human behavior in organizations.
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FOUNDATIONS OF OB

There are differences between individuals. A whole person. Behaviour of an individual is caused An individual has dignity. Organizations are social systems. Mutuality of interest among organizational members. Holistic organizational behaviour. Need for management.
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COMPONENTS OF ORGANISATIONS
Every organisation consist of certain fundamental concepts and assumptions. These are:

PEOPLE STRUCTURE TECHNOLOGY ENVIRONMENT

PEOPLE:

Organisatons are run by people and people consist of individual and group. One can find glaring difference in peoples trait, intelligence, personality or any such trait. An individual joins organisation along with his/her social background, likes and dislike, pride and prejudices. Therefore the manager has to treat employees with with individual differences differently.

STRUCTURE:

Organisations are social systems. The formal relationship of people in organisations is called structure. All the people performing different jobs at different levels have to be related in some structural way so that their work can be effectively coordinated. People need organisation and organisation also need people which means OB is based on mutuality of interest. It is mutual interest that unites people and organisation to go side by side for accomplishing individual and organisational goals..

ENVIRONMENT:

All organisations operate within a given internal and external environment, no organisation exist alone. An organisation is the part of a larger system that contains other factors of elements such as a government, the family and other organisations ., and all of these influence each other in a complex way. Environment thus affects people by influencing their attitudes, working conditions, etc. An organisation is the effect of which the environment is the cause.

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TECHNOLOGY:

Technology provides the resources with which people work and also affects the task that they perform. The great benefit of technology is that it allows people to do more and better work. But it also restricts people from doing things in various ways. It has costs as well as benefits.

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Organizations as Open Systems*

Note that organizations are open systems, such that their long term effectiveness is determined by their ability to anticipate, manage, and respond to changes in their environment, with such changes resulting from external forces and/or stakeholders External forces include the labor force, the natural environment, the economy, and different cultures While stakeholders include shareholders, customers, competitors, suppliers, creditors, governmental agencies and their regulations

Note the impact of these environmental influences on individual, interpersonal, team, and organizational processes; organizations that do not effectively adapt to environmental change will fail
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ROLES OF MANAGERS IN ORGANISATIONS

Henry Mintzberg

Interpersonal Roles Informational Roles Decision Roles

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Interpersonal Roles:

Figurehead - managers perform certain symbolic & ceremonial duties as a head of a group. Leadership - roles includes hiring, training, motivating, disciplining employees Liaison Roles - the manger interacts with individuals or groups, inside or outside the organization.

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Informational Roles

Monitor Role - information may pertain to the prevailing terms & conditions of employment, technological developments, tastes, preferences- by interacting with field executives, customers. Disseminator - transmitting information to other members in org Spokesperson - when they represent their organization during their interactions.

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Decision Roles:

Entrepreneur - seek to improve an organizations performance by initiating new projects & monitoring their progress Disturbance Handler - mgrs required to respond to unforeseen problems. Resource Allocators - responsible for allocating human, physical & capital resources Negotiator- discuss issues & bargain with employees for the benefit of entire organization

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Management Skills: (value added managers)

Technical Human Conceptual Technical Skills- ability to apply specialized knowledge . Ex: skills in the area of accountancy, operations, personnel mgmt Human Skills-Should be able to work with a good understanding of people coupled with the art of motivating them Conceptual Skills-ability to analyze complex situations, rationally process & interpret available information.
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MANAGING THE GLOBALISATION OF WORK Globalisation is the process of increasing the connectivity and interdependence of the worlds markets and workplace. Total quality management is a continuous process of ensuring that every aspecct of production builds quality in to the product. Just in time inventory system is designed to minimize the storage and holding costs by ensuring the timely delivery of materials and supplies when ever needed.
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Growing internationalism has its impact on people management. The management is required to cope with unfamiliar laws, languages, practices, competitors, attitudes, management styles, work ethics and more. Personnel functions like hiring, training, compensating, maintaining, etc., must acquire a global perspective. To face this challenge the management must be flexible and proactive, and thus they will make significant contribution to companys growth. By helping the best qualified people execute the companys strategy on a global scale, management can become a source of competitive advantage for the company.
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MANAGING NEW FORMS OF ORGANISATION

As we enter in to new millennium, we find that the essential nature of jobs and organisations as we have known them is changing, but experts agree that the major catalyst is rapidly advancing computer technology. Work that was once performed by human brains is now being performed by digital brains.
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Some of the permanent trends in working arrangements that have been identified in the recent years are: 1 Leaner organization:

Downsizing and outsourcing technology has made it possible for fewer people to do more work than even before. Organisations have been rapidly reducing the number of employees needed to operate effectively- a process known as downsizing. This process is also directed as adjusting the number of employees needed to work in a newly designed organisation and is therefore also known as rightsizing. Another way organisations are restructuring is by completely eliminating those parts of themselves that focus on non-core sections of business and hiring outside firms to perform these functions instead- a practice known as rightsizing.
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2. The contingent workforce:

Sometimes instead of eliminating entire organisational functions and buying them back through outside providers, organisations eliminate individual jobs and hire people to perform them on as need basis. The contingent workforce includes not only the traditional part time employees, but also freelancers, sub contracters and independent professionals.
(interlinking of temporary org)

3.The virtual corporation:

A virtual corporation is a highly flexible temporary organization formed by a group of companies that join forces to exploit a specific opportunity.
(office beyond the walls)

4. Telecommuting:

Telecommuting is the practice of using communications technology to enable work to be performed from remote locations such as the home
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MANAGING DEVELOPMENTS IN INFORMATION TECHNOLOGIES

The impact that the information technology explosion has had on organizations is truly amazing- with no end in sight. Technological breakthrough in the last two centuries have had a dramatic impact. Various IT devices have made virtually all informations available anytime, anywhere. Besides the common tool of the information age, perhaps the biggest environmental impact on the field of organizational behaviour is e-business, knowledge management and recognition of human capital/intelligence.
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1.E-business:

E-Business is still portrayed as a recent phenomenon but it was really born over 150 years ago. The telegraph machines were followed by telephones, shortwave radios, copiers, computers and fax machines. The internet technology not only can be used for ebusiness, but also cannot only allow organizations be used strictly in-house as intranets. These intranets not only allow organizations to go paperless and thus cut costs, but also provide employees with valuable services and user-friendly access to all the information and knowledge of the organization in order to make better decisions and improve customer service. 28

2.Knowledge Management:

Knowledge can become the value added competitive advantage of organizations. Knowledge Management is defined as the development of tools, processes, systems, structures and cultures explicitly to improve the creation, sharing and use of knowledge critical for decision making. The KM can by represented by tangible knowledge assets (patents, copyrights, royalties, licences and information on stakeholders), And intangible knowledge (experience, skill and ideas possessed by employees and stakeholders).

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3. Human/ intellectual capital:

The concept of human capital recognizes that human resources have knowledge and intelligence through their experience, education, skills and ideas. The human capital cannot be readily replaced, acquired on the open labour market and even is not an asset. Rather human resources can be thought of as investors in the business and expecting a return for this investment (salary, benefits, pension payments etc.,) Thus the information age environmental context has an impact on the study and application of organizational behaviour.
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Commitment to shared belief

For a smoothly functioning team that members provide support to each other. This support can best be given in three ways :

1. Praising.

2. Listening.
3. Facilitating.

1. Praising : Sincere, specific praise given in a timely manner has been proven time and time again to be one of the most effective means of reinforcing desired behaviors. In a group context, praise can be given for productive contribution such as new ideas, suggestion, or factual data. Praising encourages others to be involved with the group in a positive way.
2. Listening : Few behaviors underscore the value you place on another person as much as the ability to listen. Demonstrate that you have heard and understood other members by using both verbal cues (for example, paraphrasing) and nonverbal cues (for example, head nods).

3. Facilitating : This activity of assisting with members interactions can take many forms such as leading the discussion or encouraging quiet members to contribute to the group toward its goal in a way in which participation and commitment to the group. A facilitator helps move the group toward its goal in a way in which participation and commitment to the group process are both high.
The responsibility for initiating behaviors that give direction and support to the group should be shared by all members. With practice, the timing of these behavior will improve and they can become routinely used by all members. When this happens the group can easily assume the other characteristics needed to PERFORM and will be well on its way to becoming a high-performing team.