Organizational Behavior
Anubha Maurya
COURSE CONTENT
• 1. CONTEXT OF ORGANIZATIONAL BEHAVIOUR
• Meaning and significance of OB; contributing
disciplines; basic assumptions & characteristics
• New context of O.B.: Historical evolution
• Challenges and opportunities for O.B.: Emerging
issues
• Framework for O.B.
2 ORGANIZATIONAL ENVIRONMENT
• External environment
• Organization- environment relationship
• Linking environments and organization
• Internal environment
2-2
• 3. ORGANIZATION BEHAVIOUR AND FOUNDATION
COMPETENCIES
• Self competency
• Communication competency
• Diversity competency
• Across culture competency
• Teams competency
• Change competency
• 4. INDIVIDUAL PROCESSES – 1: PERSONALITY
• Meaning; person situation debate; psychological
contracts; ability and aptitude
• Differences in personality; Heredity, learning, culture
as determinants
• Personality traits and dimensions: Approaches to
understanding the traits
• Psychological solving behaviours
• Personality traits
2-3
• 5. INDIVIDUAL PROCESSES – 2:
PERCEPTION
• The concept and need for studying
• Perceptual organization
• Perceptual interpretation
• Attribution process
• Perceiving others
• Comparison of own perception with others’
estimation
• 6. INDIVIDUAL PROCESSES – 3:
LEARNINGS AND REINFORCEMENT
• Meaning and importance; barriers; approaches
• Cognitive and programmed learnings
• Sense making
• Learning styles
2-4
• Reinforcement: Positive; negative; contingencies of reinforcement;
schedules of reinforcement
• Behavior and its modification
• Transfer of learning through training
• 7. INDIVIDUAL PROCESSES – ATTITUDES AND VALUES
• Meaning and scope; attitude and behaviour
• Work attitude
• Belief & trust
• Attitudes and values
• 8. INDIVIDUAL PROCESSES – WORK MOTIVATION
• Meaning; process; need performance link
• General model; motivation and performance
• Content model of motivation
• Process models of motivation
• Motivation by comparison
• Applications of motivation
• Reward system
• Behaviour modification; job design and redesign
• Motivation by employment
2-5
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9 INDIVIDUAL PROCESS : WORK STRESS
Meaning, nature and types
Cause of stress; contributing factors
Consequences
Management of stress
10. ORGANIZATIONAL DECISION MAKING
Nature of decision making
Decision making and managerial process
Problems in decision making process
Improving decision making
Models of individual decision making
Employee reactions to organizational decision
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making
The Evolution of Management
Thought
McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
The Evolution of Management Theory
Figure 2.1
2-8
Job Specialization and
the Division of Labor
Adam Smith (18th century economist)
– Observed that firms manufactured
pins in one of two different ways:
- Craft-style—each worker did all
steps.
- Production—each worker
specialized in one step.
2-9
First Management Issues of Industry
• How do we efficiently organize people at
work with these new technologies of
production and large markets?
• How do we hire, pay, and coordinate
people at work to gain productivity?
• How do we do all of these to create
economic wealth (profit)?
2-10
The Beginning of Management – Pay?
• 1886 – Henry Towne, Pres. of Yale and Town
Manufacturing Co., “The Engineer as Economist:” How
do we relate work to increasing economic
development?
• Gain sharing” or “Towne Plan” – Link profits to
worker’s pay: Wage rate + performance incentive– All
savings in costs were shared with workers.
• Halsey Plan: Sharing profits does not work.
Bosses hide profits. Pay people on basis of a wage +
1/3rd pay incentive for higher productivity.
• 1938 – Fair Labor Standards Act set min. wage at
25¢/hr
2-11
Frederick Taylor – Cont.
•
•
•
•
Biography: Wealthy Philadelphia
1905 – wrote Shop Management
1909-14: Lecturer at Harvard
Management consultant – US Navy and
Army
• 1911- Wrote Scientific Management
2-12
F.W. Taylor and Scientific
Management
Scientific Management
The systematic study of the
relationships between people and
tasks for the purpose of redesigning
the work process to increase
efficiency.
2-13
Four Principles of Scientific
Management
1) Study the way workers perform their tasks, gather all the
informal job knowledge that workers possess and
experiment with ways of improving how tasks are
performed
•
Time-and-motion study
•
In 1895- proposed a Piece Rate System:
–
Observe & Analyze – set the “standard” for job
(use Time and Motion studies)
–
–
Pay workers for meeting/exceeding standard
Pay individual worker – not everyone, or group/department, or the
“job” = pay according to individual value to business
What Adam Smith had done for markets, Taylor does
for the firm – place wealth creation squarely on the
individual worker who is managed, rewarded for
effort.
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Four Principles of Scientific
Management
2) Codify the new
methods of
performing tasks
into written rules
and standard
operating
procedures
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Four Principles of Scientific
Management
3) Carefully select workers who possess
skills and abilities that match the
needs of the task, and train them to
perform the task according to the
established rules and procedures
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Four Principles of Scientific
Management
4) Establish a fair or acceptable level of
performance for a task, and then
develop a pay system that provides a
reward for performance above the
acceptable level
2-17
Problems with Scientific Management
• Managers frequently implemented only the
increased output side of Taylor’s plan.
– Workers did not share in the increased
output.
• Specialized jobs became very boring, dull.
– Workers ended up distrusting the Scientific
Management method.
• Workers could purposely “under-perform.”
– Management responded with increased use
of machines and conveyors belts.
2-18
Question?
What is the process by which a division of
labor occurs as different workers
specialize in specific tasks over time?
A. Job Diversification
B. Job Sterilization
C. Job Specification
D. Job Specialization
2-19
2Administrative Management Theory
• Administrative
Management
– The study of how to
create an organizational
structure that leads to
high efficiency and
effectiveness.
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Administrative Management Theory
Max Weber
–Developed the principles of bureaucracy as a
formal system of organization and
administration designed to ensure efficiency
and effectiveness.
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Weber’s
Principles of
Bureaucracy
Figure 2.2
2-22
Weber’s Principles of Bureaucracy
1) A manager’s formal authority derives
from the position he holds in the
organization.
2) People should occupy positions
because of their performance, not
because of their social standing or
personal contacts.
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Weber’s Principles of Bureaucracy
3) The extent of each position’s formal
authority and task responsibilities and
it’s relationship to other positions
should be clearly specified.
4) Authority can be exercised effectively
when positions are arranged
hierarchically, so employees know
whom to report to and who reports to
them.
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Weber’s Principles of Bureaucracy
5) Managers must create a well-defined
system of rules, standard operating
procedures,
and norms so they
can effectively
control behavior .
2-25
14 - Rules, SOPs and Norms
• Rules – formal written instructions that specify
actions to be taken under different circumstances
to achieve specific goals
• Standard Operating Procedures (SOPs) –
specific sets of written instructions about how to
perform a certain aspect of a task
• Norms – unwritten, informal codes of conduct that
prescribe how people should act in particular
situations
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Fayol’s Principles of Management
• Division of Labor: allows for job specialization.
– jobs can have too much specialization leading to
poor quality and worker dissatisfaction.
• Authority and Responsibility
– both formal and informal authority resulting from
special expertise.
• Unity of Command
– Employees should have only one boss.
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Fayol’s Principles of Management
• Line of Authority
– A clear chain of command from top to
bottom of the firm.
• Centralization
– The degree to which authority rests at the
top of the organization.
• Unity of Direction
– A single plan of action to guide the
organization.
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Fayol’s Principles of Management
• Equity - The provision of justice and the fair
and impartial treatment of all employees.
• Order - The arrangement of employees where
they will be of the most value to the
organization and to provide career
opportunities.
• Initiative - The fostering of creativity and
innovation by encouraging employees to act
on their own.
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Fayol’s Principles of Management
• Discipline
– Obedient, applied, respectful employees
are necessary for the organization to
function.
• Remuneration of Personnel
– An equitable uniform payment system that
motivates contributes to organizational
success.
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Fayol’s Principles of Management
• Stability of Tenure of Personnel
– Long-term employment is important for the
development of skills that improve the
organization’s performance.
• Subordination of Individual Interest to the
Common Interest
– The interest of the organization takes
precedence over that of the individual
employee.
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Fayol’s Principles of Management
Esprit de corps
– Comradeship (amity), shared
enthusiasm foster devotion to the
common cause (organization).
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Discussion Question?
Which of the following is the most
important aspect of Fayol’s principles of
management?
A.
B.
C.
D.
Division of Labor
Unity of Command
Remuneration of Personnel
Esprit de corps
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3Behavioral Management Theory
Behavioral Management
– The study of how managers should
personally behave to motivate employees
and encourage them to perform at high
levels and be committed to the achievement
of organizational goals.
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Behavioral Management
Mary Parker Follett
– Concerned that Taylor ignored the
human side of the organization
• Suggested workers help in
analyzing their jobs
• If workers have relevant knowledge
of the task, then they should control
the task
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The Hawthorne Studies
Studies of how characteristics of the work
setting affected worker fatigue and
performance at the Hawthorne Works of
the Western Electric Company from
1924-1932.
2-36
The
“Hawthorne
Experiments”
wereDirection
a series of
The
Hawthorne
Studies: New
studies into worker productivity performed at
the Cicero plant beginning in 1924 and ceasing
in 1932, initially conducted by the National
Research Council and later by Western Electric
and Harvard University
Illumination Studies, 1924 -1927: Does Use of
Electric Lights Increase Productivity?
Hypothesis: Increased illumination is correlated
with higher productivity.
Finding: No relationship
“Hawthorne effect” or "halo effect“ – Researcher
affects outcome (bias)
2-37
2nd Hawthorne Experiment
Relay Assembly Test Room Experiments, 1927-1929
Harvard research team set up experiment with 5
females from Relay Assembly area to test impact of
incentives and work conditions on worker fatigue
There is no conclusive evidence
that these affected fatigue or
productivity.
Productivity and worker
satisfaction increase when
conditions are improved
and made worse.
2-38
3rd Hawthorne Experiment
• Mica-Splitting Test group, 1928 – 1930
Relationship between work conditions
and productivity, by maintaining a piecerate incentive system and varying work
conditions
• Productivity increased by about 15% and
researchers concluded that productivity
was affected by non-pay considerations
• Conclusion: social dynamics were the
basis
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Hawthorne Interviews
• Plant-wide Interview program, 1928-1931
1. Western Electric implemented a plantwide survey of employees to record their
concerns and grievances. From 1928 to
1930, 21,000 employees were
interviewed.
• 2. Data supported the research
conclusion that work improved when
supervisors began to pay attention to
employees,
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Hawthorne : Final Experiment
• Bank Wiring Observation group, 1931-1932
– The final test studying 14 male workers in the
Bank Wiring factory to study the dynamics of the
group when incentive pay was introduced.
There was no effect. Why?
Work group established a work “norm” – a shared
expectation about how much work should be
performed in a day and stuck to it, regardless of
pay. The conclusion: informal groups operate
in the work environment to manage
behavior.
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Hawthorne Experiments - Importance
• Changed perspective in management from Taylor’s
engineering approach to a social sciences approach,
leading to "Human Relations" approach and, later,
"Organization Behavior" approach:
• Engineering approach subordinated to social sciences
• Managers = leaders, motivators, communicators
• At one time major contributors to Management theory
worked on Hawthorne experiments.
• Elton Mayo - “Human Relations”
approach (to 1950’s). Mayo’s
views lead to the construction
of manager as a leader.
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The Hawthorne Studies
• Demonstrated the importance of
understanding how the feelings,
thoughts, and behavior of work-group
members and managers affect
performance
2-43
Question?
What theory assumes the average worker
is lazy, dislikes work and will do as little
as possible?
A. Theory X
B. Theory Y
C. Theory Z
D. Theory QZ
2-44
McGregor: Theory X, Theory Y
Theory Y:
– Work is as natural as play or rest- not disliked..
– Workers will exercise self-direction and
self-control
– Meeting goals is satisfying and motivating. .
– Workers seek responsibility. ...
– Workers will be creative and are willing to do more.
Theory X:
– The average human inherently dislikes to work, So,
people must be coerced, controlled, directed.
– Workers prefer this – but want security.
– The average worker is only partially utilized.
2-45
Theory X and Theory Y
Douglas McGregor proposed the two different
sets of assumptions about workers.
– Theory X assumes the average worker is
lazy, dislikes work and will do as little as
possible.
• Workers have little ambition and wish to
avoid responsibility
• Managers must closely supervise and
control through reward and punishment.
2-46
Theory X and Theory Y
– Theory Y assumes workers are not
lazy, want to do a good job and the job
itself will determine if the worker likes
the work.
• Managers should allow workers
greater latitude, and create an
organization to stimulate the
workers.
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Theory X vs. Theory Y
Figure 2.3
2-48
William G. Ouchi
• An American professor and author in the
field of business management
• He was a pioneer in introducing interactional
leadership theory in his application of
Japanese-style management to corporate
America.
• Studied the differences between Japanese
and American companies and management
styles
• Born 1943
• Honolulu, Hawaii
• He earned a B.A. from Williams College
(1965), an MBA from Stanford University
(1967) and a Ph.D. in Business Administration
from the University of Chicago (1972).
2-49
2-50
Development of Theory z
• Has been called a sociological description of the humanistic organizations
advocated by management pioneers such as Elton Mayo, Chris Argyris,
Rensis Likert, and Douglas McGregor.
• In the 1970s and 1980s, many United States industries lost market share to
international competitors, particularly Japanese companies.
• Concerns about the competitiveness of U. S. companies led some to
examine Japanese management practices for clues to the success enjoyed
by many of their industries. This led to many articles and books purporting to
explain the success of Japanese companies.
• It was in this atmosphere that Theory Z was introduced into the management
lexicon.
2-51
• Theory Z: How
American Management
Can Meet the
Japanese Challenge –
His first book in 1981
summarized his
observations. It currently
ranks as the seventh
most widely held book of
the 12 million titles held
in 4000 U.S. libraries.
2-52
Differences between American and Japanese
Management Practices
American Organizations
Short-term employment
Japanese Organizations
Lifetime employment
Slow evaluation &
Rapid evaluation & promotion
promotion
Specialized career paths
Non specialized
career paths
Individual decision making
Individual responsibility
Explicit control mechanisms
Segmented concern for
employee as an employee
Collective decision
Collective
responsibility
making
Implicit control
mechanisms
Holistic
concern for
employee as a person
2-53
Characteristics of Theory Z
•
•
•
•
•
consensus decision making
guarantee of lifetime employment
job security
slower promotions
quality circles
• establishment of strong bonds of responsibility
between superiors and subordinates fitting
employees to their jobs
• a holistic concern for the workers
2-54
Comparison & Contrast of Theories X, Y & Z
Management
Concept
Douglas McGregor
William Ouchi
(Theory X & Y)
(Theory Z)
Either being unwilling or
unmotivated to work, or
being self motivated
towards work. Threats and Believes that people are
disciplinary action are
innately self motivated to not
thought to be used more only do their work, but also
Motivation
effectively in this
are loyal towards the
situation, although
company, and want to make
monetary rewards can also the company succeed.
be a prime motivator to
make workers produce
2-55
more.
Comparison & Contrast of Theories X, Y & Z
Management
Concept
Douglas McGregor
(Theory X & Y)
William Ouchi
(Theory Z)
Leadership
Theory X leaders would be
more authoritarian, while
Theory Y leaders would be
more participative. But in both
cases it seems that the
managers would still retain a
great deal of control.
Theory Z managers would have to
have a great deal of trust that their
workers could make sound
decisions. Therefore, this type of
leader is more likely to act as
"coach", and let the workers make
most of the decisions.
2-56
Comparison & Contrast of Theories X, Y & Z
Management
Concept
Douglas McGregor
(Theory X & Y)
William Ouchi
(Theory Z)
Power &
Authority
As mentioned above,
McGregor's managers, in
both cases, would seem to
keep most of the power
and authority. In the case
of Theory Y, the manager
would take suggestions
from workers, but would
keep the power to
implement the decision.
The manager's ability to
exercise power and authority
comes from the worker's
trusting management to take
care of them, and allow them
to do their jobs. The workers
have a great deal of input and
weight in the decision
making process.
2-57
Comparison & Contrast of Theories X, Y & Z
Management
Concept
Conflict
Douglas McGregor
(Theory X & Y)
William Ouchi
(Theory Z)
This type of manager might be
Conflict in the Theory Z arena
more likely to exercise a great
would involve a great deal of
deal of "Power" based conflict
discussion, collaboration, and
resolution style, especially with
negotiation. The workers would be
the Theory X workers. Theory Y
the ones solving the conflicts,
workers might be given the
while the managers would play
opportunity to exert "Negotiating"
more of a "third party arbitrator"
strategies to solve their own
role.
differences.
2-58
4Management Science Approach
• Post World War II – British use of
mathematics, Operations Research, in
military operations find applications in US
post war industrial development.
• Quantitative management — use of
mathematic models, linear programming,
simulation systems and chaos theory to solve
management problems.
• Operations management —techniques
used to analyze all aspects of the production
system.
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Management Science Approach- Cont.
• Total Quality Management (TQM) —
analyzing input, conversion, and output
to increase product quality.
• Management Information Systems
(MIS) — provides information vital for
effective decision making
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Management Science Theory
• Contemporary approach to management
that focuses on the use of rigorous
quantitative techniques to help
managers make maximum use of
organizational resources to produce
goods and services.
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5Organizational Environment Theory
Organizational Environment –
The set of forces and conditions that
operate beyond an organization’s
boundaries but affect a manager’s ability
to acquire and utilize resources
2-62
The Open-Systems View
Open System
– A system that takes resources for its
external environment and transforms
them into goods and services that are
then sent back to that environment
where they are bought by customers.
2-63
The Open-Systems View
– Inputs: the acquisition of external resources
to produce goods and services
– Conversion: transforms the inputs into
outputs of finished goods and services.
– Output: the release of finished goods and
services to its external environment.
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Systems Approach
2-65
Figure 2.4
2-66
Closed System
• A self-contained system that is not
affected by changes in its external
environment.
• Likely to experience entropy and lose its
ability to control itself
2-67
Systems
• Synergy – the performance gains that
result from the combined actions of
individuals and departments
– Possible only in
an organized system
2-68
Contingency Theory
• “There is no one best way to organize”
• The idea that the organizational
structures and control systems manager
choose depend on—are contingent on—
characteristics of the external
environment in which the organization
operates.
2-69
Contingency Theory
Figure 2.5
2-70
Contingency Approach
• There is no “one best way.”
• Organizing (and other) decisions that match the
demands of the environment provide adaptation.
2-71
Type of Structure
Mechanistic Structure
– Authority is centralized at the top.
– Emphasis is on strict discipline and order
– Employees are closely monitored and
managed.
– Can be very efficient in a stable
environment.
2-72
Type of Structure
Organic Structure
– Authority is decentralized throughout
the organization.
– Departments are encouraged to take a
cross-departmental or functional
perspective
– Works best when environment is
unstable and rapidly changing
2-73
Movie Example?
How are the workers
viewed in
Metropolis? How do
the workers feel
about going to work
each day?
2-74
Organizational Behaviour
•
. . . 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 toward
improving an organization’s
effectiveness.
What is organizational behavior
and why is it important?
 Organizational behavior.
– Study of individuals and groups in
organizations.
– Emphasizes high performance
organizations.
– Occurs in a global context.
– Dimensions of individual and group
behavior.
– Nature of organizations.
– Core processes.
2-76
Organizational Behavior
• Definition: The study of human behavior,
attitudes, and performance in organizations.
• Attitude means approach, manner, outlook
• Value of OB: Helps people attain the
competencies needed to become effective
employees, team leaders/members, or
managers
• Competency = an interrelated set of
abilities, behaviors, attitudes, and knowledge
needed by an individual to be effective in
most professional and managerial positions
2-77
Effective Vs Successful Manager
Average
Successful Effective
Managers Managers Managers
Traditional 32%
13%
19%
mgmt
Communic 29%
28%
44%
ation
HRM
20%
11%
26%
(DM, P, C)
(M, S, T)
Networkin 19%
g
48%
11%
2-78
So-”What does a manager do?”
It depends on where they are in the
organization:
Level
Activities
Top
Direction/goals.
Allocate
resources.
Set standards.
Middle
Integrate
knowledge.
Balance shortterm with Long
term goals.
Develop people.
Frontline
Secure resources
and
Opportunities.
Manage
performance
and improvements.
Skill
2-79
What do Top Managers Do?
Myth
Fact
Work is reflective and
involve systematic
planning.
Work is action oriented, stressed
immediate response, and work was
Varied.
No Regular Duties
Duties are ritual and ceremonial,
negotiations, and processing soft
information
Relies on formal MIS for Favor verbal, immediate
decision-making
information – even informal, soft
data which is processed into
coherent picture
Management is a
Science
Relies on judgment and intuition to
Make decisions
2-80
Roles of Top Manager- Mintzberg
1. Interpersonal Roles:
– Figurehead – represents organization and it’s
authority
– Leader – has power to make things happen
– Liaison – makes contacts with peers and other
managers
2. Informational Roles:
– Gathers and processes information
– Monitor – scan environment for relevant cues
– Disseminator – passes selected information to
those who need to know
– Spokesperson – informs outsiders
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Roles of Top Managers –Cont.
3. Decisional Roles:
– Entrepreneur – searches for new idea to
implement, keeps mental track of their progress
– Disturbance handler – tries to keep conflicts in
balance and arbitrates conflict
– Resource allocator – decides who gets what
(resources and power); personal basis of
decision-making
4. The Integrated Job of Manager:
– Implication for new manager – requirement for
networks of information
– Implication for Team Managers – requirement for
information sharing
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What is the nature of managerial work?
HENRY MINTZBERG MODEL
 Managerial roles.
– Interpersonal roles.
• Figurehead. (Diploma, tour in plant)
• Leader. (Handling subordinates)
• Liaison. (Acknowledgement of
mails,external work
– Informational roles.
• Monitor (Internal External Info)
• Disseminator. (Forward)
• Spokesperson. (Board meeting)
2-83
What is the nature of managerial work?
– Decisional roles.
• Entrepreneur. (Strategy and review)
• Disturbance handler. (Strategy and
review)
• Resource allocator. (Scheduling,
budgeting)
• Negotiator. (Contract Negotiation)
2-84
What is the nature of managerial work?
 Managerial networks.
– Task networks.
• Specific job-related contacts.
– Career networks.
• Career guidance and opportunity
resources.
– Social networks.
• Trustworthy friends and peers.
2-85
What is the nature of managerial work?
ROBERT KATZ
 Managerial skills and competencies.
– A skill is an ability to translate knowledge
into action that results in a desired
performance.
– Categories of skills:
• Technical.( Ability to apply special
knowledge)
• Human.( Ability to work with,
understand and motivate people)
• Conceptual. Mental ability to analyze
2-86
What is the nature of managerial work?
 Managerial skills and competencies —
cont.
– Technical skills are relatively more
important at entry levels.
– Human skills are consistently important
across all managerial levels.
– Conceptual skills are relatively more
important at top management levels.
2-87
What is the nature of managerial work?
 Managerial skills and competencies—
cont.
– Technical skills.
• An ability to perform specialized tasks.
• Derives from knowledge of expertise
gained from education or experience.
• Proficiency at using select methods,
processes, and procedures to accomplish
tasks.
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What is the nature of managerial work?
 Managerial skills and competencies —
cont.
– Human skills.
• An ability to work well with other people.
• Emerges as a spirit of trust, enthusiasm,
•
•
•
•
and genuine involvement in interpersonal
relationships.
Self-awareness.
Capacity for understanding and
empathizing.
Engages in persuasive communication.
Deals successfully with conflicts.
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What is the nature of managerial work?
 Managerial skills and competencies —
cont.
– Conceptual skills.
• An ability to see and understand how the
system works, and how the parts are
interrelated.
• Used to:
– Identify problems and opportunities.
– Gather and interpret relevant information.
– Make good problem-solving decisions.
2-90
Effective Employees
• Absenteeism
– Failure to report to work
• Turnover
– Voluntary and involuntary permanent withdrawal
from the organization
• Organizational citizenship behaviour
– Discretionary behaviour that is not part of an
employee’s formal job requirements, but is helpful
to the organization
2-91
Productivity
• Productivity
– A performance measure including
effectiveness and efficiency
• Effectiveness
– Achievement of goals
• Efficiency
– The ratio of effective work output to the
input required to produce the work
2-92
Challenges Facing the Workplace
Organizational Level
•
•
•
•
Productivity
Developing Effective Employees
Global Competition
Managing in the Global Village
Group Level
• Working With Others
• Workforce Diversity
Workplace
Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically
2-93
Contributing Disciplines to the OB
Field
•
•
•
•
•
Psychology
Sociology
Social Psychology
Anthropology
Political Science
2-94
Toward an OB Discipline
Behavioural
science
Psychology
Sociology
Contribution
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Output
Individual
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Formal organization theory
Organizational technology
Organizational change
Organizational culture
Social psychology
Unit of
analysis
Group
Study of
Organizational
Behaviour
Behavioural change
Attitude change
Communication
Group processes
Group decision making
Comparative values
Comparative attitudes
Cross-cultural analysis
Organization
system
Anthropology
Organizational culture
Organizational environment
Political science
Conflict
Intraorganizational politics
Power
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Beyond Common Sense
• Systematic Study
– Looking at relationships, attempting to
attribute causes and effects and drawing
conclusions based on scientific evidence
• Behaviour is generally predictable
• There are differences between individuals
• There are fundamental consistencies
• There are rules (written & unwritten) in
almost every setting
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Summary and Implications
• OB is a field of study that investigates the
impact that individuals, groups, and structure
have on behaviour within an organization.
• OB focuses on improving productivity,
reducing absenteeism and turnover, and
increasing employee job satisfaction and
organizational commitment.
• OB uses systematic study to improve
predictions of behaviour.
Exhibit 1-5
Competing Values Framework
External Focus
Internal Focus
Flexibility
Control
Competing Values Framework
• Internal-External Dimension
– inwardly toward employee needs and concerns
and/or production processes and internal
systems
or
– outwardly, toward such factors as the
marketplace, government regulations, and the
changing social, environmental, and
technological conditions of the future
• Flexibility-Control Dimension
– flexible and dynamic, allowing more teamwork
and participation; seeking new opportunities for
products and services
or
– controlling or stable, maintaining the status quo
and exhibiting less change
Skills in the New Workplace
Flexibility
Innovator
Broker
Facilitator
Monitor
Producer
Coordinator
Control
Director
External Focus
Internal Focus
Mentor
Skills in the New Workplace
Flexibility
•Understanding yourself and others
•Interpersonal communication
•Developing subordinates
MENTOR
•Team building
•Participative decision
making
FACILITATOR
•Conflict management
Internal
MONITOR
•Receiving and
organizing info
•Evaluating routine
info
COORDINATOR
•Responding to
•Planning
routine info
•Organizing
•Controlling
•Living with change
•Creative thinking
•Managing change
INNOVATOR
BROKER
PRODUCER
DIRECTOR
•Building and maintaining a
power base
•Negotiating agreement and
commitment
•Negotiating and selling ideas
External
•Personal productivity
and motivation
•Motivating others
•Time and stress
management
•Taking initiative
•Goal setting
•Delegating effectively
Control
Source: R.E. Quinn. Beyond Rational Management. San Francisco: Jossey-Bass Inc., 1988, p. 48.
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How Companies are Changing
“Cool” companies
“Old” companies
•Think casual Fridays are
pitiful
•Believe titles are obsolete
•Don't impose on employees'
personal time
•Allow staff to come and go as
they please
•Offer all employees stock
options
•Let employees make
decisions
•Offer assistance with
childcare
•Have minimal bureaucracy
• Believe casual days are
progressive
• Charge employees for parks
and incentives
• Hold events on employee
time
• Have flex time: but only
between 7:30 a.m. and 6:30
p.m.
• Hide financial results from
their employees
• Encourage employee input - but rarely act on it
• Employ rigid hierarchies
• Stop at “open door” policies
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What is the nature of managerial work?
 Managers:
– Perform jobs that involve directly supporting
the work efforts of others.
– Help other people get important things done
in timely, high-quality, and satisfying ways.
– Assume roles such as coordinator, coach,
or team leader.
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How do ethics influence human behavior in
organizations?
 Ethical behavior.
– “Good” and “right” as opposed to “bad” or
“wrong” in a particular setting.
– Ways of thinking about ethical behavior.
• Utilitarian view.
• Individualism view.
• Moral rights view.
• Justice view.
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How do ethics influence human behavior in
organizations?
 Ethical dilemmas in the workplace.
– Nature of an ethical dilemma.
– Ethical dilemmas occur in relationships with:
• Superiors.
• Subordinates.
• Customers.
• Competitors.
• Suppliers.
• Regulators.
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How do ethics influence human behavior in
organizations?
 Ethical dilemmas in the workplace —
cont.
– Rationalizations for unethical behavior:
• Pretending the behavior is not really
unethical or illegal.
• Saying the behavior is really in the
organization’s or person’s best interest.
• Assuming the behavior is acceptable if
others don’t find out about it.
• Presuming that superiors will support and
protect you.
2-106
How do ethics influence human behavior in
organizations?
 Organizational social responsibility.
– The obligation of organizations to behave in
ethical and moral ways as institutions of the
broader society.
– Managers should commit organizations to:
• Pursuit of high productivity.
• Corporate social responsibility.
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How do ethics influence human behavior in
organizations?
 Work and the quality of life.
– Quality of work life (QWL).
• The overall quality of human experience
in the workplace.
– QWL commitment reflects an endorsement
of Theory Y assumptions.
– Work-life balance.
• Job demands should fit personal life and
nonwork responsibilities.
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THEORY Z
• Ouchi, Theory Z focused on increasing
employee loyalty to the company by
providing a job for life with a strong focus
on the well-being of the employee, both
on and off the job. According to Ouchi,
Theory Z management tends to promote
stable employment, high productivity,
and high employee morale and
satisfaction
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