Organizational Behavior Today's Objectives • • • • • • • • • Introduction Introduction to subject Importance in your degree Importance in your organization, career and life Moving around the subject How we study this subject? How we have to study this subject? How we will go for the subject? First topic 1 Organizational Behavior: First view • Organizational Behavior – Interdisciplinary field dedicated to better understanding and managing people at work 2 What is Management ? “The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently” “Management is a set of activities directed at an organization’s resources with the aim of achieving organizational goals in an efficient and effective manner” 3 Management Activities / Functions 4 What is Management ? Functions Planning: Process of identifying and appropriate organizational goals and courses of action selecting Organizing: Task managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals Leading: Articulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals Controlling: Task of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performance 5 What is Management ? Resources •Human •Financial •Physical •Information Efficient and Effective •Efficient means using resources wisely and without unnecessary waste. •Effective means successfully. doing the right things 6 What is Management ? Organization An organization is a collection of people working together in a coordinated and structured fashion to achieve one or more goals. A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals 7 What is Management ? Organization and people •Organizations are strongly influenced by the people that form part of them. •Organizations can take in part of the personality of the people within them and their attitudes, perceptions and behaviors affect how an organization will operate. Organization’s Role in Society •Organizations exist to allow accomplishment of work that could not be achieved by people alone. •As long as the goals of an organization are appropriate, society will allow them to exist and 8 they can contribute to society What is Management ? Levels of management 9 What is Management ? Managerial skills • Conceptual skills – The ability to analyze and diagnose a situation and distinguish between cause and effect. • Human skills – The ability to understand, alter, lead, and control the behavior of other individuals and groups. • Technical skills – Job-specific skills required to perform a particular type of work or occupation at a 10 high level. What is Management ? Managerial Roles • Management Roles: (Henry Mintzberg) • Interpersonal Roles – Figurehead, Leader ,Liaison • Informational Roles – Monitor, Disseminator, Spokesperson • Decisional Roles – Entrepreneur, Disturbance handler, – Resource allocator, Negotiator 11 What is Management ? Challenges faced by management •New workplace as knowledge organizations •Environmental changes •Globalization •Information technology (IT) •Total Quality management (TQM) •Workplace diversity •Ethics 12 What is Management ? Challenges faced by management •New workplace as knowledge organizations •Workplaces are called as knowledge organizations due to following reasons: - Organizations are influenced by environmental changes - People being the essential element of organization respond to changes - People have behaviors, therefore, better management of behaviors lead to success of organization - So better management of HR and their behavior lead to better resource availability at workplace and makes organization a knowledge organization and developing knowledge organization is a challenge for management 13 What is Management ? Challenges faced by management •Environmental changes – Globalization •Globalization means becoming borderless •Becoming borderless in corporate environment means borderless economy and borderless operations •Borderless economy demands from organizations to gain global competitive advantage •Global competitive advantage require an organizational management to acquire the relevant HR and manage their behavior in global environment 14 which is a challenge for management What is Management ? Challenges faced by management •Environmental changes – IT / information age •1st generation of IT was based on data automation •2nd generation of IT consists of an integrated system and its transformation into decision support system (DSS) •Changes in IT and its growing use has changed the requirements of HR, their needs and behavior. •Management of HR behavoir in changing IT environment is a challenge for management 15 What is Management ? Challenges faced by management •IT is challenging for three reasons: •Applicable in all sectors •Cost reduction tool •Can change all operations •IT has impact on work and job in following manner: •Use of neural networks •Use of internet •Use of intranet •Downsizing •Flat organization •Less bureaucracy 16 What is Management ? Challenges faced by management •Environmental changes – Quality •Quality is the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied need •Current day world is influenced by term quality service revolution •Quality is the cost of entering in world market place •Therefore, quality has direct impact on success of organization •wholistic impact of quality gave birth to total quality 17 management (TQM) What is Management ? Challenges faced by management •Environmental changes – Quality •Quality is delivered by relevant and experienced HR •Acquiring HR and managing its behavior that can deliver the quality to internal and external customers is a challenge for management 18 What is Management ? Challenges faced by management •Total quality management require all internal and external stakeholders to deliver quality in all functions •TQM has three trends: •It is difficult to implement •Components of TQM are hard to classify •There are rapid changes in the area 19 What is Management ? Challenges faced by management •Following are the major tools in TQM: •Reengineering: redesign of business processes to make improvements in cost, quality, speed service •Benchmarking: process of comparing work and service methods against the best practices and outcomes for purpose of identifying changes that will result in higher quality •Empowerment: process of recognizing and releasing power among the people. Following are the requirements to make empowerment effective: •Participation •Innovation •access to information •accountability 20 What is Management ? Challenges faced by management •Environmental changes – Workforce Diversity •Diversity means the state of being diverse; variety •Diversity may lead to discrimination based on following: •Age •Sex •Race •Ethnicity •Religion •Disability etc. •Challenge for management IS to remove all forms of discriminations and create equal opportunities 21 What is Management ? Challenges faced by management •Environmental changes – Ethics • Ethics consist of a set of moral principles, esp. ones relating to or affirming a specified group, field, or form of conduct. •Emerging workplace ethics related problem are : •Sexual harassment •Ceiling effect •Work- family relationship •Challenge for management is to maintain workplace ethics 22 What is Management ? Challenges faced by management •Solution to challenges: New perspective of management • Solution to new challenges faced by management lies in making emphasis on Human skills also called Behavioral approach: – The ability to understand, alter, lead, and control the behavior of other individuals and groups. •Traditional view of management also called as human relations approach used money and incentives as tool to resolve problems •Contemporary view of management also called as behavioral management require to study human 23 behaviors for effective management of human resource What is Management ? Approaches to Management •Process approach •Quantitative approach •System approach •Contingency approach •Human relation approach •Behavioral approach 24 What is Management ? Approaches to Management Behavioural approach to management •Traditional approach – Human relations •Economic security •Working conditions •Monetary rewards •Contemporary approach Behavioral approach •Researching human behaviours •Managing people in light of behaviours •Increasing emphasis on use of human skills in addition to conceptual and technical skills25 What is Management ? Approaches to Management Behavioural approach to management •Attempts to provide specific necessary background skills needed to make managers of today and tomorrow as effective with the conceptual and humans dimension of management as they been in past with technical or functional dimensions •Emphasis is on developing the ability to understand, alter, lead, and control the behavior of other individuals and groups. 26 What is organizational behavior ? Study of human behavior in organization setting Organizational behaviour attempts to provide background and skills to deal with human dimension of management Understanding, prediction and management of human behaviour in organization setting (Luthans) “The study of individual behavior and group dynamics in organizations” (Luthans) 27 What is organizational behavior ? Organizational behaviour is the systematic study of the actions and attitudes that people exhibits within organizations (Robbins) Organizational behaviour is a field of study that investigates how individuals, groups and structure affect and are affected by behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness (Robbins) 28 What is organizational behavior ? Relationship with other disciplines 29 What is organizational behavior ? Theoretical frameworks and organizational behavior model Cognitive framework •Cognition is act of knowing information •Cognition is based on: •Inputs (information) •Output (behavior) •Cognition process consists of : •Thinking •Perception •Problem solving •Information processing 30 What is organizational behavior ? Theoretical frameworks and organizational behavior model Cognitive framework •Cognition is a logical thinking that creates “expectancy” that a particular event will lead to a particular consequence •Based on expectancy an individual behaves in a certain manner on happening of certain event •Therefore behavior is explained through cognition and this makes cognitive framework the part of organizational behavior e.g. how managers makes decision and behave 31 What is organizational behavior ? Theoretical frameworks and organizational behavior model Behaviouristic framework •Behaviouristic approach is environmental based and take input from environment •The approach is based on observation •Stimulus response phenomena i.e. a stimulus generates a response is the basics of this approach also called as classical school 32 What is organizational behavior ? Theoretical frameworks and organizational behavior model Behaviouristic framework •Skinner (father of operant conditioning school) explained that stimulus response helps to explain the physical reflexes but there exits operant conditioning •Operant conditioning stands that consequences of response infect explains the most behaviors as compared to stimuli. It means expected results of some input directs an individual to behave in certain way instead of expected reaction in response to an action •Therefore is behavior is function of its consequences 33 What is organizational behavior ? Theoretical frameworks and organizational behavior model Social learning framework •Social learning approach is a behavioral approach but combination of cognitive and Behavioural framework. •According to Bandura, behavior can be best explained in terms of continues reciprocal interaction among cognitive, behavioral and environmental determinants •According to Bandura, personality is shaped by an interaction among cognitive factors, behaviors and environmental factors. This interaction is termed reciprocal determinism. 34 What is organizational behavior ? Theoretical frameworks and organizational behavior model Social learning framework •Under social learning approach individuals •Learn about their environment •Alter and construct their environment to make reinforces available •Note the importance of rule and symbolic process in learning Organizational participants Cognition guide organizational behaviour Organizational behaviour Participants control their behaviour using cognition and manage environmental signals complex behavior is acquired from environment Organizational environment 35 What is organizational behavior ? Theoretical frameworks and organizational behavior model Social learning framework – Organizational behaviour model •Cognitive approach – understanding the human behavior •Behavioural approach – predicting and managing human behavior •Cognitive approach – internal factors •Behavioral approach – external factor 36 What is organizational behavior ? Contemporary organizational behavior An interdisciplinary focus – relations with other field 37 What is organizational behavior ? Contemporary organizational behavior An interdisciplinary focus – relations with other field 38 What is organizational behavior ? Contemporary organizational behavior An interdisciplinary focus – relations with other field 39 What is organizational behavior ? Contemporary organizational behavior An interdisciplinary focus – relations with other field 40 What is organizational behavior ? Contemporary organizational behavior An interdisciplinary focus – relations with other field 41 What is organizational behavior ? Contemporary organizational behavior Descriptive nature •Organizational behaviour has main emphasis on describing the problems associated with behaviour rather than prescribing •The reason for this phenomena are: •Immaturity of the field as the filed of is still in process of development •Complexity of behaviours •Lack of valid information for research 42 What is organizational behavior ? Importance for managers •Help managers to define the complex human behaviour and problems associated with it •Help managers to understand, predict and manager human behaviour for effective management of organizations •Help the mangers to classify: •People as organizations •People as resource •People as people 43 Next time •Overview of various approaches to management with specific emphasis on behavioural approach •OB frameworks •Completion of first bullet of course •Activity •Paper discussion Your assignment -Write a note on following •Behaviour •Attitude •Personality •Quality •Diversity •Perception •Emotions •Cognition •Values •Culture 44 Questions ? 45 Thank You 46