Subject Code: BBA102Subject: ORGANIZATION BEHAVIOUR

Question 1 - Define the term ‘Organizational Behavior”. Explain the importance of Organizational Behavior?

Ans: - Organizational Behavior (OB) is the study and application of knowledge about how people, individually and groups behave as individuals as well as in groups in the organizations. Its main purpose is to build better relationships by achieving individual objectives, group objectives, and organizational objectives and at last, social objectives. Talcott Parsons defines organization as, “a social unit which is deliberately constructed and reconstructed to seek specific goals.” Etzioni describes three characteristics of organizations: 1 (i) Division of labor – there should be equal distribution of work according to an individual’s qualifications, capacities, interests etc. (ii) Presence of one or more power centers – there must be some persons, who are able to control and coordinate the various functions/ activities/ people for the smooth functioning of the organization and (iii) Substitution of personnel – there should be a provision for substitution of people by new employees in case of poor performance, reduced interests, retirement, accidents, etc. The study of Organizational Behavior can be categorized into Micro and Macro OB. Micro OB deals with individuals and groups, whereas Macro OB deals with the organization at large. O.B. is made up of two words: organization and behavior, which means understanding the organization and understanding behavior of people in the organization.

Objectives:

Explain the concept of Organizational Behavior

List out the key elements of OB

Examine the foundations of OB

Discuss the challenges for OB and attempts to overcome them.

Importance of Organizational Behavior: - organizations comprise people who show differentiated behaviors. Dealing with such varied behaviors is an essential activity of managers. Therefore, organizational behavior helps managers to understand and manage human behavior at their work place. Let us now have a look at how the study of OB is useful to managers:

1. Understanding of self and others – OB is a useful tool for understanding human behavior that can be studied at the individual, group or organizational level. The organizational behavior helps an individual to understand himself as well as others better. This also improves interpersonal relations among all levels of employees. The most significant topics covered under this aspect are: values and attitudes, perception, communication, leadership, transactional analysis, power and conflict.

2. Motivation of human resources – the task of a manager is to get the work done through subordinates by inspiring them to achieve organizational goals. But, this can only be practiced by a manager if he is aware of the different patterns of individual’s needs and desires. Hence, OB helps the manager to understand these differing need patterns and suitable methods of rewarding employees by fulfilling their needs.

3. Effective communication – communication is very vital for all managers. It is only through communication that two people are able to exchange their views and opinions. Good communication can lead to wonders in the organization, whereas poor communication can create blunders. Therefore, to run the organization effectively, managers need to learn first how to

communicate formally and informally with individuals and groups. Unit 10 will deal with the communication aspect.

4. Effective organizational climate – this covers a broader view rather than focusing on narrow aspects. OB stresses upon creating a healthy climate comprising harmonious inter-personal relations, hygienic working conditions, fair and adequate compensation, better and safe equipment for performing the job, effective leadership, employees‟ participation, etc.

5. Good human relations – OB strives to maintain harmonious inter-personal relationships. The study of OB revolves around the people at work and their relations with each other. Thus, it provides directions to managers as to how to deal with employee problems in different situations. For example, a worker remains absent for a number of days and even when he turns up, he keeps himself away from the work. The reason might not always be less compensation/family problems/strict supervision etc.; it might so happen that the employee needs recognition for his work. Thus, OB helps managers to understand the different motives of different individuals and the ways to control them.

6. Introduction of change in the organization – change is the law of nature and is inevitable. This is the result of social, technological, political, economic or other environmental factors. Dealing with human resistance is the toughest and the most challenging task of a manager. Therefore, OB guides managers on how to cope with human resistance

Question 2 - Explain the following:

a) Span of Control

b) Centralization and Decentralization

Ans: - a) Span of Control: - This is also known as the span of management/supervision. Span of control refers to the maximum number of employees that can be supervised efficiently and effectively by a senior (as shown in Figure 2.6).

Figure illustrates the span of Control

There are two types of spans – narrow span of control and wide span of control. In a narrow span of control, there are a smaller number of subordinates to be supervised by a senior and hence, due to a smaller number of subordinates the number of levels in the organization gets increased. This takes the shape of a tall organization. On the other hand, where there is a larger number of subordinates being directed by a senior, there will be few layers in the organization and will shape it as a wide or flat organization (as shown in figure 2.7). Studies reveal that companies like Du Pont, General Motors, Hindustan Lever Ltd., Bank of America have wide spans. It has been a debatable issue as to how many subordinates should report to one senior. Some modern theorists believe that span of control is dependent on a few factors such as (i) capacity of the senior to direct more number of subordinates (ii) capacity of subordinates to do the tasks themselves (iii) size of the organization (iv) nature of work (v) time available for supervision (vi) control mechanism – if a senior wants direct supervision then he can only go for narrow span and if there is a thorough reporting system, then wide span can be managed and (vii) effectiveness of communication – in case of clear and transparent communication, large number of levels can be managed easily.

Figure 2.7: Illustrates the Tall and Flat structure

b) Centralization and Decentralization: - The main managerial function is concerned with taking decisions. Centralization and decentralization are concerned with the manner in which decision-making authority is divided at different hierarchical levels. Centralization refers to the degree to which authority is concentrated at one position i.e. the top position, whereas, in decentralization the authority is distributed and passed on to other levels of the organization. In the words of Henri Fayol,”Everything that goes to increase the importance of the subordinates in known as decentralization and everything that

goes to reduce it is known as centralization. Whether to have centralization or decentralization also depends on the size of the organization. Apart from this, neither of the two can be practiced alone, because if the senior will exercise the entire authority then the subordinates will not be able to perform their best and there will be more conflicting situations. Likewise, if the manager passes all his power to his subordinates then he might cease to exist. Hence, it is important to create a balance between the two and accordingly practice depending upon the situation, nature of work, type of subordinates/seniors and size of organization.

Question 3 - Define the term ‘Learning’. Explain any three theories of learning?

Ans: - An organization where people learn the right things quickly is successful. An organization where learning is neglected falls apart. Since learning is so essential for the well-being of an organization it is not surprising that substantial managerial effort is directed towards creating a learning environment and learning itself. Right from the induction into an organization till retirement, organizational learning is an inescapable fact. If learning is important it is also important to understand how people learn, elements of the learning process, role of teachers and facilitators in learning, and also about an effective learning environment.

Learning is vital - both for individuals as well as organizations. It is vital because new possibilities are emerging and new threats confront us continuously. We are living in a world that is ever changing. New technologies are being created regularly; new understandings of human nature are being identified. The ethico-legal atmosphere is being modified almost daily. New products are being launched; new advertising campaigns are being planned. Indicators of economy change rapidly. Anyone who stops learning in this ever changing world is outdated quickly. Would you like to go to a doctor who is not updated about new diseases, latest medicines, and recent diagnostic and therapeutic technologies? You will not even travel in an airplane or a car where the pilot/driver is not properly trained. Thus, it is in our interest that we update ourselves with changes around us and learn new techniques skills, knowledge, approaches and ideas. This applies on organizations also. Statesman – one of the leading newspapers of India since 1868 is fighting a lost battle today because its managers had stopped learning. Today individuals and organizations have to learn continuously. Learning has also been identified as a major source of motivation. Today there are many employees who will opt for a job that provides better learning opportunities. This is because of two reasons, a job that does not require learning becomes monotonous and boring, whereas jobs requiring continuous learning are interesting and challenging. The job of a scientist is definitely more interesting than the job of a clerk. To many of us learning itself is a very satisfying experience.

Objectives:

After studying this unit you should be able to:

Explain the concept of learning and learning cycle

Describe components of learning

Discuss theories of learning.

Theories of Learning: As learning became important for human civilization, it invited the attention of many researchers. They identified several approaches to learning. They are as follows:

I. Classical conditioning

II. Operant conditioning

III. Social learning

IV. Cognitive learning

V. Programmed learning

I. Classical Conditioning: This approach explains the learning of reflex behavior. An example of a reflex behavior is- when stuck with a pin we flinch without thinking. Pavlov – a Russian scientist conducted a remarkable experiment on his dog. Pavlov observed that his dog began to salivate as soon as food was offered to it. It did not salivate when a bell was rung. Thereafter he trained his dog by ringing a bell and then offering food to the dog. After sometime he noticed that dog would

salivate as soon as the bell was rung. Thus the dog had learnt to associate ringing of the bell with food. In other words Pavlov paired a ringing bell (conditioned stimulus) with food (unconditioned stimulus).

Figure 4.2: Illustrates the Palvov’s experiment

Is classical conditioning relevant for human learning? It is. We are filled with pride and patriotism when we hear our national anthem. This is the result of learning through classical conditioning. But is classical conditioning important in organizations? Most mission and vision statements have components that employees learn through classical conditioning. Since in organizations managers are interested in instilling voluntary behaviors, classical conditioning has a very limited role in organizational learning.

II. Operant conditioning: B. F Skinner is closely associated with this learning theory. Operant conditioning is based on the fact that voluntary behaviors are learnt. As human beings we learn behavior because we find it rewarding. In the same way we can unlearn behavior if its consequence becomes unrewarding or punishing. Thus a child learns to become obedient because he is rewarded with parental love and appreciation. Similarly a child stops bad behavior when punished. In organizations also Operant conditioning is found frequently. When an individual works hard he or she is paid accordingly. When an individual takes the initiative he or she is appreciated. Similarly, if a person remains absent he may lose his pay. If he is late he may not be allowed to enter the organization. Operant conditioning therefore is an important tool for managers, who want the employees to learn productive voluntary behaviors and give up voluntary unproductive behaviors.

III. Social learning: This theory of learning is an extension of operant conditioning. Albert Bandura demonstrated that people learn or unlearn behaviors even by watching others being rewarded or punished for a particular behavior. We decide on our behavior by watching others. In other words we keenly watch others around us then develop a mental picture of a behavior and its result and finally we try the behavior ourselves. Managers use rewards and punishments to set an example also. When we see others being rewarded we are motivated to pick up that behavior. When we see others being punished we are discouraged to acquire that behavior. Researchers such as M.L Bigge have suggested the following steps for applying social learning theory in organizations:

Identify the behavior that enhances performance/productivity.

Select a suitable model for others in the organization to observe.

Ensure that employees possess the required skills.

Provide positive feedback to the model and other employees who learn the behavior.

Maintain such beneficial behaviors by developing appropriate practices in the organization.

Question 4 - Define the term motivation. Explain Maslow’s need Hierarchy theory?

Ans: - The term „motivation‟ has its origin in the Latin word “mover” which means to “move”. Thus, motivation stands for movement. One can move people by incentives or threats which can have a limited effect. These work for a while and then need to be repeated, increased or reinforced to secure further movement.

The term motivation may be defined as “the managerial function of ascertaining the motives of subordinates and helping them to realize those motives”.

According to Dubin, motivation could be defined as “the complex of forces starting and keeping a person at work in an organization. Motivation is something that moves the person to action, and continues him in the course of action already initiated”.

All the theories of motivation can be classified into two broad categories, content theories and process theories. 1) Content theories 2) Two factory theory

Content (or need) theories of motivation focus on factors internal to the individual that energize and direct behavior. In general, such theories regard motivation as the product of internal drives that compel an individual to act or move (hence, "motivate") toward the satisfaction of individual needs . The content theories of motivation are based in large part on early theories of motivation that traced the paths of action backward to their perceived origin in internal drives.

Content theories include Maslow‟s need hierarchy theory, Herzberg‟s two factor theory, Alderfer‟s ERG and Achievement Motivation theory. Process theories include Vroom‟s Expectancy Model, Adam‟s Equity theory and Portor‟s Performance and Satisfaction model.

Maslow’s Need Hierarchy Theory: - Abraham Harold Maslow in the year 1954 proposed the need Hierarchy theory of Motivation. This theory says that

a) Human behavior is influenced by their wants and desires.

b) Any unsatisfied need acts as a motivator.

c) Needs are hierarchical.

d) People can move from lower needs to upper needs.

Maslow identified five levels of needs which are the source of motivation: - These needs are

1) Physiological Needs: These are lower level needs. They include food, air, water, shelter and other bodily needs.

2) Safety Needs: Once physiological needs are met, another set of needs called safety needs becomes the motivating factor. It includes needs for protection, a secure and stable environment. In the organizational context it includes job security, safe working conditions, pension scheme, provident fund etc.

3) Social Needs: This is the third level of the hierarchy of the needs. It includes respect, affection, friendship or interaction with people.

4) Esteem Needs: The next level in Maslow‟s hierarchy is esteem or ego needs. These needs arise when we want to be appreciated for what we can do. These needs include self-respect, personal achievement, status, recognition and attention.

5) Self-actualization Needs: When all the earlier needs are fulfilled people move to next level of need that is self-actualization needs. These needs represent self-fulfillment which includes growth and achievement.

Thus Maslow classified these needs into higher and lower level needs. After satisfying the lower level needs a person moves to higher level needs.

Figure 7.2: Maslow’s Need Hierarchy

Maslow‟s need hierarchy theory has been criticized on the following arguments

a) It is difficult to interpret and operationalize the concept of need hierarchy.b) This model is based on relatively small subjects.c) The need classification model is artificial and arbitrary which cannot be given in a five step hierarchy.d) The same need will not lead to the same response in all the individuals.e) The concept of need is introspective in nature which cannot be tested objectively.f) Individuals differ in the relative intensity of their various needs.

In spite of all the criticism the need priority model is useful because of its rich and comprehensive view of needs. The theory is relevant because needs are important for understanding behavior. It can be accepted due to its immense intuitive appeal. It has survived and is widely used in understanding the need –motivation concept.

Question 5 - What is meant by conflict? Describe the sources of conflict?

Ans: - Conflict is a part of our day-to-day life. When we look around we see that every day we have some or other disagreement with people. Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and personality differences. Other causes of conflict include trying to negotiate before the timing is right or before needed information is available. Conflict is not always negative. In fact, it can be healthy when effectively managed. Healthy conflict can lead to.

Growth and innovationNew ways of thinkingAdditional management optionsHigh productivity.

Objectives:

After studying this unit you should be able to

List out the types and sources of conflict. Explain levels of conflict. Discuss conflict management approaches.

Definition and Meaning

Robbins says that, conflict is a perceived difference of values between two or more parties that results in mutual opposition. It implies both, opposing interests or goals; opposing or incompatible behavior. It is a process in which A deliberately tries to offset the efforts of B by some form of blocking that will result in frustrating B in attaining his goals or frustrating his interests.

Sources of Conflict: - In any effective and efficient organization it is important that the employees should have a shared objective and strive to achieve it. A manager should be able to recognize and resolve the conflict in the organization. Conflict isa very big obstacle so we need to keep it at minimum. The proper management of organizational conflict needs an understanding of the nature and the source of conflict at the work place. As we know, conflict is present in every organization.

Following are the sources of conflict which have been identified in organizations:

a) Interdependence: In organizations, for the accomplishment of the goal, a certain amount of interaction is necessary. It is basically the dependence of one party on the other for resources and information. There is no such direct relationship between interdependence and conflict, but it is said that interdependence increases the chance of conflict. According to J. Thompson, there are three different types of interdependence among groups.

i) Pooled interdependence: When departments have very little interaction with each other, but can be affected by each other’s action, then it is known as pooled interdependence. For example, the Bangalore branch of a bank has no direct interaction with the Kolkata branch. But their resource comes from one center and the success of the organization depends upon the success of both the branches. This is pooled inter dependence. The conflict arises when there is scarcity of resources and both have to use them.

ii) Sequential interdependence: When the output of one department becomes the input of another department, it is known as sequential interdependence. Here there is one way flow of information, output and services. The total performance of the receiving department depends upon the supplying department, which can be a cause of conflict between the receiving department and the supplying department.

iii) Reciprocal interdependence: When two or more people are mutually interdependent in accomplishing the task, it is known as reciprocal interdependence. They share information and resources. We can take the example of a nursing home, where frequent interactions, proper time coordination and exchange of information and resource are required among the staff and doctors of

that particular nursing home. Success depends upon good communication and joint decision making; lack of these will always lead to conflict.

b) Scarcity of resources: Conflict on resources is very common in organizations, and if the sources are scarce in nature then the chances of conflict increase. This is because these scarce resources are shared by various groups, departments and individuals in the organization.

c) Specialization: One of the major causes of disagreement in the organization can be high degrees of specialization. A person with a high degree of specialization will not give importance to the advice of others. Not only this, he will not be aware of the other areas. Due to his specialized training and development he has his own values and beliefs, so he always tries to work in his own way and ignore others. This ultimately leads to conflict.

d) Competitive incentive and reward system: Competitive incentive and reward system can be one of the causes of inter- group conflict. If the reward plan is associated with group performance and the tasks are interdependent, then instead of cooperation, competition increases and people try to succeed at the expense of others.

e) Incompatible personalities: As we all know, no two people are the same. There are certain people who consider themselves as perfectionists. They are achievement oriented and hard working. These people are not aware of the feelings of others. They are highly critical of others, which create stress among others and leads to conflict.

f) Lack of clarity of roles and responsibilities: A clear line of role and responsibility is very important for any organization. In the absence of it there is no one to take the responsibility if required. Employees start passing the buck. Instead of solving the problem they tend to blame others and conflicts can arise on assigning the responsibilities.

g) Differences of perception, value and attitude: The personality of an individual plays a very important role in creating perception. Different people have different expectations, and when they are not fulfilled, it generates conflict. When there is a difference in value and attitude, there is always a chance of conflict.

h) Poor communication: In the absence of good communication there is always a chance of interpersonal conflict. Communication barriers such as wrong interpretation of the message, structural or emotional barriers, language barrier or mind set of the receiver, can be the cause of arguments and lead to conflicts.

i) Cultural barriers: Modern organizations operate with a diverse work force. People come from different cultures and become a part of a group, but they have their own way of thinking. Anything which is acceptable in one organization might not be acceptable in another. This can be a cause of clash and leads to conflict.

Hence, we can say that there are different sources of conflict in the organization. There are other sources of conflict also such as

poor or inadequate organizational structure Lack of team work. Group decision making Heterogeneity of employees etc.

Question 6 - Write short notes on the following:

a) Organization Culture

b) Conflict management

ANS: - a) Organization Culture: - Organization culture is the set of shared values and norms that controls organizational member’s interactions with each other and with people outside the organization. It is referred to as the common perception held by the members towards their organization. Organization culture is a system where values, norms and principles are shared largely by all people. Values are the beliefs that guide our behavior and decisions across a variety of situations. Values are intensely held in the organization culture and are known as shared values. Shared values are those values that are practiced in common by all the employees of the organization. For example, increasing organizational efficiency, increasing productivity, maintaining the image and good will of the company, etc., if these are followed and shared by almost all the employees of the company then it is known as shared values. Thus, organization culture defines what is „right‟ or „wrong‟, what is „important‟ or „unimportant‟ and what is „favorable‟ or „unfavorable‟ in the company. Kellogg’s company has been awarded for being one of the most ethical companies because they work with integrity, passion, and most primarily, they stick to their vision and values.

Objectives:

state the meaning of Organization culture paraphrase the origin of organization culture state the levels of organization culture

Functions of Organization Culture

The following are the important functions performed by the culture of an organization - It defines a boundary between one organization and others. It conveys a sense of identity to its organizational members It enhances commitment to organizational goals that is superior to an individual’s self-interest. It provides standards and benchmarks to employees as to what they are supposed to do. Organization culture cannot be created overnight, because it comprises values and beliefs that are

shared universally. It is not possible for an individual to create the culture of an organization alone. The founder of the organization and members of the top management of the organization have to

play an important role in shaping the culture. There are many subcultures present within the organizational culture. These subcultures are formed

as a result of the different desires and needs of the employees. The culture of the organization is passed through generations, i.e. from old employees to new

employees, through the process of socialization (the socialization process is discussed in section 11.5.2).

Organization culture once formed is not easy to change because cultural change requires the people to change their behavior. As we all know, it’s quite difficult for us to change our old way of doing things and get adapted to new things.

b) Conflict management: - Conflict is a part of our day-to-day life. When we look around we see that every day we have some or other disagreement with people. Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and personality differences. Other causes of conflict include trying to negotiate before the timing is right or before needed information is available. Conflict is not always negative. In fact, it can be healthy when effectively managed. Healthy conflict can lead to.

Growth and innovation New ways of thinking Additional management options High productivity.

In an organization, conflict can have many forms and there can be various sources of conflict. If it is not managed properly and on time it can destroy the whole organization. There are many cases in which

companies were locked up due to the conflict between management and employees. Formatted: Font color: Auto

If the conflict is understood, it can be effectively managed by reaching a consensus that meets both the individual's and organizational needs. This results in mutual benefits and strengthens the relationship.

Objectives:

list out the types and sources of conflict. explain levels of conflict. Discuss conflict management approaches.

The features of conflict are as follows:

I. Conflict is incompatible in nature. It occurs when two or more people have mutually exclusive goals to be achieved.II. Conflict arises due to scarcity of resources.III. Conflict can be verbal or non-verbal behavior.IV. Conflict is deliberate. Conflict exists when some negative behavior is shown intentionally.V. It is based on perception. It arises when people have differences in the interpretation of facts.

Conflict Management Approaches: It is said that conflict is harmful for any organization, but at times conflict can be very useful in the organization. A manager should have the ability to identify the constructive conflict and he should use it for organizational effectiveness. Optimum level of conflict can stimulate competition which can have a positive impact on the organization. It helps in minimizing group think; people can be more innovative and creative. It results in better decision making. Robbins says that the following approaches can be used to stimulate moderate level of conflict in the organization:

Encouraging individualistic thinking Increasing individual competition by rewarding individual performance. Providing all good and bad news to the employees Creating role conflict between perceived and actual role. Bringing change in the organizational structure. Restructuring the work unit. Adopting the role of devil’s advocate in group discussion. Bringing outsiders into the organization.