Course Content 100 Marks – 60 marks written exam and 40 marks internal assessment. Introduction to...

Course Content100 Marks – 60 marks written exam and 40 marks

internal assessment.Introduction to OBPersonalityPerception Attitude and ValuesMotivation ConceptsGroup Behaviour and Group DynamicsOrganisational DesignLeadershipOrganisational Development

Reference BooksUnderstanding Organisational Behaviour –

Udai Pareekh

Organisational Behaviour - Stephen P. Robbins

Organisational Behaviour – Fred Luthans

Organizational Behaviour- Newstrom

Organizational Behaviour- Uma Sekaran


internal assessment.Introduction to OBPersonalityPerception Attitude and ValuesMotivation ConceptsGroup Behaviour and Group DynamicsOrganisational DesignLeadershipOrganisational Development

Introduction to OB – Learning Objectives

Define Organisational BehaviourDescribe what Managers doExplain the value of the systematic study of OBList the major challenges and opportunities for

the managers to use OB concepts Identify the contributors made by major

behavioural science discipline to OB

Describe why mangers require a Describe why mangers require a knowledge of OBknowledge of OB

What Managers DO???Planning

Organising

Leading

Controlling

MINTZBER’S MANGERIAL ROLES

Activity 1

Write down 10 roles which makes manager effective and

successful???

Time – 5 Min

Organisational BehaviourOrganisational Behaviour is a field of study that

investigates the impact that individuals, groups, and structure have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.

OB is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.

It emphasises behaviour as related to concerns such as jobs, , work, absenteeism, employment turnover, productivity, human performance and management.

Activity - 2Write two different incidents when you predicted someone’s behaviour and your prediction was correct and when your prediction was wrong.

Time – 5 Min

Few Questions to Ponder???How many of have attempted to interpret what

you see?How many of you predict behaviour / actions

of others?How many times it was correct and how many

times it was wrong?How well did you know those people whose

behaviour you predicted correctly?How well did you know those people whose

behaviour you predicted wrongly?How many times you felt that behaviour

displayed by others is irrational?

Replacing Intuition with Systematic StudyYou watch what others do and try to explain to

yourself why they have engaged in their behaviour.

Unfortunately our casual or commonsense approach to reading others can often lead to erroneous predictions.

You can improve your ability by replacing your intuitive opinions with a more systematic approach.

Behaviour generally is predictable if we know how the person perceived the situation and what is important o him or her

Replacing Intuition with Systematic StudyThere are differences between individuals

however there are certain fundamental consistencies underlying the behaviour of all individuals that can be identified

These fundamental consistencies are very important because they allow predictability.

Examples

Behaviour is generally predictable and the systematic study of behaviour is a means to making reasonably accurate predictions.

Bases of OBPsychology: The science or study of individual

human behaviour

Sociology: The study of group human behaviour

Social Psychology: Studies influences of people on one another

Anthropology:Study of the human race, and culture

Political Science:Behaviour of individuals in political environment

Bases of OB

Challenges and Opportunities for OBResponding to globalisationManaging workforce diversityImproving quality and productivityResponding to skilled labour shortageImproving customer serviceImproving people skillsEmpowering peopleCoping with ‘Temporariness’Stimulating Innovation and ChangeHelping employees balance work/life conflictsImproving ethical behaviour

OB Model

Individual Level

Group Level

Organisation System Level

OB Model – Individual LevelValuesAttitudePersonality Types and EmotionsPerception and Individual Decision MakingMotivation

Foundation of Group behaviourUnderstanding work teamsCommunicationPower and PoliticsLeadershipConflict and Negotiation

OB Model – Group Level

Organisation StructureOrganisation DesignOrganisation Development

OB Model – Organisation System Level

Activity - 3

Case Study


internal assessment.Introduction to OBValues and Attitude PersonalityPerceptionMotivation ConceptsGroup Behaviour and Group DynamicsOrganisational DesignLeadershipOrganisational Development

Value – Corporate Value

The Operating philosophies or principles that guide an

organisation’s internal conduct as well as its relationship with its

customers, partners, and shareholders.

AttitudeAttitudes are evaluative statements – either

favorable or unfavorable – concerning objects, people, or situation.

Attitudes reflect how one feels about something.Components of Attitude

Cognitive Component - BeliefAffective Component – Emotion or feelingBehavioural Component

In organisation, Attitudes are important because they affect Job behaviour

Types Of Attitude

Job Satisfaction

Job Involvement

Organisational Commitment

PersonalityDynamic concept describing growth and

development of a person’s whole psychological system .

“Personality is the sum total of ways in which an individual REACTS and INTERACTS with others.”

What Determines The Personality?

HeredityHeredityHeredityHeredity SituationSituationSituationSituationEnvironmentEnvironmentEnvironmentEnvironment

Style ofStyle ofDecision MakingDecision Making Judgmental (J)Judgmental (J)

Perceptive (P)Perceptive (P)

Preference forPreference forDecision MakingDecision Making Thinking (T)Thinking (T)

Feeling (F)Feeling (F)

Type of SocialType of SocialInteractionInteraction Introvert (I)Introvert (I)

Extrovert (E)Extrovert (E)

Preference forPreference forGathering DataGathering Data Intuitive (N)Intuitive (N)

Sensing (S)Sensing (S)

Myers-Briggs Type IndicatorMyers-Briggs Type Indicator

Extroversion Introversion

Interest Orientation

E ITalkative,

Sociable,

Friendly,

Outspoken

Shy,

Reserved,

Quite,


Sensing iNtuition

Information

S NOrganised,

Focus Detail

Require more information

Prefer to interpret from

less information,

Able to take foresee


Thinking FeelingDecision

T FReliability of

logical order – cause and

effect,

Logic and consistency

Priorities based on personal

importance and values,

First look at the people and

special circumstances


Judgment PerceptionEnvironment Orientation

J PPrefer to get things

decided

systematic planning

Less Flexible

Spontaneity

Curious

Stay open to new

information,

Flexible


Extroversion Agreeableness

Conscientiousness

Emotional stability

Openness to Experience

The Big Five Personality Dimensions ExtroversionExtroversion:: Outgoing, talkative, sociable,

assertive

AgreeablenessAgreeableness:: Trusting, good natured, cooperative, soft hearted

ConscientiousnessConscientiousness:: Dependable, responsible, achievement oriented, persistent

Emotional stabilityEmotional stability:: Relaxed, secure, unworried

Openness to experience:Openness to experience: Intellectual, imaginative, curious, broad minded

Major Personality Attributes Influencing OB

Other KeyOther KeyPersonalityPersonalityAttributesAttributes

LocusLocusof Controlof Control

Self-EsteemSelf-Esteem

RiskRiskPropensityPropensity

Type A and Type BType A and Type BPersonalityPersonality

MachiavellianMachiavellianPersonalityPersonality

SelfSelfMonitoringMonitoring

Locus of Control

Internal locus of control:Internal locus of control: belief that one controls key events and consequences in one’s life.

External locus of controlExternal locus of control: One’s life outcomes attributed to environmental factors such as luck or fate.

As per 11th Edition

JOB SUITABILITYINTERNALS

Professional jobs

Managerial jobs

EXTERNALS

Structured jobs

Routine jobs

As per 11th Edition

Characteristics:

• Pragmatic• Maintains emotional distance• Believes that ends can justify the means• Manipulate more• Win more• Persuaded less• Persuade others more

As 11th per Edition

Machiavellianism

Job Suitability

For High Machs

Job requiring bargaining skillsOr that offer substantial rewards for

winning

Self Esteem

The degree to which a person likes or dislikes himself

They believe that they possess the ability they need to succeed at work

And more likely to choose unconventional jobs than people with low self esteem

It is directly related to expectations for success

Two types1. High Self Esteem 2. Low self Esteem

High Self Esteem

They believe that they possess the ability they need to succeed at work

And more likely to choose unconventional jobs than people with low self esteem

They will not be susceptible to the external influences

They are more satisfied with their job

High Self Monitoring

Capable of presenting striking contradictions between their public persona & private self

Capable of putting different “faces” for different audiences

A & B Types of Personality

• Type ‘A’– Suffer high level of

stress– Quantity over

quality– Time

pressure/deadlines– Rarely creative– Poor decision

makers– Behavior is easier

to predict

• Type ‘B’– Difficult to predict

behavior– Good decision

makers– Quality of work– No compromise on

health– Wiser than hasty– Creative /

innovative solutions to same problem

Perception and

Individual Decision Making

TWELFTH EDITION

•People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself.reality itself.

• The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.important.

•People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself.reality itself.

• The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.important.

PerceptionA process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Distinctiveness: shows different behaviors in different situations.

Consensus: response is the same as others to same situation.

Consistency: responds in the same way over time.

Distinctiveness: shows different behaviors in different situations.

Consensus: response is the same as others to same situation.

Consistency: responds in the same way over time.

Attribution Theory

When individuals observe behavior, they attempt to determine whether it is internally or externally caused.

Fundamental Attribution Error

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.

Self-Serving Bias

The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.

Selective Perception

People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Halo Effect

Drawing a general impression about an individual on the basis of a single characteristic

Contrast Effects

Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.

Projection

Attributing one’s own characteristics to other people.

Stereotyping

Judging someone on the basis of one’s perception of the group to which that person belongs.

Specific Applications in OrganizationsEmployment Interview

Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants.

Performance ExpectationsSelf-fulfilling prophecy: The lower or higher

performance of employees reflects preconceived leader expectations about employee capabilities.

Specific Applications in Organizations (cont’d)Performance Evaluations

Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance.

Employee EffortAssessment of individual effort is a subjective

judgment subject to perceptual distortion and bias.

Perception of the decision

maker

Perception of the decision

maker

Outcomes

ProblemA perceived discrepancy between the current state of affairs and a desired state.

DecisionsChoices made from among alternatives developed from data perceived as relevant.

Steps in the Rational Decision-Making Model

1. Define the problem.

2. Identify the decision criteria.

3. Allocate weights to the criteria.

4. Develop the alternatives.

5. Evaluate the alternatives.

6. Select the best alternative.

5–61

Organizational Constraints on Decision MakersPerformance Evaluation

Evaluation criteria influence the choice of actions.Reward Systems

Decision makers make action choices that are favored by the organization.

Formal RegulationsOrganizational rules and policies limit the

alternative choices of decision makers.System-imposed Time Constraints

Organizations require decisions by specific deadlines.

Historical PrecedentsPast decisions influence current decisions.

Basic MotivationConcepts

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Motivation

The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

Hierarchy of Needs Theory

There is a hierarchy of five needs—physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant.

Self-Actualization

The drive to become what one is capable of becoming.

Theory X

Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform.

Theory Y

Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

Core Needs

Existence: provision of basic material requirements.

Relatedness: desire for relationships.

Growth: desire for personal development.

Core Needs

Existence: provision of basic material requirements.

Relatedness: desire for relationships.

Growth: desire for personal development.

Concepts:

More than one need can be operative at the same time.

If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.

Concepts:

More than one need can be operative at the same time.

If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.

ERG Theory

There are three groups of core needs: existence, relatedness, and growth.

nAch

nPow

nAff

Need for Achievement

The drive to excel, to achieve in relation to a set of standards, to strive to succeed.

Need for Affiliation

The desire for friendly and close personal relationships.

Need for Power

The need to make others behave in a way that they would not have behaved otherwise.

Two-Factor (Motivation-Hygiene) Theory

Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction.

Hygiene Factors

Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. When factors are adequate, people will not be dissatisfied.

Person compares their outcome/input ratio with others outcome/input ratio.

Inputs refers to the characteristics which individual bring with them to the job

Outcomes refers to what person gets from job in terms of pay, promotions benefits and so on.

Inequity is defined as the perception that persons’ outcome/input ratio is not equal to others outcome/input ratio

Negative Inequity – Under rewarded Positive Inequity – Over rewarded

Distributive Justice

Perceived fairness of the amount and allocation of rewards among individuals.

Procedural Justice

The perceived fairness of the process to determine the distribution of rewards.

Expectancy Theory (Victor Vroom)

The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

Expectancy Theory RelationshipsEffort–Performance Relationship

The probability that exerting a given amount of effort will lead to performance.

Performance–Reward RelationshipThe belief that performing at a particular level

will lead to the attainment of a desired outcome.

Rewards–Personal Goals RelationshipThe degree to which organizational rewards

satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.

Team Dynamics

Group(s)

Two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organisational objectives.

Formal Group

A designated work group defined by the organization’s structure.

Informal Group

A group that is neither formally structured now organizationally determined; appears in response to the need for social contact.

Departmental Teams – Functional teams

Self-Directed Teams

Advisory teams

Task Force (Project) Teams – multi-skilled, temporary teams whose assignment is to solve a problem, realize an opportunity or design a product or service

Skunworks Teams – Usually located away from the organisation, relatively free of its hierarchy. E.g. R & D Dept.

Virtual Teams – Operates across space, time, and organisational boundaries.

Challenges of TeamsProcess Losses

Brook’s Law – E.g.. Apple’s Professional Photography Software Program, Aperture

Social LoafingHow to Minimize Social Loafing

Form Smaller TeamsSpecialize TaskMeasure Individual PerformanceSelection of employees for a team

Group Size

Performance

Expec

ted

Actual (d

ue to lo

afing)

Team Effectiveness

Organisational and Team Environment

Team Design

Team Processes

Organisational and Team Environment

Reward

Communication

Organisational Structure

Organisational Leadership

Physical Space

Team Design Elements Task Characteristics

Task Interdependence – extent to which team members must share information Pooled Interdependence Sequential Interdependence Reciprocal Interdependence

Team SizeTeam Composition

Co-operating – Share resourcesCoordinating – Align work with othersCommunicating – Share informationComforting – Show empathy, Build confidenceConflict Resolving

Team Diversity

Team ProcessesTeam Development

FormingStormingNormingPerformingAdjourning

Team RolesTeam BuildingTeam NormsTeam CohesionTeam Trust

Classes of Norms:•Performance norms

•Appearance norms

•Social arrangement norms

•Allocation of resources norms

Classes of Norms:•Performance norms

•Appearance norms

•Social arrangement norms

•Allocation of resources norms

Increasing group cohesiveness:

1. Make the group smaller.

2. Encourage agreement with group goals.

3. Increase time members spend together.

4. Stimulate competition with other groups.

5. Give rewards to the group, not individuals.

Increasing group cohesiveness:

1. Make the group smaller.

2. Encourage agreement with group goals.

3. Increase time members spend together.

4. Stimulate competition with other groups.

5. Give rewards to the group, not individuals.

Team Decision Making - Constraints

Time Constraints

Production Blocking – Opportune time to speak

Evaluation Apprehension

Groupthink – value consensus at the price of decision quality

Group Polarization or Group Shift

Group / Team Decision Making

StrengthsMore complete

informationIncreased diversity

of viewsHigher quality of

decisions (more accuracy)

Increased acceptance of solutions

WeaknessesMore time

consuming (slower)Increased pressure

to conformDomination by one

or a few membersAmbiguous

responsibility

Team Structure to Improve Decision MakingInteracting

Constructive Conflicts

Brainstorming

Electronic Brainstorming

Nominal Group technique

TWELFTH EDTION

Power and Politics

A BPower

A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes.

Dependency

B’s relationship to A when A possesses something that B requires.

Coercive PowerA power base dependent on fear.Reward PowerCompliance achieved based on the ability to distribute rewards that others view as valuable

Formal Power

Is established by an individual’s position in an organization; conveys the ability to coerce or reward, from formal authority, or from control of information.

Legitimate Power

The power a person receives as a result of his or her position in the formal hierarchy of an organization.

Information Power

Power that comes from access to and control over information.

Expert Power

Influence based on special skills or knowledge.Referent Power

Influence based on possession by an individual of desirable resources or personal traits.

Charismatic Power

An extension of referent power stemming from an individual’s personality and interpersonal style.

Dependency: The Key To PowerThe General Dependency Postulate

The greater B’s dependency on A, the greater the power A has over B.

Possession/control of scarce organizational resources that others need makes a person powerful.

Access to optional resources (e.g., multiple suppliers) reduces the resource holder’s power.

What Creates DependencyImportance of the resource to the organizationScarcity of the resourceNo substitutability of the resource

Power Tactics: Ways in which individuals translate power bases into specific actions.

Ways of using power tactics

Reason: Use facts and data to make a logical presentation of ideas

Friendliness: Being friendly before making a request

Coalition: Getting the support of other people to back up the request

Bargaining: Use negotiations through exchange of favours.

Assertiveness: Use direct and forceful approach

Higher Authority: Getting support of Higher levels

Sanctions: Preventing promising salary, promotions etc.

Political Behavior

Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.

Factors That Influence Political Behaviors

Organisational Factors:

Unclear performance evaluation

Low trust

Role ambiguity

High performance pressure

Win-lose approach to reward allocation

Organisational Culture

Individual Factors:

High personal need of getting power

High Machiavellian personality

Perceived Job alternatives

Insecurity

Expectations of success by doing politics

Avoiding Work:

• Buck passing: Transferring Responsibility

• Playing dumb: Showing ignorance and Inability

• Stretching: Prolonging a task

• Stalling: More supportive publicly while actually doing little

Avoiding Work:

• Buck passing: Transferring Responsibility

• Playing dumb: Showing ignorance and Inability

• Stretching: Prolonging a task

• Stalling: More supportive publicly while actually doing little

Avoiding Blame:

• Playing safe: Neutral position in conflict, not showing opinion and expressions

• Justifying: Developing explanations

• Scapegoating: Placing the blame on external factors

• Misrepresenting: Manipulations of information

Avoiding Blame:

• Playing safe: Neutral position in conflict, not showing opinion and expressions

• Justifying: Developing explanations

• Scapegoating: Placing the blame on external factors

• Misrepresenting: Manipulations of information

IM Techniques:

•Conformity

•Excuses

•Apologies

•Self-Promotion

•Flattery

•Favors

IM Techniques:

•Conformity

•Excuses

•Apologies

•Self-Promotion

•Flattery

•Favors

Impression Management

The process by which individuals attempt to control the impression others form of them.

Foundation of Organizational Structure

TWELFTH EDITION

Key Elements:

• Work specialization

• Departmentalization

• Chain of command

• Span of control

• Centralization and decentralization

• Formalization

Key Elements:

• Work specialization

• Departmentalization

• Chain of command

• Span of control

• Centralization and decentralization

• Formalization

Organizational Structure

How job tasks are formally divided, grouped, and coordinated.

Division of labor:

•Makes efficient use of employee skills

• Increases employee skills through repetition

•Less between-job downtime increases productivity

•Specialized training is more efficient.

•Allows use of specialized equipment.

Division of labor:

•Makes efficient use of employee skills

• Increases employee skills through repetition

•Less between-job downtime increases productivity

•Specialized training is more efficient.

•Allows use of specialized equipment.

Work Specialization

The degree to which tasks in the organization are subdivided into separate jobs.

Grouping Activities By:

•Function

•Product

•Geography

•Process

•Customer

Grouping Activities By:

•Function

•Product

•Geography

•Process

•Customer

Departmentalization

The basis by which jobs are grouped together.

Chain of Command

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

Authority

The rights inherent in a managerial position to give orders and to expect the orders to be obeyed.

Unity of Command

A subordinate should have only one superior to whom he or she is directly responsible.

Narrow Span Drawbacks:

•Expense of additional layers of management.

•Increased complexity of vertical communication.

•Encouragement of overly tight supervision and discouragement of employee autonomy.

Narrow Span Drawbacks:

•Expense of additional layers of management.

•Increased complexity of vertical communication.

•Encouragement of overly tight supervision and discouragement of employee autonomy.

Concept:

Wider spans of management increase organizational efficiency.

Concept:

Wider spans of management increase organizational efficiency.

Span of ControlThe number of subordinates a manager can efficiently and effectively direct.

Centralization

The degree to which decision making is concentrated at a single point in the organization.

Formalization

The degree to which jobs within the organization are standardized.

Decentralization

The degree to which decision making is spread throughout the organization.

A Simple Structure:Jack Gold’s Men’s Store

A Simple Structure:Jack Gold’s Men’s Store

Simple Structure

A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

Bureaucracy

A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.

Key Elements:

+Gains the advantages of functional and product departmentalization while avoiding their weaknesses.

+Facilitates coordination of complex and interdependent activities.

– Breaks down unity-of-command concept.

Key Elements:

+Gains the advantages of functional and product departmentalization while avoiding their weaknesses.

+Facilitates coordination of complex and interdependent activities.

– Breaks down unity-of-command concept.

Matrix Structure

A structure that creates dual lines of authority and combines functional and product departmentalization.

(Dean)

(Director)

Employee

Mechanistic Model

A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.

Organic Model

A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

Innovation StrategyA strategy that emphasizes the introduction of major new products and services.

Imitation StrategyA strategy that seeks to move into new products or new markets only after their viability has already been proven.

Cost-minimization StrategyA strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.

Strategy Structural Option

Innovation Organic: A loose structure; low specialization, low formalization, decentralized

Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization

Imitation Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings

Course Content 100 Marks – 60 marks written exam and 40 marks internal assessment. Introduction to...

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