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ORGANIZATION BEHAVIOURORGANIZATION BEHAVIOUR
Nature of PeopleNature of People
By Prof. Shivashankar
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OB-Nature of PeopleOB-Nature of People
s Every field of Science Social orEvery field of Science Social or
Physical has a philosophical foundationPhysical has a philosophical foundation
of basic concepts that guide itsof basic concepts that guide itsdevelopmentsdevelopments
s Examples:Examples:s Accounting System Double entryAccounting System Double entrys Physics Elements of nature are uniformPhysics Elements of nature are uniform
s Law of gravity Same in UK or IndiaLaw of gravity Same in UK or India
s Atoms of hydrogen or same in Moscow & USAtoms of hydrogen or same in Moscow & US
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OB-Nature of PeopleOB-Nature of People
s But such type of Uniformity cannot beBut such type of Uniformity cannot beapplied to HUMANSapplied to HUMANS
BASIC CONCEPT REGARDING HUMANBASIC CONCEPT REGARDING HUMAN
BEHAVIOURBEHAVIOUR
s Fundamental Concepts Revolving aroundFundamental Concepts Revolving aroundthe nature of People and Organizations arethe nature of People and Organizations are
Prorogated by Herb Kelleher an AirlineProrogated by Herb Kelleher an Airlineexecutiveexecutive
Gives :Gives : 6 Basic Concepts regarding people &6 Basic Concepts regarding people &
3 for Organizations3 for Organizations
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Nature of PeopleNature of People
1.1. Individual differencesIndividual differences
2.2. PerceptionPerception
3.3. A whole personA whole person
4.4. Motivated behaviorMotivated behavior
5.5. Desire for involvementDesire for involvement
Basic
concepts
R
egardin
g
Basic
concepts
R
egardin
g
People
People
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Nature of OrganizationsNature of Organizations
Basic concepts regarding organizationsBasic concepts regarding organizations
s Social SystemsSocial Systems
s
Mutual SystemsMutual Systemss EthicsEthics
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OB-Nature of PeopleOB-Nature of People
Individual DifferencesIndividual Differencess Each person in the world is differentEach person in the world is different
s What Science Says ?What Science Says ?s Each person is different from other inEach person is different from other in
million ways!!million ways!!
s DNA is differentDNA is differents Billions of brain cells and billionBillions of brain cells and billion
combination or connections andcombination or connections and
experiences storedexperiences stored
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OB-Nature of PeopleOB-Nature of People
Differences: PsychologyDifferences: Psychology
s From birth uniquenessFrom birth uniqueness
Experiences after birth tend to makeExperiences after birth tend to makepeople more differentpeople more different
s Why to recognize the differences?Why to recognize the differences?
Because management can motivateBecause management can motivate
employees best by treating thememployees best by treating them
differentlydifferently
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Nature of PeopleNature of People
s We cannot measure each with theWe cannot measure each with the
same yardsticksame yardstick
s Managers approach to employeesManagers approach to employeesmust be individual not statisticalmust be individual not statistical
s Law of individual differencesLaw of individual differences
PerceptionsPerceptions
It is a unique way in which each personIt is a unique way in which each person
sees, organizes and interprets thingssees, organizes and interprets things
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Nature of PeopleNature of People
PerceptionsPerceptions
s People will see things differentlyPeople will see things differently
sTheir view is filtered by perceptionTheir view is filtered by perception
s Life time experiencesLife time experiences
s
Values accumulated in their lifeValues accumulated in their lifeBecause of all this we are humanBecause of all this we are human
otherwise we would have beenotherwise we would have been
machines!!machines!!
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Nature of PeopleNature of People
Employees Live in a different worldEmployees Live in a different world
Their world is work worldTheir world is work world
They see things differentlyThey see things differently
What influences perceptionWhat influences perception (Factors )(Factors )
PersonalityPersonality
NeedsNeedsPhysical settingsPhysical settings
Social Settings/demographic factorsSocial Settings/demographic factors
Past experiencePast experience
Time PeriodTime Period
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Nature of PeopleNature of People
Whatever is the factorWhatever is the factor
s They act on the basis of their PerceptionsThey act on the basis of their Perceptions
s People react to a situation on the basis ofPeople react to a situation on the basis oftheir belief, values and expectationstheir belief, values and expectations
s This leads to selection perceptionThis leads to selection perception
s
Selective perception causesSelective perception causesmisinterpretation of a single event at workmisinterpretation of a single event at work
s This also causes rigidity preventing newThis also causes rigidity preventing new
experienceexperience
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Nature of PeopleNature of People
What is the context ?What is the context ?
s Business consists of peopleBusiness consists of people
s Organizations are made up of peopleOrganizations are made up of people
s Managers must learn to expectManagers must learn to expect
perceptional differences among theirperceptional differences among their
employeesemployees
s Accept people as emotional humanAccept people as emotional human
beings and manage them in individualbeings and manage them in individual
waysways
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Nature of PeopleNature of People
s Whole Person:Whole Person:
Organizations wish to employ theOrganizations wish to employ the skills ofskills of
a persona person But they cannot !!But they cannot !!
They have to take a employee who isThey have to take a employee who is aa
whole personwhole person We can study human traits separately butWe can study human traits separately but
finally everything is embedded in afinally everything is embedded in a
personperson
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Nature of PeopleNature of People
Some more points about nature ofSome more points about nature of
peoplepeople
s Home Life is separate from work lifeHome Life is separate from work life
s A military commander who can makeA military commander who can make
soldiers to shiver is a mild person atsoldiers to shiver is a mild person at
homehomes Emotion conditions not separate fromEmotion conditions not separate from
physical conditionsphysical conditions
s People function as total human beingsPeople function as total human beings
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Nature of PeopleNature of People
s A data entry operator is a whole person notA data entry operator is a whole person not
a workera worker
s When management practices OB, they areWhen management practices OB, they aredeveloping a better employee and a betterdeveloping a better employee and a better
personperson
Role of educationRole of education ::
s Moulding a personMoulding a person
s Developing an ideal personDeveloping an ideal person
s Job shapes a manJob shapes a man
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Nature of PeopleNature of People
Motivated behaviorMotivated behavior
Humans normal behavior has certainHumans normal behavior has certain
causes which relates to needscauses which relates to needs
Why motivation is an important aspectWhy motivation is an important aspect
to study?to study?
Management uses peoples skills toManagement uses peoples skills to
produce an outputproduce an output
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Nature of PeopleNature of People
Desire for involvementDesire for involvement
People wish to feel good aboutPeople wish to feel good about
themselvesthemselves
They would like to feel & show:They would like to feel & show:
They have the capability to perform a taskThey have the capability to perform a task
Fulfill role expectationsFulfill role expectations
Make a meaningful contribution orMake a meaningful contribution or
Meet a challenge successfullyMeet a challenge successfully
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Nature of PeopleNature of People
s Many employees will be looking forMany employees will be looking for
opportunities to become involved inopportunities to become involved in
relevant decisionsrelevant decisionssThey want to contribute their talentThey want to contribute their talent
and ideas to the success of theand ideas to the success of the
organizationorganizations Organizations should provideOrganizations should provide
opportunities which will benefit bothopportunities which will benefit both
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Nature of PeopleNature of People
s Summing Up:Summing Up:
s People deserve to be treated differentlyPeople deserve to be treated differently
from other factors of productionfrom other factors of productionThey are the higher order in the UniverseThey are the higher order in the Universe
Because of this they wanted to be treated withBecause of this they wanted to be treated with
care, respect & dignitycare, respect & dignity
Increasing they demand such treatment fromIncreasing they demand such treatment from
employersemployers
They are not simple economic tools!!!They are not simple economic tools!!!
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Nature of OrganizationsNature of Organizations
1.1. Organizations are Social SystemsOrganizations are Social Systems
2.2. They are formed on mutual basisThey are formed on mutual basis
3.3. They must treat employees ethicallyThey must treat employees ethicallyOrganizations as Social SystemsOrganizations as Social Systems
Organizations are social systemsOrganizations are social systems
Activities are governed by social lawsActivities are governed by social lawsand psychological lawsand psychological laws
People have psychological needsPeople have psychological needs
They also have social roles and statusThey also have social roles and status
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Nature of OrganizationsNature of Organizations
s Behaviour of people are influenced byBehaviour of people are influenced by
group and individual drivesgroup and individual drives
Social SystemsSocial Systems
Formal Official Informal SocialFormal Official Informal Social
Social systems are dynamic in natureSocial systems are dynamic in nature
Whereas an Organization chart isWhereas an Organization chart is
staticstatic
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Nature of OrganizationsNature of Organizations
All parts of the system areAll parts of the system areindependent but interrelated andindependent but interrelated and
influenced by the otherinfluenced by the other Example : Safety violationExample : Safety violation
Mutual Interest:Mutual Interest:
Organization PeopleOrganization People
ManagersManagers needneed employeesemployees fulfillfulfill orgnorgn
objectivesobjectives
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Nature of OrganizationsNature of Organizations
People Need organizations FulfillPeople Need organizations Fulfill
individualindividual
objectivesobjectives(needs)(needs)
Mutual interest provides aMutual interest provides a supersuper
ordinate GOALordinate GOAL,, one that can beone that can beattained throughattained through integrated effort ofintegrated effort of
employees and individualsemployees and individuals
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Employee
Goals
Orgn
Goals
Ethics
Super Ordinate
Goal of
Mutual Interest
MutualAccomplishment
Of interest
Society
Organization
Employees
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Nature of OrganizationsNature of Organizations
Ethics:Ethics:
Science of MoralScience of Moral
Who needs it ? Who cares for it ?Who needs it ? Who cares for it ?
Good, Skilled workers, managers, leadersGood, Skilled workers, managers, leaders
are in great demandare in great demand
As such they are taken awayAs such they are taken away
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Nature of OrganizationsNature of Organizations
Attrition What is attrition?Attrition What is attrition?
Why people leave jobs & take up newWhy people leave jobs & take up new
jobs?jobs? PositionPosition
SalarySalary
RecognitionRecognition
What is ethical?What is ethical?
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Nature of OrganizationsNature of Organizations
To Retain employees what has to be done ?To Retain employees what has to be done ?
PromotionPromotion
Salary hikeSalary hike RecognitionRecognition
These are the most critical issues of the presentThese are the most critical issues of the present
day organizationsday organizations
Most organizations have realized thisMost organizations have realized this A variety of programs are planned byA variety of programs are planned by
organizations to ensure higher standard ororganizations to ensure higher standard or
ethical performanceethical performance
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Nature of OrganizationsNature of Organizations
s Many companies are publicizing theirMany companies are publicizing their
highest ethicshighest ethics
When organization goals and ethicalWhen organization goals and ethicalissues are blended, it creates a tripleissues are blended, it creates a triple
benefit for :benefit for :
The IndividualThe IndividualThe OrganizationThe Organization
The SocietyThe Society
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Nature of OrganizationsNature of Organizations
s People find more satisfaction in workPeople find more satisfaction in work
when there is co-operation andwhen there is co-operation and
teamworkteamworksThey will be learning, growing andThey will be learning, growing and
contributioncontribution
s Organizations will be more successfulOrganizations will be more successfuland will operate more effectivelyand will operate more effectively
s Quality will be better, serviceQuality will be better, service
improved & costs are reduced!improved & costs are reduced!
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Biographical ProfileBiographical Profile
s AGE: Average age of organizationalAGE: Average age of organizationalworkforce isworkforce is SHRINKING & EXPANDINGSHRINKING & EXPANDING
SIMULTANEOUSLY SIMULTANEOUSLYs AgeAge VsVs Job performanceJob performances AgeAge VsVsJob turnoverJob turnovers
AgeAge VsVs ProductivityProductivitys AgeAge VsVs AbsenteeismAbsenteeisms AgeAge VsVs Job satisfactionJob satisfaction
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Biographical ProfileBiographical Profile
s Effect of Age on turnover, absenteeismEffect of Age on turnover, absenteeism
& Job satisfaction& Job satisfaction
IMPACT OF
INCREASING
AGE ON
Turnover Less likely to quit as age
advances
Absenteeism- Seniors tend to be more absent
Compared to young
Productivity-No correlation between increasing ageAnd productivity
Job Satisfaction Studies reveal mixed response
regarding increasing age and job satisfaction
Issues beyond limits of time : Male domination
Equality
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Marital status VsMarital status Vs
ProductivityProductivity
s AbsenteeismAbsenteeism
s Job turnoverJob turnover
s
Job satisfactionJob satisfactionTENURE OF SENIORITY ON PRODUCTIVITYTENURE OF SENIORITY ON PRODUCTIVITY
Positive relationship has been established betweenPositive relationship has been established between
seniority and productivityseniority and productivity
HR considerationsHR considerations
An employees previous jobs is a strong indicator of hisAn employees previous jobs is a strong indicator of hisfuture turnoverfuture turnover
Tenure and job satisfaction are positively relatedTenure and job satisfaction are positively related
When age and tenure are considered separately, tenureWhen age and tenure are considered separately, tenure
is more acceptableis more acceptable
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AbilityAbility
Ability refers to individuals capacity toAbility refers to individuals capacity toperform various tasks on a jobperform various tasks on a job
HR AngleHR Angle Assessment of a candidates abilityAssessment of a candidates ability
Physical abilityPhysical ability
Manual tasksManual tasks
Semi skilled tasksSemi skilled tasks
Intellectual abilityIntellectual abilityMental ability to perform mental activitiesMental ability to perform mental activitiesMain assessment tools:Main assessment tools:CAT MAT GMAT CET GRECAT MAT GMAT CET GRE