Lecture 1(March 6th 2013) Chapter 1

What is Organizational Behavior?Organizational Behavior is Blend of Sociology + Phycology + Societal Behaviors & Social Environment

Organizational Behavior is a unique combination of different disciplines. The predominate areas are psychology, sociology, social psychology, anthropology, political science, and economics.

Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. The predominant areas are psychology, sociology, social psychology, anthropology, and political science

Learning DomainsThree are three domains of learning

Learning Domains C: Cognitive Domain = Mental UnderstandingA: Affective Domain = Creation of Interest in learning (Lowest Level)

Emotional Attachment to learning (Highest Level)P: Psychomotor Domain = Relate Theory to Practice, Applied

(Stimulitive Learning)

CCognitive

PPhycomotor

AEffective

How We LearnHumans are lifelong learners. From birth onward we learn and assimilate what we have just learned into what we already know. Learning in the Geosciences, like all learning, can be categorized into the domains of concept knowledge, how we view ourselves as learners and the skills we need to engage in the activities of geoscientists. As early as 1956 Educational Psychologist Benjamin Bloom divided what and how we learn into three separate domains of learning.

Cognitive DomainThis domain includes content knowledge and the development of intellectual skills. This includes the recall or recognition of specific facts and concepts that serve developing intellectual abilities and skills. There are six major categories, starting from the simplest behavior (recalling facts) to the most complex (Evaluation).

The University of Washington's Geography Department website Major Categories in the Taxonomy of Educational Objectives has a detailed explanation of Bloom's Six Levels of Cognitive Development (more info)

Affective DomainHow does one approach learning? With confidence, a can do attitude. The Affective domain includes feelings, values, appreciation, enthusiasms, motivations, and attitudes. The University of Dayton, School of Law Affective Domain website describes each category in the domain and provides illustrative examples and keywords for the cognitive, affective, and psychomotor domains.

Psychomotor DomainThe psychomotor domain includes physical movement, coordination, and use of the motor-skill areas. Development of these skills requires practice and is measured in terms of speed, precision, distance, procedures, or techniques in execution. For a more detailed treatment of this domain see the Penn State Teaching and Learning with Technology website Psychomotor Domain Taxonomy (more info) =

What is emotional Intelligence?Able to understand and identify emotions and moods of employees and staff and allow flexibility according to the variables up to an acceptable level.

Emotional intelligence (EI) is the ability to identify, assess, and control the emotions of oneself, of others, and of groups. It can be divided into ability EI and trait EI. Ability EI is usually measured using maximum performance tests and has stronger relationships with traditional intelligence, whereas trait EI is usually measured using self-report questionnaires and has stronger relationships with personality.

What is Emotional Intelligence?Emotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions. Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic.

Since 1990, Peter Salovey and John D. Mayer have been the leading researchers on emotional intelligence. In their influential article "Emotional Intelligence," they defined emotional intelligence as, "the subset of social intelligence that involves the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions" (1990).

The Four Branches of Emotional IntelligenceSalovey and Mayer proposed a model that identified four different factors of emotional intelligence: the perception of emotion, the ability reason using emotions, the ability to understand emotion and the ability to manage emotions.

Perceiving Emotions: The first step in understanding emotions is to accurately perceive them. In many cases, this might involve understanding nonverbal signals such as body language and facial expressions.

Reasoning With Emotions: The next step involves using emotions to promote thinking and cognitive activity. Emotions help prioritize what we pay attention and react to; we respond emotionally to things that garner our attention.

Understanding Emotions: The emotions that we perceive can carry a wide variety of meanings. If someone is expressing angry emotions, the observer must interpret the cause of their anger and what it

might mean. For example, if your boss is acting angry, it might mean that he is dissatisfied with your work; or it could be because he got a speeding ticket on his way to work that morning or that he's been fighting with his wife.

Managing Emotions: The ability to manage emotions effectively is a key part of emotional intelligence. Regulating emotions, responding appropriately and responding to the emotions of others are all important aspect of emotional management.

What is job sculpting?Employees are given tasks in which they are interested.

Shaping job tasks and job processes to better fit an individual’s strengths and interests. It is about increasing and aligning discretionary work practices

Job sculpting is a job system in which job profile is designed in accordance with the employee’s interest rather than expecting employee to fit in, as is done in traditional system.

Six Learning Levels of Cognitive DomainIn 1950’s Bloom’s Taxonomy i.e. the theory was developed;

Level Number

Level Name Question Type Learning Level Grade

1 K Knowledge Level Define, state, shat etc.Basic Level Learning2 C Comprehension Level Explain, elaborate, conclude,

describe,3 A Application Level Solve, apply, compute, prove,

Mid-Level Learning4 A Analysis Level Compare, differentiate, match,

analyze,5 S Synthesis Level Develop, design, construct, create,

Advance Level Learning6 E Evaluation Level Evaluate, rate, justify, findings,

recommend,

In 1956, Benjamin Bloom headed a group of educational psychologists who developed a classification of levels of intellectual behavior important in learning. Bloom found that over 95 % of the test questions students encounter require them to think only at the lowest possible level...the recall of information.

Bloom identified six levels within the cognitive domain, from the simple recall or recognition of facts, as the lowest level, through increasingly more complex and abstract mental levels, to the highest order which is classified as evaluation. Verb examples that represent intellectual activity on each level are listed here.

1. Knowledge: arrange, define, duplicate, label, list, memorize, name, order, recognize, relate, recall, repeat, and reproduce state.

2. Comprehension: classify, describe, discuss, explain, express, identify, indicate, locate, recognize, report, restate, review, select, translate,

3. Application: apply, choose, demonstrate, dramatize, employ, illustrate, interpret, operate, practice, schedule, sketch, solve, use, write.

4. Analysis: analyze, appraise, calculate, categorize, compare, contrast, criticize, differentiate, discriminate, distinguish, examine, experiment, question, and test.

5. Synthesis: arrange, assemble, collect, compose, construct, create, design, develop, formulate, manage, organize, plan, prepare, propose, set up, and write.

6. Evaluation: appraise, argue, assess, attach, choose compare, defend estimate, judge, predict, rate, core, select, support, value, evaluate.

Lecture 2(March 12th 2013) Chapter 1

Discipline Effectiveness EfficiencyTotal Quality Management Quality Time

Organizational Behavior Achieving Goals Reducing Cost

VariableA variable is any general characteristic that can be measured and that changes in amplitude, intensity, or both. Some examples of OB variables found in this textbook are job satisfaction, employee productivity, work stress, ability, personality, and group norms.

Dependent VariablesIf response are depending / change due to other variables. A dependent variable is a response that is affected by an independent variable. In terms of the hypothesis it is the variable that the researcher is interested in explaining. In organizational behavior research, the most popular dependent variables are productivity, absenteeism, turnover, job satisfaction and organizational commitment.

Independent VariablesThe independent variables are the major determinants of productivity, absenteeism, Organizational citizenship behavior (OCB), turnover, and Job satisfaction. Consistent with our belief that organizational behavior can best be understood when viewed essentially as a set of increasingly complex building blocks, the base, or first level, of our model lies in understanding individual behavior.

Individual Group Organizations

Moderating VariableA moderating variable abates the effect of the independent variable on the dependent variable. It might also be thought of as the contingency variable: If X (independent variable), then Y (dependent variable) will occur, but only under conditions Z (moderating variables). To translate this into a real-life example, we might say that if we increase the amount of direct supervision in the work area (X), then there will be

a change in worker productivity (Y), but this effect will be moderated by the complexity of the tasks being performed.

Dependent Variables

S # Name Type1 Production Behavior 5 = Behavior

1 = Attitude2 Absenteeism Behavior3 Turnover Behavior4 Job Satisfaction Attitude5 Deviate work place

behaviorBehavior Advance Learning

Addition6 OCB (Organizational

Citizenship Behavior)Behavior

Behavior = Stimulus Response

Job SatisfactionJob satisfaction or Employee Satisfaction (also referred to as morale) is one of the most widely used variables in organizational behavior. It is an employee's attitudinal response to his or her organization. As an attitude, job satisfaction is summarized in the evaluative component and comprised of cognitive, affective, behavioral components. As with all attitudes, the relationship between satisfaction and behavior, most specifically job performance and membership, is complex. The following sections

summarize the cognitive and affective components of job satisfaction; their relationship to organizational inducements systems and their impact on performance and membership.

Job satisfaction is a feeling, so it is attitude,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

“HR Heads have very important role in OB”

HR LADDER

IV) Local Companies (0%)Strategic Partners

Highest Level of HR = SP (Strategic Partners)

In the matrix portion lowest level is policy implementation.

HR Head & HR Department involved in preparing strategic planning

Internationally (3%) organizations falls in the category

III) Local Companies (3%)Change Agents

HR can act as a driver in change!

Internationally (40%) organizations falls in the category

I) Local Companies (80%)Administrative Expert

(Fire Fighting Role)

Internationally (10% - 20%) organizations falls in the category

II) Local Companies (70%)All functions of HR are effective & efficient in interest of organization’s employees.

70% is rating in terms of performance. The rating is given by

Outside Analysts Internal Employees

Technique used is PAT (Point allocation technique)

Internationally (35% - 40%) organizations falls in the category

Towards OB Discipline:

Absolutes of OB Discipline are;

Psychology Psychology seeks to measure, explain, and sometimes change the behavior of humans and other animals. Those who have contributed and continue to add to the knowledge of OB are learning theorists, personality theorists, counseling psychologists, and, most important, industrial and organizational psychologists.

Early industrial/organizational psychologists studied the problems of fatigue, boredom, and other working conditions that could impede efficient work performance. More recently, their contributions have expanded to include learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee-selection techniques, work design, and job stress.

Social Psychology Social psychology, generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on peoples’ influence on one another. One major study area is change —how to implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patterns; and building trust. Finally, they have made important contributions to our study of group behavior, power, and conflict.

Sociology While psychology focuses on the individual, sociology studies people in relation to their social environment or culture. Sociologists have contributed to OB through their study of group behavior in organizations, particularly formal and complex organizations. Perhaps most important, sociologists have studied organizational culture, formal organization theory and structure, organizational technology, communications, power, and conflict.

Anthropology Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behavior between people in different countries and within different organizations. Much of our current understanding of organizational culture, organizational environments, and differences among national cultures is a result of the work of anthropologists or those using their methods.

There Are Few Absolutes in OB Demonstrate why few absolutes apply to OB.

Laws in the physical sciences—chemistry, astronomy, physics—are consistent and apply in a wide range of situations. They allow scientists to generalize about the pull of gravity or to be confident about sending astronauts into space to repair satellites. But as a noted behavioral researcher observed, “God gave all the easy problems to the physicists.” Human beings are complex, and few, if any, simple and universal

principles explain organizational behavior. Because we are not alike, our ability to make simple, accurate, and sweeping generalizations is limited.

Two people often act very differently in the same situation, and the same person’s behavior changes in different situations. Not everyone is motivated by money, and people may behave differently at a religious service than they do at a party.

That doesn’t mean, of course, that we can’t offer reasonably accurate explanations of human behavior or make valid predictions. It does mean that OB concepts must reflect situational, or contingency, conditions. We can say x leads to y, but only under conditions specified in z —the contingency variables. The science of OB was developed by applying general concepts to a particular situation, person, or group. For example, OB scholars would avoid stating that everyone likes complex and challenging work (the general concept). Why? Because not everyone wants a challenging job. Some people prefer routine over varied or simple over complex. A job attractive to one person may not be to another; its appeal is contingent on the person who holds it.

Lecture 3(March 13th 2013) Chapter 1

Learning Matrix

Gordon Training School

Conscious – Competence Learning Matrix

IV – Expert Stage

Unconscious Competence

“I do not Know that I Know how to perform a task”

III – Skilled Stage

Conscious Competence

“I Know that I Know how to perform a task”

V – GURU Stage

Reflective Competence

Play Role of Light house

“People says that he Knows how to perform task”

I – Novice Stage

Unconscious Competence

“I do not Know that I do not know how to perform a task”

Ignorance of Ignorance

Below Basic Level

II – Trainee Stage

Conscious Incompetence

“I Know that I do not Know how to perform a task”

Ignorance of Ignorance

Basic Level

Example of Level – I, A person jumping in swimming pool do not know how to swim. Very Dangerous stage.

PCN : Parent Country NationalIn an international firm, a PCN is a person whose nationality is the same as that of the firm, but different from the country in which they are working: for example, a Japanese manager working for a UK-based subsidiary of a Japanese company.

A parent-country national is a person working in a country other than their country of origin

HCN : Host Country National A host-country national (HCN) is an employee who is a citizen of a country in which an organization's branch or plant is located, but the organization is headquartered in another country.

TCN : Third Country NationalA third country national (TCN) is an employee who is not a citizen of the home or host countries. For example, a French National working in the Hong Kong subsidiary of a US company would be considered a TCN employee

ExampleLet us say John is a U.S. citizen. If John moves to France to live with no immediate intention of going back to the US (but also no immediate intention of becoming a French citizen) John is an American Expatriate. If John goes to France to study, from his standpoint other Americans are Home-country nationals, French people are Host-country nationals and people from any country other than the US or France are Third-country nationals. Clear?

More ExplanationParent country nationals (PCNs) are employees who are citizens of and are hired from the nation where an organization has its original and current headquarters (the parent country). PCNs are distinct from host country nationals (HCNs), who are staff hired from the country where the international subsidiary is operating (the host country). Third country nationals (TCNs) are citizens of neither the parent nor the host country. The role and function of a PCN depends on the organizations approach to international human resource management and the needs of the overseas subsidiary where the PCN is assigned. PCNs use different adaptation strategies to cope with their overseas assignments, and there are both advantages and disadvantages in using PCNs to staff international subsidiaries. The term parent country national usually is used only to identify an employee who is posted to an overseas country as an expatriate (overseas assignment of more than one year), as a worker on a short-term assignment (less than one year), or as a flexpatriate (several short-term overseas postings, sometimes referred to as commuter assignments). The term became widespread in the business world in the 1960s and 1970s, when it became apparent that the traditional employment dichotomy of expatriates and nationals could not accommodate employees who were citizens of neither the host nor the parent country (TCNs). Researchers and organizations replaced the dichotomy by distinguishing employees by parent, host, and third country citizenship. Global businesses now categorize employees by using frameworks that include length of assignment (expatriate, short-term, and flexpatriate), direction of assignment (expatriate vs. inpatriate), and nature of assignment (expatriation vs. virtual assignment). Virtual assignments are job assignments focused on projects within

a particular country that rely on electronic communications such as videoconferencing rather than require the assignee to travel to the country itself. Inpatriates are transfers of HCNs or TCNs to corporate headquarters for developmental purposes. The role of PCNs in an international organization depends on the organizations approach to international human resource management. Those management approaches can be categorized as (1) exportive/ethnocentric, (2) integrative/regiocentric and geocentric, and (3) adaptive/polycentric. In the export-ive/ethnocentric approach, PCN expatriates function in a control position, as this approach is characterized by a transfer of the parent company’s human resource management system to the host country. PCNs also benefit from international developmental experience while they are on expatriate assignment. The integra-tive approach also allows for the employment of PCN expatriates; however, human resource management policies and managerial practices are transfused and adapted from host country to parent country, and vice versa. PCNs are learners in the adaptive approach, in which organizations focus on adopting and localizing the practices and policies of the international organization to the host country. PCNs are used for overseas assignments for several other reasons, including filling an existing overseas position, developing managers in terms of global awareness and experience, fulfilling the role of organizational development, and problem solving. Researchers have found differences in the importance of the reasons for employing PCNs in subsidiaries, depending on the organizations headquarters country, demonstrating that national culture can influence organizational reasons for expatriation. Japanese and European companies are more likely to use PCNs, whereas U.S. companies are more likely to use HCNs. PCNs tend to use different adaptation strategies when on overseas assignment. Researchers have categorized PCN expatriates according to their degree of allegiance to the parent or host country as being outcomes of adaptation. The categories are (1) free agents, who have low allegiance to both home and host countries; (2)³going native´ expatriates, who have high allegiance to the host country and little to the home country; (3)³hearts at the parent´ expatriates, who have high allegiance to the home country and little to the host country; and (4) dual citizens, who have high allegiance to both countries. The choice of adaptation strategy appears to be linked to the personality of the PCN.

Advantages and DisadvantagesSeveral advantages result from employing PCNs who have experience in the organization rather than HCNs or TCNs. PCNs usually are considered by headquarters as being familiar with the organizations goals, products, services, technology, policies, and procedures. This familiarity may help facilitate coordination, control, and development of organizational strategy. The use of PCNs also has several disadvantages. Among them: (1) PCNs may impose a culturally inappropriate management style on the host country subsidiary; (2) using PCNs may limit the promotional opportunities of HCNs; and (3) the compensation for PCNs usually is greater than that received by HCN staff, which may cause a degree of resentment among HCN staff. PCNs also may take a long time to adapt to the host country, which is likely to affect their work performance. Some researchers have questioned whether HCNs, TCNs, and inpatriates maybe better equipped to deal with the cultural challenges of international management than are PCN expatriates. The use of PCNs in global organizations appears to continue to develop rather than diminish, however.

Polycentric Approach:Polycentrism is the belief that managers and employees in a foreign operation should be from the host country. The feeling is that people native to the host country will not have problems with culture shock, knowing the language, realizing and adhering to the local customs, values, and attitudes, and being

effective immediately instead of after a learning process has taken place. Key positions in the foreign operation are filled with host country nationals (HCNs). This saves money associated with recruiting, training, and transferring expatriates from other countries in which the company also has operations. There are, however, possible negative aspects of a polycentric approach to hiring. One of the biggest problems relates to parent company control over the foreign subsidiary. The question arises: “Will host country managers be loyal to the parent or to the local operation?” A potential problem arises with coordination of activities, goals, and objectives between parent and subsidiary. The fact remains, though, that polycentric staffing and operation of foreign subsidiaries is successfully being applied by organizations. The parent company must be aware of potential problems and introduce control systems to uncover these problems before they are allowed to get out of hand.

Geocentric Approach:It is an approach where the global companies hire personnel from any part of the world according to the experience and job description and not because he or she is from the home country or host country.

Human resource planning having been done, the international human resource manager must proceed with the job of hiring the right number of people of the right type.

The international human resource manager must not only select people with skills, but also employees who can jell with the organization’s culture. ; So it wants to hire employees whose styles, beliefs, and value systems are consistent with those of the firm.

Approaches of StaffingInternational businesses are said to adopt three approaches to staffing:

(1) Ethnocentric,

(2) Polycentric, and

(3) Geocentric.

Ethnocentric Approach

In this approach, all key management positions are held by parent-country nationals. This strategy may be appropriate during the early phases of international business, because firms at that stage are concerned with transplanting a part of the business that has worked in their home country.

This practice was widespread at one time. Firms such as P & G, Philips NY, and Matsushita originally followed the ethnocentric approach.

Reasons: Perceived lack of qualified host country nationals; Understanding that a united corporate culture can be maintained; and Need to maintain good communication, coordination, and control links with headquarters.

Disadvantages: Denial of promotional opportunities to host-country nationals, leading to reduced productivity

and increased turnover. The adaptation of expatriate managers to host countries takes a long time during which home-

country nationals make poor decisions and commit mistakes. For many expatriates a key international posting means new status, authority, and increased

standard of living. The changes may affect expatriates' sensitivity to the needs and expectations of their host country subordinates.

Polycentric ApproachThe polycentric staffing policy requires host-country nationals to be hired to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. Although top management positions are filled by home-country personnel, this is not always the case.

For example, many US MNCs use home-country managers to get the operations started, then hand it over to the host-country managers. Hindustan Lever Ltd, (HLL), the Indian subsidiary of Unilever, has locals as its chiefs.

Geocentric ApproachThis staffing philosophy seeks the best people for key jobs throughout the organization, regardless of nationality. Seeking the best person for the job, irrespective of nationally is most consistent with the underlying philosophy of a global corporation.

Colgate Palmolive is an example of a company that follows the geocentric approach. It has been operating internationally for more than 50 years, and its products are household names in more than 170 countries. 60 per cent of the company's expatriates are from countries other than the US. All the top executives speak at least two languages, and important meetings routinely take place all over the globe.

MALYSIA(TCN)

SINGAPORE(HCN)

USA(PCN)

CHINA

IF EMPLOYEES SENT WILL BE CALLED (TCN)

IF EMPLOYEES SENT WILL BE CALLED (TCN)