ORGANISATIONAL BEHAVIOUR

WHAT IS AN ORGANISATION?

A consciously coordinated social unit , composed of two or more people, that

functions on a relatively continuous basis to achieve a common goal or set of
goals.

CHARACTERISTICS OF ORGANISATIONS

Distinct Purpose

Systematic Structure

People

Other Resources

CATEGORIES OF ORGANISATIONAL MEMBERS

Operatives: Work directly on a job or task and have no responsibility for

overseeing the work of others

Managers: Direct the activities of other people, may also have some operative
responsibilities

WHAT IS MANAGEMENT?

Management is a process consisting of planning, organising, actuating &

controlling, performed to determine and accomplish the objectives by use of
people and resources

WHO ARE MANAGERS?

Individuals who achieve goals through other people

The people who oversee the activities of others and who are responsible for
attaining goals of the organisations

MANAGEMENT FUNCTIONS

French Industrialist Henri Fayol identified different management functions

what tasks are to Planning: A process that includes defining goals, establishing
strategy, and developing plans to coordinate activities.

Organizing: Determining be done, who is to do them, how the tasks are to be

grouped, who reports to whom, and where decisions are to be made

Leading: Motivating Employees, directing the activities of others, selecting the

most effective communication channels, resolving the conflict among members

Controlling: Monitoring, comparing and potential correcting

MANAGEMENT ROLES

Identified by Henry Mintzberg in 1960

INTERPERSONAL ROLES:

Figurehead- Perform duties of a ceremonial nature

Leader: Motivating and directing his employees

Liaison:Maintains a network of outside contacts who provide favours and

information

INFORMATIONAL ROLES:

Monitor Role: Manager scan his environment for information

Disseminator Role: Transmit information to organizational members

Spokesperson Role:Transmits information to outsiders on organizations plans,

policies, actions and results

DECISIONAL ROLE:

Entrepreneur role: Initiates new projects

Disturbance Handler: Responsible for corrective action when organization faces

important, unexpected disturbances

Resource Allocator: Allocates human, physical and monetary resources

Negotiator:Representing the organization at major negotiations

MANAGEMENT SKILLS

Technical Skills: The ability to apply specialised knowledge or expertise

Human Skills: The ability to work with, understand and motivate other people,
both individually and in groups

Conceptual Skills: The mental ability to analyze and diagnose complex situations

LEVELS OF MANAGEMENT

First Line Managers are directly responsible for the production of goods and
services

Middle level managers receive broad, general strategies and policies from top
management and translate them into specific goals and plans for first-line
managers to implement

Top managers develop goals, policies, and strategies for the entire organisation

MANAGERIAL COMPETENCIES

Managerial Competencies: Sets of knowledge, skills, behaviours, and attitudes

that a manager needs in order to be effective in a wide range of managerial jobs
and various organisational settings.

Six important managerial competencies: Communication, Planning &

Administration, Teamwork, Strategic Action, Global Awareness and Selfmanagement

COMMUNICATION COMPETENCY

It is your ability to transfer and exchange effectively information that leads to

understanding between yourself and others

It includes Informal Communication, Formal Communication and Negotiation

PLANNING AND ADMINISTRATION COMPETENCY

It involves deciding what tasks need to be done, determining how they can be
done, allocating resources to enable them to be done, and then monitoring
progress to ensure that they are done

It includes

Information gathering, analysis and problem solving

Planning and organizing projects

Time Management, and

Budgeting and financial management

TEAMWORK COMPETENCY

Accomplishing tasks through small group of people who are collectively

responsible and whose work is interdependent requires Teamwork Competency

It includes-

Designing teams properly

Creating an supportive environment, and

Managing team dynamics appropriately

STRATEGIC ACTION COMPETENCY

Understanding the overall mission and values of the organisation and ensuring
that your actions and those of the people you manage are aligned with them
involves srategic action competency

It includes-

Understanding the industry

Understanding the organisation

Taking Strategic action

SELF-MANAGEMENT COMPETENCY

Taking responsibility of your life at work and beyond involve self-management

competency

It includes-

Integrity and ethical conduct

Personal drive and resilience

Balancing work and life demands

Self- awareness and development

GLOBAL AWARENESS COMPETENCY

Carrying out an organisations managerial work by drawing on the human,

financial, information, and material resources from multiple countries and serving
markets that span multiple cultures requires global awareness competency

It includes-

Cultural Knowledge and understanding

Cultural openness and sensitivity

WHAT IS ORGANISATIONAL BEHAVIOUR?

It 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 toward improving organisational effectiveness.

It is the field of study that seeks to comprehend and predict human behaviour in
organisational settings through the scientific or systematic study of individual
processes and organisational structure and function.

GOALS OF ORGANISATIONAL BEHAVIOUR

To describe systematically, how people behave under a variety of conditions

To understand why people behave as they do

To predict employees behaviour

To control and develop some human activity at work

In OB , data gathered systematically, under controlled conditions and interpreted

in a reasonably rigorous manner

There are certain fundamental consistencies underlying the behaviour of all

individuals

OB studies and applies the knowledge about how people act within the
organisation

OB provides a useful set of tools at many level of analysis

MANAGEMENT APPROACHES

ORGANISATION BEHAVIOUR MODEL BY S.P. ROBBINS

Dependent Variables: Productivity, Absenteeism, Turnover, Organisational

Citizenship and Job Satisfaction

Productivity is a performance measure including effectiveness and efficiency.

Effectiveness- Achievement of goals

Efficiency- The ratio of effective output to the input required to achieve it

Absenteeism: Failure to report to work

Turnover: Voluntary or involuntary permanent withdrawal from the organisation

Organisational Citizenship Behaviour: Discretionary behaviour that is not part of

an employees formal job requirements but that nevertheless promote the effective
functioning of the organisation

Job Satisfaction: A general attitude towards ones job; the difference between the
amount of rewards workers receive and the amount they believe they should
receive

The Independent Variables:

Individual level variables: Biographical characteristics, Ability, values, Attitudes,

Personality and Emotions, Perception, Individual decision making, Learning and
Motivation.

Group level Variables: Group Dynamics, Communication, Leadership, Power and

Politics

ORGANISATION BEHAVIOUR MODEL BY S.P. ROBBINS

Organisation Systems level variables: The design of foraml organisation, work

processes and jobs, organisations human resource policies and practices, internal
culture
DIFFERENT APPROACHES OF MANAGEMENT

Scientific management Approach

Administrative Theory

Human Relations Approach

McGrogors Theory X and Theory Y

Systems Approach

Contingency Approach
SCIENTIFIC APPROACH

Frederick Taylor, the father of scientific management movement

The fundamental concern of scientific management is to increase the efficiency of

the worker through efficient job design and appropriate training.

ADMINISTRATIVE THEORY

In the early 1930s, Henri Fayol of France, formulated 14 principles of

Management.

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Fayol attached much importance to the structure and design of the organisation in
terms of division of work, authority and responsibility, unity of command and
scalar chain.
BEHAVIOURAL SCIENCE APPROACH

Human Relations Era

Human Resources Approach

McGrogors Theory X and Theory Y

HUMAN RELATIONS MOVEMENT

Hawthorne Study

Elton Mayo of Harvard Business School and G. Pennock of Western Electric

Company conducted experiments in Hawthorne Plant of Western Electric
Company.

They found that workers perceptions, feelings , attitudes and beliefs played a big
part in their productivity.
HUMAN RESOURCES APPROACH

Douglas McGregor- Theory X and Theory Y

Theory X presents a negative view view of people. It assumes that they have little
ambition, dislike work, want to avoid responsibility, and need to be closely
directed to work effectively

Theory Y offers a positive view. It assumes that people can exercise self-direction,
accept responsibility, and consider work to be natural as rest or play

McGregor believed that Theory Y assumptions best captured the true nature of
workers and should guide management practice.

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SYSTEMS APPROACH

An organisation is a purposeful system with several subsystems that are highly

interconnected.

Any action taken to solve the problem in one subsystem would have its
repercussions on the other subsystems as well.

The systems approach defines a system as a set of interrelated and interdependent

parts arranged in a manner that produces a unified whole.

System Types-

A Closed System limits its interaction with its environment

An open system interacts with the external environment

An approach of solving problems by diagnosing them within a framewrk of

inputs, transformation processes, outputs and feedback.

The system involved may be an individual, a work group, a department, an entire

organisation

SYSTEMS VIEWPOINT

Inputs are physical, human, material, financial and information resources that
enter a transformation process.

Transformation Processes comprise the technologies used to convert inputs into

outputs

Outputs are the original inputs as changed by a transformation process

Feedback is information about a systems status and performance

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CONTINGENCY VIEWPOINT

Management practices should be consistent with the requirement of external

environment, the technology used to make a product or provide a service, and
capabilities of the people who work for the organisation

POPULAR CONTINGENCY VARIABLES

Organisation Size

Routineness of Task Technology

Environmental Uncertainty

Individual Difference

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TOTAL QUALITY MANAGEMENT

A philosophy of management that is driven by customer needs and expectations.

Deming in 1950, developed the concept

WHAT IS TOTAL QUALITY MANAGEMENT?

Intense focus on Customer

2. Concern for continual improvement

3. Improvement in the quality of everything the organisation does

4. Accurate Measurement

5. Empowerment of employees

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