ORGANISATION BEHAVIOUR

 What is OB?
 Management Roles
 Management Skills
 Contributing Disciplines
 Foundation of OB
 Challenges & opportunities for OB
 Models of OB
 What Managers Do?

Managers (or Administrators)

Individuals who achieve goals through other people

Managerial Activities

Make decisions
Allocate resources
Direct activities of others to attain goals
 Where do Managers Work?

Organization
A consciously coordinated social unit, composed of two
or more people, that functions on a relatively con-
tinuous basis to achieve a common goal or set of goals
MANAGEMENT FUNCTIONS

Planning Organizing

MANAGEMENT
FUNCTIONS

Controlling Leading
 PLANNING

A process that includes defin-

ing goals, establishing
strategy, and developing
plans to coordinate activities
 ORGANISING

Determining what tasks are to 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

A function that includes motivating employees, directing oth-

ers, selecting the most effective communication channels, and
resolving conflicts
 CONTROLLING

Monitoring activities to ensure they are being accom-

plished as planned and correcting any significant devi-
ations
 MANAGEMENT ROLES

 Management Roles- multifarious roles- duties.

 Henry Mintzberg – 3 Categories - depending 1.
Interpersonal relationships
2. Transfer of information
3. Decision-making

✔ Interpersonal Roles
✔ Informational Roles
✔ Decisional Roles
 INTERPERSONAL ROLES

●
Figurehead- managers perform certain symbolic &
ceremonial duties as a head of a group.
●
Leadership- roles includes hiring, training, motivating,
disciplining employees
●
Liaison - the manger interacts with individuals or groups,
inside or outside the organization.
 INFORMATIONAL ROLES

 Monitor Role- information pertain to the prevailing

terms & conditions of employment, technological develop-
ments, tastes, preferences- by interacting with field execut-
ives, customers.

Disseminator- transmitting information to other
members in organisation.
 Spokesperson- when they represent their organiza-
tion during their interactions.
 DECISIONAL ROLES

 Entrepreneur- seek to improve an organization’s per-

formance by initiating new projects & monitoring their pro-
gress
 Disturbance Handler- managers required to re-
spond to unforeseen problems.
 Resource Allocators- responsible for allocating
human, physical & capital resources
 Negotiator- discuss issues & bargain with employees
for the benefit of entire organization
 MANAGEMENT SKILLS

Technical Skills- ability to apply specialized knowledge .
Ex: skills in the area of accountancy, operations, personnel mgmt

Human Skills-Should be able to work with a good
understanding of people coupled with the art of motivating them

Conceptual Skills-ability to analyze complex situations,
rationally process & interpret available information.
 Enter Organizational Behavior..

➲ Definition: The study of dynamics of human be-

havior, attitudes, and performance in organiza-
tions.
➲ Value of OB: Helps people attain the competen-
cies needed to become effective employees, team
leaders/members, or managers
➲ Competency = an interrelated set of abilities, be-
haviors, attitudes, and knowledge needed by an
individual to be effective in most professional and
managerial positions
 Introduction to
Organizational Behavior

➲ Seven Foundation Competencies

●
Managing Self
●
Managing Communication
●
Managing Diversity
●
Managing Ethics
●
Managing Across Cultures
●
Managing Teams
●
Managing Change
➲ Organizations as Open Systems
 Organisation Behaviour
Reflects:

➲ The effect of environment on human be-

haviour and
➲ The effects of behaviour on perform-
ance.
 OB RELATES TO.....

-a discipline that deals with the study & application of

knowledge about how people as individuals & as
groups act within organizations.
Fred Luthans- “the understanding, prediction & man-
agement of human behavior in organizations”.
OB is developing as a scientific discipline due to con-
tinuous knowledge base & development of new con-
cepts.
 GENERALISATIONS ABOUT
BEHAVIOUR

 Helpful in explaining & predicting what

others do and will do
 By observing, sensing, asking, listening &

reading.
 Following statements –

“Happy workers are productive workers”

“People are more concerned about their
own salaries than for others”
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals
Sociology
The study of people in relation to their fellow human beings
Social Psychology
An area within psychology that blends concepts from psychology
and sociology and that focuses on the influence of people on one
another
Anthropology
The study of societies to learn about human beings and their
activities
 Challenges & Opportunities for
OB

● Workforce Diversity
● Improving Quality & Productivity
● Improving People Skills
● Mgmt control to empowerment
● Improving Ethical Behavior
 MODELS OF OB

 Dominates & affect the decisions of mgmt

in every organization.
 Models are frameworks of descriptions of

how things work and are also known as

Paradigms
4 Models-
• Autocratic Model
• Custodial Model
• Supportive Model
• Collegial Model
 AUTOCRATIC MODEL

● person who hold power have the authority to

demand work from employees
● Work can only be extracted by means of push-
ing, directing & persuading the employees.
● Employees put in only minimum performance in
the job since their only purpose of doing job is
to serve the basic needs of their families
● In such environment only a few employees are
motivated to exhibit higher productivity
 CUSTODIAL MODEL

● process in which employers take care of em-

ployees welfare- paternalism.
● To improve job security of employees & re-
duced their dependence on their immediate
supervisors
● Custodial approach- employees cease to de-
pend on the managers but their dependence
on the organization increases.
 SUPPORTIVE MODEL

● based on the principle of supportive relation-

ships
● Based on leadership rather than money or
power.
● Managers believe that an inadequately support-
ive work climate leads to resistance among the
employees.
● Employees work hard & strive to enhance their
performance , motivated by the support exten-
ded by management.
 COLLEGIAL MODEL

● an extension of the supportive model

● Collegial refers to a group of persons
working for a common purpose.
● It is a group oriented generally condu-
cive for research lab
 Historical Foundation of OB

Three Schools of management thought:

● CLASSICAL:

Scientific Management
Classical Organisational Theory
● BEHAVIOURAL

● MANAGEMENT SCIENCE SCHOOL

 Adam Smith's Contribution to
the field of management

Wrote the Wealth of Nations (1776)

● Advocated the economic advantages that or-
ganizations and society would reap from the di-
vision of labor:
 Increased productivity by increasing each
worker’s skill and dexterity.
 Time saved that is commonly lost in changing
tasks.
 The creation of labor-saving inventions and
machinery.
 The Industrial Revolution's
Contribution .....

Industrial revolution
Machine power began to substitute for human power
Lead to mass production of economical goods
Improved and less costly transportation systems became
available
Created larger markets for goods.
Larger organizations developed to serve larger markets
Created the need for formalized management practices.
 Classical Contributions.............

Classical approach
 Scientific management theorists

Fredrick W. Taylor, Frank and Lillian Gil-

breth, and Henry Gantt
 General administrative theorists

Henri Fayol and Max Weber

 SCIENTIFIC MANAGEMENT

Frederick W. Taylor gave:

The Principles of Scientific Management (1911)
 Experience in 3 companies
 Advocated the use of the scientific method to define the “one best way”
for a job to be done
Believed that increased efficiency could be achieved by select-
ing the right people for the job and training them to do it pre-
cisely in the one best way.
To motivate workers, he favored incentive wage plans.
Separated managerial work from operative work.
 TAYLOR'S FOUR PRINCIPLES
OF SCIENTIFIC MANAGEMENT

1:Replaced Rule of Thumb with Scientific Management.

2:Scientific selection of worker(Functional Foremanship).
3:Scientific education&development of worker
4:Co-operation
 CONTRIBUTORS TO
SCIENTIFIC MANAGEMENT

Frank and Lillian Gilbreth(1868-

1924&1878-1972)
Henry Gantt(1861-1919):gave-
Incentive compensation systems
Gantt chart for scheduling work operations
 GENERAL MANAGEMENT
THEORIES

General administrative theorists

Writers who developed general theories of what man-
agers do and what constitutes good management practice
Henri Fayol (France)(1841-1925)
Fourteen Principles of Management: Fundamental or universal
principles of management practice
Max Weber (Germany)
Bureaucracy
 FAYOL'S PRINCIPLES OF
MANAGEMENT

1)Division of work 8)Centralization

2)Authority 9)Scalar chain
3)Discipline 10)Order
4)Unity of command 11)Equity
5)Unity of direction 12)Stability of tenure
6)Subordination of the of personnel
individual 13)Initiative
7)Remuneration 14)Esprit de corps
 WEBER'S IDEAL
BUREAUCRACY

i. A set of rules & procedures

ii. Funtional specialisation
iii.Hierarchy of authority
iv.Impersonal relations
v. Trained managers
3Types:
a)Official Authority
b)Traditional Authority
c)Charismatic Authority
 HUMAN RESOURCE
APPROACH

Robert Owen
Scottish businessman and reformer who advocated for better treatment
of workers.
Claimed that a concern for employees was profitable for management
and would relieve human misery.
Hugo Munsterberg(1883-1916)
Created the field of industrial psychology—the scientific study of
individuals at work to maximize their productivity and adjustment.
Psychology and Industrial Efficiency (1913)
 HUMAN RESOURCE AP-
PROACH

Mary Parker Follett (1868-1933)

Recognized that organizations could be viewed from the
perspective of individual and group behavior.
Believed that individual potential could only be released
by group association.
Chester Barnard(1886-1961)
Saw organizations as social systems that require human
interaction and cooperation.
Expressed his views on the “acceptance of authority” in
his book The Functions of the Executive (1938).
 HAWTHORNE EXPERIMENTS

A series of studies done by Elton Mayo(1880-

1949)&his Harvard associates, that provided new in-
sights into group norms and behaviors
Hawthorne effect(Hawthorne plant of Western
Electric from 1927to1932)
Social norms or standards of the group are the key de-
terminants of individual work behavior.
Changed the prevalent view of the time that people
were no different than machines.
 FROM HUMAN RELATIONS TO
BEHAVIOURAL SCIENCE

Based on a belief in the importance of employee

satisfaction—a satisfied worker was believed to
be a productive worker.
Advocates believed in people’s capabilities and
were concerned with making management prac-
tices more humane.
Dale Carnegie
Abraham Maslow
Douglas McGregor
 SYSTEMS APPROACH

Defines a system as a set of interrelated and in-

terdependent parts(subsystems) arranged in a
manner that produces a unified whole
Closed system : a system that is not influenced
by and does not interact with its environment
Open system: a system that dynamically inter-
acts with its environment
Stakeholders: any group that is affected by or-
ganizational decisions and policies
 CONTINGENCY APPROACH

The situational approach to management that replaces

more simplistic systems and integrates much of man-
agement theory
Four popular contingency variables
I. Organization size (coordination)
II. Routineness of task technology (task complexity dictates
structure)
III.Environmental uncertainty (change management)
IV.Individual differences (managerial styles , motivational
techniques, and job design)