ORGANIZATION BEHAVIOUR

TOPICS:

• Introduction to organizational behavior

• Diversity in organization

• Attitudes and job satisfaction

• Emotions and moods

• Personality and values

• Perception and individual decision making

• Motivation concepts

• Understanding the work teams

• Conflict and negotiation

• Foundations of organizational structure

Introduction to organizational behavior

• Complementing intuition with systematic study

• Disciplines that contribute to organization behavior

 Psychology
 Sociology
 Anthropology
 Socio psychology
 Economics
 Political science

• Challenges and opportunities for OB

 Managing diversity
 Respond to globalization
  Improving people skills
 Improving customer service
 Stimulating innovation and change
 Improving ethical behavior
 Improving quality and productions

• Developing an OB model

Diversity in organization
• Demographic characteristics

• Biographical characteristics

 Age
 Race
 Gender
 Disability
 Tenure (seniority)
 Religion

• Ability

“An individual’s current capacity to perform the various tasks in a job”

 INTELLECTUAL ABILITIES
Thinking, reasoning, problem solving
 PHYSICAL ABILITIES

• Implementing diversity management strategies

“DIVERSITY MANAGEMENT is a process by which managers make every one more aware of and
sensitive to the needs and differences of others”

Attitudes and job satisfaction

 Attitudes

“Attitudes are evaluative statements – either favorable or unfavorable – concerning objects,

people and events”

*they reflect how someone feels about something.

COMPONENTS OF ATTITUDE:

 Cognitive component(opinion or believe)

  Affective component(feelings and emotion)
 Behavioral component(intention to behave in a certain way)

MAJOR JOB ATTITUDES:

 Job satisfaction
 Job involvement
 Organizational commitment

 Job satisfaction

 Job satisfaction and job performance

 Job satisfaction and customer satisfaction
 Job satisfaction and absenteeism
 Job satisfaction and turnover
 Job satisfaction and workplace deviance

Emotions and moods

• Definition

AFFECT: A broad range of feelings that people experience. Affect is an umbrella term which includes
both Emotions and Moods.

EMOTIONS: Intense feelings that are directed towards a specific incident or particular reason. For
example: Envy, disgust, happiness, wonder, love and joy etc…

MOODS: Feelings that are less intense and last longer than emotions and have vague reasons. Moods
can classify as positive mood and negative mood.

DIFFERENCE BETWEEN MOODS AND EMOTIONS:

EMOTIONS MOODS
• Directed towards some specific event. • Unclear and vague in nature, no specific
• Lasts for less duration of time reason
• Can be seen by Facial expressions • Lasts longer(hours or days)
• Action oriented in nature (person will • Cannot be seen by facial expressions.
act according to emotion such as • Cognitive in nature (person will not do
happiness, sadness, angriness) some specific action)
*Both mood and emotions can influence each other. If an emotion is strong it will turn into mood.
And similarly if a person is passing from bad mood and suddenly get a positive emotion. His mood
will change accordingly.

• Emotional labor
EMOTIONAL LABOR: A situation, in which an employee forcefully expresses organizationally desired
emotions during interactions with colleagues or customers, is called emotional labor.

EXAMPLE: A job of retail sales man or a waiter demands a smiley face and positive emotional
energy.

EMOTIONAL DISSONANCE: Contradiction between the fake emotion you are forcefully expressing
(DISPLAYED EMOTION) and the emotion you are actually feeling (FELT EMOTION).

EXAMPLE: Even if some employee is sad internally, he would have to show fake positive and happy
expressions.

SURFACE ACTING: If a person tries to show organizationally desires emotions apparently. And actually
have different emotions inside. (More stressful for employee as compared to deep acting)

DEEP ACTING: If a person tries to modify his inner emotions according to organizationally desired
emotions.

*Organizations are not fully aware to reward their employees for emotional labor.

• Active events theory

Affective event theory is a model that suggests that work place events affect employees emotionally
and that affects their working attitudes.

• Emotional intelligence

An ability to detect and to manage emotional ups and downs is called EI.

• OB application of moods and emotions

*How to manage organizational environment by managing emotions and moods.

 SELECTION
 DICISION MAKING
 CREATIVITY
 MOTIVATION
 LEADERSHIP
 NEGOTIATION
 CUSTOMER SERVICE
 JOB ATTITUDES
 DEVIANT WORK PLACE BEHAVIOR
 FORGIVENESS IN ORGANIZATIONS
 HOW MANAGERS CAN INFLUENCE MOODS
 Personality and values
• Personality models

“The sum of all the ways in which an individual act and interact with others, is called
personality”

THE BIG FIVE MODEL:

The 5 traits of personality are:

 Extraversion
 Agreeableness
 Conscientiousness
 Emotional stability(neuroticism)
 Openness to experience

• Values

“Values are personally and socially preferable believes”

• Linking individuals personality and values to work place

Perception and individual decision making

• Person perception

What is Perception?
 A process by which individuals organize and interpret their sensory impressions in order to give
meaning to their environment

Attribution Theory

· When individuals observe behavior, they attempt to determine whether it

is internally (under the personal control of the individual)
or externally (outside causes “force” you to behave a certain way) 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.

• Decision making in organizations

• How should we make decisions in organizations?

To maximize a particular outcome, try the “rational decision making model”…

• Rational Model

· Define the problem.

· Identify the decision criteria.

· Allocate weights to the criteria.

· Develop the alternatives.

· Evaluate the alternatives.

· Select the best alternative.

• Bounded rationality

A process of making decisions by constructing simplified models that extract the

essential features from problems without capturing all their complexity.
• Intuition

An unconscious process created out of distilled experience.

• Individual differences

 Mental ability
 Gender
 Personality
 organizational constraints
 Performance evaluation
 Reward system
 Formal regulations
 System imposed time constraints
 Historical precedents

Motivation concepts
• Early theories of motivation

 Maslow’s hierarchy of needs:

Abraham Maslow—a psychologist—proposed that within every person is a hierarchy of five needs:

Each level must be substantially satisfied before the next need becomes dominant; an individual moves up the
hierarchy from one level to the next.

Lower-order needs are satisfied predominantly externally, and higher-order needs are satisfied internally.

 McClelland’s theory of motivation:

Need for achievement (nAch), which is the drive to succeed and excel in relation to a set of standards
 Need for power (nPow), which is the need to make others behave in a way that they would not have behaved
otherwise

Need for affiliation (nAff), which is the desire for friendly and close interpersonal relationships

 Herzberg two factor theory:

Intrinsic factors(MOTIVATORS) are related to job satisfaction, while extrinsic factors(HYGIENE FACTORS) are
associated with job dissatisfaction

 McGregor’s theory X and Y:

Theory X: a negative view of people that assumes workers have little ambition, dislike work, want to avoid
responsibility, and need to be closely controlled to work effectively.

Theory Y: a positive view that assumes employees enjoy work, seek out and accept responsibility, and exercise
self-direction.

• Integration of contemporary theories

Understanding the work teams

• Difference between groups and teams
 • Types of teams

 PROBLEM SOLVING TEAMS(Group of 5-12 people of same department who meets for few
hours each week to discuss and solve problems)
 SELF MANAGED WORK TEAMS(group of 10-15 people who performs highly rated and
independent jobs and take responsibly of their former supervisor)
 CROSS FUNCTIONAL TEAMS(employees of same hierarchical level and different areas
combine for a task)
 VIRTUAL TEAMS(teams that tie individuals together through computer technology in
order to achieve a common goal)

• Turning individuals into team players

 SELECTION(hiring team players)

 TRAINING(creating team players)
 REWARDING(providing incentive to be a good team player)
 Conflict and negotiation
CONFLICT: A process in which one party perceives that other party has negatively affected about
something important to first party.

• Transitions in conflict thought

 THE TRADITIONAL VIEW OF CONFLICT (the believe that all conflicts are wrong)
 THE HUMAN RELATIONS VIEW OF CONFLICT (the believe that conflict is natural and
inevitable element)
 THE INTERACTIONIST VIEW OF CONFLICT (Conflicts are important for better performance)

• The conflict process

The process has 5 stages:

1. POTENTIAL OPPOSITION OR INCOMPETIBILITY

*Things that are definite sources of conflicts
 Communication
 Structure
 Personal variables
2. COGNITION AND PERSONALIZATION

*If 1st party continuously perceives negatively about 2nd, conflict will move to the next stage
of conflict.

 Perceived conflict(awareness of conflict)

 Felt conflict(emotional involvement in conflict like envy and anxiety)

3. INTENSION
 Competing(a desire to satisfy one’s interest), avoiding(a desire to withdraw
from conflict), accommodating(an ability to value the point of 2nd party),
collaborating(both will try to solve conflict) and compromising(both will be
willing to give up something)
4. BEHAVIOR (Statements, actions and reactions)
*At this stage conflict becomes visible.
5. OUTCOMES
 Increased group performance
 Decreased group performance

• Negotiation(bargaining)
 A situation in which 2 or more parties exchange goods and services and try to agree on the
exchange rate for them. Following are 2 types:

1. DISTRIUTIVE BARGAINING
2. INTEGRATIVE BARGAING

Foundations of organizational structure

• Common organizational design

 THE SIMPLE STRUCTURE (little formalization, wide spans of control and one man
authority)
 THE BEUROCRACY (high formalization, narrow span of control and decision making
follows the chain of command)
 THE MATRIX STRUCTURE (dual lines of authority, combines functional and product
departmentalization)

• New design options

 THE TEAM STRUCTURE (No departmental barrier, both specialists and generalists are
involved)
THE PIZZA STRUCTURE
 THE NETWORK STRUCTURE
THE SPEGHETTI ORGANIZATION
THE FISHNET ORGANIZATION
 THE EMPOWERED ORGANIZATION (3 stages: getting them to participate, involving them
and empowering them)
 THE VIRTUAL ORGANIZATION (a small organization that outsources major business)
 THE BOUNDARYLESS ORGANIZATION (seeks to eliminate chain of command, Limitless
span of control, replaced departments with empowered teams)

• Why do structures differ

There are 2 basic models of organization.

1. MECHANISTIC MODEL
2. ORGANIC MODEL

 STRATEGY
 Innovation (it emphasizes to introduce new products and services i.e. apple)
 Cost minimization (it avoids unnecessary innovation and marketing expenses
i.e. retailing store)
 Imitation (it is best among all, it is the mixture of both innovation and cost
minimization)
*organizations choose the model according to its strategy. Innovators go with
Organic model, and for cost minimization Mechanistic is best model.
 ORGANIZATIONAL SIZE (*more the size increase, more the organization will be
mechanistic.)
 TECHNOLOGY(the way in which inputs are transferred into outputs)
 ENVIRONMENT(outside of organization)