ORGANIZATIONAL BEHAVIOR

A presentation by Indranil Mutsuddi

Organizational Behavior
Nature of Organizational Behavior
Environment

Human Behavior in
Organizational settings

The individual-
Organization interface

The Organization

Environment
Simple Relationships Among Problems,
Methodology, And Knowledge

Body of Knowledge

Research Problems and Questions

Methodology about Organizational Behavior
The Relationship Of Organizational Behavior To
Other Closely Related Disciplines

Organization Organizational
Theoretical Theory Behavior
(OT) (OB)

Organization Human Resource

Applied Development Management
(OD) (HRM)

Macro Micro
 Foundations of Organizational
Behavior
Individual Social
Differences Systems

Whole Individual
Mutuality of
OB
Interests
Caused
behavior

Holistic
Human dignity Concept
 Importance of Organizational
Behavior
• To provide a roadmap to the life of an individual in an
organization.

• The field of OB uses scientific research in order to help

to understand & predict organizational life.

• OB helps to influence organizational events.

• OB helps an individual to understand himself/herself and

others better.
 Importance of Organizational
Behavior
• A manager in a business organization is concerned with
getting things done through delegation, knowledge of OB
facilitates effective management of the same.

• The field of OB is useful for maintaining cordial IR.

• The subject of OB is also useful to understand the

behavior of the consumers (Consumer Behavior).
 The Basic Process of Organizational
Behavior

Understanding Prediction Understanding

What patterns of What solutions are

How Strong are Behavior are possible?
They? present?

Which variables
How do they What is the cause- can be
Interrelate? effect influenced?
relationship?

Problem prevention
 A Social Learning Approach To
Organizational Behavior
ORGANIZATIONAL
PARTICIPANTS

Participants control their

Cognitive own behavior to the
representations of extent that they rely
reality help guide on cognitive supports and
organizational behavior manage relevant environmental
cues and consequences

Much of complex behavior

ORGANIZATIONAL is acquired by directly ORGANIZATIONAL
BEHAVIOR observing and imitating ENVIRONMENT
others in the surrounding
environment
Contributing Disciplines to the
OB Field
Selected Topics in
Psychology
 Biology & Behavior
 Sensation & perception
 Learning & conditioning
 Behavior in social &
cultural context
 Thinking & intelligence
 Memory
 Emotion
 Motivation
 Theory of personality
 Health, stress, & coping
 Psychological disorder
Contributing Disciplines to the OB Field
(cont’d)
Selected Topics in Sociology
 Culture & Society
 Socialization
 Social interaction
 Groups & organizations
 Deviance
 Sexuality
 Social stratification
 Family
 Religion
 Health & medicine
 Collective behavior &
social movement
Contributing Disciplines to
the OB Field
Selected Topics in Social
Psychology
 Social perception
 Social cognitions
 Attitudes
 Aspects of social identity
 Prejudice & discrimination
 Interpersonal attraction
 Intimate relations
 Social influence
 Pro-social behaviors
 Individual & group
behaviors
 Aggression
Contributing Disciplines to
the OB Field
Selected Topics in
Anthropology
 Discovering the past
 The origins of culture
 Origins of cities and states
 Human variation &
adaptation
 The concept of culture
 Communication & language
 sex, gender, & culture
 Marriage & the family
 The arts
 Culture change
Contributing Disciplines to the
OB Field (cont’d)
 Challenges and Opportunities (1)

• Responding to Globalization
• Managing Workforce Diversity
– Major diversity categories
Gender (2/5 of nursing school students in
US are men)
Race
National origin
Age
Disability
Domestic partners
– Melting pot approach vs. values differences
Multigenerational Workforce
Baby
Veterans Xers Nexters
Boomers

before 1946 1946-1964 1965-1979 after 1979

 Comparison of Xers and
Boomers
X generation Baby boomers
Task accomplished Task accomplished
Fulfillment
within workday in several days

Use Internet to Fluency with Use telephone to

compare prices technology compare prices

Work with flexible Work Work with regular

hours schedule scheduled hours

X Generation
Not necessarily Job Baby Boomers
Secured with
1965-1979
secured Security 1946-1964
retirement plan
 Challenges and Opportunities (2)

• Improving Quality and Productivity

– TQM is still in
– Quality Circle is out
• Responding to the Labor Shortage
– Low birth rate
• Total Fertility Rate: 2.1 (1983)  1.1
(2005)
– Low labor participation rates
• 60.93 (1987)  57.78 (2005)
– Aging workforce
• Improving Customer Service
– % of Service workers
 Challenges and Opportunity (3)

• Improving People Skills

• Empowering People
– McKnight Principles at 3M
– Saturn’s self-managed teams
W. L. McKnight
• Coping with “Temporariness” 3M Chairman
1949-1966
• Stimulating Innovation and Change
• Helping Employees Balance Work/Life
Conflicts
• Improving Ethical Behavior
Contextual Perspective of

Organizational Behavior
OB: Emerging Implications
McKnight Principles at 3M (1948)
 Delegate responsibility and encourage men and
women to exercise their initiative
 Good people want to do their jobs their own way
 Mistakes will be made. The mistakes he or she
makes are not as serious in the long run as the
mistakes management will make if it undertakes
to tell those in authority exactly how they must
do their jobs.
 Management that is destructively critical when
mistakes are made kills initiative. And it's
essential that we have many people with initiative
if we are to continue to grow
HR Highlights
• Team structure
– Blue-collar work force are organized into self-
directed work teams (6-15 people)
• Training
– Minimum of 92 hours of training annually
– Teambuilding, quality measurement, job skills
• Empowered Teams
– Decisions on job design, selecting new team
members, providing replacement for absentees,
budget preparation
• Collective Decision Making (70% consensus)
– Decision-rings, business unit committees, Strategic
Action Council
 Risk & Reward Pay System


• Base Pay/Benefits
– 12% lower than the average GM workers

–
• At-risk pay (12%)
5% meeting training requirement
– 5% meeting quality requirements
– 2% meeting team skills requirement
• Bonus/Reward (Quarterly review)
– Based on profitability
– $10,000 in 1995, 1996
– $2,100 in 1997
– $2,105 in 1998
 Approaches to the study of OB
HR Productivity
Contingency
Approach Approach
Approach
(supportive approach)

OB

Systems Interactionalism
Approach Approach
 Universal vs Contingency Approach
of OB
Organizational Universal approach The one best way of
Problems or Situations Responding
determine

Organizational problems Elements of the Contingency ways of

Or situations must be Situation, which then Responding
Evaluated in terms of Suggest…

Contingency approach
 Systems Approach to Organizations
Exports to the
Imports from the
Environment
Environment

Organization

Inputs: Outputs:
Product & Order
Production Fulfilment
Human Products/Services
Material Profit/Losses
Financial Employee behavior
Information Product & Additional
Production Information

Information Money

Feedback
Interactionalist Approach to OB

Individual

Behaviour

Situation
 A Conceptual Framework For The Study
Of Organizational Behavior
Environmental Context
2. Info. Tech & Globalization
3. Diversity & Ethics
Organizational Context
4. Design & Culture
5. Reward System Managing and
Dynamics
Leading for High
Performance
10. Communication
11. Decision
Social 15. Goals & Job
Making
Design
Cognitive Organizational 12. Stress &
16. Behavioral
Theory Behavior Conflict
Management
13. Power &
17. Leadership
Politics
Processes &
14. Groups &
Cognitive Processes Teams
Skills
6. Perception & Attribution 18. Great Leaders
7. Personality & Attitudes Really Do
8. Motivational Needs & Processes
9. Emotional Intelligence,
Optimism & Self-Efficacy
Basic OB Model, Stage I
 The OB Model
• Personality
• Perceptions
• Learning Individual Behavior
• Attitudes & Attribution
• Motivation

• Group Dynamics
• Team Dynamics
• Leadership Organizational
Group Behavior
• Power & Politics Effectiveness
• Communication
• Conflict

• Organization Culture
• HR Policies/Practices
• Work Stress Organization
• Organization Change
• Organization
Development
 OB Depends on…

• Dependent variables
• Independent variables
The Dependent Variables

x
The Dependent Variables
(cont’d)
The Dependent Variables
(cont’d)
The Dependent Variables
(cont’d)
The Dependent Variables
(cont’d)
There Are Few Absolutes in OB

x Contingency
Variables y
 The Independent Variables

Independent
Variables

Individual-Level Group-Level Organization

Variables Variables System-Level
Variables
Learning Organizations
What is a Learning Organization
A Learning Organization is an organization that
purposefully designs & constructs its structure,
culture and strategies with the capacity to learn
so that it can continuously adapt and change as
needed
 Case: Wal-Mart’s Global
Learning
• When Wal-Mart’s U.S. market became saturated, it
needed International markets for its expansion.

• By 2006 its International sales accounted for some 20%

of the total sales.

• But the expansion abroad into some 15 countries was

not without problems
 Case: Wal-Mart’s Global
Learning
• In Germany, Wal-Mart had problems with employees,
customers & the low-price competitor Aldi Einkauf
GmbH.

• In UK, Wal-Mart’s subsidiary Asda, fared because the

company was recognised for its low prices.

• Since 2002, Wal-Mart operated in Japan where it

invested in Seiyu Ltd, a chain selling groceries &
apparels, Its competitor Aeon Co., apparently was
impressed by the Wal-Mart business model that it sent
its employees to China & South Korea to study the
operation.
 Case: Wal-Mart’s Global
Learning
• The “Super-centre Model” of Wal-Mart did not work in
Brazil where consumers preferred the local market.

• In China, where many consumers had limited

transportation choices, Wal-Mart offered free shuttle
services & home delivery for heavy items such as
refrigerators etc.

Conclusion:
• Wal-Mart is learning from its mistakes because
International customers are vital for its vision of global
growth
 Characteristics of a Learning
Organization
• System Thinking: To be aware of the open linkages b/w
managerial actions & those around them, within &
outside the organization.

• Personal mastery: Organizations need to encourage

their employees to continually learn & improve their own
skills & abilities.

• Mental Models: They are deeply embedded

assumptions & generalizations which managers carry
regarding how the world works & their own actions.
 Characteristics of a Learning
Organization
• Building shared Visions: There is an important
difference b/w a vision built around a charismatic leader-
which is often transitory, and that built around shared
goals.

• Team Learning: Working and sharing information

among team members is a vital element of the learning
organization.
 Creating the Learning Organization

• Capabilities of scanning is necessary for exposing the

organizations to new information, crated internally or
acquired externally.

• Capabilities of self-reflection & problem-solving to enable

the firm to interpret new information and redefine
business knowledge is critical.
 Creating the Learning Organization
• Capabilities to disseminate the new knowledge
throughout the organization is important to ensure
collective learning.

• Capabilities to act and experiment in order to enable the

organization to practice the new responses it has learnt
is essential.

• Facilitating the shift in People’s Mindsets.

 Facilitating the shift in People’s
Mindsets
• Managers must be receptive to the new ideas and
overcome the desire to closely monitor & control
operations

• Systems thinking among managers in the organization

needs to be cultivated.

• It is necessary to keep the organization in a state of

constant change.
 Facilitating the shift in People’s
Mindsets
• Diversities need to be cultivated in the functioning of the
organization.

• Creating a mechanism to unlearn old & obsolete

knowledge & practices.

• Disseminate learning throughout the organization

systematically.

• Develop a sense of personal efficiency (efficacy) among

the organizational members.
 Need for Learning Organizations

• To survive in the tomorrow’s knowledge-based economy.

• To manage tomorrow’s intense Global competition.

• To cope with tomorrow’s rapid fire technological

changes.

• To handle tomorrow’s demanding and fragmented

markets.

• To build a people based work system in the

organization.
 Traditional vs Learning Organizations

Function Traditional Organization Learning Organization

1. Determination of Vision provided by top Shared vision

overall direction management

2. Formulation & Top management decides what Formulation &

implementation of is to be done ; rest of the implementation of ideas

ideas organization acts on these take place at all level of

3. Nature of
 ideas
Each person is responsible for
the organization.
Personnel understanding

organizational his own job responsibilities their own jobs as well as

thinking
 The focus is on developing the way in which their

individual competence own work interrelates with

 Traditional vs Learning Organizations

Function Traditional Organization Learning Organization

4. Conflict Resolution They are resolved through use They are resolved through

of power & hierarchical the use of collaborative

influences. learning & the integration

of the diverse viewpoints.

5. Leadership & The role of the leader is to The role of the leader is to

Motivation establish the organization’s build a shared vision,

vision, provide rewards & empower personnel,

punishment & maintain overall inspire commitments, &

control of employee activities. encourage effective