MANAGEMENT PROCESSES &

ORGANIZATIONAL BEHAVIOUR

UNI
T-1

Nidhi
jamwal

MANAGEMENT????
Perceptive of Managers:
There are many definitions of management but most
perceptive managers are convinced that it is an organized
effort of people whose purpose is to achieve the objectives and
goals of an organization..
Management as a Process:
McFarland defines management as A process by which
managers create, direct, maintain and operate purposive
organization through systematic, coordinated, cooperative
human efforts.

Management as coordination:
Donally, Management is a process by which individual and group effort
is coordinated towards group goals.
According to them, Management is a process of designing and
maintaining an environment in which, individuals, working together in
groups efficiently .

Management as a Function:
Stephens and Kelly contend that Management is a role which includes a
set of duties, responsibilities, and relationships-involved in work
organizations

Management is getting things done

through other people:
A simple definition of management that is often quoted and it
sounds very simple.
According to this definition, managers do not do things they get
other people to do things.

Management is basically an art

because of the following reasons
A manager applies his knowledge and skills to coordinate the
efforts of his people
Mgt seeks to achieve concrete practical results
Mgt is creative. It brings out new situation and converts into
output
Effective Mgt lead to realization of Organizational and other goals.
Mastery in Mgt requires a sufficiently long period of experience in,
managing..

Management as Science
The essential elements of Science in management:
Systematized body of Knowledge
Underlying principles and theories developed through continuous
observation, inquiry, experimentation and research.
Universal truth and applicability.
Organized body of knowledge can be taught and learnt in class
room and outside.
Mgt is a social science. It contains all the essentials of science. It is
an inexact science.
PERT, CPM, Cost A/C, Finance, MBO etc
Thus, the theory (Science) and practice (art) of Mgt go side
by side for the efficient functioning of an organization

CHARACTERISTICS OF MGMT
Mgt is Universal
Mgt is dynamic
Mgt is a group of managers
Mgt is Purposeful
Mgt is goal oriented
Mgt is integrative Function
Mgt is a Social process
Mgt is a Multi-faceted discipline
Mgt is a continuous process
Mgt is a system of authority
Mgt is a resource
Mgt is intangible
Mgt is profession, an art as well as a science

LEVELS OF MANAGEMENT
TOP LEVEL MGT
Board of Directors, MD, Owners, Chief Executives
To analyze, evaluate and deal with the environmental forces
To establish overall long term goals and broad policies of the company
To appoint departmental and other key executives
To represent the company to the outside world
To coordinate the activities and efforts of different department
MIDDLE LEVEL MGT
Sales Executives, Production Executives, Production executives etc.
To interpret and explain the policies framed by top management
To compile and issue detailed instruction regarding operations
To Cooperate among themselves so as to integrate various parts of the
division or a department
To motivate supervisory personnel to work for Org goals
To develop and train supervisory and operative personnel.

SUPERVISORY / OPERATING / LOWER LEVEL MGT

Superintendents, Branch managers, General Foremen
To plan day to day production within the goals lay down by higher authority
To assign jobs to workers and to make arrangement for their training and developmen
To supervise and control workers and to maintain personal contact with them.

IMPORTANCE OF MANAGEMENT

ment is the dynamic life giving element in every business.

it the resources of production remain resources and
ecome production.
Management provides the following benefits .
ment of group goals
m utilization of resources
ent of social obligations
mic growth
y
Development
he challenge of change

FUNCTIONS OF MANAGEMENT
Functions
Planning

Organizing

Staffing

Directing
Controlling

Sub Functions
Forecasting, decision making, strategy formulation,
policy making, programming, scheduling, budgeting,
problem-solving, innovation, investigation and research.
Grouping of Functions, Departmentation, delegation,
decentralization, activity analysis, task allocation
Manpower planning, job analysis, Recruitment,
Selection,
Training,
Placement,
Compensation,
Promotion, appraisal, etc.
Supervision, Motivation, communication, Leadership,
etc
Fixation of standard, recording, measurement, reporting
corrective action.

Roles of a manager ( Mintzberg)

Interpersonal Role
- Interacting with people
inside and outside the Organization.
Figurehead as a symbolic head of an organization, the manager
performs routine duties of a legal nature
Leader Hiring, Training, motivating and guiding subordinates
Liaison - Interacting with other managers outside the organization to
obtain information

Informational Role Serving as a focal point for

exchange of Information
Monitor Seeks and receive information concerning internal and
external events so as to gain understanding of the Organization and its
environment.
Disseminator Transmits information to subordinates, peers and
superiors within the Organization
Spokesperson Speaking on behalf of the Organization and
transmitting information on Organization plans, policies and actions to
outsiders.

Decisional Role Makes important decision

Entrepreneur Initiating changes or improvements in the activities
of the Organization.
Disturbance handler- Taking charge and corrective action when
Organization faces unexpected crises
Resource allocator Distributing Organizations resources like
money, time, equipment and labour
Negotiator Representing the Organization in bargaining and
negotiations with outsiders and insiders

MANAGEMENT VS
ADMINISTRATION

Basis of Distinction

Administration

Management

Policy and objectives

Determination of objectives & policies

Implementation of Policies

Functions

Legislative & determination function

Executive Function

Planning, Organizing, staffing

Directing, Coordinating ,
Controlling

Provides a sketch of the enterprise

Provides the entire body

Influence

Influenced mainly by public opinion & other Influenced mainly by administrative

function
outside force

Levels of Management

Mainly top level function involves thinking Mainly middle level function involves
doing and acting
& planning

Level of Executives

Owners/ Board of Directors

MD, GM & Managers

Position

Acts as a principal

Acts as an agency

Knowledge

Requires more admin ability than technical Requires more technical ability than
admin ability
ability

HISTORY OF
MANAGEMENT
DEVELOPMENT

DIFFERENT SCHOOL OF THOUGHTS

CLASSICAL APPROACH

NEO- CLASSICAL THEORIES

BEHAVIORAL APPROACH

MODERN MANAGEMENT THEORIES

QUANTITATIVE APPROACH
SYSTEMS APPROACH
CONTIGENCY APPROACH

CLASSICAL APPROACH
Classical management thought is divided into three
separate school of thoughts
Scientific Management
Administrative Theory
Bureaucratic Management

SCIENTIFIC MANAGEMENT
One best way to do each job
Earliest advocates of scientific management

Frederick W.Taylor
Frank & Lillian Gilbreth
Henry Gantt

Frederick Winslow Taylor

Father of scientific management

STEPS IN SCIENTIFIC MANAGEMENT:

Replaced old rule of thumb methods to eliminate
soldiering
Selecting,training,teaching and developing workers
Supervise employees to make sure they follow the
prescribed methods for performing their jobs
Continue to plan the work but use workers to actually
get the work done

Criticism:
1. Worker's Criticism:
(a) Speeding up of workers: Scientific Management is only a device to
speed up the
workers without much regard for their health and well-being.
(b) Loss of individual worker's initiative: Scientific Management
reduces workers
to automatic machine by taking away from them the function of thinking.
(c) Problem of monotony: By separating the function of planning and
thinking
from that of doing, Scientific Management reduces work to mere routine.
(d) Reduction of Employment: Scientific Management creates
unemployment and
hits the workers hard.
(e) Weakening of Trade Unions: Under Scientific Management, the
important
issues of wages and working conditions are decided by the management through
scientific investigation and the trade unions may have little say in the matter.
(f) Exploitation of workers: Scientific Management improves
productivity through
the agency of workers and yet they are given a very small share of the benefit of
such improvement.

2. Employer's Criticism:
(a) Heavy Investment: It requires too heavy an investment. The
employer has to
meet the extra cost of the planning department though the foreman in this
department do not work in the workshop and directly contribute towards higher
production.
(b) Loss due to re-organization: The introduction of Scientific
Management
requires a virtual reorganization of the whole set-up of the industrial unit.
Work may have to be suspended to complete such re-organization.
(c) Unsuitable for small scale firms: various measures like the
establishment of a
separate personnel department and the conducting of time and motion studies
are
too expensive .

Major managerial practices that emerged from

Taylors approach
Piece-rate incentive system
Time and motion study

FRANK and LILLIAN GILBRETH

Frank Gilbreth is considered as the father of

motion study
Lillian Gilbreth was associated with the research

pertaining to motion study

Motion study involves finding out the best sequence

and minimum number of motions needed to

complete a task

HENRY LAURENCE GANTT

Was a close associate of Taylor
Developed the Gantt chart
Psychology of employees
Emphasized leadership

LIMITATIONS OF SCIENTIFIC MANAGEMENT

It revolves round problems at the operational level
The proponents were of the opinion that people were

motivated primarily by the desire for material gain

Scientific management theorists ignored the human

desire for job satisfaction

ADMINISTRATIVE THEORY
Focused on principles that could be used by

managers to coordinate the internal activities of

organizations
Most prominent administrative theorist was Henri

Fayol

HENRI FAYOL
Prominent European management theorist
Wrote General and Industrial Management
(POCCC)
Business operations of an organization could be divided into six activities
Technical
Commercial
Financial
Security
Accounting
Managerial

FOURTEEN PRINCIPLES OF MANAGEMENT

Division of work
Authority and Responsibility ( latter from former)
Discipline
Unity of Command

(one superior)
Unity of Direction (one head one plan)
Subordination of the individual interest to the general interest
( coordinate)
Remuneration
Centralization
Scalar Chain
Order ( material and social)
Equity

Stability of tenure of personnel (no change)

Initiative
Espirit de corps (union is strength)

BUREAUCRATIC MANAGEMENT
Max Weber - German sociologist
Father of Bureaucratic Management theory
Theory of bureaucracy is based on a rational set of guidelines for

structuring organizations
Major characteristics of Webers ideal bureaucracy
Work specialization and division of labour
Abstract rules and regulations
Impersonality of managers
Hierarchy of organization structure
Selection of employees was made on the basis of technical
expertise

LIMITATIONS OF BUREAUCRATIC MANAGEMENT AND

ADMINISTRATIVE THEORY
Some theorists ignored important aspects of organizational

behavior.
They stressed productivity
management.
mostly at operative level
Webers

above

other

aspects

of

concept of bureaucracy destroys individual

creativity and the flexibility .
Over dependence.

No change.

Men-machine.

NEO- CLASSICAL
THEORIES

BEHAVIORAL APPROACH
It emphasized on the human element
Behavioral thinkers

Mary Parker Follet

Elton Mayo
Abraham Maslow
Douglas McGregor

MARY PARKER FOLLET: Focusing on Group Influences

Importance of human element in organizations
Employees were influenced by the group in which

they worked
Organizations function on the principle of power

with rather than power over

Advocated the concept of integration

ABRAHAM MASLOW:FOCUSING ON HUMAN NEEDS

His theory rested on three
assumptions
All of us have needs which are never
completely fulfilled
Through our actions we try to fulfill
our unsatisfied needs
Human needs occur in the following
hierarchical manner

LIMITATIONS TO MASLOWS THEORY

Human needs do not always emerge in a hierarchical

manner
Does not explain how a person prioritizes the needs

at a particular level of hierarchy.

DOUGLAS McGregor: CHALLENGING TRADITIONAL

ASSUMPTIONS ABOUT EMPLOYEES

Developed two assumptions about human behavior

Theory X and Theory Y

THEORY X
Most people dislike work and they avoid it when they
can
Most people must be coerced and threatened with
punishment before they work
Most people prefer to be directed. They avoid
responsibility and have little ambition

THEORY Y
Work is a natural activity like play or rest
People are capable of self direction and self control if

they are committed to objectives

People become committed to organizational objectives
if they are rewarded in doing so
Under proper conditions people learn to accept
responsibility and also try to seek responsibility
Most people are capable of being innovative in solving
organizational problem

ELTON MAYO:FOCUSING ON HUMAN RELATIONS

Father of Human Relations Approach
Led the team which conducted a study at

Western Electrics Hawthorne Plant.

He conduction series of experiments in form of
phases famously known as Hawthorne
experiments

ILLUMINATION
EXPERIMENTS

Took place between 1924 and 1927

Two group of workers (experimental or test group)

and the control group

Experiment involved manipulating the illumination
RELAY ASSEMBLY TEST ROOM EXPERIMENTS
Took place between 1927 and 1933
It included the introduction of a series of HR policy
measures for the test group to study their impact on
overall productivity

INTERVIEW PHASE
21000 people were interviewed between 1928-1930
To determine employee attitude towards the company

and their jobs.

BANK WIRING OBSERVATION ROOM

Conducted during 1931- 1932
It was undertaken by researchers to test some
of the ideas they had gathered during the
interviews

Criticism of Hawthorne studies

The procedures, findings and conclusions reached

were questionable
Researchers considered themselves as social
engineers
The relationship made between the satisfaction or
happiness of workers and their productivity was too
simplistic

Limitations of Human Relations Approach

The human relations theorists are of the opinion that

by removing fear, people would perform effectively

It does not provide enough focus on theory
It does not understand the economic implications of
organizational problems. Human relations theory
also tends to be very vague

MODERN THEORIES

QUANTITATIVE APPROACH
Gained momentum after world war 2.
Mathematical models were used to solve problems and
promote decision making.
Was first used for finding out solutions for military problems.
Quantify various variables of the problem and solve it.
Use mathematical symbols to describe problems.
Tools like- operation research, simulation etc.
LIMITATIONS:
No importance to human element
Presumes all variables are quantifiable.
Not practical sometimes.

SYSTEMS APPROACH
Organization is an open system
Adaptive system
Focuses on organization as a whole
Sub-systems exist
Boundaries
Multi- disciplinary approach
LIMITATIONS:
Often called abstract and vague .
No tools and techniques for decision making.

CONTINGENCY APPROACH
Also called as situational approach.
Management is entirely situational ; condition dependent.
Says, what managers do in practice depends upon set of
circumstances.
No best way of managing. No universal principles but stress
on situations.
#PRACTICALLY SOUND AND USEFUL.

CONTEMPORARY CHALLENGES/ISSUES
IN MPOB
Globalization
Economic pressure
Technology and
Innovation
Employee Satisfaction
Social Responsibility
Organization Ethics
Change
Work force diversity
Contingent workforce
Downsizing
Total Quality
management
Customer Service

ORGANIZATION BEHAVIOUR

Organizational behaviour is the study of both group

and individual performance and activity within an
organization.
It focuses on : employees, work groups and
organization as a whole.
Internal and external perspectives are two theories of
how organizational behaviour can be viewed by
companies.

INTERNAL CONCEPT
This theory revolves around the idea that, in order to
understand individuals in an organizational environment,
an individual must understand the person's thoughts,
feelings and personal values.

EXTERNAL CONCEPT
It is believed that external events and environmental
factors affected an individual's job performance and
behaviour.

DECISION
MAKING
Haynes & Massie Decision making is a process of selection from
a set of alternative courses of action which is thought to fulfill the
objective of the decision problem more satisfactorily than
others.

Types of Managerial Decisions

Organizational and Personal Decisions
Routine and Strategic Decisions
Programmed and Non programmed Decision
Policy and Operating Decision
Individual and Group decision

FACTORS INVOLVED IN DECISION MAKING

Tangible Factors - things which can be measured, Fixed cost, operating
cost, profits, machine, etc
Intangible factors Immeasurable elements. E.g.. Employee morale,
quality of labor relations, Consumer behavior, etc. Personal values &
Organ Culture, Group decision making, Creative and innovation

PROBLEMS OF DECISION MAKING

Indecisiveness
Time pressure
Lack of Information
Failure to evaluate correctly
Lack of follow through

KEY TO SUCCESS IN DECISION MAKING

Be problem oriented not just solution oriented
Set decision making goals
Always check the accuracy of the information
Dont be afraid to develop innovative alternatives
Be flexible
Gain commitment for decision at an early stage
Evaluate and follow up the decision

MODELS OF DECISION MAKING

RATIONAL MODEL OF DECISION MAKING

MANAGEMENT PROCESSES &

ORGANIZATIONAL BEHAVIOUR

UNI
T-2

Nidhi jamwal

PLANNING
Deciding in advance what to do, how to do, when to do and who is to do it.
Bridges the gap between where we are to where we want to go.
Thinking before doing.
Intellectual demanding process.

DEFINITION
According to Koontz O'Donnell
"Planning is an intellectual process, the conscious
determination of courses of action, the basing of
decisions on purpose, acts and considered
estimates".

NATURE AND PURPOSE OF PLANNING

NATURE
1.
2.
3.
4.
5.
6.
7.
8.

Planning is goal-oriented
Primacy of Planning
Pervasiveness of Planning
Efficiency, Economy and Accuracy
Co-ordination
Limiting Factors
Flexibility
Planning is an intellectual process

PURPOSE
1. To manage by objectives
2. To offset uncertainty and change
3. To secure economy in operation
4. To help in co-ordination
5. To make control effective
6. To increase organizational effectiveness

FEATURES OF PLANNING
It is primary function of management.
It is an intellectual process
Focuses on determining the objectives
Involves choice and decision making
It is a continuous process
It is a pervasive function

CLASSIFICATION OF PLANNING
On the basis of content:
Strategic Planning
It is the process of deciding on Long-term objectives of the organization.
It encompasses all the functional areas of business
Operational plans
An operational plan is one that a manager uses to accomplish his or her
job responsibilities.
Supervisors, team leaders, and facilitators develop operational plans to
support tactical plans
Tactical planning
It involves conversion of detailed and specific plans into implementation
phase.
It is the blue print for current action and it supports the strategic plans.

On the basis of time period:

Long term planning
Time frame beyond five years.
It specifies what the organization wants to become in long run.
It involves great deal of uncertainty.

Intermediate term planning

Time frame between two and five years.
It is designed to implement long term plans.
Short term planning
Time frame of one year or less.
It provide basis for day to day operations.

PLANNING PREMISES
Planning premises provide a framework. All plans are made within this
framework. There are many environmental factors, which influence the
plan. Assumptions are made about these factors. These assumptions are
called premises.

1. INTERNAL AND EXTERNAL PREMISES

Internal Premises come from the business itself. It includes skills of the
workers, capital investment policies, philosophy of management, sales
forecasts, etc.
External Premises come from the external environment. That is,
economic, social, political, cultural and technological environment. External
premises cannot be controlled by the business.

2. CONTROLLABLE, SEMI-CONTROLLABLE AND

UNCONTROLLABLE PREMISES
Controllable Premises are those which are fully controlled by the
management. They include factors like materials, machines and money.
Semi-controllable Premises are partly controllable. They include marketing
strategy.
Uncontrollable Premises are those over which the management has
absolutely no control. They include weather conditions, consumers' behaviour,
government policy, natural calamities, wars, etc.

3. TANGIBLE AND INTANGIBLE PREMISES

Tangible Premises can be measured in quantitative terms. They
include units of production and sale, money, time, hours of work, etc.
Intangible Premises cannot be measured in quantitative terms. They
include goodwill of the business, employee's morale, employee's attitude
and public relations.

4. CONSTANT AND VARIABLE PREMISES

Constant Premises do not change. They remain the same, even if
there is a change in the course of action. They include men, money
and machines.
Variable Premises are subject to change. They change according
to the course of action. They include union-management relations.

# MBO (Management by objectives)

MBO is a process whereby the superior and the mangers of an organization
jointly identify its common goals, define each individuals major area of
responsibility in terms of results expected of him, and use these measures as
guides for operating the unit and assessing the contribution of each of its
members.

FEATURES OF MBO
1. MBO is concerned with goal setting and planning for individual managers
and their units.
2. The essence of MBO is a process of joint goal setting between a supervisor
and a
subordinate.
3. Managers work with their subordinates to establish the performance goals
that are
consistent with their higher organizational objectives.
4. MBO focuses attention on appropriate goals and plans.
5. MBO facilitates control through the periodic development and subsequent
evaluation of individual goals and plans.

The typical MBO process consists of:

1) Establishing a clear and precisely defined statement of objectives for the
employee
2) Developing an action plan indicating how these objectives are to be
achieved
3) Reviewing the performance of the employees
4) Appraising performance based on objective achievement

ORGANIZING
DEFINITION
According to Koontz and O'Donnell, "Organization involves the grouping
of activities necessary to accomplish goals and plans, the assignment of
these activities to appropriate departments and the provision of
authority, delegation and co-ordination."

ORGANIZATION STRUCTURE
An organization structure is a framework that allots a particular space for a
particular department or an individual and shows its relationship to the
other. An organization structure shows the authority and responsibility
relationships among the components of the organization

AUTHORITY

VS

RESPONSIBILITY

Authority

Responsibility

definitions

Authority is the power or right Responsibility is the state or

to give orders, make decisions, fact of having a duty to deal
and enforce obedience.
with something, or of having
control over someone.

Basically

It is power.

It is a duty.

Main functions

Here, orders and commands

play a vital role.

Here, duties and obedience

play a vital role.

Time duration

It stays for a longer period as It gets completed with the

compared to responsibility.
completion of the task so it
has a shorter period.

Direction Flow

It flows downwards.

It flows upwards.

Delegation

It can be delegated to others.

It cannot be delegated.

Example

The right of a manager to

command his subordinates.

The obligation of a
subordinate to complete an
assigned work.

Delegation

BASIS OF COMPARISON
DELEGATION
Meaning
Delegation means
handing over an
authority from one
person of high level to
the person of low level.

What it is?
Accountability

Parties

Requirement

Liberty of Work
Control

DECENTRALIZATION
Dissemination of
powers, authority and
responsibility of one
person to another
person or persons is
known as
Decentralization.
Cause
Effect
Superiors are
Department heads are
accountable for the acts accountable for the acts
done by subordinates.
of the concerned
department.
Superior and
Top Management and
Subordinate
Middle or Low Level
Management.
Yes, for all organization No, it is an optional
delegation of authority policy which may or may
is very necessary.
not be adopted by the
organization.
Subordinates do not
A substantial amount of
have full liberty.
freedom is there.
The ultimate control is
The head of the

DIRECTI
ON consists of process or technique by which
Directing
instruction can be issued and operations can be carried out
as originally planned Therefore, Directing is the function
of guiding, inspiring, overseeing and instructing people
towards accomplishment of organizational goals.
Direction has got following characteristics:
Pervasive Function - Directing is required at all levels of organization.
Every manager provides guidance and inspiration to his subordinates.
Continuous Activity - Direction is a continuous activity as it
continuous throughout the life of organization.
Human Factor - Directing function is related to subordinates and
therefore it is related to human factor.

Creative Activity - Direction function helps in converting plans into

performance. Without this function, people become inactive and physical
resources are meaningless.
Executive Function - Direction function is carried out by all managers
and executives at all levels throughout the working of an enterprise, a
subordinate receives instructions from his superior only.
Delegate Function - Direction is supposed to be a function dealing with
human beings. Human behaviour is unpredictable by nature and
conditioning the peoples behaviour towards the goals of the enterprise is
what the executive does in this function.

CONTROLING
Control system should be made as fair and as meaningful as possible and
must be clearly communicated to all employees. evaluation must be
consistent with organizational goals, policies and culture.
Some of the behavioural implications of control are as follows:
1. Control affects individual freedom. Hence, it is common for
individuals to resist certain controls if such controls put constraints on
their freedom.
2. Control carries certain status and power implications.
3. When controls are based upon subjective and personal judgements as
against quantified performance, standards and appraisals, these may
create interpersonal or intergroup conflicts within the organization.

4. Excessive number of controls may limit flexibility and creativity.

This may lead to low levels of employee satisfaction and personal
development.
5. Controls may influence the generation of invalid and inaccurate
information.
6. Controls can be resented by employees if they have no control over the
situation.
7. The control system must be synchronized to create a balance among all
affecting and inter-connected variables. The standards should complement
each other and not contradict each other.

MANAGEMENT PROCESSES &

ORGANIZATIONAL BEHAVIOUR

UNI
T-3

Nidhi jamwal

ORGANIZATIONAL BEHAVIOUR
MEANING
Organizational behaviour is the systematic study of human behaviour, attitudes
and performance within an organizational setting; drawing on theory methods
and principles from such disciplines as psychology, sociology and cultural
anthropology to learn about individual perceptions, values, learning capacities
and actions while working in groups or at individual levels.
Framework for the study of Organizational behaviour
involves:
A. The Organizations Environment
Forces present in the environment outside the organization like needs of the
society, demands of customers or clients, legal and political constraints, economic
and technological changes and developments interact with the organization and
the management of an organization must respond appropriately to it.

B. The Individual in the Organization

Individual performance forms the basis of organizational performance.
The four key influences on individuals behaviour and motivation are:
a. Individual characteristicse.g., personality, attitudes, perceptions,
values.
b. Individual motivationinteracts with ability to work to determine
individual performance.
c. Rewards/punishmentuse of behaviour modification techniques to
enhance performance and control misbehaviour.
d. Stress.
C. Interpersonal Influence and Group Behaviour
Interpersonal influence and group behaviour affect organizational performance in
the following way:
a. Group Behaviourthe dynamics of formal groups and informal groups.
b. Intergroup Behaviour and Conflictgroups can cooperate and/or compete
with each other in organizations;.
c. Power and Politicsthe dynamics and effects of power, authority and politics
in the organization.

D. Organizational Processes, Structure and Design

A formal pattern of activities and interrelationship among the various subunits of the
organization.
It includes:
a. Organizational Structurethe components of the organization and how these
components fit together.
b. Job Designthe processes managers use to specify the contents, methods, and
relationships of jobs and specific task assignments.
c. Organizational Processes
Four behavioural processes are:
1. Leadershipimportant for obtaining individual, group and organizational
performance.
. 2. Communication Processlinks the organization to its environment and links
parts within the organization to each other.
3. Decision-Making Processthe dynamics, variety and techniques of both
individual and group decision-making.
4. Organizational Change and Development Processesplanned attempts to
implement change that will improve overall org

INDIVIDUAL DIFFERENCES
Law of individual differencesEach person is substantially different from all others in terms of their
personalities, needs, demographic factors and past experiences and/or
because they are placed in different physical settings, time periods or social
surroundings.

PERSONALITY

Personality encompasses the relatively stable feelings, thoughts, and

behavioural patterns a person has.
In order to effectively manage organizational behaviour, an
understanding of different employees personalities is helpful.
Having this knowledge is also useful for placing people in jobs and
organizations.

The distinction is manifested by positive and negative affectivity

traits. Positive affective people experience positive moods more
frequently, whereas negative affective people experience
negative moods with greater frequency. Negative affective people
focus on the glass half empty and experience more anxiety and
nervousness

Proactive personality refers to a persons inclination to fix what is perceived as

wrong, change the status quo, and use initiative to solve problems. Instead of
waiting to be told what to do, proactive people take action to initiate meaningful
change and remove the obstacles they face along the way
Self-esteem is the degree to which a person has overall positive feelings about
his or herself. People with high self-esteem view themselves in a positive light, are
confident, and respect themselves. On the other hand, people with low self-esteem
experience high levels of self-doubt and question their self-worth
Self-efficacy is a belief that one can perform a specific task successfully.
Research shows that the belief that we can do something is a good predictor of
whether we can actually do it.
Locus of control deals with the degree to which people feel accountable for their
own behaviours. Individuals with high internal locus of control believe that they
control their own destiny and what happens to them is their own doing, while those
with high external locus of control feel that things happen to them because of
other people, luck, or a powerful being

PERCEPTIONPerception is the unique way in which each person sees, organizes and interprets
things based on their background of individual differences.

PERCEPTION PROCESS
Receiving Stimuli Picking up all external and internal factors.
Selecting Stimuli Selecting the stimuli which will be most important This is
where the introduction of new employees is important, they need to be presented
in a way where the selected stimuli are positive.
Organising Grouping and selecting which are the perceptions to keep.
Interpreting Fundamental Attribution Error, stereotyping, Halo Effect and
projection.
Response The perception is then turned into attitudes, motivation, feelings
and beliefs, which will change the behaviours of the individuals.

MANAGERIAL APPLICATIONS/IMPORTANCE OF
PERCEPTION
(1) Interpersonal Working Relationship :Organizations are
intended to bring about integrated behavior. Managers require efforts
to perceive correctly. Misperceptions lead to strained relations and
may even result in open conflict among people.
(2) Selection of Employees :Managers are subject to many of the
perceptual problems when they make the selection decisions. New
employees have to be selected with correct perception.
(3) Performance Appraisal :The appraisal of a subordinate's
performance is highly affected by the accuracy of a manager's
perceptions.
(4) Impression Management :It is very important for an
individual to manage or to control what others perceive about the
(5) Perception is very important in understanding the human
individual.
behavior.
(6) With the help of perceptions, the needs of various people
can be determined, because people's perception is influenced by
their needs.

GATIVE ATTITUDE LEADS TO DISATTISFACTION AT WORK PL

TRANSACTIONAL ANALYSIS
JOHARI WINDOW

Johari window
Known to self Unknown to
self
Known to
others

open

blind

Unknown to
others

hidden

unknown

TYPES OF TRANSACTIONS

THANK YOU !!!