ORGANIZATION BEHAVIOR

INTRODUCTION
 Case
• Rudely shaken Vijay came home in the evening and
he was not in a mood to talk to his wife. Bolted
inside, he sat in his room, lit a cigarette and brooded
over his experience with the company he loved
most. A smart and intelligent vijay Joined
the company which boasts a turnover of 4000 crores
in finance dept. Very dependable, he introduced
several new systems in record keeping and was
responsible for cost reduction in many areas. He
developed relations with few.
 case
• Though he deserved promotions, he missed it 4
times. GM Finance saw to it that Vijay was
shfited to Unit 2 where he was posted in
purchasing. Though it was not his cup of tea,
he went into it, streamlined the funciton and
introudced new systems esp vendor
management. He was honest in it. After two
years, he was shifted to stores. Finance to
purchase, purchases to stores, was too much. s
 Case
• He busted out before the head and unable to control
his anger, he put in his papers too. Unit head was
aghast at this but did nothing to console vijay but
forwarded the papers to VP finance. VP called vijay,
heard him for sometime and advised him not to lose
heart and his interest would be taken care of. Vijay
was asked to join and assured no action would be
taken. When the time came for promotions, to his
dismay , his name went missing. When he met the
head, he cool told him to pack off.
 Introduction
• Managerial competencies
– Skills to manage teams
– Create vision and inspire to be part of
– Hire complementary skills
• Interpersonal competencies
– Each individual is unique
– Understand what motivates each one
– Understand differences and negotiate
• Technical skills are desirable but not enough
 Why
• Success isn’t a destination – it’s a process.
• Understanding the behaviors between the
leader, the followers, and the organization.
• To be successful leader, one needs to
understand the behaviors of people,
organizations, and the situation.
 Objectives
• Define organizational behavior (OB).
• Explain the value of the systematic study of
OB.
• List the major challenges and opportunities
for managers to use OB concepts
• Identify the three levels of analysis in OB
model
 What do u say?
• A happy worker is a productive worker.
• Employees perform better without stress.
• Employees usually feel bad if they are paid more
than others performing the same work.
• Friendly & approachable bosses motivate
• Leaders who exhibit stable behaviors in all situations
make best leaders
 What do u say?
• When people feel intimidated, they will work
harder and do their best
• Money is a motivator for employee
• People are more concerned about their own
salaries than others
• Conflict has negative effect on work
effectiveness
 Organizations
• Organization is a group of individuals who
work together towards achieving common
goals
• A consciously coordinated social unit
composed of two or more people, that
functions on a relatively continuous basis to
achieve common set of goals.
 Organizations
• Organizations - more than only a means for
providing goods and service
• The settings in which we spend our lives
• They have profound influence on employee
behavior
How does a Company see employees..
Costs to be reduced or..
The key to productivity
 Managers
• Managers are the people who plan, organize,
lead, and control the activities of the organization
so that its goals can be achieved.
• Individuals who get the work done through others
• Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to attain goals
 Managerial Functions

Planning Organizing

Management
Functions

Controlling Leading
 Managerial Functions
• Planning: A process that includes defining goals,
establishing strategy and developing plans to
coordinate activities
• Organizing: Process of what tasks to be done, who has
to accomplish them, how the tasks are grouped, where
the decisions to be made and who reports to whom
• Leading: Process of motivating and directing
employees , selecting most effective communication
channel to obtain cooperation
• Controlling: process of monitoring the activities to
ensure that they are accomplished as planned, without
deviation and correcting any significant deviations
 Managerial Roles
• Decisional
– Resource Allocator: Makes significant decisions
– Entrepreneur: Scans the environment and
organization for opportunities to initiate
– Negotiator: Represents the organization
 Managerial Roles
• Informational Role
– Monitors : Receives variety of information, serves
as nerve centre of information
– Disseminator: Transmits the information received
from outside to members
– Spokes person: Transmits information to
outsiders on organizational plans, policies and
other issues
 Managerial Roles
• Interpersonal Roles
– Figure head: Performs number of ceremonial
duties of social nature
– Leader: Motivates and directs the employees
– Liaison: Maintains a network of outside contacts
who provide information and favor
 Management skills
• Technical Skills
– Ability to apply specialized knowledge about
something that is learnt or mastered
• Human Skills
– Ability to understand, work with and motivate others.
Technically competent and interpersonally
incompetent
• Conceptual:
– Mental ability to analyze and diagnose complex
situations, like decision making
 Managerial Activities
• Traditional management
• Decision making, planning, and controlling
• Communications
• Exchanging routine information and processing
paperwork
• Human resource management
• Motivating, disciplining, managing conflict,
staffing, and training
• Networking
• Socializing, politicking, and interacting with others
Allocation of Activities by Time
 What is Organizational Behavior?
• Organizational Behavior is the study of
human behavior in the workplace, the
interaction between people and the
organization with the intent to understand
and predict human behavior
• Systematic study that investigates the impact
that individuals, groups and structures have
on behavior within the organizations for the
purpose of applying such knowledge toward
improving organizational effectiveness
Organization
Working Together

Technical & Emotional

Competence

Traditional Assets

Emotional Capital

Knowledge Capital
 Organization Behavior
• We want to both understand and predict
certain behaviors
– Some behaviors are more desirable than
others; how can we maximize those
behaviors?
• This is where attitudes, feelings, personality
characteristics, and other individual
differences come into play
 Why OB
• Compete with their products

• Compete through using their most valuable

resource - people, to maximum effect

• Interpersonal skills are vital to allow this to

happen
 Working Together
• The success of an organization is dependent upon
the people within it working well together

• Internally
– In teams
– Across teams
– Within and between departments and business units
• Externally
– With suppliers
– With Customers
 Why OB
• Provides road map to life in organizations
– Hopes and dreams, fear and frustrations
– Act dynamically and rationally, distract and
irrational
• Predict organizational life under conditions
• To influence organizational events
– More than understanding and predicting
• To understand
 Why OB

What are the What solutions are

how strong are possible
patterns of
they Which variables
behavior
can be influenced
How do they How they can be
What is the cause
interrelate influenced?
and effect relation
 Example
• John is walking along the sidewalk and bumps
into someone and says, "I am sorry".
• Jane, on the other hand, bumps into someone
and says “Oh can’t you see and is upset“
•   Is effective or ineffective?  
Interpersonal Relationships

affiliations social associations

between two or more people

connections
 Organizational Context
• Interpersonal skills are used can be seen in
vast number of interpersonal interactions as:
Meetings Coaching

Delegation Problem Solving

Motivation Selling

Facilitation Leading
 Interpersonal Relations
• An association between two or more people
that may be on the basis of liking or regular
interaction in some business etc which may
range from fleeting to enduring commitment
• Interpersonal relationships take place in a
great variety of contexts.
• Regulated by mutual agreement
 Technical V Emotional
• Technical competence allows you to get to the starting line
in terms of dealing with:
– Customers
– Colleagues
– Suppliers

Technical competence is an ‘expected’

• Emotional competence -the ability to read, understand and

interact with people is what makes the difference in the
long term
 Interpersonal Relations
• People in a relationship tend to influence each
other, share their thoughts and feelings, and
engage in activities together through
communication and interdependence
• Tend to grow and improve gradually, as people
get to know each other and become closer
emotionally, or they gradually deteriorate as
people drift apart, move on with their lives and
form new relationships with others.
 Interpersonal Relations

Restrained Impulsiveness
Internalized Externalized
Organized Disorganized
Realistic Idealistic
Modest Exhibitionistic
Over-controlled Under-controlled
 Interpersonal effectiveness

  "the degree to which the consequences of

our behavior match our intentions.”
 Interpersonal Relationships
• Acquaintance – Becoming acquainted depends on
previous relationships, continued interaction.
• Buildup: People begin to trust, care about and
influence each other
• Continuation – Continued influence following mutual
commitment
• Deterioration –Flourishing relationships to social one
Boredom, resentment, and dissatisfaction
• Termination – Marks the end of the relationship, either
separation.
• No matter how hard you work or how many brilliant
ideas you may have, if you can’t connect with the
people who work around you, your professional life
will suffer.
• "Interpersonal effectiveness is defined as the
degree to which the consequences of our
behavior match our intentions."
 Six success elements in Relationships

1. Self-awareness,
2. Self confidence
3. Positive personal impact
4. Outstanding performance
5. Communication skills and
6. Interpersonal competence
 Study of Organization Behavior
Discipline Unit of Analysis Output

Psychology

Individual

Sociology

Organizational
Social Psychology Group
Behavior

Anthropology

Organization

Political Science
 Psychology
• Science that seeks to measure, explain and
sometimes change the behavior of humans
and other animals
 Sociology
• Study of people in relation to their fellow
human beings
 Social Psychology
• Area within psychology that blends concepts
from psychology and sociology and that
focuses on the influence of people on one
another
 Anthropology
• Study of societies to learn about human being
an their activities.
Contributing Disciplines to the OB
Field (cont’d)
 Three Perspectives on Effectiveness

Individual Group Organizational

effectiveness effectiveness effectiveness

Motivation Group Processes

Behavior
-Communications
Rewards Group conflict
-Decision Making
Characteristics Power &
-Leadership
Politics
 Challenges to OB

Globalization

Improving
Managing work quality
Force diversity and
productivity

Cope with Change and

People skills Temporariness Innovation
 Globalization
• Organizations are no longer constrained by the
borders
– Centre of economic activity is global
– Consumer landscape has changed
– Technological connectivity led to transformation of
behavior
– Talent to Knowledge
– Pressure to expand and grow
– Access to information
– Global managers and domestic differences
 Diversity
• Becoming heterogeneous
– Challenge to adapt to people who are different
– To be successful one has to understand and
respect others
– Effective use of diversity for opportunity
– To maximize potential of all members of
workforce
• Embrace diversity
 Quality and productivity
• Increasing capacities to respond to increasing
demand thru infrastructure
• Increasing production – increasing
competition – Pressure on quality
• Quality improvements come from design,
manufacturing, layout, processes
• Employees are key to quality
 Quality
• Intense focus on the customer
• Concern for continual improvement
• Improvement in the quality of everything
the organization does
• Accurate measurement
• Empowerment of employees
 Labor Shortage
• Economics ups and downs difficult to predict.
– Scarcity of talent
– Recruitment and retention
• Outsourcing
– Contracting of work which is originally done by
the organization to others who can do it for lesser
cost and acceptable quality
 Others
• People skills
Motivate & Communicate
• Empower People
Give up control
Embrace responsibility
• Change
Flexible, open to change
• Innovation
Provide impetus
Wealth of ideas
 Others
• Coping with “Temporariness”
• Helping Employees Balance Work/Life
Conflicts
• Declining Employee Loyalty
• Improving Ethical Behavior
 Employee Performance
• Productivity: Ability to achieve goals by
transforming inputs into outputs at lowest cost
– Effectiveness: Achievement of goals
– Efficiency: Ratio of output and input
• Absenteeism: Failure to report to work leading to
disruption of work
• Turnover: Voluntary and involuntary withdrawal
from work
• Deviant behaviors: Irritating behaviors at work
 Organizational citizenship
• Discretionary behavior
• Not part of an employee's formal job
requirements
• Promotes the effective functioning of the
organization

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Examples of Organizational Citizenship
• Helping others on one's work team
• Volunteering for extra job activities
• Avoiding unnecessary conflicts
• Making constructive statements about one's
work group and the overall organization

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 Job Satisfaction
• There’s a link between satisfaction and
productivity.
• Satisfaction appears to be negatively
related to absenteeism and turnover.
• Managers have a humanistic responsibility
to provide their employees with jobs that
are challenging, intrinsically rewarding, and
satisfying.

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