Introduction To Ob

ORGANIZATIONAL BEHAVIOR A presentation by Indranil Mutsuddi

Organizational Behavior

Nature of Organizational Behavior Environment

Human Behavior in Organizational settings

The individualOrganization interface

The Organization

Environment

Simple Relationships Among Problems, Methodology, And Knowledge

Body of Knowledge

Research Methodology

Problems and Questions about Organizational Behavior

The Relationship Of Organizational Behavior To Other Closely Related Disciplines

Theoretical

Applied

Organization Theory (OT)

Organizational Behavior (OB)

Organization Human Resource Development Management (OD) (HRM)

Macro

Micro

Foundations of Organizational Behavior Individual Differences

Social Systems

Whole Individual OB

Mutuality of Interests

Caused behavior

Human dignity

Holistic 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

How Strong are They? How do they Interrelate?

Prediction What patterns of Behavior are present? What is the causeeffect relationship?

Problem prevention

Understanding What solutions are possible? Which variables can be influenced?

A Social Learning Approach To Organizational Behavior ORGANIZATIONAL PARTICIPANTS

Cognitive representations of reality help guide organizational behavior

Participants control their own behavior to the extent that they rely on cognitive supports and manage relevant environmental cues and consequences

Much of complex behavior is acquired by directly ORGANIZATIONAL ORGANIZATIONAL observing and imitating BEHAVIOR 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 Veterans

Baby Boomers

Xers

Nexters

before 1946

1946-1964

1965-1979

after 1979

Comparison of Xers and Boomers

X generation

Baby boomers

Task accomplished within workday

Fulfillment

Task accomplished in several days

Use Internet to compare prices

Fluency with technology

Use telephone to compare prices

Work with flexible hours

Work schedule

Work with regular scheduled hours

X Generation Not necessarily 1965-1979 secured

Job Security

Baby Boomers Secured with 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

• Coping with “Temporariness” • Stimulating Innovation and Change • Helping Employees Balance Work/Life Conflicts • Improving Ethical Behavior

W. L. McKnight 3M Chairman 1949-1966

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 selfdirected 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 Approach (supportive approach)

Contingency Approach

Productivity Approach

OB

Systems Approach

Interactionalism Approach

Universal vs Contingency Approach of OB Organizational Problems or Situations determine

Organizational problems Or situations must be Evaluated in terms of

Universal approach

The one best way of Responding

Elements of the Situation, which then Suggest…

Contingency ways of Responding

Contingency approach

Systems Approach to Organizations Exports to the Environment

Imports from the Environment Organization Inputs: Human Material Financial Information

Product & Production

Order Fulfilment

Product & Production

Information

Outputs: Products/Services Profit/Losses Employee behavior Additional 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

Social Cognitive Theory

Organizational Behavior

Cognitive Processes 6. Perception & Attribution 7. Personality & Attitudes 8. Motivational Needs & Processes 9. Emotional Intelligence, Optimism & Self-Efficacy

Dynamics 10. Communication 11. Decision Making 12. Stress & Conflict 13. Power & Politics 14. Groups & Teams

Managing and Leading for High Performance 15. Goals & Job Design 16. Behavioral Management 17. Leadership Processes & Skills 18. Great Leaders Really Do

Basic OB Model, Stage I

The OB Model • Personality • Perceptions • Learning • Attitudes & Attribution • Motivation • Group Dynamics • Team Dynamics • Leadership • Power & Politics • Communication • Conflict • Organization Culture • HR Policies/Practices • Work Stress • Organization Change • Organization Development

Individual Behavior

Group Behavior

Organization

Organizational Effectiveness

OB Depends on… • Dependent variables • Independent variables

The Dependent Variables

y

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 Variables

Group-Level Variables

Organization 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 leaderwhich 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

1. Determination of

Vision provided by top

overall direction

Learning Organization Shared vision

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

ideas Each person is responsible for

the organization. Personnel understanding

his own job responsibilities

their own jobs as well as

The focus is on developing

the way in which their

individual competence

own work interrelates with

3. Nature of



organizational thinking



Traditional vs Learning Organizations Function

4. Conflict Resolution

Traditional Organization

Learning Organization

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 & Motivation

The role of the leader is to

The role of the leader is to

establish the organization’s

build a shared vision,

vision, provide rewards &

empower personnel,

punishment & maintain overall

inspire commitments, &

control of employee activities.

encourage effective