2. Organization Behavior
Organizational behavior is the field of study that
investigates the impact that individuals, groups and
structure have on behavior within organizations, for the
purpose of applying such knowledge toward improving
an organization’s effectiveness.
• OB is the study of Actions and Attitudes of individual
and groups toward one another and toward the
organization as a whole, and its effect on
organization’s functioning and Performance.
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3. Introduction
• Organizational behavior is
one of the key subject
area in the field of
management education.
The study of organizational
behavior helps the people
and organization in various
ways.
Organizational
Behavior
Research
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4. Organization
• Defined Goal
• Defined Structure
• Well known Company Policies
• Understanding Risk & Uncertanities
• Team work
• Defined Organization Culture
• Group of People activities
O.B. is made up of two words:
• Organization- which means understanding the organization.
• Behavior -understanding behavior of people in the organization
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7. Determinants of OB
People-
• An organization consists of people with different traits,
personality, skills, qualities, interests, background, beliefs, values
and intelligence. In order to maintain a healthy environment, all
the employees should be treated equally and be judged according
to their work and other aspects that affects the firm.
• Example − A company offers campus placement to trainees from
different states like Orissa, Haryana, Arunachal Pradesh and many
more. However, during and after training, all trainees are
examined only on the basis of their performance in the tasks
assigned.
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8. Determinants of OB-(Cont)
Organizational Structure-
• Structure is the layout design of an organization. It is the
construction and arrangement of relationships, strategies
according to the organizational goal.
• Example − Organizational structure defines the relation of a
manager with employees and co-workers.
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9. Determinants of OB-(Cont)
Technology-
• Technology can be defined as the implementation of scientific
knowledge for practical usage. It also provides the resources
required by the people that affect their work and task
performance in the right direction.
• Example − Introduction of SAP, big data and other software in the
market determines individual and organizational performance.
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10. Determinants of OB-(Cont)
Environment-
• All companies function within a given internal and external
environment. Internal environment can be defined as the
conditions, factors, and elements within an enterprise that
influences the activities, choices made by the firm, and especially
the behavior of the employees. While external environment can
be defined as outside factors that affect the company's ability to
operate. Some of them can be manipulated by the company’s
marketing, while others require the company to make
adjustments.
• Some examples of internal environment include employee
morale, culture changes, financial changes or issues, and
some examples of external environment include political factors,
changes to the economy and the company itself.
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12. Challenges and Opportunities of
Organizational Behavior
• Improving People Skills
• Improving Quality and Productivity
• Managing Workforce Diversity
• Responding to Globalization
• Empowering People
• Coping with Temporariness
• Stimulating Innovation and Change
• Emergence of the e-organization
• Improving Ethical Behavior
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13. Modern Perspective of OB
• Early Practices
• Scientific Management
• Administrative Theory
• Bureaucratic Theory
• Human Relation Management
• Behavioral Era
• Contingency Approach
• System Theory
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14. Early Practices
• Adam Smith-(The Wealth of Nations)-
• Rise to the modern nation of HUMAN
CAPITAL.
• Job Security
• Opposed Merchantilism
• Charles Babbage(1792-1871)-
• Benefits of division of labor
• Advocate of profit sharing
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15. Scientific Management
FEDERICK W. TAYLOR(1856-1915)
• Best Method of for performing each task
• Scientific selection of workers(According to task)
• Scientific education and development of worker
• Cooperation between Management and worker
Criticism-
• Emphasis on Productivity and Profitability.
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16. HENRY L.GANTT(1861-1919) -
• GANTT CHART
• Every worker’s progress was rated publicly and recorded
on individual bar chart- in black on the days worker made
the standard and red performance was below.
THE GLIBRETHS(1868-1924) –
• Reduce the number of motions in a task to increase
efficiency.
• Focus on the incremental study of motions and time to
understand an entire task.
• The goal of increased efficiency is both increased profit
and greater worker satisfaction.
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17. Classical Era- HENRI FAYOL(1841-1925)
Fayol's 14 Principles of Management
• Division of Work
• Authority
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of Individual Interest
• Remuneration
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18. • Centralization
• Scalar Chain
• Order
• Equity
• Stability of Tenure of Personnel
• Initiative
• Esprit de Corps
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19. Bureaucratic Management Theory
• Max weber(1864-1920)-
• Max Weber Principle of Bureaucratic Theory-
• Job specialization
• Authority hierarchy
• Formal selection
• Formal rules and regulations
• Impersonality
• Career orientation
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20. Human Relation Management
• ELTON MAYO(1880-1949) AND THE HAWTHORNE STUDIES-
• This theory stressed on formal structure.
• George Elton Mayo was in charge of certain experiments on human
behavior carried out at the Hawthorne Works of the General
Electric Company in Chicago between 1924 and 1927.
• His research findings have contributed to organization development
in terms of human relations and motivation theory.
• He found that work satisfaction depended to a large extent on the
informal social pattern of the work group. Where norms of
cooperation and higher output were established because of a
feeling of importance, physical conditions or financial incentives
had little motivational value.
• People will form work groups and this can be used by management
to benefit the organization.
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21. Cont..
• Elements of human relation theory
• Individual: – According to this theory each person bring his own set of
attitudes and skills to the job. The workers production depends upon
the human relation at the work and not the physical or the economic
conditions.
• Informal organization - It recognizes the existence and influence of
informal organization. It is a sect of work relationships that grow out
of the mutual interaction of persons working together over a long
period of time.
• Participative management - He advocated participation of workers in
decision making with regard to their working conditions.
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22. Hawthorne Experiment Conclusions
• Psychological Contract
• Interest in Workers
• Work is a Group Activity
• Social Aspect of Work
• Recognize Workers
• Communication
Conclusion
• The traditional view of how to motivate employees is that you offer monetary
rewards (pay increases, bonuses etc) for work completion. However the
Hawthorne experiments may suggest that motivation can be improved through
improving working relationships and social interaction.
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25. Contingency Theory
• A contingency theory is an organizational theory that claims that there is no best
way to organize a corporation, to lead a company, or to make decisions. Instead,
the optimal course of action is contingent (dependent) upon the internal and
external situation.
• A contingent leader effectively applies his own style of leadership to the right
situation.
• Organizations are open systems that need careful management to satisfy and
balance internal needs and to adapt to environmental circumstances
• There is no one best way of organizing. The appropriate form depends on the kind
of task or environment one is dealing with.
• Management must be concerned, above all else, with achieving alignments and
good fits
• Different types or species of organizations are needed in different types of
environments
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27. System Approach
• Systems theory is one of the
dominant organizational
theories in management tod
ay. It treats an organization
as either an open or
closed system. A system is a
set of distinct parts that form
a complex whole. A
closed system is not affected
by its environment, while an
open system is.
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28. 28
• Synergy
• Interdependence
• Interconnections
• within the organization
• between the organization and the environment
• Organization as ORGANISM
• “A set of elements standing in inter-relations”