Organizational Behaviour Introduction

2. “I am not smart. I try to observe. Millions saw the apple
fall, Newton was the one who asked why.” B.Baruch
“I know what is right but I am not able to act accordingly,
I also know what is wrong but I am not able to restrain
myself doing it- Duryodhana in Mahabharatha.
We are shaped by our thoughts. We become what we think, when
the mind is pure, joy follows like a shadow that never leaves-
Koutilya, the Philospher.
“What is right is right even if no one is doing it. What is wrong is
wrong even if everyone is doing it.” – Henry D. Thoreau

3. “Management is the art of getting things done
through people”.
- Mary Parker Follett
•”Management consists of getting getting things done
through others…….A manager is one who accomplishes
organisational objectives by directing the efforts of
others”.
- C. S. George

5. Fundamental Management Skills
 Management Skill Mixes at Diff

6. Basic Purpose of Management
EFFICIENTLY
Using resources wisely and
in a cost-effective way
EFFECTIVELY
Making the right decisions and
successfully implementing them

10. ORGANISATION BEHAVIOUR
“Organisation Behaviour is concerned with the study
of what people do in an organisation and how that
behaviour affects the performance of the
organisation.”
(Robbins: 1998,9)

12. ORGANISATION BEHAVIOUR
The study of Organisational Behaviour involves:
 consideration of the interaction among the formal structure
(organisational context in which the process of management takes
place)
 the tasks to be undertaken
 the technology employed and the methods of carrying out work
 the behaviour of people
 the process of management
 the external environment

19. ORGANIZATIONAL BEHAVIOUR
Key forces affecting Organizational Behavior
People
•Individuals
•Groups
Environment
•Government
•Competition
•Societal pressure
Organizational Behavior
Technology
•Machinery
•Computer hardware&software
Structure
•Jobs
•Relationships

21. Toward an OB
Discipline

26. Job satisfaction, motivation,
empowerment, values, ethics,
attitudes, personality, perception
etc/
Working
together,
Diversity,
group
dynamics
Organizational change&Development, globalization,
innovation, quality &productivity, Organisational Culture,
work stress

28. Autocratic Model
The root level of this model is power with a managerial orientation
of authority. The employees in this model are oriented towards
obedience and discipline. They are dependent on their boss. The
employee requirement that is met is subsistence. The performance result
is less.
The major drawbacks of this model are people are easily
frustrated, insecurity, dependency on the superiors, minimum
performance because of minimum wage.

29. Custodial ModelThe root level of this model is economic resources with a managerial
orientation of money. The employees in this model are oriented towards
security and benefits provided to them. They are dependent on the
organization. The employee requirement that is met is security.
This model is adapted by firms having high resources as the name
suggest. It is dependent on economic resources. This approach directs to
depend on firm rather than on manager or boss. They give passive
cooperation as they are satisfied but not strongly encouraged.

30. Supportive Model
The root level of this model is leadership with a managerial
orientation of support. The employees in this model are oriented
towards their job performance and participation. The employee
requirement that is met is status and recognition. The performance
result is awakened drives.
This model is dependent on leadership strive. It gives a climate to
help employees grow and accomplish the job in the interest of the
organization. Management job is to assist the employee’s job
performance. Employees feel a sense of participation.

31. Collegial Model
The root level of this model is partnership with a managerial
orientation of teamwork. The employees in this model are
oriented towards responsible behavior and self-discipline. The
employee requirement that is met is self-actualization. The
performance result is moderate zeal.
This is an extension of supportive model. The team work
approach is adapted for this model. Self-discipline is maintained.
Workers feel an obligation to uphold quality standard for the
better image of the company. A sense of “accept” and “respect” is
seen.

32. System modelThis is the most contemporary model of the five models discussed in
this article. In the system model, the organisation looks at the overall
structure and team environment, and considers that individuals have
different goals, talents and potential.
The intent of the system model is to try and balance the goals of the
individual with the goals of the organisation.
Individuals obviously want good remuneration, job security, but also
want to work in a positive work environment where the organisation
adds value to the community and/or its customers.
The system of model should be an overall partnership of managers
and employees with a common goal, and where everybody feels that they
have a stake in the organisation.

39. Scientific Management
 Frederick W. Taylor
 The Principles of Scientific Management (1911)
 Advocated the use of the scientific method to define the “one
best way” for a job to be done
 Believed that increased efficiency could be achieved by
selecting the right people for the job and training them
to do it precisely in the one best way.
 To motivate workers, he favored incentive wage plans.
 Separated managerial work from operative work.

41. Taylor’s Principles of Management
1. Time and motion study: number of movements of workers unnecessary. The study
involves aspects like to study necessary and unnecessary movements ,to develop
shorter and fewer motions, to standardize the motions and time etc.
2. Science but not the rule of thumb: doing the work systematically and rule of
thumb is to be eliminated.
3. Scientific selection and training: Scientifically select and then train, teach, and
develop the worker. (Previously, workers chose their own work and trained
themselves as best they could.)
4. Cooperation B/W workers and management: Heartily cooperate with the workers
so as to ensure that all work is done in accordance with the principles of the science
that has been developed.
5. Separation of planning from execution: Divide work and responsibility almost
equally between management and workers. Management takes over all work for
which it is better fitted than the workers. (Previously, almost all the work and the
greater part of the responsibility were thrown upon the workers.).
6. Differential payments: to motivate the employees to produce more than the
standard level.
7 Group Harmony: it was emphasized. It is achieved by satisfying the needs of the
group.

42. Scientific Management
Contributors
 Frank and Lillian Gilbreth
 Both studied work arrangements to eliminate wasteful
hand-and-body motions.
 Bricklaying efficiency improvements
 Time and motion studies were formulated (therbligs)
 Henry Gantt
 Incentive compensation systems
 Gantt known for creating a graphic bar chart for
scheduling work operations (to plan and to control the
work by managers).

44. © 2008 Prentice Hall, Inc. All
rights reserved. 1–44
General Administrative Theory
 General Administrative Theorists
 Developed general theories of what managers do and
what constitutes good management practice
 Henri Fayol (France)
 Fourteen Principles of Management: Fundamental or
universal principles of management practice
 Max Weber (Germany)
 Bureaucracy: Ideal type of organization characterized by
division of labor, a clearly defined hierarchy, detailed rules
and regulations, and impersonal relationships

45. Fayol’s Fourteen Principles of Management
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of
Individual Interests to
the General Interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure
of Personnel
13. Initiative
14. Esprit de Corps

46. EXHIBIT HM–3 Weber’s Ideal Bureaucracy
1. Division of Labor
2. Authority Hierarchy
3. Formal Selection
4. Formal Rules and Regulations
5. Impersonality
6. Career Orientation

47. Bureaucratic Approach
While scientific management was focusing on the
interaction between workers and the task, me researchers
were studying how to structure the organization more
effectively. Instead of trying to make each worker more
efficient, classical organization theory sought the most
effective overall organizational structure for workers and
managers.
The theory’s most prominent advocate, Max Weber,
proposed a ‘bureaucratic form’ of structure, which he
thought would work for all organizations. Weber’s idea!
bureaucracy was , logical, rational and efficient. He made
the naive assumption that one structure would work best
for all organizations.

48. The modern approach to organizational behaviour
is the search for the truth of why people behave
the way they do. The organizational behaviour is a
delicate and complex process. If one aims to
manage an organization, it is necessary to
understand its operation. Organization is the
combination of science and people. While science
and technology is predictable, the human
behaviour in organization is rather unpredictable.
This is because it arises from deep needs and value
systems of people.

50. The Systems Approach
 Defines a system as a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole
Key concepts of systems approach:
 Subsystems: parts which make up the whole system. Ex: deparments –
subsystem of factory- firm- industry- national economy- world
economy.
 Synergy: is the situation in which whole is greater than the sum of its
parts.in org. term, departments that cooperate are more productive
than they would be.
 Closed system : a system that is not influenced by and does not
interact with its environment
 Open system: a system that dynamically interacts with its
environment
 System Boundary: it is the boundary that separates each system from its
environment. It is a rigid in closed system while flexible in an open system.
Features of system approach: dynamic, multidisciplinary, adaptive, dynamic

51. The Contingency Approach
 The Contingency Approach or situational approach
 Developed by managers/consultants/ researchers.
 To find which method will work better in a particular situation.
 Replaces more simplistic systems and integrates much of
management theory.
 Four Contingency Variables
 Organization size (coordination)
 Routineness of task technology (task complexity dictates structure)
 Environmental uncertainty (change management)
 Individual differences (managerial styles , motivational techniques,
and job design)

52. Simpler:Approaches to study organisational
behavior
1. Human Resource or
supportive approach
2. Productivity approach
3. Internationalism
approach
4. Contingency approach
5. System approach

59. Perspectives/approaches
to human behavior:
1. Behavioral approach
2. Cognitive
3. Psychoanalytic approach
4. Humanistic approach
5. Biological approach

60. 1. Behavioural
Approach
The Behavioral
Approach. Human
behavior is learned, thus
all behavior can be
unlearned and
newbehaviors learned in
its place. Behaviorism is
concerned primarily with
theobservable and
measurable aspects of
human behavior.

61. 2. Cognitive
Appraoch
Cognitive
Approach. Cognition refe
rs to mental activity
including thinking,
remembering, learning and
using language. When we
apply a cognitive
approach to learning and
teaching, we focus on
theunderstaning of
information and concepts.
... Thought processes have
been studied by
philosophers for centuries.
Cognitive theory maintains
that how one thinkslargely
detemines how one feels
and behaves.

62. 3.Psycoanalytic
approach
Psychoanalysis was
founded by Sigmund Freud
(1856-1939). Freud believed
that people could be cured by
making conscious their
unconscious thoughts and
motivations, thus gaining
insight. The aim
of psychoanalysis therapy is
to release repressed emotions
and experiences, i.e., make
the unconscious conscious.

63. 4.Humanistic
Approach
Humanistic, humanism
and humanist are terms in
psychology relating to an
approach which studies the
whole person, and the
uniqueness of each
individual. Essentially,
these terms refer the same
approach in psychology.
The humanistic approach
is thus often called the
“third force” in psychology
after psychoanalysis and
behaviorism (Maslow,
1968).

64. 5.Biological Approach
The biological
approach believes us to be as a
consequence of our genetics
and physiology. It is the
only approach in psychology
that examines thoughts,
feelings, and behaviors from
a biologicaland thus physical
point of view. Therefore, all that
is psychological is first
physiological. The biological
approach attempts to explain
behaviour as the direct product
of interactions within the body.
Key assumptions of the
biological approach:
There is a direct correlation
between brain activity and
cognition
Biochemical imbalances can
affect behaviour
Brain physiology can affect
behaviour
Behaviour can be inherited (as
it is determined by genetic
information)