2. EVOLUTION OF OB
Industrial Revolution
Started in 1776
Robert Owen- Welsh factory
owner in 1800 emphasised on
human needs in employees
Against Child Labour
Created awareness about the
cleanliness of workplace
3. Industrial Revolution
• Andrew Ure in 1835
• “Philosophy of
Manufacturers”
• Identified human factor in
addition to mechanical &
commercial aspects of mfg
• Provided tea, medical treat-
ment, fans (ventilation)and
sickness payments to
employees
4. Industrial Revolution
• In India, J.N.Tata (Jamset
Nusserwanji) introduced:-
Provident Fund
Pension Scheme
Accident compensation
Installed humidifiers
Fire sprinklers
6. Scientific Management
• Contributed by F.W.Taylor in the early 1990s
• He is called as the Father of
Scientific Management
• Right person for the right job
• Training of employees
• Remuneration
• Recognition of productivity of
industrial workers
7. Scientific Management - Principles
• Scientifically study each part of the job, and develop
the “one best way” of doing it
• Carefully select and train the employees
• Cooperate with the workers to ensure they use proper
methods
• Divide work and responsibility between workers and
managers
8. Scientific Management- Principles
• Apply financial incentives
system
• Establish standards of work
• Utilise specialised
functional supervision
• Develop and maintain
friendly labour
management relations
9. Scientific Management
Criticisms
Focus on time- so workers are
under pressure to perform fast
Focus on productivity and
profitability
Exploitation of workers and
customers
Leads to mistrust between labour and
management
10. Criticisms
• RABBLE HYPOTHESIS
He was widely criticised for
considering the society as
unorganised, and the
individual worker for working
with self interest
11. HR MOVEMENT
• Because of the Great Depression in 1929, HR
became an important aspect of management
• Decent hours of work
• Fair wages
• Good working conditions
• Employee relations
• Worker cooperation and morale
• Human element - capital
12. HR MOVEMENT
• Exploitation of workers
led to their need for
protection of their rights
• This led to formation of
trade unions
• Primary emphasis on
wages and employee
relations
13. OB- Definition
• Organizational Behaviour (OB) can be defined
as “the understanding, prediction and
management of human behaviour both
individually or in a group that occur within an
organization”.
14. OB - Meaning
• While at work, to understand others
behaviour as well as make others understand
ours.
• For a healthy working environment, we need
to adapt to the environment and understand
the goals we need to achieve.
16. Disciplines that contribute to OB
• Psychology – motivation, personality, perception,
emotions, work stress, job satisfaction
• Social Psychology – attitude & behavioural change,
communication
• Sociology – power, conflict,
intergroup behaviour,
organisational change and
culture
• Anthropology – cross cultural
analysis, comparative values and attitudes
17. Importance of OB
• It helps in explaining the interpersonal
relationships employees share - peers, higher
and subordinates.
• The individual behaviour can be predicted.
• It balances relationship in
an enterprise through
effective communication.
18. Importance of OB
• It assists in marketing.
• It helps managers to encourage their sub-
ordinates.
• Any change within the organization can be
made easier.
• It helps in predicting human behavior & their
application to achieve organizational goals.
• It helps in making the organization more
effective.
19. Challenges of OB
• Responding to economic pressures
• Responding to globalisation
• Increased foreign assignments
• Working with people from different cultures
20. Challenges of OB
• Stimulating innovation and change
• Managing workforce diversity
• Improving customer service
• Improving people skills
• Creating a positive
environment
• Helping employees balance
work life conflicts
22. Approaches/Models of OB
• Supportive Model – HR Approach – leadership
based
• Autocratic Model – Theory X
• Custodial Model –
employee welfare based
• Collegial Model – team work
based on self-discipline
• Systems Model – holistic
approach to management
23. Autocratic Model
• Power of the BOSS
• Penalty is the motivator
• Tight control over the
employees at work
• Ideal when employees are lazy
• Has a negative impact as employees are
uninformed, insecure and afraid
• Not applicable in the present global work culture
24. Custodial Model
• Depends on economic resources
• Employees highly dependant on
the organisation
• Passive cooperation from
employees
• Welfare & development programs
• Employees are secured and
satisfied
• Depends on material rewards
• (eg) PSUs
25. Supportive Model
• Depends on leadership instead
of power/money
• Self directed and creative
team
• Supports employee
performance
• Cares for psychological needs
of employees
• Better superior- subordinate
relationship
• Confidence and trust(eg) S/W
firms
26. Collegial Model
• Workers feel they are partners in the organisation
– matrix organisation
• Team spirit and self discipline
• Promotes participation and
cooperation
• Highly motivated employees
• Makes employees responsible
• Extension of the supportive
model (eg) NGOs
27. Models of OB – A comparison
Basis of comparison Autocratic Custodial Supportive Collegial Systems
Basis of the Model Power Economic sources Leadership Partnership
Trust and
understanding
Managerial
Orientation Authority Money Support Teamwork Care & compassion
Employee
Orientation Obedience Security &
benefits
Job Performance Responsible
Behaviour
Psychological
ownership
Employee Psyche Dependence on
Boss
Dependence on
organisation
Participation Self-discipline Self motivation
Employee
performance Minimum Passive cooperation Awakened drives Moderate
enthusiasm
Organisational goal
Employee Needs Subsistence Security Status and recognition Self actualisation Passion, commitment
28. FOUNDATIONS OF INDIVIDUAL
BEHAVIOUR
• According to Lewin “ a person’s behaviour is
the product of the person and his/her
environment.
• B= ∑ (P, E), where B= Behaviour; P= Person;
and E= Environment
30. Foundations of Individual Behaviour
Personal Factors
Age
Sex
Education
Abilities
Marital Status
No. of dependants
Creativity
Emotional Intelligence
Identity
31. Ability
It is an individual’s capacity to perform various
tasks in a job.
The ability of an individual is
made up of 2 types of skills :-
Intellectual skills –skills
required to perform mental
activities
Physical skills – are the abilities
required to perform a task
32. Dimensions of Intellectual Ability
• Number aptitude – the ability to do speedy and
accurate calculations
• Verbal comprehension – the
ability to understand what is read
or heard, and the relationship of
words to each other
• Inductive reasoning– the ability to
identify the logical sequence in a
problem and then solve it
33. Dimensions of Intellectual Ability
• Perceptual speed – ability to identify visual similarities
and differences
quickly and accurately
• Deductive reasoning – Ability to
use logic and assess the implications
of an argument
• Spatial visualisation - ability to
imagine how an object would look, if
its position in space were changed
• Memory – ability to retain and recall
past experiences
34. Nine basic physical abilities
strength factors
• Dynamic strength – ability to exert muscular
strength continuously over time
• Trunk Strength - ability to
exert using trunk muscles
• Static strength – ability to exert
force against external objects
• Explosive strength - ability to
expand a maximum of energy
35. Nine basic physical abilities
flexibility factors
• Extent flexibility – ability to move the trunk
and back muscles as far as possible
• Dynamic flexibility – Ability to make rapid,
repeated flexing movements
• Body coordination – ability
• to coordinate actions of
diff different parts of the body
36. Nine basic physical abilities
flexibility factors
• Balance - ability to maintain equilibrium
despite unbalancing forces
• Stamina – Ability to continue maximum effort
requiring prolonged effort over time
40. Social and Cultural Environment
• Work ethics
• Achievement needs
• Effort – reward expectations
• Cultural attributes like
educational system, media
conditioning, institutional
characteristics
• Values – individual judgement of right and wrong
41. Ethics and Social Responsibility
• Moral principles – good/bad; right/wrong
• Personal ethics and business ethics
– same when looked at the leader
• Example- Chung Mong Koo, Head of Hyundai
Motors – 6th largest car maker in the world,
sentenced to 3 years imprisonment for
embezzlement of funds and breach of trust
43. Political Factors
• Stability of the ruling government affects the
employment opportunities
• Does not attract investors from India or FDI
44. Organisational Systems and
Resources
• Physical facilities
• Organisational structure and
design
• Leadership styles
• Reward Systems
• Work related behaviour – joining, remaining,
performing tasks, deviant behaviour and
exhibiting organisational citizenship
45. Organisational Citizenship Behaviour
Forms
Altruism – helping co-workers, volunteering
Conscientiousness
Civic Virtue – attending meetings voluntarily,
keeping up with new information
Sportsmanship – not finding fault with the
organisation
Courtesy- not creating problems
46. Forms of Organisational Behaviour
• Deviant behaviour – 2 forms
Constructive behaviour – whistle blowing
Destructive behaviour – workplace violence
• Cyber loafing – using office internet and e-mails
for personal purposes
• Employee theft – 2 reasons
“Others are doing, why not me”?
To settle scores if they believe they are ill -treated
47. Whistle Blowing
It is “raising a concern about
a wrong doing within an
organisation”.
A whistle blower is a person
who exposes misconduct,
alleged dishonest or illegal
activity occurring in an
organisation
48. Whistle Blowing- Types
Internal – is blowing the whistle inside the
organisation, to draw the attention of the
management
Personal – is blowing the whistle on the
offender and the charge here is not against the
organisation but against an individual
49. Whistle Blowing- Types
External – is blowing the whistle to law
enforcement agencies or to teams worried with
legal matters (eg) lawyers, IT department, mass
media and law enforcement
(factory/food/safety inspector)
50. Components of WB Policy
An effective communicated statement of responsibility
A clear defined procedure
of reports
Well trained personnel to
receive and investigate
reports
A commitment to take
appropriate action
A guarantee against retaliation
reports in good faith
51.
52. WB -The Ranbaxy Case
• American investigative journalist Katherine Eban
pored over to piece together a riveting and definitive
account of how once storied Indian pharma major
Ranbaxy blatantly cut corners - to improve its bottom
line.
• Ranbaxy had fabricated quality data in order to gain
approval to market its drugs .
•
53. WB -The Ranbaxy Case
• The allegations had first been made by a company
whistle blower who had contacted the agency (FDA)
• The whistle blower in question is Dinesh Thakur,
then Ranbaxy's Director and Global Head
of Research, Information and Portfolio Management,
who, in 2004 put together a team to study a deadly
secret he had come across: that the company was
fudging data.
• He blew the lid off illegal practices by Indian pharma
companies compromising on quality
54. WB -The Ranbaxy Case
The team gathered bits of information and
stumbled into Ranbaxy’s secret: the company
manipulated almost every aspect of its
manufacturing process to produce impressive
data to improve its bottom line
The company’s scientists at the behest of its
managers substituted lower purity ingredients
for higher ones to reduce cost
55. WB -The Ranbaxy Case
They altered test parameters so that formulations with higher
impurities could be approved
They faked dissolution studies
They superimposed brand-name test results onto their own in
applications
The company forged its own Standard Operating Procedures
(SOP) that is relied upon by FDA investigators
Employees backdated documents and artificially aged them in a
steamy room overnight to fool regulators
56. WB -The Ranbaxy Case
Takur worked for 14 hour days for several
weeks doing exhaustive research and finally
brought his team’s preliminary findings to the
notice of his boss Raj Kumar
It was then the team realised that the
company was committing fraud and
potentially harming patients on a global scale
57. WB -The Ranbaxy Case
He escalated it into a 4 page report to the CEO
Brian Tempest, and still no action was taken
He was accused of downloading pornography
on his office computer
When no action was taken for 2 weeks, he
masked his identity and sent a message
directly to FDA Commissioner Lester Crawford
on August 15, 2005
The rest is history
58. WB -The Ranbaxy Case
It was found that adulterated drugs were
manufactured and distribution in 2 Indian
facilities misrepresenting clinical generic drug
data
These included drugs destined for treatment of
HIV/AIDS in Africa
They were fined $150 million to settle civil claims
and $350 million for state laws
61. Causation of Human Behaviour
Input
(Environment)
Output
(Behaviour)
Thruput
(Evaluation)
Feedback
62. MODELS OF MAN
Based on individual differences, individuals are
classified as under:-
Rational Economic Man
Self- Actualising Man
Complex Man
Social Man
Organization Man
63. Rational Economic Man
• Oldest model of man
• Man works hard to earn
more in a rational manner
• He can be motivated
through incentives to
increase his efficiency –
piece rate
• Organisation will continue
only till contribution from
employee matches the cost
64. Self – Actualising Man
• Assumes that man is self
motivated and controlled
• Economic incentives have
their own drawbacks
• Based on Maslow’s Theory
• Sense of achievement gives
satisfaction
65. Complex Man
• Behaviour of individuals is caused
due to individual differences,
making them unpredictable
• Hence human behaviour is complex
• Managerial actions should consider the
complex variables affecting human behaviour
66. Social Man
• Based on the assumption that man is
influenced by social variables
• Social relationships more
important than economic
motives
• HR approach
• Concerned with people’s
feelings in the organisation
67. Organisation Man
• Concept developed by Whyte
• He is an extension of the social
man
• Importance to loyalty
• Cordial relationship with
co-workers
• Organisation takes care of
employee needs
68. MODELS OF INDIVIDUAL BEHAVIOUR
• Theory X and Theory Y
• Economic (scientific management) & Self-
actualising Model (self fulfilment, personal
growth and job competence)
• Behaviouristic (observable behaviour) and
Humanistic ( conscious reasoning) Model
• Rational (collecting relevant information and
then analysing it) & Emotional ( unconscious
responses guided by emotions) Model