ORGANIZATIONAL BEHAVIOR

(CA722)

Dr. Shobitha Poulose

Assistant Professor
Department of Management Studies
National Institute of Technology
Tiruchirappalli
 Course Outcomes
• Identify their personality type and behavioral pattern

• Identify the basic skills of leadership

• Apply the principles of conflict resolution and learn about

group behavior

• Adapt to the organizational culture, structure, and

dynamics
 Organizations

A systematic arrangement of people brought together to

accomplish some specific purpose; applies to all
organizations—for-profit as well as not-for-profit organizations.

Where managers work (manage)

Common Characteristics of Organizations
People Differences

• Non-managerial employees
• People who work directly on a job or task and
have no responsibility for overseeing the work
of others
• Managers
• Individuals in an organization who direct the
activities of others
Organizational
Levels
 Identifying Managers

First-line Supervisors responsible for directing the day-

managers to-day activities of operative employees

Individuals at levels of management

Middle managers between the first-line manager and top
management

Responsible for making

Top managers decisions and establishing
policies
 “Management as a process consisting of planning,
organizing, actuating and controlling, performed to
determine and accomplish the objective by the use
of people and resources.”
George R. Terry
What is “Management is a multi-purpose organ that
manages a business and manages managers and
Management? manages worker and work”.
Peter F Drucker

The process of getting things done, effectively and

efficiently, with and through other people.
 Improving the way
organizations are managed.
Why Study
Management?
You will eventually either
manage or be managed
History of Management
History of Management
The Industrial Revolution(beyond 1820 to 1840)
 Industrial revolution
Machine power began to substitute for
The Industrial human power
Lead to mass production of economical
Revolution’s goods

Influence on Improved and less costly transportation

systems became available

Management Created larger markets for goods.

Larger organizations developed to serve
Practices larger markets
Created the need for formalized
management practices.

1–
12
History of Management
History of Management
 Classical approach
The term used to describe the hypotheses of the
scientific management theorists and the general
administrative theorists.

Classical Scientific management theorists

Fredrick W. Taylor, Frank and
Contributions Lillian Gilbreth, and Henry
Gantt
General administrative theorists
Henri Fayol and Max Weber
 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

Scientific Believed that increased efficiency could be

achieved by selecting the right people for the
Management 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.
 Develop a science for each element of an
individual’s work, which replaces the old rule-of-
thumb method.

Taylor’s Four Scientifically select and then train, teach, and

develop the worker.

Principles of 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.
Management Divide work and responsibility almost equally
between management and workers. Management
takes over all work for which it is better fitted than
the workers.
Administrative Management

General administrative theorists

Writers who 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
 Fayol’s Division of work Centralization

Fourteen
Authority & Scalar chain
Responsibility
Order
Principles of Discipline
Equity
Management Unity of command
Stability of tenure of
Unity of direction personnel

Subordination of the Initiative

individual
Esprit de corps
Remuneration
 Allows for job specialization.
Fayol noted jobs can have too
Division of Labor much specialization leading to
poor quality and worker
dissatisfaction.

Fayol’s
Principles of Authority and Fayol included both formal and
informal authority resulting from
Management Responsibility special expertise.

Employees should have only one

Unity of Command boss.
 • A clear chain of
Line of
Authority command from top to
bottom of the firm.
Fayol’s
Principles of • The degree to which
Management Centralization authority rests at the top
of the organization.
(cont’d)
• Employee should receive
Unity of
Direction orders and report to only
one supervisor.
 Equity
• The provision of justice and the fair and
Fayol’s impartial treatment of all employees.

Principles of Order
• The arrangement of employees where they
Managemen will be of the most value to the organization
and to provide career opportunities.
t (cont’d) Initiative
• The fostering of creativity and innovation by
encouraging employees to act on their own.
 Discipline
• Obedient, applied, respectful employees
are necessary for the organization to
Fayol’s function.
Principles of Remuneration of Personnel
Management • An equitable uniform payment system
that motivates contributes to
(cont’d) organizational success.
Stability of Tenure of Personnel
• Long-term employment is important for
the development of skills that improve
the organization’s performance.
 Subordination of Individual
Interest to the Common Interest
• The interest of the organization takes
Fayol’s precedence over that of the individual
Principles of employee.

Management Esprit de corps

(cont’d)
• Comradeship, shared enthusiasm foster
devotion to the common cause
(organization).
 Division of Labor

Weber’s Authority Hierarchy

Formal Selection
Ideal Formal Rules and Regulations
Bureaucracy Impersonality
Career Orientation
 A series of studies done during the 1920s and
1930s that provided new insights into group
norms and behaviors

Hawthorne Hawthorne effect

Social norms or standards of the group
Studies are the key determinants of individual
work behavior.
Changed the prevalent view of the time that
people were no different than machines.
 Illumination Experiment

Relay Assembly Test Experiments

Hawthorne
Experiments Mass Interview Group

Bank Wiring Observation Group

 1924-1927

Measured Light Intensity vs. Worker Output

Result :
Higher worker productivity and satisfaction at all light levels
Illumination Worker productivity was stopped with the light levels reached
moonlight intensity.
Studies
Conclusions:
Light intensity has no conclusive effect on output
Productivity has a psychological component

Concept of “Hawthorne Effect” was created

 1927-1929
Manipulated factors of production to measure effect on output:
Pay Incentives
Length of Work Day & Work Week (5pm, 4:30 pm, 4pm)
Use of Rest Periods (Two 5 minutes break)
Relay Assembly Company Sponsored Meals (Morning Coffee & soup along
with sandwich)
Test
Experiments Results:
Higher output and greater employee satisfaction
Conclusions:
Positive effects even with negative influences – workers’
output increased as a response to attention
Strong social bonds were created within the test group.
Workers are influenced by need for recognition, security
and sense of belonging
 Conducted 20,000 interviews.

Objective was to explore information, which could be used to

improve supervisory training.

Mass Results

Interview - Giving an opportunity to talk and express grievances would

Program increase the morale.

- Complaints were symptoms of deep-rooted disturbances.

-Workers are governed by experience obtained from both inside

and outside the company.
 - The workers were satisfied or dissatisfied depending
upon how they regarded their social status in the
Mass company.

Interview Social groups created big impact on work.

Program
(Contd) Production was restricted by workers regardless all
financial incentives offered as group pressure are on
individual workers.
 1931-1932
Limited changes to work conditions
Segregated work area
No Management Visits
Supervision would remain the same

Bank Wiring Observer would record data only – no interaction

with workers
Observation
Group Result:
No appreciable changes in output

Conclusions:
Preexisting performance norms
Group dictated production standards –
Work Group protection from management changes.
 • Social Unit
CONCLUSION
• Group Influence

• Group Behaviour

• Motivation

• Supervision

• Working Conditions

• Employee Morale

• Communication
What do Managers
do?
 Management Functions
Planning
Organizing
Leading
Controlling

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 It is a process of deciding the business
Planning objectives and charting out the plan/
method for achieving the same.

This includes determination of:

– What is to be done?
– How to do?
– Where it is to be done?
– Who will do it? and
– How result are to be evaluated?
 Organizing is the process of identifying and
grouping the work to be performed, defining
and delegating responsibility and authority
and establishing relationships for the purpose
of enabling people to work most effectively
Organizing together in accomplishing objectives.”

To organize a business is to provide it with

everything useful to its functioning i.e.
personnel, raw materials, machineries etc.
 Includes motivating employees, directing
Directing the activities of others, selecting the most
effective communication channel, and
resolving conflicts
 The process of monitoring
performance, comparing it with
Controlling goals, and correcting any significant
deviations
 Management Skills

Technical Skills: • The ability to apply specialized knowledge or expertise

• The ability to work with, understand, and motivate other

Human Skills: people, both individually and in groups. PEOPLE
SKILLS ARE CRITICAL FOR MANAGERS!!!

Conceptual • The mental ability to analyze and diagnose complex

Skills: situations
So….What is Organizational Behavior?

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 Systematic Study of Behavior
Behavior generally is predictable if we know how the
person perceived the situation and what is important to
him or her.

Show the Value Evidence-Based Management (EBM)

Complements systematic study.
to OB of Argues for managers to make decisions on evidence.
Systematic Intuition
Study Systematic study and EBM add to intuition, or those “gut
feelings” about “why I do what I do” and “what makes
others tick.”
If we make all decisions with intuition or gut instinct,
we’re likely working with incomplete information.
Identify the Major
Behavioral Science Organizational behavior is an applied behavioral science that
is built upon contributions from a number of behavioral
Disciplines that disciplines.

Contribute to OB
 Identify the
Major Behavioral
Science
Disciplines That
Contribute to OB
Identify the Major Psychology

Behavioral
Psychology seeks to measure, explain, and sometimes change
the behavior of humans and other animals.

Science Social Psychology

Social psychology blends the concepts of psychology and
Disciplines that sociology. Psychology focuses on the individual level by
seeking to measure, explain, and sometimes change
Contribute to OB behaviors in individuals.
Identify the Major Sociology
Behavioral Sociology studies people in relation to their social
environment or culture.
Science Anthropology
Disciplines that Anthropology is the study of societies to learn about human
beings and their activities.
Contribute to OB
Demonstrate
Contingency variables — situational factors
Why Few are variables that moderate the relationship
between the independent and dependent
Absolutes variables.
Apply to OB
 Responding to Globalization
Challenges and Managing Workforce Diversity

Opportunity for Improving Quality and Productivity

OB Responding to the Labor Shortage

Improving Customer Service

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 Improving People Skills

Empowering People
Challenges
and Stimulation Innovation and Change

Opportunity Working in Networked Organizations

for OB
Helping Employees Balance Work/Life Conflicts
(cont’d)
Improving Ethical Behavior

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A Basic OB Model
 SUMMARY
Managers need to develop their interpersonal (people skills) to be
effective in their jobs.
OB is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within an
organization.
OB focuses on improving productivity, employee job satisfaction,
citizenship behavior and reducing absenteeism and turnover.
OB uses systematic study to improve predictions of behavior.
OB recognizes and helps managers to improve their people skills
and to see the value of workforce diversity and practices. It also
seeks to improve organizations and help managers cope with the
many changes faced in today’s workplace.
Unit 2: Foundations of
Individual Behavior
 Individual Behavior
Individual behavior can be defined as a mix of responses to external and internal stimuli.
Individual Behavior Framework
Kurt Levin
This psychological theory studies the patterns of interaction between an individual and the
environment.
 Personal Factor
Factors Psychological Factor
Influencing
Individual Organizational Factors
Behavior
Environmental Factors
 Age
Gender
Education

Personal Intelligence

Factors marital status

Religion
number of dependents
Abilities
 Perception
Values

Psychological Attitudes
Factors Psychological Needs
Personality
Motivation
 Organizational Culture and
Climate
Tenure
Organizational
Factors Reward System

Leadership Style
 Economic Factors

Technological Change
Environmental
Factors
Political Status
 What is Personality?
Personality
The sum total of ways in which an individual reacts
and interacts with others.

Personality Traits
Enduring characteristics Personality
that describe an Determinants
individual’s behavior. • Heredity
• Environment
• Situation
 The Myers-Briggs Type Indicator
Myers-Briggs Type Indicator (MBTI)
A personality test that taps four characteristics and classifies people into 1 of
16 personality types.

Personality Types
• Extroverted vs. Introverted (E or I)
• Sensing vs. Intuitive (S or N)
• Thinking vs. Feeling (T or F)
• Judging vs. Perceiving (J or P)
What kinds of
things am I What are my skills?
good at?
What are my interests?
The Myers-
Briggs What are my values?
Personality
Type Indicator What are my traits?
(MBTI).
The Myers-Briggs Personality Type Indicator
(MBTI).
The Myers-Briggs Type
Indicator (MBTI)
Myers-
Briggs
Sixteen
Primary
Traits
The Big Five Model of Personality Dimensions
Extroversion
Sociable, gregarious, and assertive

Agreeableness This dimension refers to an individual’s

propensity to defer to others
Good-natured, cooperative, and trusting.
Conscientiousness
The conscientiousness dimension is a measure of
Reliability. Responsible, dependable, persistent, and organized.

Emotional Stability taps a person’s ability to withstand stress

Calm, self-confident, secure (positive) versus nervous, depressed,
and insecure (negative).
Openness to Experience range of interests and
fascination with novelty
Imaginativeness, artistic, sensitivity, and intellectualism.
 How do the big five
personality traits predict
behaviour at work?
John Holland Occupational Orientation Model