Managing Organizational

Behaviour
 Introduction to organizational Behaviour
• Concept of organization
• An organization may be defined as identifiable aggregation of human beings
, deliberately and consciously created for the attainment of certain goals
with rational coordination of closely relevant activities .An organization has
the following distinguished features
• Management function
• Planning
• Organizing
• Staffing
• Directing
• controlling
Cont.…
• Planning
• Planning is the conscious determination of future course action .
• Projects and Programmes
• Setting policies
• Setting rules and procedures
• Preparing budgets
• Organizing
• organizing is the process of dividing work into convenient tasks or
duties ,grouping of such duties in the form of positions grouping of
various positions into departments and sections assigning duties to
individual positions and delegating authority to each position so that
the is carried out as planned.
 Cont.…
• Staffing
• Staffing involves manning the various position created by the organizing process.
It includes preparing inventory of personnel available and identifying the gap
between manpower required and available ,identifying the sources from where
people will be selected selecting people, training and developing them fixing
financial compensation ,appraising them periodically ,etc.
• Directing
• When people are available in the organization they must know what they are
expected to do in the organization. Superior managers fulfil this requirement by
communicating to subordinates about their expected behaviour.
• Controlling
• Controlling involves identification of actual results ,comparison of actual results
with expected results as set by planning process, identification of deviation
between the two ,if any, and taking of corrective action so that actual results match
with expected results.
 Cont.…
• Management Roles
• As against the management functions , mintzberg has defined the roles of
managers to identify what managers do in organization .
Management skills
In order to perform various management functions effectively , managers must
possess certain skills .skill refers to practical ability or expertness in an action or
doing something.
Technical skills
Technical skills are concerned with what is done and primarily deal with thins.
These pertain knowledge and proficiency in activities involving method and
procedures.
Human skills
Human skills , also referred to as human relations skills or interpersonal skills are
one, s ability to work effectively with others on a person-to-person basis and to
build-up cooperative group relations to accomplish organizational objective.
Conceptual skills
Conceptual skills also referred to as general management skills are concerned
with why a thing is done.
Historical background of OB
• Early Practices
• There are hundreds of people who have contributed to the development of
OB. The three individuals ,however were particularly important in promoting
ideas that had influenced the direction and boundaries of OB
• ADAM SMITH –An Economist( An Enquiry into the Nature &Causes of
Wealth of Nations – 1776 )
• The organizations & society would reap from the division of labour. Smith
concluded that Division of labour raised productivity by increasing
each workers skill and dexterity
• Early Practices
• Reduces the time needed for learning the job.
• Reduces the waste of material.
• Reduces the time needed for learning the job.
• Reduces the waste of material.
• Allows for the attainment of high skill levels.
Cont..
Cont.…
Bureaucracy
Max weber(father of modern sociology
Rules, High specialization, Centralized power, and selection and promotion
based on technical competence
Scientific Management
Focusses on worker and machine relationship
Motion study and time study
Henry focussed on motivational schemes
• Workers should be scientifically selected with right attitudes for the job &
ability and then properly trained to perform the work
• Management should cooperate with the workers to ensure that all work is
done in accordance with the scientific principles

Scientific distribution of work & responsibility between workers and the

managers and take over all work for which it is better suited than the workers.
Cont.…
• Administrative Theory
• Administrative theory describes efforts to define the universal
functions that managers perform and principles that contribute good
management practice. The major contributor to Administrative theory
was a French industrialist Henry Fayol.
• Writing at about the same time as Taylor, Fayol proposed that all
managers perform five management functions –They Plan,
Organize, Command, coordinate and Control
Human Relations Movement
Advocates management styles that are more participative and
oriented towards employee needs
System approach
Cont..
Contingency
Also called situational approach
It assumes that managerial behaviour is dependent on wide variety of elements.
Behavioural approach
It is improved and more nature version of the human relations approach
There contributions helped in understanding OB
Quantitative approach
Also called the management science approach
 Cont.…
• He stated fourteen principles of management
• Division of work
• Authority
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interests to the general interests
• Remuneration
• Centralization
• Scalar chain
• Order
• Equity
Cont.…
• Structural Theory
• While Taylor was concerned with management at shop floor level& Fayol
focused on general management functions, German SociologistMax
Webberwas developing theory of authority structures and describing
organizational activity as based on authority relations. Weber described an ideal
type of organization that he called a bureaucracy.
• Job specialization
• .Authority Hierarchy
• .Formal Selection.
• Formal rules & regulations.
• Impersonality
• Career Orientation
 Cont....
• Concept relevance of OB
• Understanding organizational behaviour can help companies and businesses create
and cultivate a positive culture and work environment that will ultimately improve
the organization as a whole. Benefits of organizational behaviour have been
shown to include: Increased employee satisfaction. Increased customer
satisfaction.
• Nature of organizational behaviour
• Interdisciplinary approach
• Organizational behaviour is basically an interdisciplinary approach.an
interdisciplinary approach integrates the relevant knowledge drawn from different
disciplines for some specific purpose.
An applied science
• The basic objective of organizational behaviour is to make application of various
researches to solve the organizational problems particularly related to human
behaviour aspect.
• Normative and value centred
• Organizational behaviour is a normative science. A normative science , unlike the
positive science which suggest only cause – effect relationships prescribes how the
various findings of the researches can be applied to get organizational results
which are acceptable to the society.
• Humanistic and optimistic
• Organizational behaviour focuses the attention on people from humanistic point
view. It is based on the belief that needs and motivation of people are of high
concern.
• Total system approach
• Organizational behaviour adopts total system approach where in behaviour of
people of an organization is studied in totality.
• Organizational objective
• Organizational behaviour being an applied science and emphasizing human aspect
of the organization is oriented towards organizational objectives.
Scope of organizational objectives
• Analysis at individual level
• At individual level organizational behaviour analyses factors that affect behaviour
of an individual .these factors are personality of the individual ,the way he
perceives his environment (persons ,events, etc.)his learning pattern, values and
attitudes ,emotional intelligence ,and motivational pattern.
• Analysis at group level .
• At group level , organizational behaviour analyses two-persons interaction group
dynamics work teams power and politics ,communication and conflict
management .
• Analysis organization level
• At organization level , organizational behaviour analyses design of organization
structure ,work design creating and sustaining organization cultural and
organizational change and development.
Contributing disciplines
• As mentioned earlier, organizational behaviour uses knowledge developed in
the relevant disciplines , particularly psychology ,sociology, and anthropology.
Contributions of each of each of these discipline is as follow .
• Psychology
• Psychology seeks to measure ,explain and change (if needed) behaviour of
humans and animals . It studies human behaviour in various conditions –normal
, abnormal, social, industrial, legal, childhood ,adolescence , old age, etc.
• Employee motivation
• Employee testing
• Product design
• Workplace diversity
• Workplace performance
Cont..
Cont..
Sociology
Sociology studies the shared human behaviour in the society , the way in which
people act toward one another. It specifically studies social groups, social
behaviour, society, customs, institutions, social class ,status ,social mobility, and
prestige.
Education
Gender
Culture
Cont..
Anthropology
• Anthropology is the science of man and studies civilization ,forms of
cultures and their impact on individuals and groups, biological features
of man and evolutionary pattern and relationship among languages.
Importance of organizational behaviour
 to the field of OB
• Organizational behaviour deals with employee attitudes and feelings,
including job satisfaction, organizational commitment, job involvement and
emotional labour. Job satisfaction reflects the feelings an employee has about
his or her job or facets of the job, such as pay or supervision.
Cont.…
Cont..
• Challenges at work place
• Organizational level
• Productivity
• Developing effective employees
• Global competition
• Managing in global village
• Group level
• Work with others
• Work force diversity
• Individual level
• Job satisfaction
• Empowerment
Challenges and opportunities for OB
Foundations of individual behaviour
•Individual behaviour caused by
• Individual variables
• 1.Physiological variables
• Intelligence
• Physical abilities
• Age
• Gender
• Race
• 2. Socio -Physiological variables
• Personality
• Perception
• Learning
• Attitudes and values
• Emotional intelligence
• Motivation
Theory – social theory
• Bureaucracy Theory
• Max Weber (1864-1920) a German sociologist introduced the theory of
Bureaucracy. His major contribution to the theory is the concept of
authority, structure and its inter-se relationship.
• Legal authority indicating that a person holds authority based on legal
position or rank within the hierarchy.

• Traditional authority: employees obey a person because he comes from

a traditionally recognized power holding family or a person belonging
to a royal family.
• Charismatic authority: which indicates special power or an appeal that
a leader possesses.
• Scientific Management Theory
• Scientific management approach was developed by F.W. Taylor at the beginning
of the 20th century.
• This theory supported the use of certain steps in scientifically studying each
element of a job, selecting and training the best workers for the job.
• It provided a scientific rationale for job specialization and mass production. His
assumption was that employees are motivated largely by money.

• Process Management Theory

• Process Management Theory is also known as Administrative theory. Fayol
looked at the problems from the top management point of view.

• He has used the term ‘administration’ instead of management emphasising

that there is unity of science of administration. He has emphasised that
principles of management are
Social theory
 Organizational citizenship behaviour
Organizational citizenship behaviour (OCB) is a term that's used to describe all
the positive and constructive employee actions and behaviours that aren't part of
their formal job description. It's anything that employees do, out of their own
free will, that supports their colleagues and benefits the organization as a whole.
Organizational citizenship behaviour
•Thank
you