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Organizational Behavior (MGT 502)

What is Organization?
Group of People- When two or more person/people work together with a view to
achieving the goal. It will be called the organization.
Types of organization? Kinds of Organization. Transformati
1. Common weal organization: Public Service Oriented. onal
Theory
2. Business Organization: Some Profit.
3. Non-Profit Organization: Charge, School, Hospital.
4. Mutual Benefited Organization: Federation.
Behavior:
Behavior open employee in an organization in deferent situation an in deterrent position.

Organization Established / Elements of an Organization:

1. Employee top level
2. Hierarchy middle level
3. Common Goal operative level
4. Communication

Common Characteristics of Organization:

1. Coordination of Effort
2. Division of Labor
3. Hierarchy of Authority
4. Common Goal

Leadership Theory – Evaluation:

1. Great Man Theory
2. Trait Theory of Leadership- People are born with inherited traits. Some traits are
particularly suited to leadership. People who make good leaders have the right (or
sufficient) combination of traits.
2. Power and Influence approach
3. Behaviorist Theory- Leaders can be made, rather than are born. Successful
leadership is based in definable, learnable behavior.
4. Situational Leadership- The best action of the leader depends on a range of
situational factors.
5. Contingency Theory
6. Transactional Theory- People are motivated by reward and punishment. Social
systems work best with a clear chain of command. When people have agreed to do a
job, a part of the deal is that they cede all authority to their manager. The prime purpose
of a subordinate is to do what their manager tells them to do.
7. Attribution Theory
8. Transformational Theory- People will follow a person who inspires them. A person
with vision and passion can achieve great things. The way to get things done is by
injecting enthusiasm and energy.

The myths of leadership:

1. Leadership is a rare skill. not true, while great leaders may be rare, everyone has
leadership potential.
2. Leadership are born, not made. not so.
3. Leadership are charismatic, some are, but most are not.
4. Leadership exists only at the top of the organization.
5. The Leadership controls and directs. again, not so.
 Situatio
nal
Behavioral Theory
Styles
Theory

Trait
Theory

_____ ___ _____ _____ _____>

1950 1960 1970 1980 1990

Approximate time line (Years)

Formals versus Informal Leaders:

1. Formal Leaders: The process of influencing others to pursue official objectives.
2. Informal Leaders: In contrast, informal leadership is the process of influencing
others to pursue.
Trait Theory:
• Intelligence;
• Scholarship;
• Dependability in exercising responsibilities;
• Active and social participation;
• Socioeconomic Status;
During most of recorded history the prevailing assumption was that leaders are born
and not made. This so-called great man approach to leadership eventually gave way to
trait theory.

Basic Leadership Styles from the Ohio State Study:

High
Low Structure High Structure
C High Consideration High Consideration
O Leader strives to promote Leader strives to achieve a
group harmony and social productive balance between
N need satisfaction (Country the job done and maintaining a
S Club) cohesive, friendly work group
(Team Management)
I Low Structure
D Low Consideration
E Leader retreats to a
generally passive role of
High Structure
Low Consideration
R allowing the situation to Leader devotes primary
A take care of itself (Poor
Management)
attention to getting the job
done, personal concerns are
T strictly secondary (Authority
I Management)
O
N
Low
Low High
Initiating Structure
 \Managerial Grid:

(1,9) country club

9 (9,9)
8– team management
Consideration

7–
6–
5 (5,5)
4– middle of
3– (1,1) poor the road
2– Management
1 (9,1) a u th o rity -o b e d ie n c e
I I I I I I I I
1 2 3 456 7 8 9

Impoverished management/ authority-obedience (9,1)

Minimum effort to get the work done. A basically lazy approach that avoids as much
work as possible.
Country Club management (1,9)
Care and concern for the people, with a comfortable and friendly environment and
collegial style. But a low focus on task may give questionable results.
Middle of the road management (5,5)
A weak balance of focus on both people and the work. Doing enough to get things
done, but not pushing the boundaries of what may be possible.
Team management (9,9)
Firing on all cylinders: people are committed to task and leader is committed to people
(as well as task).

What is Leadership?
Leadership is a subject which includes a great deal about changing people's minds,
often in fundamental ways. Just think about some of the great leaders of the world and
the impact they have had on the lives of other people.
Description
Leaders may be concerned for their people and they also must also have some
concern for the work to be done. The question is, how much attention to they pay to
one or the other? This is a model defined by Blake and Mouton in the early 1960s.

Leadership Styles:
There are a number of different approaches, or 'styles' to leadership and management
that are based on different assumptions and theories. The style that individuals use will
be based on a combination of their beliefs, values and preferences, as well as the
organizational culture and norms which will encourage some styles and discourage
others.
• Charismatic Leadership
• Participative Leadership
• Situational Leadership
• Transactional Leadership
• Transformational Leadership
• The Quiet Leader
• Servant Leadership
Managerial Roles Approach:
Sl. Category Role Sample
of Skill Activities
1 In te rp e rso n aFigure Head * Attending Ribbon-
l Leader cutting
* Encouraging
Liaison Employees
* Coordinating
activities
2 In fo rm a tio n aMonitor
l * Scanning industry
Disseminatorreports
* Sending memos
Spokeperso outline
n * Making a speech to
discuss growth
plants.
3 Decisional Entrepreneur * Developing new
Disturbance ideas for innovation.
handle * Reviewing and
Resource revising budget
Allocator
Negotiator
request

Situational Theory: Although a number of different situational-leadership theories have

been developed, they all share one fundamental assumption: successful leadership
occurs when the leader’s style matches the situation. Situational –leadership theorists
stress the need for flexibility. They rejected the notion of universal applicable style.
Research is underway to determine precisely when and where various styles of
leadership are appropriate.Fiedler’s contingency theory, the path-goal theory, and the
vroom/yetton/ Jago decision-making model are introduced and discussed here because
they represent distinctly different approaches to situational leadership.

Fred. E .Fiedler’s Contingency Theory: The performance of a leader depends on two

interrelated factors
The Degree to which the situation gives the leader control and influence-that is, the
likelihood that (the leader) can successfully accomplish the job
The leader’s basic motivation- that is ,whether (the leader’s) self –esteem depends
primarily on accomplishing the task or on having close supportive relations with others.
Reading the second factor ,the leader’s basic motivation, Fiedler believes that leaders
are either task-motivated or relation-motivated. These two motivational profiles are
roughly equivalent to initiating structure( or concern for production) and consideration
(or concern for people)

Pictorial Presentation of Fiedler’s Contingency Theory of Leadership

Highly Moderately Highly
Favorable Favorable Unfavorable
Task-motivated Relationship Task-motivated
Leaders perform Motivation Leaders perform better
Better when the Leaders perform When the situation is
situation is better Highly unfavorable
highly W hen the
favorable situation is
Moderately
favorable
Group members A combination of Group members and
and leader enjoy Favorable and leader do Not enjoy
working together Unfavorable working together.
Group members factors Group members work
work on clearly on vaguely Defined
defined tasks. tasks. Leader lacks
Leader has formal authority to
formal authority control Promotions
to Control and other rewards.
romotions and
Other rewards
Rationale Rational Rational
Working from a Followers need In the face of mutual
base Of mutual support from mistrust and high
trust and relative Leader to help Uncertainty among
Certainty among them cope with followers about task
followers about uncertainties And rewards, leader
task and about trust, and/or needs to devote
rewards, leader Rewards primary attention to
can devote close supervision.
primary attention
to Getting the job
done

From this pictorial presentation we get that , task –motivated leaders seem to be
effective in extreme situations when they have either very little control or a great deal of
control over situational variables. In moderately favorable situations, however,
relationship-motivated leader’s tends to be more effective. Consequently, Fiedler and
one of his colleagues summed up their findings by notion that “everything point to be
conclusion that there is no such things as an ideal leader. Instead there are leaders and
there are situations. The challenge, according to Fiedler, is to analyze a leader’s basic
motivation and then match that leader with a suitable situation to form a productive
combination.

Managerial Level of Skills:

Top-level Conceptual
Skills

Mid-level Human
Skill

Operational Technical Conceptual

Level Skill Sills

Top Managers: They make up the relatively Small group of executive who manage the
overall organization. Top managers create the organizations goals, overall Strategy
and operation policy.
Middle Managers: Middle management is probably the largest group of managers in
most organizations. Plant manager, operations manager & divisional head. They are
primarily responsible for implementing the policies.
First-Line Managers: They supervise and coordinate the activities of operating
employees. They oversee the day to day operations of their respective stores, hire
operating employees to staff them and handle other routine administrative duties
required of them by the present coordination.
Group:
A group is defined as two or more individuals interacting and interdependent, who have
come together to achieve particular objectives
Group part of Two 1) formal & Informal
Formal Group: Formal groups are defined by the organization’s structure, with
designated work assignments establishing tasks.
1. Command Group:
A command group is determined by the organization chart. It is composed of the
subordinates who report directly to a given manager.
2. Task Group: Task groups represent those working together to complete a job task.
Informal Group: Informal groups are alliances that are neither formally structured nor
organizationally determined. Ex:- Lunch together
1.Interest Group: It is consist of those who are working together to attain a specific
objective with concerned each other.
2.Friendship Group: Groups often develop because the individual members have one
or more common characteristics.

Reasons for joining Groups

• Security: By joining a group, individuals can reduce the insecurity of standing alone.
People feel stronger, resistant to threats when they are part of a group.
• Status: Joining this group that is viewed as important by others provides recognition
and status for its members.
• Self esteem: That is member can give increased feelings of worth to the group
members themselves
 Affiliation: Groups can fulfill social needs. People enjoy the regular interactions that
comes with group membership which are their primary source for fulfilling their
needs for affiliation.
 Power: Achieved individually often become possible through group action?
 Goal achievement: There are times when it takes more than one person to
accomplish a particular task. In such instances, mgt will rely on the use of a formal
group.
Stages of Group Development
 Forming: Forming is a great deal of uncertainty about the group purpose, structure
and leadership. This stage members have begun to think of themselves as part of a
group.
 Storming: The storming stage is one of intra group conflict. There is conflict over
who will control the group. When this stage is complete, there will be a relatively
clear hierarchy of leadership within the group.
 Norming: third stage. There is now a strong sense of group identity and
camaraderie (intimacy).
 Performing: The fourth stage is performing. The structure at this point is fully
functional and accepted.
 Adjourning: In this stage, the group prepares for its disbandment.
The most common techniques of group decision making are:
 Interacting groups: This Members meet face to face interaction to communicate
with each other. This groups often sensor themselves and pressure individual
members toward conformity of opinion.
 Brainstorming: Is an idea generation process that specifically encourages any and
all alternatives. Brainstorming is merely a process of generating ideas.
 The nominal group technique: Here individual ideas are evaluated and each
member silently rank-orders the ideas. The idea with the highest aggregate ranking
determines the final decision.
Electronic meeting: A meeting where members interact on computers allowing of
comments and aggregating of votes.
Barnard’s acceptance theory, a leader’s authority is determined by his or her
subordinates’
willingness to comply with it. Barnard believed that a subordinate recognize a
communication
From above as being authoritative and decides to comply it only when
The message is understood
The subordinate believes it is consistent with the organization’s purpose
It serves the subordinate’s interest
The subordinate is able to comply.

Barnard’s Acceptance Theory opened the door for whole host of ideas. such as
upward
communication and the informal organization that is based on the friendship rather than
work rules.

Contrasting Theories of Organization

A useful way of approaching the study of organization theory is to contrast the
traditional view with the modern view, two very different ways of thinking about
organization.

Close- System
In the traditional view, the organization is characterized by close-system thinking. This
view assumes that the surrounding environment is fairly predictable and that uncertainty
within the organization can be eliminated through proper planning and strict control. As
per this theory an organization’s primary goal is seen to be economic efficiency.

Open-System
In contrast , prevailing modern view characterizes the organization as an open system
that interacts continuously with an uncertain environment. Both the organization and its
surrounding environment are assumed to be filled with variables that are difficult to
predict or control. As the open-system theorists see it, the organization’s principal goal
is survival in an environment of uncertainty and surprise. Open-system thinking is the
fundamental of contingency (Unforeseen event) view. Contingency theorist are not
satisfied with focusing on just the internal workings of organizations. They see the need
to understand how organizational subsystems combine to interact with outside social,
political, and economic systems.

Contrasting Theories of Organization (Traditional & Modern)

General Closed-system Open-
Perspective thinking system thinking
Primary goal Economic Survival in the
of Efficiency environment of
organization uncertainty&
surprise.
Assumption Predictable General
about Uncertainty
Surrounding
Environment
Assumption All casual, goal- The organizational
about directed, system has more
organization variables are variables than can
known & be comprehended
controllable. at one time.
Variables are often.

Extending the open-System: The Learning Organization

The idea of organizational learning ,dates back to the 1970s.It took peter sense’s 1990
best –seller, The fifth Discipline, to popularize this extension of open-system thinking.
Fortunately, Harvard’s David A. Garvin recently did a good job of sorting things out.
According to Garvin,” A learning organization is an organization skilled at creating,
acquiring, and transferring knowledge, And at modifying its behavior to reflect new
knowledge and insights. One could view Garvin others as having extended to open –
system model of organization by putting a human and the head on the biological
(Open-System) model. Garvin believes that organizational learning just like human
learning, involves three stages.

1. Cognition (Learning New Concept);

2. Behavioral (Developing New Skills and Abilities);
3. Performance (Actually Getting something done);
All three stages are required to erase the famous gap between theory and practice.

Stages Cognitive Behavioral Performance

: Improvement

The number of people who report directly to a manager represents that manager’s span
of control. Some scholars and managers prefer the term span of management.
Managers with a narrow span of control oversee the work of a few people, where as
those with a wide span of control have many people reporting to them. Generally,
narrow spans of control foster tall organizations many levels in the hierarchy). In
contrast ,flat organizations (few hierarchical levels) have wide spans of control.
Everything else being equal ,it stands to reason that an organization with narrow spans
of control needs more managers than one with wide spans.
Management theorists and practioners have devoted a good deal of time and energy
through the years attempting to answer the question," What is the ideal span of
control."? Ideally, the right span of control strikes an efficient balance between too little
and too much supervision, important considerations in the era of TQM.

Is there an Ideal Span of Control

Early management theorists confidently specified exactly how man individuals should
be in a manager’s span of control. In the words of one early management scholar," No
superior can supervise directly the work of more than 5 or, at the most, 6 subordinates
whose work interlocks (interconnected).
Manager

S u p o rd in a te S u p o rd in a te S up o rd in a te S u p o rd in a te S u p o rd in a te

As time went by, research results began to supersede strictly intuitive judgments and
evidence supported wider spans of control. James C. Worthy, a vice president of Sears,
Roebuck and Co, reported that his company had gotten good results with spans of
control far in excess of six. Worthy found morale and effectiveness were higher in one
department store in which thirty-six department managers reported to a single manager
than in a second store in which the span of control averaged only five.Today emphasis
on contingency organization desigh,combined with evidence that wide spans of control
can be effective, have made the question of an ideal span obsolete. The relevant
question is no longer how wide spans of control should be but instead,” How can one’s
span of control be ? Wider spans of control means less administrative expense and self-
management, both popular notions today.

The contingency Approach to Span of Control

Both overly narrow and overly wide spans of control are counterproductive. overly
narrow span creates unnecessarily tall organizations plagued by such problems as
over supervision.
• Long lines of Communication;
• Slow, multilevel decision making;
• Limited initiative due to minimal level of authority;
• Restricted development among mangers who devote most of their time to direct
supervision;
• Increased Administrative cost;
 In contrast, overly wide spans can erode efficiency and inflate costs through lack of
training, behavioral problems among inadequately supervised subordinates, and lack of
coordination
Clearly, a rationale is needed for striking a workable balance.
Situational factors such as those listed are a useful starting point. (below mentioned)
The narrow ,moderate, and wide span of control ranges are intended to be illustrative
benchmarks rather than rigid limits. Each organization must do its own on-the-job
experiment. At Federal Express, for example, the span of control varies different areas
of the company. Departments that employ many people doing the same or very similar
jobs-such as customer service agents,handle/sorters,and couriers-usually have a span
of control of fifteen to twenty employees per manager.Groups performing multiple tasks,
or tasks that require only a few people, are more likely to have spans of control of five or
six. No ideal span of control exists for all kinds of work.

Mechanistic Versus Organic Organization

Chara Mechanistic Organization Organic
cteristi Organization
c
1. 1.Task definition for Narrow and
individual contribution precise
2. 2.Relationship between Vague
individual contribution
and organization
purpose
3. 3.Task flexibility Low
4. 4.Definition of rights, Clear
obligations, and
techniques
5. 5.Reliance on High
hierarchical control
6. 6.Primary direction of Vertical (top to
communication bottom)
7. 7.Reliance on High
instructions and
decisions from superior
8. 8.Emphasis on loyalty High
and obedience
9. 9.Type of knowledge Narrow, technical
required and task-specific

Differentiation (Fragmentation) & Integration (Coordination):

Differentiation (Fragmentation):
Differentiation Mechanisms:
Forces
Pushing the organization apart
Division of Labor
Technical Specialization
Integration (Coordination):
Integration Mechanisms: Forces
Pulling the organization together
• Formal Hierarchy (Chain of Command)
• Standard policies, Rules and procedures
• Departmentalization
• Computer Networks
Cross-functional teams or committee

Departmentation:
One of the most common forms of integration is departmentalization. A degree of
coordination is achieved through departmentalization because members of the
department work on interrelated tasks, obey the same departmental rules, and report to
the same department head. It is important to note that although the term
departmentalization is used here, it does not always literally apply; managers commonly
use labels such as division, group or unit in large organizations. Four basic types of
departmentalization are: Functional Departmentalization / Product-service
Departmentalization / Geographic Location Departmentalization / Customer
Classification Departmentalization.

Functional Departmentalization of a Hospital & a Business Organization. Ideally profit

making organization those who have broader business orientation hardly go for
functional departmentalization.
Different Types of Departmentalization:
Functional Departmentalization of a Hospital & a Business Organization. Ideally profit
making organization those who have broader business orientation hardly go for
functional departmentalization.

Product & Service Departmentalization:

Hilton Hotels Corp.recently reorganized its worldwide operations into two units; gaming
and lodging.Ideally,those working in this sort of product-service structure have a broad
business orientation rather than a narrow functional perspective.

Geographic Location Departmentalization:

Some times, as in the case of organizations with nationwide or worldwide markets,
geography dictates structural format. Geographic dispersion f resources for example
mining companies, facilities for example railroads ,or customers for example chain
supermarkets may encourage the use of a geographic format to put administration
“close to the action”.

Departmentalization on Customer Classification:

A fourth structural format centers on various customer categories. AT&T, for example,"
has broken its long-distance business into two communications services units-one for
business and the other for residential customers.
 MGT 502 / Kamrul Sir
Motivation is often referred to as the ‘dynamic’ of behaviors, Motivation May be
defined as the act of stimulating someone to take a desired course of action.
• Motivation is goal oriented;
• Motivation is a continuous Process;
• Motivation may be positive or Negative;
• Motivation may be monetary or non-monetary.

Sources of Motivation: Pay or money, security of job, praise and recognition,

competition, knowledge of results, participation, pride, delegation of authority,
cultural variation. Social factor opportunity for advancement.

Self This is the highest need in his

actu alizatio n hierarchy
need
Need for power, status & self
Steam/ confidence
Ego need
Need for love & affection,
Social acceptance by fellows and the like.
Need Need to be free from physical
Safety / danger and the fear of loss of job,
Security Need property or shelter.
Physiological
Need Need for food, water shelter,
clothing sexual satisfaction etc.
Maslow’s Need Hierarchy Model

Theory X: The traditional view of management and is baried on the following

assumption:
a. People do not like work and try to avoid it.
b. People do not like work so managers have to control direct, course and
threaten employees to get them to work toward organizational goals.
c. People prefer to be directed to avoid responsibility and to want security.
d. People by nature resist to charge.
e. People are gullible, not very bright.
Theory Y: Presents a modern view of Management and is buried on the
following assumption:
a. People do not naturally mistake work, work is a natural part of their lives.
b. People are internally motivated to reach objectives to which they are
committed.
c. People are committed to goals to the degree that they receive personal
rewards.
d. People will both sick & accept responsibility under favorable conditions.
Hygienic & Motivation Factor?
Hygienic: Hygienic factors Salary, Supervisors, working conditions,
Interpersonal relations pay and security company policies and administration.
Motivation: This factors achievement recognition. Growth in the job
Responsibility, advancement, and growth job enrichment (all of these items are
intrinsic factor)
Biographical Characteristics:
Obvious characteristics would be an employee’s age, gender, race, and length of
service with an organization. Fortunately there is a sizable amount of research
that has specifically analyzed many of these biographical characteristics.

Age: The relationship between age and job performance is likely to be an issue
of increasing importance during the next decade. It’s tempting to assume that
age is also inversely related to absenteeism. After all, if older workers are less
likely to quit, won’t they also demonstrate higher stability by coming to work more
regularly. Our final concern is the relationship between age and job satisfaction.
On this issue, the evidence is mixed. Most studies indicate a positive association
between age and satisfaction, at least up to age 50. Other studies, however,
have found a u0-shaped relationship.

Gender: The evidence suggests that the best place to begin is with the
recognition that there are few, if any, important differences between men and
women that will affect their job performance. There are, for instance, no
consistent male-female differences in problem-solving ability, analytical skills,
competitive drive, motivation, sociability, or learning ability.

Race: Race is a controversial issue. It can be so contentious that it’s tempting to

avoid the topic. A complete picture of individual differences in OB, however,
would be incomplete without a discussion of race. Race has been studied quite a
bit in OB, particularly as it relates to employment outcomes such as personnel
selection decisions, performance evaluations, pay, and workplace discrimination.

Tenure/Length: The last biographical characteristic we’ll look at is tenure. With

the exception of gender and racial differences, few issues are more subject to
misconceptions and speculations that the impact of seniority on job performance.
If we define seniority as time on a particular job, we can say that the most recent
evidence demonstrates a positive relationship between seniority and job
productivity. So tenure, expressed as work experience, appears to be a good
predictor of employee productivity.

A definition of Learning: A psychologist’s definition is considerably broader

than the layperson’s view that “it’s what we did where we went we to school.
Learning occurs all the time. Therefore, a generally accepted definition of
learning is any relatively permanent change in behavior that occurs as a result of
experience.

Ability: As we will use the term, ability refers to an individual’s capacity to

perform the various tasks in a job. It is a current assessment of what one can do.
An individual’s overall abilities are essentially made up of two sets of factors:
Intellectual and Physical.

Intellectual Abilities: The capacity to do mental activities-thinking, reasoning,

and problem solving.

Physical Abilities: The capacity to do tasks demanding stamina, dexterity,

strength, and similar characteristics.
 Leadership

sl. The Manager’s World sl. The Leader’s World

1. Exploiting financial, material and
human resource (capital, plant and
equipment, premises, and labor)
2. Contractual relationship with
complier’s, customer and supplier.
3. Key tasks are planning, organizing,
directing and controlling.
4. Legitimacy is conferred by virtue of
the office held and the authority
vested in it.
1. Empowering people; building
commitment and dignment with
the organization’s purpose.
2. Relationship with stakeholders
based on mutual trust.
3. Key tasks are defining and
creating shared vision and values.
4. Legitimacy resides in trust based
on perceived competence and
integrity.

Leadership Qualities:
i. The ability to build effective team;
ii. The ability to listen;
iii. The capabilities to make decisions;
iv. The ability to retain good people;
v. The ability to surround himself with good people;
vi. Strong-willed;
vii. Ambitious;
viii. Energetic;
ix. Motivated by power;
x. Courage and physical steaming;
xi. Emotional stamina, Anticipation;
xii. Competitiveness and self-confidence;
xiii. Accountability, Responsibility, Dependability and Loyalty.

Leadership Approach:
One finding was that in effective companies, CEO’s did not just approach the
leadership role in a way which suited their personalities or personal preferences.
The 5 approaches are as follows:
i. The strategy approach – long time
ii. The human assets approach – recruiting and career development
iii. The expertise approach – customer requirements
iv. The boy approach – customer satisfaction
v. The change approach – change agent, consequently