ORGANISATION

WE ARE BORN IN AN ORGANISATION,EDUCATED BY ORGANISATIONS & MOST OF US SPEND MUCH OF OUR LIFE WORKING IN ORGANISATIONS - AMITAI ETIZIONI

What is an Organisation ?
An organisation is a group of individuals ,who come together to realise their goals . An organisation requires People Goals Relationships Organisations are created and maintained by people .

Definition
Mooney and Reily- , Organisation is the form of every human association for the attainment of common purpose. McFarland ,- An identifiable group of people contributing their efforts towards the attainment of goals. Oliver Sheldon,- The process of combining the work which individuals and groups have to perform is an organisation.

Characteristics of an Organisation
1.Social Unit An organisation consists of people .According to Amitai Etizioni ,an organisation comes into existence in the circumstances described below: a.When there are persons who are able to communicate with each other. B.When there are people who are willing to contribute collectively and individually C.When there are people who are desirous of satisfying personal and social needs.

 2. Goals Goals are the desired state of affairs ,ultimate purpose and performance of an organisation . Goals are derived from the needs ,desires,purpose and goals of people.(Individual goalsearning livelihood) Mutually agreed goals become organisational goals .Members of an organisation contribute their potential towards realisation of common goals. CONGRUENCE (DISSIMILARITY ) arises when there is conflict (difference) between individual and organisational goals

 3. Substitution of Personnel Organisation has a long term existence .But people working there are continuously replaced promotions,transfers,resignation,retirement ,death etc. The poem The Brooke by Lord Tennyson describes the brooke by saying men may go,men may come ,but I go on foreever . So also the organisation it is constant but people working may come and go .

 4. Structure A structure is an orderly arrangement of activities .It is used to develop roles,tasks,relationship,positions, authority,accountability etc. 5.Divisions of labour It is the sub-divisions of tasks . ie -goals subdivided into sub goals tasks identified to workout goals tasks divided into manageable component each task assigned to a position performed by people

 6. Existence of power Organisations assign authority to persons occupying various positions to use it to direct the organisational resources in the pursuit of goals.Every department or division will be given power .There will be many power centres in organisation.

 7.Rules and regulations These are the written directions to be followed without any deviations.These are guidelines .If broken will be penalised /punished. 8.System Organisations are a systems of interrelated and inter dependent sub-systems.The elements are input,process and output. Inputs are-physical,financial ,human resources. Output are the productivity ,sales,profit etc Processes are planning,organising,staffing,directing,controlling etc.

 9. Co-operation & Communication Co-operation implies sharing of efforts.To complete tasks there must be proper coordination.Leads to better harmony Communication is sharing of feelings ,it is the transmission of direction of the top management to the lower levels and reporting the performance to the top level .(the chain of command)

 10.Openness Organisations as systems receive external inputs and export their outputs. Internal factors like goals,policies,resources ,managerial behaviour are internal to the organisation External factors like political ,economical ,technological ,legal etc are outside managerial control. So organisations need to be open and dynamic to interact with and coordinate both the external and internal factors

Functions of an organisation
1.To facilitate management 2.To optimise the utilisation of resources 3.To encourage growth 4.To manage the environment 5.To economise on costs 6.To stimulate creativity.

Classification of organisation
Talcott Parson classification On FUNCTIONAL BASIS ECONOMIC INDUSTRIAL /COMMERCIAL BUSINESS ORGANISATION. POLITICAL PARLIAMENT/LEGISLATIVE BODY/POLITICAL BODIES/ASSOCIATIONS/GROUPS RELIGIOUS-TEMPLES,MOSQUES,CHURCHES,WAKF BOARDS,TRUSTS MAINTENANCE-MAINTAINING PEACE/JUSTICE POLICE/JUDICIAL

 SOCIAL developing social groups to create values-CLUBS GATHERING/ASSOCIATIONS MUTUAL BENEFITS regulate trade ,upkeep dignity /protect interests of members-TRADE UNION/PROFESSIONAL BODIES SERVICE providing service integral to society-Schools ,universities,hospitals,welfare bodies

 Chester I Bernard classification Of organisation On FORMALITY BASIS FORMAL REALISING COMMON OBJECTIVES THROUGH A STRUCTURE REGISTERED COMPANIES /BODIES INFORMAL PROVIDING SOCIAL SATISFACTION GROUPS FOUND IN FORMAL ORGANISATIONS

Principles of an organisation
Principle of objectives Principle of specialisation Principle of co-ordination Principle of authority and responsibility Principle of span Principle of continuity(ongoing concern) Principle of balance Principle of exception

The Men/People /Personnel/Human Capital/Social Capital

The Managers Subordinates Colleagues

Terms used to describe people (employees) in an organisation

Thus at first employees were considered Cost Then Human Resource ,now widely recognised as Human captial ( education,training ,experience ,skill) Investing in human capital results in increases productivity and customer satisfaction. Even going beyond this is the recent term Social capital

 Ie social capital (who you knownetworks,connections,friends) and Positive Psychological capital ( who you are confidence,hope,optimism etc) and (who you are in terms of confidence ,hope etc )and (who you can become in terms of the above characteristics)

ORGANISATIONAL BEHAVIOUR (OB)

Sam Walton (Founder Wal-Mart)PEOPLE ARE THE KEY for successful organisations

Behaviour
Behaviour is the actions and reactions of an individual in a situation Eg- if you meet a friend the smile on your face reflects emotional feelings,if angry you might bang on furniture or yell . These outward expressions provide an understanding of behaviour.In organisations human resources are precious and their behaviour is unique. Understanding of their interactions is important to integrate human effort to realise goals of the organisation. Lewins - B=f(P,E,O) B=individual behaviour P=person E=environment O=Organisation

TWO FUNDAMENTAL CONCEPT

OB revolves around two fundamental components 1.The nature of the man 2.The nature of the organisation

DEFINITION
FRED LUTHANS Organisational behaviour is directly concerned with the understanding ,production and control of human behaviour in organisations. NEWSTROM & DAVIS Organisational behaviour is the study and application of knowledge about how people act within an organisation .It is a human tool for human benefit .It applies broadly to the behaviour of people in all types of organisation.

OB is
Meaning It tries to understand the behaviour ,attitudes and performance of the people in organisations Scope It is the micro study of the peoples behaviour Area of emphasis It emphasises on applied psychology in organisation Nature It is predictive in nature Aim -To explain and predict the behaviour of individuals and groups in organisations

Characteristics /Features of OB
1.Behavioural approach to management 2.Cause and effect relationship 3.It is a branch of social sciences 4.Three levels of analysis (ie individual behaviour ,inter-individual behaviour and behaviour of organisation ) 5.Its a science as well as an art (systematic knowledge of human behaviour is science and its application of behavioural knowledge and skills is an art) 6.A rational thinking process 7.Beneficial to both individuals and organisations

Key elements/Forces of OB
1.People 2.Structure 3.Technology 4.Environment

Goals of OB
1.Describe 2.Understand 3.Predict 4.Control

Role of OB
A.. UNDERSTANDING HUMAN BEHAVIOUR B..INFLUENCING HUMAN BEHAVIOUR

 A. Understanding human behaviour 1.Individual behaviour 2.Interpersonal behaviour 3.Group behaviour 4.Intergroup behaviour

B. Influencing the human behaviour 1.Leadership 2.Motivation 3.Communication 4.Organisational change and development 5.Organisational climate

Approaches which influenced OB

Behavioural Approach 1. Group influences ---Mary Parker Follet. 2.Hawthorne studies Elton Mayo 3.Maslows needs theory Abraham Maslow 4.Theory X and Theory Y Douglas McGregor 5.Model 1 versus Model II values Chris Argyris.

THE HAWTHORNE STUDIES

A large research programme conducted between 1927 and 1932 at WESTERN ELECTRIC S HAWRHORNE PLANT near Chicago Plant produced various parts for telephone switching systems Several management bigwigs like --- ELTON MAYO, FRITZ ROETHLISBERGER ,HARVARD FACULTY members and WILLIAM DICKSON (chief of Hawthornes Employer relations research dept)

 They conducted series of experimental and observational studies in the plant and conducted employee interviews between 1924 and 1932 . They were Illumination Experiment (1924-27) Relay Assembly Test Room Experiments(1927-28) Experiments in interviewing workers(1928-31) Bank wiring room experiment(1931-32)

ILLUMINATION EXPERIMENT
The first major experiment The purpose was to study the different levels of lighting on productivity. The experimental design used a control group and test group. Control group lighting was not varied Experimental (test)group changes in lighting

 Result of the experiment As lighting for experimental group was increased productivity went up, Also subsequently when lighting was reduced ,the productivity again went up For control group there was no change in lighting ,but still productivity went up

 Conclusion of the study was baffling to the researchers SIMPLY BEING PART OF THE EXPERIEMENT ,WHICH FOCUSED NEW AND GREATER ATTENTION ON THE WORKERS INCREASED PRODUCTIVITY

Relay Room Experiments

The research was undertaken to study the workers segregated on the basis of a different range of working conditions variables. The study tested the effect of thirteen variables like - EFFECT OF WORK PLACE METHOD OF PAYMENT REST BREAKS LENGTH OF WORK DAY WORK SCHEDULES ETC ON PRODUCTIVITY

 The same control and experimental design was used and the researcher found the results to be practically identical to the illumination experiment . ieEVERY TEST PERIOD RESULTED IN HIGHER PRODUCTIVITY- (WORKERS FELT IMPORTANT WHEN ATTENTION WAS FOCUSED ON THEM)

EXPERIMENTS IN INTERVIEWING WORKERS

Here the researchers directly started going to the workers to talk about ,what was in their opinion important to them (kept various variables of previous experiments aside) 20,000 thousand workers were interviewed over a period of 2 years There were no preconceptions as The interviewers set out to skillfully listen what the workers was saying about himself and the job .

 The researchers skillfully listened to what the workers was saying about himself and the job Thus the experiment discovered INFORMAL ORGANISATION AND ITS RELATION TO FORMAL ORGANISATION ALSO LEAD TO BETTER UNDERSTANDING OF THE SOCIAL AND INTERPERSONAL DYNAMICS OF PEOPLE AT WORK

BANK WIRING ROOM EXPERIMENTS

This experiment was done in the bank wiring room Based on observational analysis of informal work groups It helped to understand that behavioural norms set by the work group had a powerful influence over the productivity of the group. The higher the norms greater the productivity and vice versa Helped to understand the power of peer group and the importance of group influence on workers behaviour and productivity .

 Thus workers gave the following reasons why productivity increased Small group Type of supervision Earnings Novelty of the situation Interest in the experiment Attention received in the test room

Human Relations Approach

The Hawthorne studies led to laying the foundation for the human relations approach. The BASIS OF THIS APPROACH WAS THAT PEOPLE RESPONDED PRIMARILY TO THEIR SOCIAL ENVIRONMENT THAT MOTIVATION DEPENDS MORE ON SOCIAL NEEDS THAN ECONOMIC NEEDS AND THAT SATISFIED EMPLOYEES WORK HARDER THAN UNSATISFIED EMPLOYEES.

 The values of HUMAN RELATION APPROACH WAS EXEMPLIFIED IN THE WORK OF DOUGLAS McGREGOR an MIT psychologist who proposed two sets of assumptions about human motivation that an manager can hold. He called these assumptions THEORY X AND THEORY Y

Douglas McGregor s Theory X and Theory Y (assumptions & beliefs )**

As per this a managers behaviour towards his workers and his management style will differ based on the assumptions guiding his behaviour . THEORY X 1.THE AVERAGE PERSON DISLIKES WORK AND WILL AVOID IT IF POSSIBLE 2.BECAUSE PEOPLE DISLIKE WORKING ,MANAGERS HAVE TO CONTROL ,DIRECT AND COERCE AND THREATEN EMPLOYEES TO GET THEM TO WORK TOWARDS ORGANISATIONAL GOALS 3.THE AVERAGE PERSON WANTS SECURITY ,AVOIDS RESPONSIBILITY and HAS LITTLE AMBITION

THEORY Y - (more positive and optimistic view of employees) 1.THE AVERAGE PERSON DOES NOT LIKE DISLIKE WORK ,IT IS AS NATURAL AS PLAY 2.PEOPLE ARE INTERNALLY MOTIVATED TO REACH OBJECTIVES TO WHICH THEY ARE COMMITTED 3.PEOPLE ARE COMMITTED TO GOALS TO THE DEGREE THAT THEY RECEIVE PERSONAL REWARDS WHEN THEY REACH THEIR OBJECTIVES.

 4.PEOPLE WILL BOTH SEEK AND ACCEPT RESPONSIBILITY UNDER FAVOURABLE CONDITIONS 5.PEOPLE HAVE THE CAPACITY TO BE INNOVATIVE IN SOLVING ORGANISATIONAL PROBLEMS 6.PEOPLE ARE BRIGHT ,BUT UNDER ORGANISATIONAL CONDITIONS THEIR POTENTIALS ARE UNDERUTILISED . (So these assumptions or beliefs about human motivation strongly affects management behaviour.)

Abraham Maslows Theory of Motivation (1943)

Abraham Maslows theory assumes that motivation arises from a hierarchical series of needs. As the needs at each level are satisfied the individual progresses to the next higher level Maslows heirarchy of needs 1.Physiological needs 2.Safety needs 3.Social needs 4.Esteem needs 5.Self Actualisation needs

OB influenced by the following trends:

The systems approach The socio technical approach The democratic approach The contingency approach The interactional approach

 Systems approach this theory views organisations as complex systems consisting of interrelated elements like materials ,information,finance, etc which interact with each other to produce profits and products. Democratic approach Here importance was given to workplace ,human dignity,participation and involvement of employees as means to increase productivity.

 The socio-technical approach Important work was done at Tavistock institute in England where the term socio-technical system coined .Here it was demonstrated that TECHONOLOGY was important determinant in firms, which would or could influence culture and structure of the organisation. Trist and his colleagues demonstrated that changing technology from small group work to three shift working disrupted workers output and productivity.

 Contingency approach As per this approach the aqppropriate managerial behaviour in a situation depends on the elements of that situation. Interactional approach This approach states that relationship is not simple and one-way. There is continuous interactions ie-causes and effects .Eg-There is a relation between workplace experiences and the attitudes of employees

Behaviourist Theories
The classical behaviorist who based their study on psychology were Russian pioneer Ivan Pavlov American John B.Watson They attributed learning to the association or connection between STIMULUS and RESPONSE ( S-R) ie it deals with respondent conditioning /classical conditioning Classical conditioning is a type of conditioning in which an individual responds to some stimulus that would not ordinarily produce such a response

 The OPERANT BEHAVIORISTS -THE WELL KNOWN AMERICAN PSYCHOSLOGIST B.F.SKINNER -gave more attention to the role that CONSEQUENCES/RESPONSE PLAY IN LEARNING OR THE RESPONSE STIMULUS (R-S) It deals with operant conditioning /instrumental conditioning Operant conditioning is a type of conditioning in which desired voluntary behaviour leads to a reward or prevents a punishment

Classical Conditioning
The individual Stimulus (S) 1.Is struck by pin 2.Is tapped below Kneecap 3.Is shocked by electric Current 4.Is surprised by loud sound

Response (R) 1. flinches 2. flexes lower leg

3. jumps/screams 4. jumps/screams

Operant conditioning
The individual Response (R) Stimulus (S) 1.Work 1. is paid 2.Talks to others 2. meets people 3.Enters a restaurant 3. obtains food 4.Enters a library 4. finds a book 5.Increases productivity 5. receives merit pay 6.Completes a difficult Assignment 6. receives praise and promotion

Albert Bandura s Social Cognitive Theory

Social learning states that the position that behaviour can be best explained in terms of a continuous reciprocal interaction among cognitive ,behavioural and environmental determinants i.e The person and environmental situations do not function as independent units but in connection with behaviour itself reciprocally interact to determine behaviour. (Cognitive means related to knowledge or opinion )

Social Cognitive Theory (SCT)-Albert Bandura

1.Symbolizing 2.Forethought 3.Observational 4.Self-regulatory 5.Self-reflective

 SymbolizingEmployees process visual experiences (Customer named Mr.Applegate )into Cognitive model (Apple) that then serves as future guides for action (ie remembering his name easily ) Forethought Here employees plan their action(what am I going to do ?) Anticipate the consequences(What am I going to get for it )and determine the performance (What my performance goal is )

 Observational - Employees learn by observing the performance of referent (peers or supervisors) and the consequence they receive for their actions (What they get for it) Self regulatory Employees self control their actions by setting internal standards (aspired levels of performance )and then by evaluating the set standard with the achieved performance in order to improve it .

 Self-reflecting Employees reflect back on their actions (how did I do ?) and determine how strongly they believe they can successfully accomplish the task in the future

Models of OB
Authocratic Model The custodial Model The supportive Model Normative Model Empirical Model Ecological model Ideographic Model etc.

Challenges & Opportunities for OB

Some critical Ob issues affecting managers are Managerial challenges Workplace challenges Organisational challenges Global challenges Environmental challenges

Managerial challenges
Workforce diversity Demographics of workforce Dual career couples Growing no of youngsters Gender factor

Workplace challenges
Employee privacy Employee rights Unionism Changed employee expectations

Organisational Challenges
Improving quality and productivity Managing technology and innovations Coping with temporariness Ethical behaviour

Global challenges
1.Managing global environment 2.Managing cultural diversity 3.Environmental challenges(these are ) a.Ecology b.Air,water and soil pollution c.Personnel policies d. Consumerism e.R&D f.International policies g. National economy

Bill Gates observed , The inventory ,the value of my company ,walks out the door every evening

Thank you

Questions relevant to the topic

1.Review the fundamental concepts that form the basis of organisational behaviour.which concepts do you think are more important than the others?Explain 2.Organisational behaviour is selfish and manipulative ,because it serves only the interests of managements .Comment 3.Define OB.Explain the key elements in understanding OB 4.How is an organisation a social system ?Explain in detail 5.Give some Egs of problems a manager might face for which a knowledge of organisational behaviour might prove beneficial for finding solutions.