Organizational

Behaviour
Unit 3

Objective
The students will be able to understand and apply the
following concepts:
Organizations Managerial Role and functions
Organizational Behaviour Approaches
Individual Behaviour

Causes
Environmental Effect
Behaviour and Performance
Perception
Organizational Implications
Personality
Contributing factors
Dimension
Job Satisfaction.
2

Objective [contd.]
Need Theories - Process Theories
Learning and Behaviour
Learning Curves
Work Design and approaches.

Organizations
Managerial Role
& Functions
Unit 3.1

Management Skills &

Levels
Management Skills:
Technical skills
Human/Soft skills
Conceptual skills

Management Levels:

Top Level Mgmt

Upper-Middle Level Mgmt
Middle Level Mgmt
Lower-Level Mgmt
5

Managerial Objective

Efficient use of resources

Customer satisfaction
Adequate return on capitals
Satisfied workforce
Improved work conditions
Building supplier relationship
Contribution to organizational goal
6

Feedback

Managerial Roles
Interpersonal

Provide
Info

Informational

Process
Info

Decisional

Use
Info

Managerial Role
Interpersonal Role
Figurehead
Liaison
Leader

Informational Role
Monitor
Disseminator
Spokesperson

Decisional Role

Entrepreneur
Disturbance
handler

Resource
allocator

Negotiator
Supervisor
8

Social Responsibility

Ecology & Environmental Quality

Consumption
Community Needs
Government Relations
Minorities & Backward Communities
Labor Relations
Shareholders Relations
Corporate Philanthropy
9

Organizational
Behavior
Approach
Unit 3.2

10

Definition
Organizational behaviour is a field of study that
investigates the impact that individuals, groups and
organizational structure have on behaviour within the
organization, for the purpose of applying such
knowledge towards improving an organizational
effectiveness.
The study and application of knowledge about human
behaviour related to other elements of an organization
such as structure, technology and social systems.
Organizational behaviour is a systematic study of the
actions and attitudes that people exhibit within
organizations.
11

Contributing Fields to
OB

Psychology
Sociology
Political Science
Social Psychology
Anthropology

12

Leader
Leaders must look for indicators (effects) of individual
behaviour and of groups in any organization. Indicators
have a root cause beneath. As a leader, it is that
symptom, which must be evaluated, and cause of
human behaviour established so that if the behaviour is
good, the manager can establish the norms of
behaviour.
Leader should be able to:

Describe
Understand
Predict
Control
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Organizational Components
that Need to be Managed

People
Structure
Technology
Jobs
Processes
External Environment

14

Individual Dimensions Of
OB

Personality
Learning
Value
Attitude
Job Satisfaction
Motivation
Perception and Individual Decision
Making
15

Group Dynamics

Interpersonal Behaviour
Foundation of group behaviour
Conflict Management
Stress Management
Dynamics of Communication
Power and Politics

16

Dynamics of
Organization

Organizational Structure
Job Design
Management Of Change
Organizational Development
Organizational Culture and Climate

17

Individual
Behavior
Unit 3.3

18

Behavior
Behaviororbehaviourrefers to the
actions of asystemororganism, usually
in relation to its environment, which
includes the other systems or organisms
around as well as the physical
environment. It is the response of the
system or organism to various stimuli or
inputs,
whetherinternalorexternal,conscious
or subconscious,overtorcovert,
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andvoluntaryorinvoluntary.

Individual Behavior
Individual behavior in an organization is
generally referred to as MARS model of
individual behavior.
It seeks to explain individual behavior as
a result of internal and external factor
and influences acting together.
MARS is an acronym for Motivation,
Abilities, Role perception and
Situational Factors.
20

Understanding Individual
Behavior
Organizational Behavior(OB)
The actions of people at work
Dual focus on OB
Individual Behavior
Group behavior
(norms, roles, team building leadership and
conflict)

Goals of OB
To explain, predict and influence behavior.
21

Organizational Behavior
Organizational Behavior is the study of
the actions of the people at work
Visible Aspects
Strategies
Objectives
Policies and
Procedures
Structure
Technology
Formal Authority
Chain of Command

Hidden Aspects
Attitudes
Perception
Group Norms
Informal interactions
Interpersonal and
intergroup conflict

22

Important Employee
Behaviors
Employee productivity
A performance measure of both efficiency and effectiveness

Absenteeism
Failure to report to work when expected

Turnover
The voluntary and involuntary permanent withdrawal from
an organization

Organizational Citizenship Behavior(OCB)

Discretionary behavior that is not part of a employees
formal job description. but which promotes the effective
functioning of the organization.
23

Important Employee
Behaviors
Job satisfaction
The individuals general attitude toward his
or her job

24

Psychological Factors
Attitudes
Evaluative statementseither favorable or
unfavorable concerning objects, people, or events.

Components of an attitude
Cognitive component: the beliefs, opinions,
knowledge, or information held by a person.

Affective component: the emotional or feeling part

of an attitude.

Behavioural component: the intention to behave in

a certain way.
25

Psychological Factors
Job satisfaction
Job satisfaction is affected by level of income
earned and by the type of job a worker does.

Job satisfaction and productivity

For individuals, productivity appears to lead
to job satisfaction.

For organizations, those with more satisfied

employees are more effective than those
with less satisfied employees.
26

Psychological Factors
Job satisfaction and absenteeism
Satisfied employees tend to have lower levels of
absenteeism.

Job satisfaction and turnover

Satisfied employees have lower levels of turnover;
dissatisfied employees have higher levels of turnover.

Turnover is affected by the level of employee

performance.

The preferential treatment afforded superior

employees makes satisfaction less important in
predicting their turnover decisions.
27

Psychological Factors
Job involvement
The degree to which an employee identifies with his or
her job, actively participates in it, and considers his or
her performance to be important to his or her self-worth

Organizational commitment
Is the degree to which an employee identifies with a
particular organization and its goals and wishes to
maintain membership in the organization.

Leads to lower levels of both absenteeism and turnover.

Could be becoming an outmoded measure as the
number of workers who change employers increases
28

Psychological Factors
Perceived organizational support
Is the general belief of employees that their
organization values their contribution and
cares about their well-being.
Represents the commitment of the
organization to the employee.

Providing high levels of support increases

job satisfaction and lower turnover

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Attitude Components
Cognition
Beliefs and Opinion

Affect
Emotion

Behaviour
Intention
30

Personality
The unique combination of psychological
characteristics (measurable traits) that affect
how a person reacts and interacts with others.
Segments of Personality
Extraversion
Agreeableness
Conscientiousness
Openness to Experience
Emotional Stability
31

Personality Insights
Locus of control
External locus: persons who believe that what
happens to them is due to luck or chance (the
uncontrollable effects of outside forces) .

Internal locus: persons who believe that they

control their own destiny.

Machiavellianism (Mach)
The degree to which an individual is pragmatic,
maintains emotional distance, and seeks to gain
and manipulate powerthe ends justify the
means.
32

Personality Insights
Self-Esteem (SE)
The degree to which people like or dislike themselves

High SEs
Believe in themselves and expect success.
Take more risks and use unconventional approaches.
Are more satisfied with their jobs than Low SEs.

Low SEs
Are more susceptible to external influences.
Depend on positive evaluations from others.
Are more prone to conform than high SEs.
33

Personality Insights
Self-Monitoring
An individuals ability to adjust his or her behavior to
external, situational factors.

High self-monitors:
Are sensitive to external cues and behave differently in
different situations.

Can present contradictory public persona and private

selves.

Low self-monitors
Do not adjust their behavior to the situation.
Are behaviorally consistent in public and private.
34

Personality Insights
Risk-Taking
The propensity (willingness) to take risks.
High risk-takers take less time and require
less information than low risk-takers when
making a decision.

Organizational effectiveness is maximized

when the risk-taking propensity of a
manager is aligned with the specific
demands of the job assigned to the manager.
35

Perception
Perception
A process by which individuals give meaning (reality)
to their environment by organizing and interpreting
their sensory impressions.

Factors influencing perception:

The perceivers personal characteristicsinterests,
biases and expectations

The targets characteristicsdistinctiveness,

contrast, and similarity.

The situation (context) factorsplace, time, location

draw attention or distract from the target
36

Need Theories
Unit 3.4

37

Maslows Hierarchy of Needs Theory

38

Maslows Hierarchy of Needs Theory

[Contd.]
Five groups of basic needs
Healthy adults try to satisfy these needs, so basic
that they motivate behavior in many cultures
Chronic frustration of needs can lead to
psychopathological results
Physiological needs:
Basic requirements of the human body: food, water, sleep,
sex.

Safety needs:
Desires of a person to be protected from physical and
economic harm.
39

Maslows Hierarchy of Needs Theory

[Contd.]
Belongingness and love needs (social):
Desire to give and receive affection; be in the
company of others.

Esteem needs:
Self-confidence and sense of self-worth
Esteem from others: valuation of self from other people
Self-esteem: feeling of self-confidence and self-respect

Self-actualization needs:
Maslow:
Desire for self-fulfillment.
. . . the desire to become more and
more
what one is, to become everything that one is
capable of becoming.

40

Murrays Theory of
Human Personality
Assumptions

People can adapt to their changing environment

Human behavior is goal directed
Internal and external factors affect behavior
People learn from interactions with their environment
Preconception of future affect behavior now.

Types of needs

Ambition Needs
Materialistic Needs
Power Needs
Affection Needs
Information Needs
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E.R.G. Theory
A variation of Maslow's hierarchy of
needs
Three groups of needs
Existence needs: physical and material
wants
Relatedness needs: desires for interpersonal
relationships

Growth needs: desires to be creative and

productive; to use ones skills
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E.R.G. Theory [Cont.]

Satisfaction-progression:
move up the hierarchy as needs are satisfied

Frustration-regression:
move down the hierarchy when a need is frustrated

Deficiency cycle:
more strongly desire existence needs when they are
unsatisfied

Enrichment cycle:
more strongly desire growth needs when they are
satisfied
43

McClellands Achievement
Motivation Theory
McClellands three needs
Need for Achievement
Need for Power
Need for Affiliation
The strong need for power focuses on
"controlling the means of influencing the behavior of
another person

Means of influence: anything available to the person to

control the behavior of another

Actively searches for means of influence

Having strong effects on other people
44

Herzbergs MotivatorHygiene Theory

Dissatisfiers: items predominantly found in
descriptions of negative events
Could lead to high levels of employee dissatisfaction
Improve the dissatisfiers and reduce dissatisfaction
Not get higher satisfaction.
Satisfiers: items predominantly found in
descriptions of positive events
Could lead to high levels of employee satisfaction
Their absence, or a person's failure to experience
them, would not produce dissatisfaction.
45

Herzbergs MotivatorHygiene Theory

Motivators

Achievement
Recognition
Work itself
Hygiene factors
Company policies and their administration
Quality of supervision
Working conditions
46

Learning Curve
Analysis
Unit 3.5

47

Learning Curve
Assumptions:
The time required to complete a specified task or unit of
a product or item will be less each time the task is
performed;

The unit time will reduce at a decreasing rate;

The decrease in time will follow a certain pattern, such
as negative exponential distribution shape.

The learning curve may vary one product to another and

from one organization to another.

The rate of learning depends on factors such as the

quality of management and the potential of the process
and products.
48

Learning Curve [contd.]

Moreover, it may be said that any change in
personnel, process, or product disrupts the
learning curve.
Consequently, there is a need for the utmost
care in assuming that a learning curve is
continual and permanent.

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Learning Curve Effects

Some Information on Learning Curve Effects in U.S. Industrial Sector
Number

Item/Area
Description

Time Period

Cumulative Learning Curve Slop

Parameter Percentage

Steel making

1920 1955

Units
Produced
(UP)

Production Worker
labor-hour per unit
produced

79

Handheld
calculators

1975 1978

UP

Average factory
selling price

74

Assembly of
aircrafts

1925 1957

UP

Direct labor
hours per unit

80

Ford Motor
Company
Model T
production

1910 1926

UP

Price

86

50

Learning Curve Effects

[contd.]
Conclusion from Table
The Table presents data on learning curve effects in the
U.S. industrial sector.

An 80% learning rate is descriptive of certain operations in

such areas as ship construction, electronic data processing
equipment, automatic machine production, and aircraft
instruments and frame assemblies.

The learning curves are found to be quite useful in a

variety of applications, including strategic evaluation of
company and industry performance, internal labor
forecasting, establishing costs and budgets, production
planning, external purchasing, and subcontracting of
items.
51

Learning Curve Effects

[contd.]
The learning curve theory is based on a
doubling of productivity.
More specifically, when output or production
doubles, the reduction in time per unit
affects the learning curve rate.

For example, an 80% learning rate means

the second unit takes 80% of the time of the
first unit, the fourth unit takes 80% of the
second unit, the eighth unit takes 80% of the
fourth unit, and so on.
52

Result
We may write

Where:
LHm : is the labor hours required to produce m
unit
LH1: is the labor hours to produce unit one or the
first unit.
C: is the learning curve slope and is expressed by
log of the learning rate/(log2)
53

Work Design &

Approaches
Unit 3.6

54

Work Design
Definition:
InOrganizational Development (OD) - Work Designis
the application ofsocio-technical systemsprinciples
and techniques to the humanization of work.

Objective of Work Design:

to improved job satisfaction

to improved through-put
to improved quality
to reduced employee problems, e.g. grievances,
absenteeism.
55

Scientific Management
Approach
Scientific managementwas a theory of
managementthatanalyzed and synthesized
workflows.
Its main objective improvingeconomic efficiency,
especiallylabor productivity.
It was one of the earliest attemptsto apply science
to theengineeringofprocessesand to management.
Although scientific management as a distinct theory
or school of thought was obsolete by the 1930s, most
of its themes are still important parts ofindustrial
engineeringand management today.
56

Scientific Management
[contd.]
The important themes are:

Analysis
Synthesis
Logic
Rationality
Empiricism
Work ethic
Efficiency and elimination of waste
Standardizationofbest practices
Knowledge transferbetween workers and from workers
into tools, processes, and documentation.s
57

Human Relations
Systems Approach
TheHuman Relations Movement takes the view that
businesses are social systems in which psychological
and emotional factors have a significant influence on
productivity.
The common elements in human relations theory are the
beliefs that are as follows:
Performance can be improved by good human relations.
Managers should consult employees in matters that affect staff.
Leaders should be democratic rather than authoritarian.
Employees are motivated by social and psychological rewards
and are not just "economic animals"

The work group plays an important part in influencing

performance.
58

Socio Technical System

Approach
Socio technical systems(STS) inorganizational
developmentis an approach to complex
organizationalwork designthat recognizes the
interaction between people and technology in
workplaces.
The term also refers to the interaction between society's complex
infrastructures and human behaviour.

Further, Socio technical systems theory is theory about the social

aspects ofpeopleandsocietyand technical aspects of
organizational structure and processes.

They are usually based on designing different kinds of

organisation, ones in which the relationships between socio and
technical elements lead to the emergence of productivity and
wellbeing.
59

Work Design & its

Approaches
Three work design approaches
Wheel Approach
Modular Approach
Iterative Approach

Emerged from the virtual team members

stories of how they moved from initial idea
generation, through development, to
finalization and closure of a creative effort.
These approaches were not mutually exclusive,
as most of the teams used more than one.
60

The Wheel Approach

The wheel is a classic type of communication
network (Katz and Kahn, 1978), in which there is one
key person who communicates to all team members.
Members on two different status levels make up the network
a high status member (the leader or supervisor) and lower
level members or assistants.

The higher status member is usually referred to as the hub

or center of the network , through which all communication
must pass.

In a classic wheel communication network, there are no

direct communication links between any of the lower level
members.
61

The Modular Approach

One of the most common work design approaches used
during the creative process of these virtual teams was
the modular approach.
A saying called : Oh, when everybody had a job and they were
able to do it, and everyone did these tiny little pieces, then the
final project is something impressive.

In this approach, team members met initially to decide on the

need, task, or project to be pursued.

After the work was completed, the efforts were presented to

the group for feedback before finalization and implementation.
Revisions were done as needed.

There are many drawbacks, to avoid this, many teams used the
iterative approach in conjunction with the modular approach.
62

The Iterative Approach

63

Iterative Approach
[contd.]
In the iterative approach, team members
engaged in back and forth development
cycles.
Members worked a little, presented those
results to the team, got feedback, worked a
little more, presented those results, got
more feedback, and so on until the project
was finalized.
where you think a little, you do a little, you
think a little, you do a little, you think a little,
you do a little, rather than thinking a whole
64
lot and then trying to come out with
something that everybody agrees with the

References
Herald Koontz and Heinz Weihrich,
Essentials of Management, McGraw
Hill Publishing Company, Singapore
International Edition, 1980.
M. Govindarajan and S. Natarajan,
Principles of Management, Prentice Hall
of India Pvt. Ltd., New Delhi, 2007.

65