ORGANIZATIONAL BEHAVIOR

INTRODUCTION TO OB
Organization culture HR practices/ policies (training & performance evaluation) Reward structures resistance to change Organizational Learning Job characteristics Motivation Leadership Personality Communication leadership Style Job satisfaction emotions Group Dynamics (group formation, Conflicts) Burnout

INTRODUCTION TO OB
TYPICALLY WE STUDY ORGANIZATION BEHAVIOR AT 3 LEVELS
Motivation Personality Job satisfaction Leadership Burnout emotions

INDIVIDUALS
Communication leadership Style

TEAMS

Group Dynamics (group formation, Conflicts)

IMPACTS BEHAVIOR

IMPACTS PERFORMANCE

Organization culture

HR practices/ policies (training & performance evaluation) resistance to change Job characteristics

ORGANIZATION

Reward structures Organizational Learning

INTRODUCTION TO OB
WHAT IS OB

FIELD OF STUDY THAT INVESTIGATES THE IMPACT OF INDIVIDUALS, GROUPS, AND STRUCTURE THAT HAVE ON BEHAVIOR WITHIN THE ORGANIZATIONS FOR THE PURPOSE OF APPLYING SUCH KNOWLEDGE TOWARD IMPROVING AN ORGANIZATION S EFFECTIVENESS OR TO PUT IT SIMPLY WHAT PEOPLE DO IN AN ORGANIZATION AND HOW WILL THAT IMPACT THE PERFORMANCE

INTRODUCTION TO OB

WHAT IS OB
PSYCHOLOGY

OB essentially is an amalgamation of various disciplines

POLITICAL SCIENCE ANTHROPOLOGY

OB

SOCIOLOGY

SOCIAL PSYCHOLOGY

INTRODUCTION TO OB

PSYCHOLOGY

study of human behavior

Deals with Issues such as

OB
Personality Perception Emotions Stress

Employees Attitude

Leadership Effectiveness Training Learning

INDIVIDUAL LEVEL Issues observed at

INTRODUCTION TO OB

SOCIOLOGY

Study of behavior when people start working together

Deals with Issues Such as

OB
Group Dynamics Communication Conflict work teams Power

Organization Change Organization Culture TEAM AND ORGANIZATION LEVELS Issues observed at both

Social Psychology is a branch of Psychology and deals with similar issues

INTRODUCTION TO OB

ANTHROPOLOGY study cultures and environments of people living in different countries and within different organizations
Deals with Issues such as

OB

Organizational Culture Organizational Environment Cross-Cultural Analysis Comparing Attitudes Cross Functional/ Cross Cultural teams

TEAM AND ORGANIZATIONAL LEVELS

Observes Issues at Both

INTRODUCTION TO OB

POLITICAL SCIENCE
study of Individual and Group Behavior in a Political Environment Deals with Issues Such as

OB
Intra Organizational Politics Conflicts

ORGANIZATIONAL LEVEL

Studies Issues at

EVOLUTION OF MANAGEMENT THOUGHT

Early theories of Management can be Classified under what we know as CLASSICAL MANAGEMENT THOUGHT

APPROACH Scientific Management Administrative Principles Bureaucratic Organization

RATIONALE One Best Way to do the Job One Best Way to Put an Organization Together Rational and Impersonal Organizational Arrangement

FOCUS Job Level Organizational Level Organization Level

EVOLUTION OF MANAGEMENT THOUGHT

SCIENTIFIC MANAGEMENT

SCIENTIFIC STUDY OF WORK METHODS (THROUGH OBSERVATIONS, EXPERIMENTS, & REASONING) TO IMPROVE THE EFFICIENCY OF THE WORKERS

EVOLUTION OF MANAGEMENT THOUGHT

SCIENTIFIC MANAGEMENT Important Scientists:

Frederick Winslow TAYLOR Frank & Lillian GILBRETH Henry Laurence GANTT

SCIENTIFIC MANAGEMENT
Taylor
Wrote The Principles of Scientific Management in 1911 The Soldiering Effect triggered his research study Soldiering Effect occurs when workers deliberately work at a slower pace This may be due to Faulty Wage System In the Organization Outdated Method of Working

Increase in their productivity Will result in Job Loss to Their Colleagues

SCIENTIFIC MANAGEMENT
Taylor
To overcome these problems Taylor identified 2 interventions TIME & MOTION STUDY Identify the best way to perform each job Break down each job into small tasks Remove the unnecessary movements and find the best way of doing the job

PIECE-RATE INCENTIVE SYSTEM Reward the worker with the maximum output The worker to receive his wages if he meets the expected performance If he exceeds the target, wages will increase proportionally

SCIENTIFIC MANAGEMENT

Taylor
LIMITATIONS Worker is not involved in the planning of his work

Operations can never be isolated/ individual confining workers to individual Operations will not necessarily improve their productivity

SCIENTIFIC MANAGEMENT
Taylor
We now know the Soldiering Effect more commonly as SOCIAL LOAFING Social Loafing mostly occurs if PEOPLE ARE NOT MOTIVATED ENOUGH TO WORK IN A GROUP The reason being that the individuals may feel that their task is NOT IMPORTANT Also they feel THEY ARE NOT GETTING THEIR DUE UNDER APPRECIATED The best way to beat SOCIAL LOAFING Assign meaningful tasks to team members Give the team members the right degree of autonomy over the tasks

SCIENTIFIC MANAGEMENT
Taylor

Going back to the SOLDIERING EFFECT .WHAT DO YOU THINK WAS THE HEART OF THE PROBLEM!!!

DEMOTIVATED WORKERS
Lack of interesting job Rewards not linked to performance Lack of Job Security

SCIENTIFIC MANAGEMENT
Frank & Lillian Gillbreth
Focused on Time-Motion Study developed by Taylor Studied and labeled 17 basic hand motions of the workers Search, Hold They also observed the physical movements of the workers using motion picture Camera The productivity of the workers went up

SCIENTIFIC MANAGEMENT
Henry Laurence Gantt
Strongly tied financial rewards to performance as did Taylor Developed the Task & Bonus Scheme Workers completing their work faster (than the given time) received a Bonus The foreman received a bonus for each worker who completed the work before given time The foreman gets extra bonus when all the workers under him finish the job before time

SCIENTIFIC MANAGEMENT

Limitations of Scientific Management

Looks at the problems only at the operational level and not at the managerial level Assumption was that people motivated only by Money / Material Gains Workers more often complain about nature of work, and working conditions rather than on material gains

ADMINISTRATIVE PRINCIPLES
ADMINISTRATIVE THEORY
Developed principles that could coordinate the activities within the organization Most prominent among the proponents of this management thought was Henri Fayol

FAYOL
French Industrialist Became popular through his book Administration industrielle et gnrale or General and Industrial Management Divided Business Operations into 6 different activities

ADMINISTRATIVE PRINCIPLES
FAYOL
Producing & manufacturing products Planning, Organizing, Commanding, Coordinating, Controlling

TECHNICAL

Buying, Selling, Exchange of Goods/ Services

MANAGERIAL

COMMERCIAL

FAYOL

Secure and Use Capital

ACCOUNTING

FINANCIAL

Taking stock of Profit & Loss of The Organization; maintaining Financial statements

SECURITY

Protecting Employees & Property

ADMINISTRATIVE PRINCIPLES
FAYOL
Building on these activities, Fayol suggested 14 principles of management 1. Division of Work leading to efficiency in operations 2. Giving Authority to Managers and Making them Responsible for the Work to be Done 3. Discipline in the organization where people respect authority 4. All instructions from one person 5. All activities to be a part of ONE plan 6. Organization s interests over individual interests 7. Remuneration paid should be fair according to cost of living & linked to Productivity

ADMINISTRATIVE PRINCIPLES
FAYOL
Building on these activities, Fayol suggested 14 principles of management 8. Organization flexible enough to be centralized or decentralized to effectively Use its personnel 9. Having clear cut communication channels in the organization; across the hierarchy 10. Right person selected to do the right job and material/ equipment kept in place For smooth performance of activities 11. All employees to be treated fairly 12. Labor turnover to be prevented by motivating the employees 13. Seek suggestions from employees to improve work place 14. Develop Team Spirit among the employees

BUREAUCRATIC MANAGEMENT
WEBER
Supported the idea of a structured, formalized, and impersonal organizations Strong set of rules and regulations in the organization Based on the following principles WORK SPECIALIZATION & DIVISION OF LABOR Duties and responsibilities are clear Each employee given specific tasks to help him gain expertise RULES & REGULATIONS Clear as they help the employees to work in coordinated fashion IMPERSONALITY OF MANAGERS Decisions made based on facts rather than emotions HIERARCHY OF ORGANIZATION Subordinates not given any role in decision making

LIMITATIONS OFADMINISTRATIVE & BUREAUCRATIC APPROACH

There is no strict bureaucracy today The principles of scientific management go against individual creativity Important issues such as Leadership, Motivation, Power, and Informal Relations were ignored

BEHAVIORAL APPROACH
Recognized the importance of individual s attitude, their interaction With peers and superiors and its influence of their performance

Some of the proponents of this theory are: Mary Parker Follet Advocated the idea of Power Sharing Elton Mayo Lead the team of scientists who conducted the Hawthorne Experiments Studied the relation between employee psyche Organizational Environment --Productivity

BEHAVIORAL APPROACH
Some of the proponents of this theory are: Maslow Proposed the Maslow s Hierarchy of Needs pyramid to explain Human Motivation McGregor Proposed the Theories X and Y Managers belief about his employees Theory X workers are lazy, do not like work, dislike responsibility, need to be supervised Theory Y workers are creative, proactive, take responsibility, and exercise Self Control

QUANTITATIVE APPROACH
Outcome of the WW II Consists of 3 branches: Management Science/ Operations Research : PERT, CPM, Decision Theory, Sampling, Probability Operations Management : deals everything related to Production Inventory Management, Facility Location, Layout, Project Planning & Control, Statistical Quality Control Management Information Systems: Collects, Processes, Stores, and Disseminates Information

MODERN APPROACH
SYSTEMS THINKING FEEDBACK CONTINGENCY THEORY SYSTEMS THINKING
FEEDBACK

INPUT
PEOPLE MONEY MATERIAL INFORMATION

TRANSFORMATION PROCESSES

OUTPUT

PERFORMANCE APPRAISAL FEEDBACK FROM CLIENT ORGANIZATION S ROI

PROCESSES

PRODUCTS/ SERVICES

EMPLOYEE RECRUITED

TRAINING MENTORING JOB ENRICHMENT

WORKING WITH CLIENT Observations, Recommendations Problem solving

All this collectively can be called as a CONSULTANCY SYSTEM

MODERN APPROACH
CONTINGENCY THEORY
SYSTEMS VIEWPOINT
Relation between Individuals, Teams, Organizations and Environment

BEHAVIORAL VIEW POINT Interpersonal skills Information use Making decisions

CONTINGENCY VIEW Problem Solving by Understanding Individual Psyche, Technology, General Environment

Also called as Situational Theory Reflects the Increasing Complexity of the Businesses THERE IS NO ONE BEST WAY TO DO THE JOB!!!

TRADITONAL VIEWPOINT Plan, Organize, Lead, Control

HAWTHORNE STUDIES
The Problem: Employee Dissatisfaction The Setting: 1924; The Hawthorne Works Factory of Western Electric Company, Chicago; 30,000 employees; the studies conducted until the early 1930 s Nature of Operations: Supplied manufactured equipment to Bell Telephone System The Objective: To know the causes of dissatisfaction among workers The Managerial Concept: Influence of External Factors (environment) on Employee Motivation and therefore on Productivity

So, how were the experiments conducted

HAWTHORNE STUDIES
The Experiments were conducted by National Academy of Sciences Step One was the ILLUMINATION EXPERIMENTS

Group 1 (Control Group) Illumination was Kept Constant

Group 2 (Experimental Group) Illumination was enhanced

PREDICTABLY HIGHER PRODUCTIVITY IN GROUP 2 HOWEVER, PRODUCTIVITY OF GROUP 1 ALSO INCREASED

These experiments suggested that there may be factors apart from Working Conditions that influenced Productivity

HAWTHORNE STUDIES

Step TWO was the RELAY ROOM EXPERIMENTS Started in 1927 by Elton Mayo and his colleagues This phase continued for a period of 5 years The intention was to change the working conditions and see how productivity changes

SO WHAT WAS DONE?

2 girls were selected for the experiment These two girls were asked to select 4 more girls The group was given the task of assembling telephone relays A telephone relay is a device comprising of 40 different components An Observer recorded the experiment talking to the girls listening to their complaints giving the girls an update on the experiment

SO WHAT DID THEY FIND OUT?

HAWTHORNE STUDIES
Slight fall in Productivity as work rhythm is affected Sharp rise In productivity Productivity increased Productivity increased Highest Productivity Achieved

3000 relays

Productivity increased

2400 relays

Normal working conditions 48 hours/week No breaks

Piece Work Basis 8 weeks (wages According To Productivity)

Two Five Minute Breaks Increased later to 10 minutes

Six Five Minute breaks introduced

10 minutes Break restored + Free meals

Girls Allowed to Leave early

All amenities Withdrawn; Original Working Conditions restored

HAWTHORNE STUDIES
MANAGERIAL IMPLICATIONS OF THE FINDINGS:

The rise in productivity is due to change in the employees attitude towards their job They experienced a feeling of Task Significance when their opinions were asked The employees were given autonomy on their job in terms of assembling of parts Thus, the employees developed self discipline It was also found that variables such as rest does not completely explain increase in productivity

HAWTHORNE STUDIES
The Illumination and Relay Room Experiments were followed up with a Mass Interview Program Interviews conducted between 1928 30 The objective was to collect information so that Supervisory Training be Improved The Interviewer would listen, talk, argue, and advice the interviewee on various aspects such as

Physical Working Conditions

Financial Rewards (wages, Rate revision )

Job Placements (transfers Co. Placements)

General Employee Welfare

Social Contacts (on the Job)

Working Hours

HAWTHORNE STUDIES
WHAT ARE THE IMPLICATIONS FROM THESE INTERVIEWS?

Providing opportunities to express opinions motivates the employees Complaints/Grievances may not necessarily be tangible more often they can be symptoms to more serious problems Employees productivity depends on his experience within and outside the organization Employee s level of satisfaction or dissatisfaction depends on how he perceives his social status in the organization In some departments, group behavior was evident groups restricting the productivity of individual workers Thus, bank wiring Room Studies were conducted to study this phenomenon in detail

HAWTHORNE STUDIES
BANK-WIRING ROOM STUDY
OBJECTIVE : Observe the motivational drives among the informal work groups PARTICIPANTS: 9 wire-men, 3 soldermen, and 2 inspectors; involved in attaching wire to swtiches; 1 observer, 1 interviewer THE SETTING : A Simulated Environment called Bank-Wiring Room was created replicating the actual work conditions METHOD :

The observer interacted closely with the workers, knowing more about their feelings, values, attitudes

The interviewer stationed in a different part of the factory. Was appraised of the employees by the Observer

HAWTHORNE STUDIES
BANK-WIRING ROOM STUDY
RESULTS: Emergence of an Informal team leader among the small group of 14 workers Financial rewards were not important to the team members; Group Norms were more important The production level was 6000 units vis--vis 7000 units capacity Group compelled individual production level to be at about the 6000 unit mark Groups averse to raising the level of production because:

Possibility of standards being raised Protection of slower workers Fear of employment

HAWTHORNE STUDIES
PERSONAL COUNSELLING
The bank-wiring study was followed by Personal Counselling of the employees (after 4 years) The objective was to underscore the significance of employee relations in the organization Effective Leadership and Communication among the employees identified as the key to improvement of organizational relationships The following benefits were generated:

Employees Psychological and Physiological problems were solved Employee Supervisor relations improved Employee Management relations improved Management demonstrated greater empathy for the employees