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ORGANISATIONAL BEHAVIOUR

PAPER: MBA1C11

AMIR JAFAR

Associate Professor

Aligarh Muslim University Centre

Jangipur, Murshidabad

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UNIT I: Foundations of Organisational Behaviour

Concept of Organisation;

Meaning & systematic study of OB;

Developing an OB Model;

OB in a Global Perspective; and

Challenges & Opportunities for OB

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A SOCIAL UNIT OF PEOPLE THAT IS STRUCTURED AND MANAGED TO MEET A NEED OR TO PURSUE

COLLECTIVE GOALS.

ALL ORGANIZATIONS HAVE A MANAGEMENT STRUCTURE THAT DETERMINES RELATIONSHIPS BETWEEN THE DIFFERENT ACTIVITIES AND THE

MEMBERS, AND SUBDIVIDES AND ASSIGNS ROLES, RESPONSIBILITIES, AND AUTHORITY TO CARRY OUT DIFFERENT TASKS.

ORGANIZATIONS ARE OPEN SYSTEMS--THEY AFFECT AND ARE AFFECTED BY THEIR ENVIRONMENT.

READ MORE: HTTP://WWW.BUSINESSDICTIONARY.COM/DEFINITION/ORGANIZATION.HTML

A CONSCIOUSLY COORDINATED SOCIAL UNIT, COMPOSED OF TWO OR MORE PEOPLE, THAT

FUNCTIONS ON A RELATIVELY CONTINUOUS BASIS TO ACHIEVE A COMMON GOAL OR SET OF GOALS.

Concept of Organisation

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ORGANISATIONAL BEHAVIOUR: DEFINITIONS

S.P. Robbins: OB is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

Fred Luthans: OB can be defined as the understanding, prediction, and management of human behaviour in organizations.

McShane, Glinow, and Sharma: OB is the “study of what people think, feel, and do in and around organisations.” (2006, pp.4)

Schermerhorn, Hunt, and Osborn: OB is “the study of human behaviour in organisations. It is

multidisciplinary field devoted to understanding individual and group behaviour, interpersonal processes, and organisational dynamics.” (2005, pp.3)

Greenberg and Baron have defined organisational behavior as a “multidisciplinary field that seeks knowledge of behaviour in organisational settings by systematically studying individual, group and organisational processes.” (2003, pp.4)

Newstrom: OB is the “systematic study and careful application of knowledge about how people—

as individuals and as groups—act within organisations. It strives to identify the ways in which

people can act more effectively.”(2007, pp.3)

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OB deals with the systematic study of human behaviour in organisations. The people in the organisations are considered from three distinct level of analysis- individual, group and organisational.

OB has a micro perspective, since it does not study the whole organisation. It only focuses on the human side of management.

OB is multidisciplinary in nature since it draws on a wide variety of social science disciplines.

Some of the contributing disciplines to the field of organisational behavior are- psychology, sociology, socio-psychology, anthropology, and political science.

OB seeks to improve organisational effectiveness and the quality of life at work (Greenberg &

Baron, 2003, pp.5).

The four goals of OB are to describe, understand, predict and control human behaviour at work. (Newstrom, 2007, pp.4)

The key forces affecting organisational behaviour are—people (individuals and groups);

structure (jobs, relationships); technology; and environment (government, competition, societal pressures).

The field of OB is guided by two straight-forward assumptions- first, OB recognizes that

organisations are dynamic and always changing, second, there is no one single best way to behave in organisations and those different approaches are called for in different situations (Greenberg & Baron, 2003, pp.8).

Aligarh Muslim University Centre Jangipur, Murshidabad

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EVOLUTION OF OB

Organizational Behaviour

Human Relations

Hawthorne Studies

Scientific Management

1900’s 1940’s 1970’s

Classical Organization Theory

Aligarh Muslim University Centre Jangipur, Murshidabad

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GOALS OF ORGANISATIONAL BEHAVIOUR

Explanation Control Prediction

Aligarh Muslim University Centre Jangipur, Murshidabad

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WHY DO WE STUDY OB?

To learn about yourself and how to deal with others

You will be a part of an organization, and will continue to be a part of various organizations

Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time

Some of you may want to be managers or entrepreneurs

Aligarh Muslim University Centre Jangipur, Murshidabad

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Aligarh Muslim University Centre Jangipur, Murshidabad

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CONTRIBUTING DISCIPLINES TO THE OB FIELD

The Study of Organizational

Behavior

Psychology Sociology

Social Psychology Anthropology Political Science

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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Contributing Disciplines to the OB Field

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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Contributing Disciplines to the OB Field (cont’d)

Aligarh Muslim University Centre

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Contributing Disciplines to the OB Field (cont’d)

Aligarh Muslim University Centre Jangipur, Murshidabad

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Contributing Disciplines to the OB Field (cont’d)

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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Contributing Disciplines to the OB Field (cont’d)

Aligarh Muslim University Centre Jangipur, Murshidabad

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TOWARDS AN OB DISCIPLINE

Social psychology Psychology Behavioural

science Contribution Unit of

analysis Output

Anthropology Sociology

Political science

Study of Organizational

Behaviour

Organization system Learning

Motivation Perception Training

Leadership effectiveness Job satisfaction

Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Group dynamics Work teams Communication Power

Conflict

Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture

Conflict

Intraorganizational politics Power

Organizational culture Organizational environment Behavioural change Attitude change Communication Group processes Group decision making

Group

Comparative values Comparative attitudes Cross-cultural analysis

Individual

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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THE RELATIONSHIP OF OB TO OTHER CLOSELY RELATED DISCIPLINES

THEORETICAL

APPLIED

Organisation Development

(OD)

Human Resource Management

(HRM) Organisational Behaviour (OB) Organisation Theory

(OT)

MACRO

Source: Organizational Behavior, 10thEdition, Fred Luthans, McGraw Hill, 2005, pp.20

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OB & Management

Organisational behaviour represents the human side of management, not the whole of management.

Other recognized approaches to management include the process, quantitative, systems, and contingency approaches.

OB does not intend to portray the whole of management.

OB helps the managers to develop their conceptual and

human skills (Luthans, 2005, pp. 21).

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Contingency Variables

x y

Aligarh Muslim University Centre Jangipur, Murshidabad

There Are Few Absolutes in OB

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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Primary dependent variables

• A model is an “abstraction of the reality, or we can say that it is a simplified representation of some real world phenomenon.”

Dependent variables are the key factors that you want to explain or predict and that are affected by some other factor.

 Productivity

 Absenteeism

 Turnover

 Organizational citizenship

 Job satisfaction

Aligarh Muslim University Centre

Jangipur, Murshidabad

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The Dependent Variables (cont’d)

Aligarh Muslim University Centre

Jangipur, Murshidabad

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The Dependent Variables (cont’d)

Aligarh Muslim University Centre

Jangipur, Murshidabad

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The Dependent Variables (cont’d)

Aligarh Muslim University Centre

Jangipur, Murshidabad

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The Dependent Variables (cont’d)

Aligarh Muslim University Centre

Jangipur, Murshidabad

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Productivity (a performance measure that includes effectiveness and efficiency);

Absenteeism (the failure to report to work);

Turnover (the voluntary and involuntary permanent withdrawal from work);

Organizational citizenship (discretionary behaviour that is not a part of an employee’s formal job requirements but that nonetheless it promotes the effective functioning of an organisation);

Job satisfaction (a general attitude toward ones’ job); and

Deviant workplace behaviour (also known as antisocial

behaviour or workplace incivility, is the voluntary behaviour that violates the organisational norms and, in doing so,

threatens the well-being of organisational members.)

(Robbins & Judge, 2007, pp.27-31)

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The Independent Variables

Independent Variables

Individual-Level Variables

Organization System-Level

Variables Group-Level

Variables

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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INDIVIDUAL-LEVEL VARIABLES

People enter organizations with certain characteristics that will influence their behaviour at work.

The more obvious of these are personal or biographical characteristics such as age, gender, and marital status;

personality characteristics; an inherent emotional

framework; values and attitudes; and basic ability levels.

There is little management can do to alter them, yet they have a very real impact on employee behaviour.

Four other individual-level variables: perception,

individual decision making, learning, and motivation.

Aligarh Muslim University Centre

Jangipur, Murshidabad

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GROUP-LEVEL VARIABLES

The behaviour of people in groups is more than the sum total of all the individuals acting in their own way.

People behave differently in groups than they do when alone.

The behaviour of the group members are influenced by factors like—

acceptable standards of behaviour by the group members;

degree of attractiveness among the group members;

design of work teams;

communication patterns followed by the group;

leadership;

power and politics; and

levels of conflict (Robbins &Judge, 2007, pp. 32).

Aligarh Muslim University Centre

Jangipur, Murshidabad

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ORGANIZATION LEVEL VARIABLES

Organizational behaviour reaches its highest level of sophistication when we add formal structure.

The design of the formal organization, work processes, & jobs;

the organization’s human resource policies & practices, and the internal culture, all have an impact.

Aligarh Muslim University Centre

Jangipur, Murshidabad

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BASIC OB MODEL, STAGE I

Organization systems level

Group level

Individual level

Aligarh Muslim University Centre

Jangipur, Murshidabad

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BASIC OB MODEL, STAGE II

Ability Human

input

Values and attitudes

Motivation Individual decision making

Personality Perception

Biographical characteristics

Leadership

Work design and technology Organizational

culture

Change and stress

Group decision making

Other

groups Conflict Power and

politics Work teams

Individual Level Group Level Organization Systems Level

Satisfaction

Organizational commitment

Turnover Absence Productivity

Workplace interaction Human

output Communication

Group structure Human resource

policies and practices

Organization structure and design

Individual Differences

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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TODAY’S CHALLENGES IN THE WORKPLACE

Challenges at the Individual Level

Job Satisfaction

Empowerment

Behaving Ethically

Challenges at the Group Level

Working With Others

Workforce Diversity

Challenges at the Organizational Level

Productivity

Developing Effective Employees

Absenteeism

Turnover

Organizational Citizenship

Competition From the Global Environment

Managing and Working in a Global Village

Aligarh Muslim University Centre

Jangipur, Murshidabad

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CHALLENGES FACING THE WORKPLACE

Workplace Organizational Level

• Productivity

• Developing Effective Employees

• Global Competition

• Managing in the Global Village

Group Level

• Working With Others

• Workforce Diversity

Individual Level

• Job Satisfaction

• Empowerment

• Behaving Ethically

Aligarh Muslim University Centre

Jangipur, Murshidabad

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CHALLENGES AND OPPORTUNITIES FOR OB: A MANAGERIAL PERSPECTIVE

Accurate Measurement

Organizational Improvement Continuous

Improvement

Employee Empowerment

Improving Quality and Productivity

Customer Focus

Aligarh Muslim University Centre

Jangipur, Murshidabad

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Motivation

Improving

People Skills Communication Teamwork

Aligarh Muslim University Centre

Jangipur, Murshidabad

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THE CHALLENGE

OF GLOBALIZATION

Working in Foreign Countries

Working with Multicultural

Diversity

Aligarh Muslim University Centre

Jangipur, Murshidabad

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EMPOWERING

THE WORKFORCE

Managers Are Giving Up Controls

Workers Are Accepting Responsibility

Aligarh Muslim University Centre

Jangipur, Murshidabad

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COPING WITH

“TEMPORARINESS”

The Nature of Work Is Changing

Organizations Are Also Changing

Aligarh Muslim University Centre

Jangipur, Murshidabad

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DECLINING

EMPLOYEE LOYALTY

Workforce Motivation

Global

Competition

Aligarh Muslim University Centre

Jangipur, Murshidabad

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Improving

Ethical Behavior

Provide in-house advisers Create protection mechanisms Write and distribute codes of ethics Offer seminars, workshops, and training

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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THE LAYERS OF OB

The Organization

Negotiation Conflict

Communication Groups and teams

Power and politics

The Group

Emotions

Values and attitudes Perception

Personality

Motivating self and others

The Individual

Change

Organizational culture Decision making Leadership

Groups and teams

Aligarh Muslim University Centre Jangipur, Murshidabad

(Source: Organizational Behaviour by S. P Robbins, 12thEdition, 2005, Prentice Hall)

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International OB

 Globalization of business organizations has taken place on a massive scale.

 International OB deals with behavioural issues in MNCs

 Each country has its own culture, values, traditions, beliefs, practices, customs and ideologies

 These differences in culture affect how people behave in organizations

 Cultural differences around the world get reflected in work place values and ideologies

Hofstede has pointed out the strong influence of national cultures on OB

International OB vs. Original OB

 Original OB thought developed in the US and was dominated by American principles of capitalism, individualism and achievement.

 Original OB theorists emphasized only on the individuals and groups while organization as an entity was ignored.

 US OB research emulates natural sciences (cause and effect

relation). OB is now understood as a far more complex process due to the influence of culture.

 The role of culture serves as a context for OB thus necessitating a move from US OB theories to International OB.

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Why Study International OB?

Competitive Advantage

 To understand cultures and their impact on OB

 To understand the functioning of MNCs

 To understand global customers

 To make entry mode decisions

 To understand nature of competition and strategies in the global marketplace

 To evaluate prospect for collaboration and alliances

 To borrow and benchmark against effective management practices of other countries

 To understand workforce dynamics Organizational Analysis

 To understand the functioning of organizations

 To understand structures and social processes

 To develop new theories to deal with organizational problems Cultural Analysis

 To understand cultures

 To compare cultures

 To develop techniques to deal with differences in cultures

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International OB: Convergence Vs Divergence Convergence of Cultures: Industrialization

 Emergence of borderless world

 Global citizens, global products, global markets

 Cultures are getting alike internationally

 MacDonaldization (convergence…..) Divergence: Cultural Explanations

 External Culture: Multiple Cultures(sub-cultures)

 Internal Culture

Culture is multifaceted, dynamic and complex making it all the more difficult to understand and interpret behaviours.

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FURTHER READINGS

1. Buchanan & Huczynski: Organizational Behaviour-An Introductory Text, 5thEdition, 2004, Prentice Hall 2. Greenberg & Baron: Behavior in Organizations, 8thEdition, 2005, Pearson

3. Hodgetts, R. M: Organizational Behavior-Theory and Practice, 1991, Macmillan Publishing Company, New York.

4. Luthans: Organizational Behavior, Tenth Edition, 2005, McGraw-Hill

5. Newstrom: Organizational Behavior-Human Behavior at Work, 12thEdition, 2007, Tata McGraw Hill

6. Robbins & Judge: Organizational Behavior, 12thEdition, 2007, PHI

7. Rollinson: Organisational Behaviour and Analysis-An Integrated Approach, 3rdEdition, 2005, Pearson 8. Schermerhorn, Hunt & Osborn: Organizational Behavior, 9thEdition, 2005, Wiley

References

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