PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
Subject PSYCHOLOGY
Paper No and Title Paper No 12: Organizational Behaviour
Module No and Title Module No 5: Challenges, Scope and Opportunities of Organizational Behaviour
Module Tag PSY_P12_M5
TABLE OF CONTENTS
1. Learning Outcome
2. Introduction to the Challenges of Organizational Behavior 3. Behavioral Biases
4. Diminishing return 5. Unethical practices 6. Seeking shortcuts
7. Dynamic environmental conditions 8. Employee Empowerment
9. Summary
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
1. Learning Outcomes
After studying this module, you shall be able to
Know about challenges to be achieved in organization behavior.
Explore the challenges through this module.
Learn about the challenges of organization behavior.
Know about scope in organizational behavior studies.
Explore the opportunities come through these studies.
2. Introduction to the Challenges of Organizational Behavior
The field of organizational behavior is a distinguished area of valuable knowledge.
Organizations are simply not concrete physical structures. They consist of people, working as individuals or groups, both independently and interdependently towards some purpose. Hence the need to study how people act in organizations in a systematic manner is the need of the day. Organizational behavior knowledge benefits not only the employee as an individual but also the financial health of an organization. Organizational behavior practices cause better financial performance. In spite of its enormous payoffs, organizational behavior has its own limitations it cannot get rid of all the vices in organizational settings in totality, it can reduce them considerably. The major setbacks in the area of organizational behavior arise from
1. Behavioral bias 2. Diminishing returns 3. Unethical practices 4. Seeking shortcuts
5. Dynamic environmental conditions 6. Employee empowerment
Challenge - Challenge is to overcome all the above mentioned obstacles in organizational behavior.
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
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3. Behavioral Biases
Behavioral bias arises when practioners tend to overlook the broader system of the organization, while overly emphasizing satisfaction of employee needs and experiences.
The delicate balance gets disturbed when the concern for people outweighs concern for Seeking
Shortcuts
Dynamic Environmental
Conditions
Unethical Practices
Diminishing returns Employee Empowerment Behavioral
Bias
Challenges of Organizational
Behavior
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
the organizations. One cannot replace the needs of people as consumers of organizational outputs by the needs of people as employees of the organization. Simply creating a satisfied workforce is narrowing down the field of organization behavior to such an extent that the original essence of it satisfied employees to be productive employees” is lost. At the same time, people with high ambitions about organizations turnover show little regard for employee needs. This also is misapplication of organization behavior objectives. Going overboard with concern for employees can make them dependent, irresponsible, low in self esteem, discipline and confidence.
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4. Diminishing Return
In economics, the law of diminishing returns states that when more of a desirable input is added to an economic situation, there is declining amount of extra outputs after a certain point, the output from each unit of added input tends to become smaller. Eventually the added output reaches zero or continues to decline further when more units of input are added. Similarly, in organizational behavior, at some point, increases of a desirable practice produce declining returns; leading to zero returns and moving towards negative returns of more increases continue to be added. One needs to understand that there is an optimum amount of every practice in any situation, beyond which, it is most likely to lead to decline in consequences or returns. More of a good thing will not necessarily be
Behavioral Biases Over
concern creates
Dependant Irresponsible Low in self - esteem
Discipline Confidence
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
good. The law of diminishing returns, a system concept, is applicable because of the complex system relationships of many variables in a situation. Hence, when an excess of one variable develops, although that variable is desirable, it tends to restrict the operating benefits of other variables so significantly that net effectiveness declines. The point to be understood is that organizational effectiveness is not attained by focusing on and enhancing one human variable, rather by combining all variables together judiciously.
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5. Unethical Practices
There are vices in all fields of knowledge and organizational behavior is no exception. Its knowledge and techniques can be used to manipulate people unethically. To get maximum gains out of this field, we need to have respect for human dignity and not use organizational behavior ideas for selfish, unethical purposes. The principles of organizational behavior propagate ethical, judicious and value oriented use of human resources. However, just like any other field of knowledge, where its information may be disused, abused as well as used well, organizational behavior is not spared either. People who are in power with position and means to influence and control other people’s lives should maintain high levels of ethical and moral standards and in no way should misuse their power. Ethical leadership should adhere to the principles of
Diminishing Return
Desirable input Optimum level of input
Extra desired input
Increase in input Optimum level of output
Decrease in desirable
output
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
Social responsibility – responsibility towards all other people in the organization who have lesser power.
Open communication – a two way open and transparent system of communication in the organization.
Cost – benefit analysis – not only should the economic costs and benefits but the human and social costs and benefits of any organizational activity should be weighed before undertaking it.
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6. Seeking shortcuts
Another problem confronting today’s organizations is the nature of business organizations to expect high returns in a short span of time. In order to achieve this, most managers are on a constant look out for short cuts to problem solving, gaining mileage and achieve quick and handsome payoffs. They tend to accept latest fads which are not
Ethical leadership
Social - Responsibility
Open- communication
Cost- benefit
analysis
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
time-tested, overlook main problems and treat only superficial symptoms. This in itself defeats the whole ideology of organizational behavior which advocates long – term strategic plans and effective analysis and implementation of all systems in the organization for efficient use of human resources. Organizational behavior’s principles are focused on utilizing multifaceted approaches towards problem solving and management.
7. Dynamic Environmental Conditions
Periods of economic growth and recession are not alien to any organization. The environment in which any organization operates is dynamic; hence there is an imperative need to develop principles and ideas of organizational behavior which show resilience to such varying environments. The organizations need to sustain and grow in challenging periods of scarce resources, stiffer competition, low demand, employee poaching etc.
organizational behavior needs to develop its field in such a way that it incorporates newer leadership styles, motivational techniques, conflict resolution models and so on to cope up with dynamic environments and emerge successful.
8. Employee Empowerment
Empowerment assumes that employees are willing to accept responsibility and improve their daily work processes and relationship. Closely related to social power is the popular technique of employee empowerment. Empowerment may be defined as “recognizing and releasing into the organization the power that people have in their wealth of useful knowledge and internal motivation”.
1. Innovation Implication – Empowerment encourages innovation because employees have the authority to try out new ideas and make decisions that result in new ways of doing.
2. Access to Information – When employees are given access to information as vital part of their empowerment, their willingness to cooperate enhanced.
3. Accountability and Responsibility – Although employees are empowered to make decision they believe will benefit the organization, they must also be held accountable and responsible for results.
Challenge is to put empowerment in action in an organization.
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
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Accountability and Responsibility
Access to Information
Innovation Implication Employee Empowerment
PSYCHOLOGY Paper No 12: Organizational Psychology
Module No 5: Challenges, Scope and Opportunities Of Organizational Behaviour
9. Summary
1.
Behavioral bias arises when practioners tend to overlook the broader system of the organization, while overly emphasizing satisfaction of employee needs and experiences.2. Going overboard with concern of behavioral biases for employees can make them dependent, irresponsible, low in self esteem, discipline and confidence.
3. The law of diminishing returns states that when more of a desirable input is added to an economic situation, there is declining amount of extra outputs after a certain point; the output from each unit of added input tends to become smaller.
4. The nature of business organizations to expect high returns in a short span of time. In order to achieve this, most managers are on a constant look out for short cuts to problem solving, gaining mileage and achieve quick and handsome payoffs. They tend to accept latest fads which are not time-tested, overlook main problems and treat only superficial symptoms.
5. The environment in which any organization operates is dynamic; hence there is an imperative need to develop principles and ideas of organizational behavior which show resilience to such varying environments.
6. Recognizing and releasing into the organization the power that people have in their wealth of useful knowledge and internal motivation is called empowerment.
