Organisational Behaviour Course Content 100 Marks 60 marks

Organisational Behaviour

Course Content 100 Marks – 60 marks written exam and 40 marks internal assessment. Introduction to OB Personality Perception Attitude and Values Motivation Concepts Group Behaviour and Group Dynamics Organisational Design Leadership Organisational Development

Reference Books Understanding Organisational Behaviour – Udai Pareekh Organisational Behaviour - Stephen P. Robbins Organisational Behaviour – Fred Luthans Organizational Behaviour- Newstrom Organizational Behaviour- Uma Sekaran

Introduction to OB – Learning Objectives Define Organisational Behaviour Describe what Managers do Explain the value of the systematic study of OB List the major challenges and opportunities for the managers to use OB concepts Identify the contributors made by major behavioural science discipline to OB Describe why mangers require a knowledge of OB

What Managers DO? ? ? Planning Organising Leading Controlling MINTZBER’S MANGERIAL ROLES

Activity 1 Write down 10 roles which makes manager effective and successful? ? ? Time – 5 Min

Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness. OB is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation. It emphasises behaviour as related to concerns such as jobs, , work, absenteeism, employment turnover, productivity, human performance and management.

Activity - 2 Write two different incidents when you predicted someone’s behaviour and your prediction was correct and when your prediction was wrong. Time – 5 Min

Few Questions to Ponder? ? ? How many of have attempted to interpret what you see? How many of you predict behaviour / actions of others? How many times it was correct and how many times it was wrong? How well did you know those people whose behaviour you predicted correctly? How well did you know those people whose behaviour you predicted wrongly? How many times you felt that behaviour displayed by others is irrational?

Replacing Intuition with Systematic Study You watch what others do and try to explain to yourself why they have engaged in their behaviour. Unfortunately our casual or commonsense approach to reading others can often lead to erroneous predictions. You can improve your ability by replacing your intuitive opinions with a more systematic approach. Behaviour generally is predictable if we know how the person perceived the situation and what is

Replacing Intuition with Systematic Study There are differences between individuals however there are certain fundamental consistencies underlying the behaviour of all individuals that can be identified These fundamental consistencies are very important because they allow predictability. Examples Behaviour is generally predictable and the systematic study of behaviour is a means to making reasonably

Bases of OB Psychology: The science or study of individual human behaviour Sociology: The study of group human behaviour Social Psychology: Studies influences of people on one another Anthropology: Study of the human race, and culture Political Science: Behaviour of individuals in political environment

Bases of OB

Challenges and Opportunities for OB Responding to globalisation Managing workforce diversity Improving quality and productivity Responding to skilled labour shortage Improving customer service Improving people skills Empowering people Coping with ‘Temporariness’ Stimulating Innovation and Change Helping employees balance work/life conflicts Improving ethical behaviour

OB Model Organisation System Level Group Level Individual Level

OB Model – Individual Level Values Attitude Personality Types and Emotions Perception and Individual Decision Making Motivation

OB Model – Group Level Foundation of Group behaviour Understanding work teams Communication Power and Politics Leadership Conflict and Negotiation

OB Model – Organisation System Level Organisation Structure Organisation Design Organisation Development

Activity - 3 Case Study

Course Content 100 Marks – 60 marks written exam and 40 marks internal assessment. Introduction to OB Values and Attitude Personality Perception Motivation Concepts Group Behaviour and Group Dynamics Organisational Design Leadership Organisational Development

Value – Corporate Value The Operating philosophies or principles that guide an organisation’s internal conduct as well as its relationship with its customers, partners, and shareholders.

Attitudes are evaluative statements – either favorable or unfavorable – concerning objects, people, or situation. Attitudes reflect how one feels about something. Components of Attitude Cognitive Component - Belief Affective Component – Emotion or feeling Behavioural Component In organisation, Attitudes are important because they affect Job behaviour

Types Of Attitude Job Satisfaction Job Involvement Organisational Commitment

Personality Dynamic concept describing growth and development of a person’s whole psychological system. “Personality is the sum total of ways in which an individual REACTS and INTERACTS with others. ”

What Determines The Personality? Heredity Environment Situation

Myers-Briggs Type Indicator Type of Social Interaction Extrovert (E) Preference for Gathering Data Sensing (S) Preference for Decision Making Style of Decision Making Introvert (I) Intuitive (N) Feeling (F) Thinking (T) Perceptive (P) Judgmental (J)

Myers-Briggs Type Indicator Extroversion E Introversion Interest Orientation Talkative, Shy, Sociable, Reserved, Friendly, Quite, Outspoken I

Myers-Briggs Type Indicator Sensing S i. Ntuition Information Organised, Focus Detail Require more information Prefer to interpret from less information, Able to take foresee N

Myers-Briggs Type Indicator Feeling Thinking T Decision Reliability of logical order – cause and effect, Priorities based on personal importance and values, Logic and consistency First look at the people and special circumstances F

Myers-Briggs Type Indicator Judgment J Perception Environment Orientation Prefer to get things decided systematic planning Less Flexible Spontaneity Curious Stay open to new information, Flexible P

Conscientiousness Extroversion Agreeableness Emotional stability Openness to Experience

The Big Five Personality Dimensions Extroversion: Outgoing, talkative, sociable, assertive Agreeableness: Trusting, good natured, cooperative, soft hearted Conscientiousness: Dependable, responsible, achievement oriented, persistent Emotional stability: Relaxed, secure, unworried Openness to experience: Intellectual, imaginative, curious, broad minded

Major Personality Attributes Influencing OB Locus of Control Machiavellian Personality Risk Propensity Self-Esteem Other Key Personality Attributes Self Monitoring Type A and Type B Personality

Locus of Control è Internal locus of control: belief that one controls key events and consequences in one’s life. è External locus of control: control One’s life outcomes attributed to environmental factors such as luck or fate. As per 11 th Edition

JOB SUITABILITY INTERNALS EXTERNALS Professional jobs Structured jobs Managerial jobs Routine jobs As per 11 th Edition

Machiavellianism Characteristics: • Pragmatic • Maintains emotional distance • Believes that ends can justify the means • Manipulate more • Win more • Persuaded less • Persuade others more As 11 th per Edition

Job Suitability For High Machs Job requiring bargaining skills Or that offer substantial rewards for winning

Self Esteem The degree to which a person likes or dislikes himself They believe that they possess the ability they need to succeed at work And more likely to choose unconventional jobs than people with low self esteem It is directly related to expectations for success Two types 1. High Self Esteem 2. Low self Esteem

High Self Esteem They believe that they possess the ability they need to succeed at work And more likely to choose unconventional jobs than people with low self esteem They will not be susceptible to the external influences They are more satisfied with their job

High Self Monitoring Capable of presenting striking contradictions between their public persona & private self Capable of putting different “faces” for different audiences

A & B Types of Personality • Type ‘A’ – Suffer high level of stress – Quantity over quality – Time pressure/deadlines – Rarely creative – Poor decision makers – Behavior is easier to predict • Type ‘B’ – Difficult to predict behavior – Good decision makers – Quality of work – No compromise on health – Wiser than hasty – Creative / innovative solutions to same problem

Perception and Individual Decision Making TWELFTH EDITION

What Is Perception, and Why Is It Important? Perception A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. • People’s behavior is based on their perception of what reality is, not on reality itself. • The world as it is perceived is the world that is behaviorally important.

Person Perception: Making Judgments About Others Attribution Theory When individuals observe behavior, they attempt to determine whether it is internally or externally caused. Distinctiveness: shows different behaviors in different situations. Consensus: response is the same as others to same situation. Consistency: responds in the same way over time.

Attribution Theory

Errors and Biases in Attributions Fundamental Attribution Error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.

Errors and Biases in Attributions (cont’d) Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.

Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.

Frequently Used Shortcuts in Judging Others Projection Stereotyping Attributing one’s own characteristics to other people. Judging someone on the basis of one’s perception of the group to which that person belongs.

Specific Applications in Organizations Employment Interview Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants. Performance Expectations Self-fulfilling prophecy: The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.

Specific Applications in Organizations (cont’d) Performance Evaluations Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance. Employee Effort Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

The Link Between Perceptions and Individual Decision Making Problem A perceived discrepancy between the current state of affairs and a desired state. Decisions Choices made from among alternatives developed from data perceived as relevant. Perception of the decision maker Outcomes

Steps in the Rational Decision. Making Model 1. Define the problem. 2. Identify the decision criteria. 3. Allocate weights to the criteria. 4. Develop the alternatives. 5. Evaluate the alternatives. 6. Select the best alternative.

Organizational Constraints on Decision Makers Performance Evaluation criteria influence the choice of actions. Reward Systems Decision makers make action choices that are favored by the organization. Formal Regulations Organizational rules and policies limit the alternative choices of decision makers. System-imposed Time Constraints Organizations require decisions by specific deadlines. Historical Precedents 5– 61 influence current decisions. Past decisions

Basic Motivation Concepts

Performance Dimensions

Defining Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries

Hierarchy of Needs Theory (Maslow) Hierarchy of Needs Theory There is a hierarchy of five needs— physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant. Self-Actualization The drive to become what one is capable of becoming.

Maslow’s Hierarchy of Needs

Theory X and Theory Y (Douglas Mc. Gregor) Theory X Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform. Theory Y Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise selfdirection and self-control when committed to a goal.

ERG Theory (Clayton Alderfer) ERG Theory There are three groups of core needs: existence, relatedness, and growth. Core Needs Concepts: Existence: provision of basic material requirements. More than one need can be operative at the same time. Relatedness: desire for relationships. If a higher-level need cannot be fulfilled, the desire to satisfy a lowerlevel need increases. Growth: desire for personal development.

David Mc. Clelland’s Theory of Needs Need for Achievement Need for Affiliation The drive to excel, to achieve in relation to a set of standards, to strive to succeed. The desire for friendly and close personal relationships. Need for Power The need to make others behave in a way that they would not have behaved otherwise. n. Pow n. Ach n. Aff

Contrasting Views of Satisfaction and Dissatisfaction

Comparison of Satisfiers and Dissatisfiers

Two-Factor Theory (Frederick Herzberg) Two-Factor (Motivation-Hygiene) Theory Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. Hygiene Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. When factors are adequate, people will not be dissatisfied.

Equity theory § Person compares their outcome/input ratio with others outcome/input ratio. § Inputs refers to the characteristics which individual bring with them to the job § Outcomes refers to what person gets from job in terms of pay, promotions benefits and so on. § Inequity is defined as the perception that persons’ outcome/input ratio is not equal to others outcome/input ratio § Negative Inequity – Under rewarded

Equity Theory (cont’d) Distributive Justice Perceived fairness of the amount and allocation of rewards among individuals. Procedural Justice The perceived fairness of the process to determine the distribution of rewards.

Expectancy Theory (Victor Vroom) The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

Expectancy Theory Relationships Effort–Performance Relationship The probability that exerting a given amount of effort will lead to performance. Performance–Reward Relationship The belief that performing at a particular level will lead to the attainment of a desired outcome. Rewards–Personal Goals Relationship The degree to which organizational rewards satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.

Team Dynamics

Defining and Classifying Groups Group(s) Two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organisational objectives. Formal Group Informal Group A designated work group defined by the organization’s structure. A group that is neither formally structured now organizationally determined; appears in response to the need for social contact.

Types of Teams § Departmental Teams – Functional teams § Self-Directed Teams § Advisory teams § Task Force (Project) Teams – multi-skilled, temporary teams whose assignment is to solve a problem, realize an opportunity or design a product or service § Skunworks Teams – Usually located away from the organisation, relatively free of its hierarchy. E. g. R & D Dept. § Virtual Teams – Operates across space, time, and organisational boundaries.

Challenges of Teams Process Losses Brook’s Law – E. g. . Apple’s Professional Photography Software Program, Aperture Performance ec te d ) g fin oa l o Ex p Social Loafing How to Minimize Social Loafing Form Smaller Teams Specialize Task Measure Individual Performance Selection of employees for a team t e u (d l a tu c A Group Size

Team Effectiveness Organisational and Team Environment Team Design Team Processes

Organisational and Team Environment Reward Communication Organisational Structure Organisational Leadership Physical Space

Team Design Elements Task Characteristics Task Interdependence – extent to which team members must share information Pooled Interdependence Sequential Interdependence Reciprocal Interdependence Team Size Team Composition Co-operating – Share resources Coordinating – Align work with others Communicating – Share information Comforting – Show empathy, Build confidence Conflict Resolving Team Diversity

Team Processes Team Development Forming Storming Norming Performing Adjourning Team Roles Team Building Team Norms Team Cohesion Team Trust Classes of Norms: • Performance norms • Appearance norms • Social arrangement norms • Allocation of resources norms Increasing group cohesiveness: 1. Make the group smaller. 2. Encourage agreement with group goals. 3. Increase time members spend together. 4. Stimulate competition with other groups. 5. Give rewards to the group, not individuals.

Relationship Between Group Cohesiveness, Performance Norms, and Productivity

Team Decision Making - Constraints Time Constraints Production Blocking – Opportune time to speak Evaluation Apprehension Groupthink – value consensus at the price of decision quality Group Polarization or Group Shift

Group / Team Decision Making Strengths More complete information Increased diversity of views Higher quality of decisions (more accuracy) Increased acceptance of solutions Weaknesses More time consuming (slower) Increased pressure to conform Domination by one or a few members Ambiguous responsibility

Team Structure to Improve Decision Making Interacting Constructive Conflicts Brainstorming Electronic Brainstorming Nominal Group technique

Power and Politics TWELFTH EDTION

Power A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes. Dependency B’s relationship to A when A possesses something that B requires. A B

Bases of Power: Formal Power Is established by an individual’s position in an organization; conveys the ability to coerce or reward, from formal authority, or from control of information. Coercive Power A power base dependent on fear. Reward Power Compliance achieved based on the ability to distribute rewards that others view as valuable

Bases of Power: Formal Power (cont’d) Legitimate Power The power a person receives as a result of his or her position in the formal hierarchy of an organization. Information Power that comes from access to and control over information.

Bases of Power: Personal Power Expert Power Influence based on special skills or knowledge. Referent Power Influence based on possession by an individual of desirable resources or personal traits. Charismatic Power An extension of referent power stemming from an individual’s personality and interpersonal style.

Dependency: The Key To Power The General Dependency Postulate The greater B’s dependency on A, the greater the power A has over B. Possession/control of scarce organizational resources that others need makes a person powerful. Access to optional resources (e. g. , multiple suppliers) reduces the resource holder’s power. What Creates Dependency Importance of the resource to the organization Scarcity of the resource No substitutability of the resource

Power Tactics: Ways in which individuals translate power bases into specific actions. Ways of using power tactics Reason: Use facts and data to make a logical presentation of ideas Friendliness: Being friendly before making a request Coalition: Getting the support of other people to back up the request Bargaining: Use negotiations through exchange of favours. Assertiveness: Use direct and forceful approach Higher Authority: Getting support of Higher levels Sanctions: Preventing promising salary, promotions etc.

Politics Political Behavior Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.

Factors That Influence Political Behaviors Organisational Factors: Individual Factors: Unclear performance evaluation High personal need of getting power Low trust Role ambiguity High Machiavellian personality High performance pressure Perceived Job alternatives Win-lose approach to reward allocation Insecurity Organisational Culture Expectations of success by doing politics

Employee Responses to Organizational Politics

Defensive Behaviors Avoiding Work: Avoiding Blame: • Buck passing: Transferring Responsibility • Playing safe: Neutral position in conflict, not showing opinion and expressions • Playing dumb: Showing ignorance and Inability • Stretching: Prolonging a task • Stalling: More supportive publicly while actually doing little • Justifying: Developing explanations • Scapegoating: Placing the blame on external factors • Misrepresenting: Manipulations of information

Impression Management (IM) Impression Management The process by which individuals attempt to control the impression others form of them. IM Techniques: • Conformity • Excuses • Apologies • Self-Promotion • Flattery • Favors

Foundation of Organizational Structure TWELFTH EDITION

What Is Organizational Structure? Organizational Structure How job tasks are formally divided, grouped, and coordinated. Key Elements: • Work specialization • Departmentalization • Chain of command • Span of control • Centralization and decentralization • Formalization

What Is Organizational Structure? (cont’d) Work Specialization The degree to which tasks in the organization are subdivided into separate jobs. Division of labor: • Makes efficient use of employee skills • Increases employee skills through repetition • Less between-job downtime increases productivity • Specialized training is more efficient. • Allows use of specialized equipment.

What Is Organizational Structure? (cont’d) Departmentalization The basis by which jobs are grouped together. Grouping Activities By: • Function • Product • Geography • Process • Customer

What Is Organizational Structure? (cont’d) Authority The rights inherent in a managerial position to give orders and to expect the orders to be obeyed. Chain of Command The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. Unity of Command A subordinate should have only one superior to whom he or she is directly responsible.

What Is Organizational Structure? (cont’d) Span of Control The number of subordinates a manager can efficiently and effectively direct. Concept: Wider spans of management increase organizational efficiency. Narrow Span Drawbacks: • Expense of additional layers of management. • Increased complexity of vertical communication. • Encouragement of overly tight supervision and discouragement of employee autonomy.

Contrasting Spans of Control

What Is Organizational Structure? (cont’d) Centralization The degree to which decision making is concentrated at a single point in the organization. Decentralization The degree to which decision making is spread throughout the organization. Formalization The degree to which jobs within the organization are standardized.

Common Organization Designs Simple Structure A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. A Simple Structure: Jack Gold’s Men’s Store

Common Organization Designs (cont’d) Bureaucracy A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.

Common Organization Designs (cont’d) Matrix Structure A structure that creates dual lines of authority and combines functional and product departmentalization. Key Elements: + Gains the advantages of functional and product departmentalization while avoiding their weaknesses. + Facilitates coordination of complex and interdependent activities. – Breaks down unity-of-command concept.

Matrix Structure (College of Business Administration) (Director) (Dean) Employee

Why Do Structures Differ? Mechanistic Model A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.

Why Do Structures Differ? Organic Model A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

Why Do Structures Differ? – Strategy Innovation Strategy A strategy that emphasizes the introduction of major new products and services. Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven.

The Strategy-Structure Relationship Strategy Structural Option Innovation Organic: A loose structure; low specialization, low formalization, decentralized Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization Imitation Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings