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Chapter

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Human Behaviour in Organizations : An Introduction

BIO : Dr. Manisha Seth

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Learning Objectives
Why studying Behavior in Organization is important? Role of Human Nature in driving business outcomes: Gallup path Defining OB Fundamental Assumptions of BIO Hawthorne studies, a starting point of modern organizational behavior. Contribution of Behavioral Sciences disciplines to OB. Relationship of OB with other closely related disciplines. Challenges and Opportunities for OB Towards a Model of OB

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"Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory." Andrew Carnegie Answer to organizational Success People are the key Sam Walton
BIO : Dr. Manisha Seth

Today how many organizations understand the importance of Human side of management One eighth situation or knowing doing gap ----- Professor Jeff Pfeffer ( X X = 1/8) HPWP are implemented by only world class organizations. Like Intel, google, Disney, GE, Walmart

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BIO : Dr. Manisha Seth

The traditional human relations approach does not fit the current paradigm.
1. About half of todays managers recognize the relevance and importance of the human factor in the success and competitive advantage to their organizations, and only about half of those (one-fourth total) implement a fullfledged organizational behavior, high-performance work practices approach in their organizations (KnowingDoing Gap). 2. Finally, only about half of those doing it have stuck with it (one-eighth of the total) for sustainability and becoming the culture and way they manage their organization. Importantly, however, these one-eighth organizations that believe it, do it and stick with it are the best, world-class organizations (e.g., General Electric, Southwest Airlines, etc.).
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Gallup Path

BIO : Dr. Manisha Seth

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Introduction

Why do people behave the way they do? What causes different people to react differently to the same situation? Why are some organizations more successful than others, even though they appear to be managed in the same manner? All of these questions and more are the

substance of what organizational behaviour is all about.

Organization : A collection of people working together in a planned deliberate social structure to achieve a common goal. Behavior is a function of a continuous, multidirectional interaction between the person and the situation.
BIO : Dr. Manisha Seth

My academic training didn't really prepare me for my biggest job challenge - understanding & motivating people. - A recent MBA graduate from a US university Allocation of Managerial Activities in terms of Time by Average, Successful and Effective Managers
A.M.
Traditional management Communication Human Resource Management Networking 32% 29% 20% 19%

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S.M.
13% 28% 11% 48%

E.M.
19% 44% 26% 11%

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Luthans Study of Managerial Activities
Is there a difference in frequency of managerial activity between effective and successful managers?

Four types of managerial activity

Traditional Management Decision-making, planning, and controlling. Communication Exchanging routine information and processing paperwork Human Resource Management Motivating, disciplining, managing conflict, staffing and training. Networking Socializing, politicking, and interacting with others.
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Successful vs. Effective Allocation by Time

Managers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)
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Definition of Organization Behaviour
A field of study that investigates the impact that individuals,

groups, and structure have on behavior within organizations, for

the purpose of applying such knowledge toward improving an organizations effectiveness. - Robbins

Organization Behaviour deals with the understanding, prediction,

and management of human behavior in organizations. Luthans Organisational behavior is a misnomer as the term, indicates that

members of organizations act in collective or at least similar

ways. -Mullins

BIO : Dr. Manisha Seth

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The History of Organization Behaviour
Scientific Management

Fredrick W Taylor
The Gilbreths

The Human Relations Movement

Illumination Experiments
Relay Room Experiments Bank Wiring Room Study
Implications of the Hawthorne studies (Hawthorne effect)

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Cognitive Framework Precede behavior and constitute input into the persons thinking, perception, problem solving, and information processing. Behavioristic Framework Dealing with observable behaviors. Social Cognitive Framework Behavior can best be explained in terms of a continuous reciprocal interaction among cognitive, behavioral, and environmental determinants.

BIO : Dr. Manisha Seth

WHY BIO?: Individuals perspective

: Organisations perspective Fundamental Assumptions of BIO There are differences between individuals A Whole person: Internalists and externalists. Behaviour of Individual is caused. Not just symptoms but the root cause of the problem/behaviour. Organizations are social systems Mutuality of interest among organisational members There are few absolutes in OB no best one way Systematic study helps to make valid predictions of behaviour. Use of Evidence based Management.
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Five Anchors of BIO

The Multidisciplinary Anchor The Systematic Research Anchor Contingency Anchor Multiple levels of analysis Anchor Open system Anchor

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Contributing Disciplines Many behavioral sciences have contributed to the development of Organizational Behavior

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Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. Unit of Analysis:
Individual

Contributions to OB:
Learning, motivation, personality, emotions, perception Training, leadership effectiveness, job satisfaction Individual decision making, performance appraisal attitude measurement Employee selection, work design, and work stress

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Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. Unit of Analysis:
Group

Contributions to OB:
Behavioral change Attitude change Communication Group processes Group decision making

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Sociology

The study of people in relation to their fellow human beings.

Unit of Analysis: Organizational System

Group
Formal organization theory

Contributions to OB: Group dynamics Work teams Communication Power Conflict Intergroup behavior

Organizational technology Organizational change Organizational culture

BIO : Dr. Manisha Seth

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Anthropology
The study of societies to learn about human beings and their activities.

Unit of Analysis: Organizational System Contributions to OB: Organizational culture Organizational environment

Group

Comparative values Comparative attitudes Cross-cultural analysis

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Relationship of OB with other Closely Related Disciplines
OB & OD OD is a planned & systematic organization-wide effort (consisting of individual and group interventions) to develop the organization and to help the members of an organization to work effectively together to attain organizational goals. OB & HRM The goal of human resource management (HRM) is to help an organization to meet strategic goals, by attracting, maintaining and managing them effectively. It includes the activities of human resources planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety. OB & OT OT deals with the theoretical base that has been developed over the years through extensive research to help understand the working of an organization. Some theories may be outdated but they have also contributed in development of more recent and happening theories to understand organization.
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Challenges and Opportunities for OB

Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Improving Customer Service Improving People Skills Stimulating Innovation and Change Coping with Temporariness Working in Networked Organizations Helping Employees Balance Work-Life Conflicts Creating a Positive Work Environment Improving Ethical Behavior
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Managing Workforce Diversity The people in organizations are becoming more heterogeneous demographically
Embracing diversity Changing U.S. demographics Changing management philosophy Recognizing and responding to differences
Disability Domestic Partners Race NonChristian Gender Age National Origin

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Towards the Model of OB A model is an abstraction of reality: a simplified representation of some real-world phenomenon. Our OB model has three levels of analysis Each level is constructed on the prior level

BIO : Dr. Manisha Seth

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Interesting OB Dependent Variables
Productivity Transforming inputs to outputs at lowest cost. Includes the concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost). Absenteeism Failure to report to work a huge cost to employers. Turnover Voluntary and involuntary permanent withdrawal from an organization. Deviant Workplace Behavior Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.
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Interesting OB Dependent Variables
Organizational Citizenship Behavior (OCB) Discretionary behavior that is not part of an employees formal job requirements, but that nevertheless promotes the effective functioning of the organization. Job Satisfaction A general attitude (not a behavior) toward ones job; a positive feeling of one's job resulting from an evaluation of its characteristics.

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The Independent Variables
Individual Biographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning and individual decision making. Group Communication, group decision making, leadership and trust, group structure, conflict, power and politics, and work teams. Organization System Organizational culture, human resource policies and practices, and organizational structure and design.

BIO : Dr. Manisha Seth

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OB Model

Dependent Variables (Y)

Three Levels

Independent Variables (X)

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Conclusion
Understanding OB has never been more important for managers. There are a lot of challenges and opportunities today for managers to use OB concepts. Managers need to develop their interpersonal or people skills if they have to become effective managers. OB offers both challenges and opportunities for managers. It helps managers create an ethically and healthy work environment

BIO : Dr. Manisha Seth