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Objective

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Unit 3 Organizations g Managerial g Role and functions Organizational Behaviour Approaches Individual Behaviour
Causes Environmental Effect Behaviour and Performance Perception Organizational Implications Personality C t ib ti factors Contributing f t Dimension Job Satisfaction.

The students will be able to understand and apply the following concepts:

Organizational Behaviour

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Objective [contd.]

Need Theories - Process Theories Learning and Behaviour

Unit 3.1

Learning g Curves

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Work Design and approaches.

Organizations Managerial Role & Functions

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Management Skills & Levels

Managerial Objective

Management Skills:

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Technical skills Human/Soft skills Conceptual skills

Management Levels:

Top Level Mgmt Upper-Middle Level Mgmt Middle Level Mgmt Lower-Level Mgmt

Efficient use of resources Customer satisfaction Adequate return on capitals Satisfied workforce Improved p work conditions Building supplier relationship Contribution to organizational goal

Managerial Roles

Managerial Role
Interpersonal Role
Figurehead Liaison Leader

Decisional Role

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Interpersonal

Provide Info

Informational Role

Fee edback

Informational

Process Info

Monitor Disseminator Spokesperson

Entrepreneur Disturbance handler Resource allocator Negotiator Supervisor p

Decisional

Use Info

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Social Responsibility

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Unit 3.2

Ecology & Environmental Quality Consumption Community Needs Government Relations Minorities & Backward Communities Labor Relations Shareholders Relations Corporate C t Phil Philanthropy th

Organizational Behavior Approach

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Definition

Contributing Fields to OB
Psychology Sociology Political Science Social Psychology Anthropology p gy

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Organizational behaviour is a field of study that investigates the impact that individuals, groups and organizational g for the structure have on behaviour within the organization, purpose of applying such knowledge towards improving an organizational effectiveness. The study and application of knowledge about human behaviour related to other elements of an organization such as structure, technology and social systems. Organizational O i ti lb behaviour h i i is a systematic t ti study t d of f th the actions ti and attitudes that people exhibit within organizations.

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Leader

Organizational Components that Need to be Managed

People Structure Technology Jobs Processes External Environment

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Leaders must look for indicators (effects) of individual behaviour and of groups in any organization. Indicators have y p which a root cause beneath. As a leader, it is that symptom, must be evaluated, and cause of human behaviour established so that if the behaviour is good, the manager can establish the norms of behaviour. Leader should be able to:

Describe U d Understand t d Predict Control

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Individual Dimensions Of OB

Group Dynamics
Interpersonal Behaviour Foundation of group behaviour Conflict Management Stress Management Dynamics y of Communication Power and Politics

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Personality Learning Value Attitude Job Satisfaction Motivation Perception and Individual Decision Making

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Dynamics of Organization

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Unit 3.3

Organizational Structure Job Design Management Of Change Organizational Development Organizational g Culture and Climate

Individual Behavior

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Behavior

Individual Behavior
Individual behavior in an organization is generally referred to as MARS model of individual behavior. It seeks to explain individual behavior as a result of internal and external factor and influences acting together. MARS is an acronym for Motivation, Abilities, Role perception and Situational Factors Factors.

MG - 9362: Industrial Management

Behavior or behaviour refers to the actions of a system or organism, usually in relation to its environment, y or organisms g around as well which includes the other systems as the physical environment. It is the response of the system or organism to various stimuli or inputs, , conscious or whether internal or external, subconscious, overt or covert, and voluntary or involuntary.

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Understanding Individual Behavior

Organizational Behavior
Organizational Behavior is the study of the actions of the people at work

Organizational Behavior(OB)

The actions of people at work

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Dual focus on OB

Individual Behavior

Group behavior

(norms, roles, team building leadership and conflict)

Goals of OB

To explain, predict and influence behavior.

Visible Aspects Strategies St t i Objectives Policies and Procedures Structure Technology Formal Authority Chain of Command

Hidden Aspects Attitudes Attit d Perception Group p Norms Informal interactions Interpersonal and intergroup conflict

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Important Employee Behaviors

Important Employee Behaviors

Job satisfaction
The individuals general attitude toward his or her job

Employee productivity

A performance measure of both efficiency and effectiveness

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Absenteeism

Failure to report to work when expected

Turnover

The voluntary and involuntary permanent withdrawal from an organization

Organizational g Citizenship p Behavior(OCB) ( )

Discretionary behavior that is not part of a employees formal job description. but which promotes the effective functioning of the organization. g

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Psychological Factors

Psychological Factors
Job satisfaction
Job satisfaction is affected by level of income earned and by the type yp of j job a worker does.

Attitudes

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Evaluative statementseither favorable or unfavorable concerning g objects, j people, p p or events.

Components of an attitude

Job satisfaction and productivity

For individuals, productivity appears to lead to job satisfaction. For organizations, organizations those with more satisfied employees are more effective than those with less satisfied employees.

Cognitive component: the beliefs, opinions, knowledge, or information held by a person person. Affective component: the emotional or feeling part of an attitude. Behavioural component: the intention to behave in a certain way.

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Psychological Factors

Psychological Factors
Job involvement
The degree to which an employee identifies with his or her job, actively y participates p p in it, and considers his or her p performance to be important to his or her self-worth

Job satisfaction and absenteeism

Satisfied employees tend to have lower levels of absenteeism.

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Job satisfaction and turnover

Organizational commitment

Satisfied employees have lower levels of turnover; dissatisfied employees have higher levels of turnover. Turnover is affected by the level of employee performance performance. The preferential treatment afforded superior employees makes satisfaction less important in predicting their turnover decisions.

Is the degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization. Leads to lower levels of both absenteeism and turnover. turnover Could be becoming an outmoded measure as the number of workers who change employers increases

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Psychological Factors

Attitude Components

Perceived organizational support

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Is the general belief of employees that their organization values their contribution and cares about their well-being. g Represents the commitment of the organization to the employee. Providing high levels of support increases job satisfaction and lower turnover

Cognition Beliefs and Opinion

Affect Emotion

Behaviour Intention

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Personality

Personality Insights
Locus of control

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The unique combination of psychological characteristics (measurable traits) that affect how a person reacts and interacts with others. Segments of Personality

External locus: persons who believe that what happens to them is due to luck or chance ( (the uncontrollable effects of outside forces) . Internal locus: persons who believe that they control their own destiny. y

Machiavellianism (Mach)

Extraversion Agreeableness Conscientiousness Openness to Experience Emotional Stability

The degree to which an individual is pragmatic, maintains emotional distance, distance and seeks to gain and manipulate power the ends justify the means.

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Personality Insights

Personality Insights
Self-Monitoring
An individuals ability to adjust his or her behavior to external, situational factors.

Self-Esteem (SE)

The degree to which people like or dislike themselves

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High SEs High self-monitors:

Believe in themselves and expect success. Take more risks and use unconventional approaches. Are more satisfied with their jobs than Low SEs.

Low SEs Low self-monitors

Are sensitive to external cues and behave differently in different situations. situations Can present contradictory public persona and private selves.

Are more susceptible p to external influences. Depend on positive evaluations from others. Are more prone to conform than high SEs.

Do not adjust their behavior to the situation. Are behaviorally consistent in public and private.

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Personality Insights

Perception
Perception
A process by which individuals give meaning (reality) to their environment by y organizing g g and interpreting p g their sensory y impressions.

Risk-Taking

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Factors influencing perception:

The propensity (willingness) to take risks. High risk-takers risk takers take less time and require less information than low risk-takers when making a decision. Organizational effectiveness is maximized when the risk-taking propensity of a manager is aligned with the specific demands of the job assigned to the manager.

The perceivers perceiver s personal characteristicsinterests, characteristicsinterests biases and expectations The targets characteristicsdistinctiveness, contrast, and similarity. similarity The situation (context) factorsplace, time, locationdraw attention or distract from the target

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Maslows Hierarchy of Needs Theory

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Unit 3.4

Need Theories

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Maslows Hierarchy of Needs Theory [Contd.]

Maslows Hierarchy of Needs Theory [Contd.]

Belongingness and love needs (social):
Desire to give and receive affection; be in the company of others. Self-confidence and sense of self-worth

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Esteem needs:
Esteem from others: valuation of self from other people S lf t Self-esteem: feeling f li of f self-confidence lf fid and d self-respect lf t

Five groups of basic needs Healthy adults try to satisfy these needs, so basic that they motivate behavior in many cultures Chronic frustration of needs can lead to psychopathological results Physiological h l l needs: d

Basic requirements of the human body: food, water, sleep, sex.

Self-actualization needs:
Desire for self-fulfillment.

Safety needs:

Desires of a person to be protected from physical and economic harm.

Maslow: . . . the desire to become more and more what one is, to become everything that one is capable of becoming.
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Murrays Theory of Human Personality

E.R.G. Theory

Assumptions

A variation of Maslow's hierarchy of needs Three groups of needs

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People can adapt to their changing environment Human behavior is goal directed Internal and external factors affect behavior People learn from interactions with their environment P Preconception ti of ff future t affect ff t b behavior h i now.

Existence needs: physical and material wants Relatedness needs: desires for interpersonal relationships Growth needs: desires to be creative and productive; to use ones skills

Types of needs

Ambition Needs Materialistic Needs Power Needs Affection Needs Information Needs

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E.R.G. Theory [Cont.]

McClellands Achievement Motivation Theory

McClellands three needs
Need for Achievement Need for Power Need for Affiliation

Satisfaction-progression:

move up the hierarchy as needs are satisfied

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Frustration-regression: Frustration regression:

move down the hierarchy when a need is frustrated

Deficiency cycle:

The strong need for power focuses on

more strongly desire existence needs when they are unsatisfied

Enrichment cycle:

more strongly desire growth needs when they are satisfied

"controlling the means of influencing the behavior of another person Means of influence: anything available to the person to control the behavior of another Actively searches for means of influence Having strong effects on other people

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Herzbergs Motivator-Hygiene Theory

Herzbergs Motivator-Hygiene Theory

Motivators

Dissatisfiers: items predominantly found in descriptions of negative events

Achievement Recognition Work itself

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Could lead to high g levels of employee p y dissatisfaction Improve the dissatisfiers and reduce dissatisfaction Not get higher satisfaction.

Hygiene factors

S ti fi Satisfiers: items it predominantly d i tl f found di in d descriptions i ti of f positive events

Company policies and their administration Quality of supervision Working conditions

Could lead to high levels of employee satisfaction Their absence, or a person's failure to experience them, would not produce dissatisfaction.

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Learning Curve

Assumptions:

MG - 9362: Industrial Management

Unit 3.5

Learning Curve Analysis

The time required to complete a specified task or unit of a product or item will be less each time the task is p p performed; The unit time will reduce at a decreasing rate; The decrease in time will follow a certain pattern, such as negative exponential distribution shape. The learning curve may vary one product to another and from one organization to another. The rate of learning depends on factors such as the quality of management and the potential of the process and products.

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Learning Curve [contd.]

Learning Curve Effects

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Some Information on Learning Curve Effects in U.S. Industrial Sector Number Time Period 1920 1955 Units Produced (UP) UP Average factory selling price Direct labor hours per unit Price Production Worker labor-hour per unit produced 1 Steel making Item/Area Description 79 Cumulative Learning Curve Slop Parameter Percentage

Moreover, it may be said that any change in personnel, process, or product disrupts the learning curve. Consequently, there is a need for the utmost care in assuming that a learning curve is continual and permanent.

Handheld calculators Assembly of aircrafts Ford Motor Company Model T production 1910 1926 UP 1925 1957 UP

1975 1978

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Learning Curve Effects [contd.]

Learning Curve Effects [contd.]

Conclusion from Table

MG - 9362: Industrial Management

The learning curve theory is based on a doubling of productivity. More specifically, when output or production doubles, the reduction in time per unit affects the learning curve rate. For example, an 80% learning rate means the second unit takes 80% of the time of the first unit, the fourth unit takes 80% of the second unit, the eighth unit takes 80% of the fourth unit, and so on.

The Table presents data on learning curve effects in the U.S. industrial sector. An 80% learning rate is descriptive of certain operations in such areas as ship construction, electronic data processing equipment, q p automatic machine production, p and aircraft instruments and frame assemblies. The learning curves are found to be quite useful in a variety of applications, pp including g strategic g evaluation of company p y and industry performance, internal labor forecasting, establishing costs and budgets, production planning, external purchasing, and subcontracting of items.

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Result

We may write
Unit 3.6

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Where: q LHm : is the labor hours required to p produce m unit LH1: is the labor hours to produce unit one or the first unit. C: is the learning curve slope and is expressed by log of the learning rate/(log2)

Work Design & Approaches

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Work Design

Scientific Management Approach

Definition:

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In Organizational Development (OD) - Work Design is the application pp of socio-technical systems y principles p p and techniques q to the humanization of work.

Objective of Work Design:

to improved job satisfaction to improved through-put to improved quality to reduced employee problems, e.g. grievances, absenteeism.

Scientific management was a theory of management that analyzed and synthesized workflows. Its main objective improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management management. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s, most of its themes are still important parts of industrial engineering and management today.

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Scientific Management [contd.]

Human Relations Systems Approach

The important themes are:

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The Human Relations Movement takes the view that businesses are social systems in which psychological and g influence on productivity. p y emotional factors have a significant
The common elements in human relations theory are the beliefs that are as follows:

Analysis Synthesis Logic Rationality E Empiricism i i i Work ethic Efficiency and elimination of waste Standardization of best practices Knowledge transfer between workers and from workers into tools, processes, p , and documentation.s

Performance can be improved p by yg good human relations. Managers should consult employees in matters that affect staff. Leaders should be democratic rather than authoritarian. Employees are motivated by social and psychological rewards and are not just "economic animals" The work group plays an important part in influencing performance.

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Socio Technical System Approach

Work Design & its Approaches

Three work design approaches
Wheel Approach Modular Approach Iterative Approach

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Socio technical systems (STS) in organizational development is an approach to complex organizational work g that recognizes g the interaction between people p p and design technology in workplaces.

The term also refers to the interaction between society's complex infrastructures and human behaviour. Further, Socio technical systems theory is theory about the social aspects of people and society and technical aspects of organizational structure and processes. They are usually based on designing different kinds of organisation, ones in which the relationships between socio and technical elements lead to the emergence of productivity and wellbeing.

Emerged from the virtual team members stories of how they moved d from f i initial iti l id idea generation, ti th through hd development, l t t to finalization and closure of a creative effort. These approaches were not mutually exclusive, as most of the teams used more than one.

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The Wheel Approach

The Modular Approach

One of the most common work design approaches used during the creative process of these virtual teams was the pp modular approach.

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The wheel is a classic type of communication network (Katz and Kahn, 1978), in which there is one key person who communicates to all team members.

Members on two different status levels make up the network a high status member (the leader or supervisor) and lower level members or assistants. The higher status member is usually referred to as the hub or center of the network , through which all communication must p pass. In a classic wheel communication network, there are no direct communication links between any of the lower level members.

A saying called : Oh, when everybody had a job and they were able to do it, and everyone did these tiny little pieces, then the final p project j is something g impressive. p In this approach, team members met initially to decide on the need, task, or project to be pursued. After the work was completed, the efforts were presented to the group for feedback before finalization and implementation. Revisions were done as needed. There are many drawbacks, to avoid this, many teams used the iterative approach in conjunction with the modular approach.

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The Iterative Approach

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Iterative Approach [contd.]

In the iterative approach, team members engaged in back and forth development cycles. Members worked a little, presented those results to the team, got feedback, worked a little more, presented those results, got more feedback, and so on until the project was finalized. where you think a little, you do a little, you think a little, you do a little, you think a little, you do a little, rather than thinking a whole lot and then trying to come out with something that everybody agrees with the first time.

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References

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Herald Koontz and Heinz Weihrich, Essentials of Management, McGraw Hill Publishing Company, Singapore International Edition, 1980. M. Govindarajan and S. Natarajan, Principles of Management, Prentice Hall of India Pvt. Ltd., New Delhi, 2007.

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