UNIT-1

Introduction to
Organizational Behavior



Topic-1




Meaning, Fundamental concepts,
characteristics & limitations of OB

UNDERSTANDING ORGANIZATIONAL BEHAVIOR
Definition
Organizational Behavior is the study and application of knowledge about
how people as individuals and as groups act within organization.

Meaning of Organizational behavior
Organizational behavior is the systematic study of human behavior,
attitudes and performance within an organizational setting; drawing on
theory methods and principles from such disciplines as psychology,
sociology and cultural anthropology to learn about individual
perceptions, values, learning capacities and actions while working in
groups and careful application of knowledge about how people- as
individuals and as groups- act within the total organization; analyzing
the external environments effect on the organization and its human
resources, missions, objectives and strategies.
GOALS OF ORGANIZATION BEHAVIOR
Four Goals


Describe: To describe systematically how people behave under variety of
conditions

Understand: To understand why people behave as they do

Predict: Predicting future employee behavior

Control: Control at least partially and develop some human activity at work.

FORCES : FOUR KEY FORCES
People


Structure


Technology


Environment







Environment
Govt
Competition
Social
Pressures
People
Individuals
Group
Technology
Machinery
Computers
Structure
Jobs
Relationships
OB
CONTRIBUTIONS TO THE STUDY OF ORGANIZATIONAL BEHAVIOR
Individual
Group
Organization
Organizational
Behavior
Social Psychology
Political Science
Anthropology
Psychology
Sociology
Discipline
Unit of Analysis
Output
INTERDISCIPLINARY NATURE OF OB
Theories :offer explanation of how and why people think , feel and act as they
do.




Research :is a process of gathering and interpreting relevant evidence that
willeither support a behavioral theory or help change it.



Practice Information : Generally increase trend of using theory and research in
practice



Practice
Theory Research
FUNDAMENTAL CONCEPTS
Fundamental concepts are basic principles that form a strong foundation
for OB.
OB has a set of fundamental concepts revolving around
1.The nature of people and 2.Organizations.
Individual Differences Social System
Perception Mutual Interest
A whole person Ethics
Motivated Behavior
Desire for Involvement
Value of a person
THE NATURE OF PEOPLE
The six basic concepts relevant to the nature of people are:
Law of individual differences-Each person is substantially different from all
others in terms of their personalities, needs, demographic factors and past
experiences and/or because they are placed in different physical settings,
time periods or social surroundings. This diversity needs to be recognized
and viewed as a valuable asset to organizations.
Perception- Perception is the unique way in which each person sees, organizes
and interprets things based on their background of individual differences.
Each person reacts not to an objective world, but to a world judged in terms
of his/her own beliefs, values and expectations. Sometimes it may lead to
selective perception in which people tend to pay attention to only those
things that are consistent with or reinforce their own expectations. Selective
perceptions may lead to misinterpretation of single events at work or create
a barrier in the search for new experience. Managers need to recognize the
perceptual differences among the employees and manage them accordingly.






A whole person- People function as total human beings. People are
physical, mental, social and spiritual beings and the organization
actually employs the whole person rather than certain characteristics.
There are spillover effects between the work life and life outside work
and managements focus should be in developing not only a better
employee but also a better person in terms of growth and fulfillment. If
the whole person can be developed , then benefits will extend beyond
the firm into the larger society in which each employee lives.
Motivated behavior- Individuals behavior are guided by their needs and the
consequences that results from their acts. In case of needs, people are
motivated not by what others think they ought to have but by what they
themselves want. Motivation of employees is essential to the operation
of organizations and the biggest challenge faced by managers.


Desire for Involvement-Many employees actively seek opportunities at work
to become involved in relevant decisions, thereby contributing their
talents and ideas to the organizations success. Consequently,
organizations need to provide opportunities to the employees for
meaningful involvement.



Value of the Person- People want to be treated with care, dignity and
respect and increasingly they are demanding such treatment from their
employers. They want to be valued for their skills and abilities and to be
provided with opportunities to develop themselves.
THE NATURE OF ORGANIZATIONS
The three key concepts related to the nature of organizations are:
1.Social Systems
2.Mutual Interest
3.Ethics

Social systems- Sociology tells that organizations are social systems. Just
have people have psychological needs they also have social roles and
status. Their behavior is influenced by their group as well as their by
their individual drives. Two types of social systems exist side by side in
the organization- the formal (official ) social system and the informal
social system- each influencing and getting influenced by the other.
Mutual Interest-There is a mutuality of interest between the organization
and its employees. Organization needs employees to reach its
objectives and people need organizations to help them reach
individual objectives. Mutual interest provides a superordinate goal
one that can be attained only through the integrated efforts of
individuals and their employees.

Ethics- Ethics is the use of moral principles and values to affect the
behavior of individuals and organizations with regard to choices
between what is right and wrong. In order to ensure a higher standard
of ethical performance by managers and employees companies have
established codes of ethics, publicized statements of ethical values and
set up internal procedures to handle misconduct. Since Organizational
behavior involves people, ethical philosophy is involved in one way or
another in each action they take. When organizations goals and actions
are ethical, individual, organizational and social objectives are more
likely to be met.


TRIPLE REWARD SYSTEM
Employee
Goal
Organizati
onal Goals
Superordin
ate goal of
mutual
Interest
Mutual
accomplish
ment of
goals
Ethics Employee
Security
Organization
BASIC APPROACHES OF ORGANIZATIONAL
BEHAVIOR

The four basic approaches of OB are:



Human Resources ( supportive) approach- Employee growth and
development toward higher levels of competency, creativity and
fulfillment are encouraged and supported because people are the
central resource in any organization and society.

Contingency approach-Different managerial behaviors are required by
different environments for effectiveness.


Results-oriented approach-Outcomes of organizational behavior programs
are assessed in terms of their efficiency.

1 Knowledge X Skill = Ability
2 Attitude X Situation = Motivation
3 Ability x Motivation = Potential Human Performance
4 Potential Performance x
Resources x opportunity = Organizational results
Systems approach- All parts of an organization interact in a complex
relationship. Systems approach takes an across- the board view of
people in organizations and analyses issues in terms of total situations
and as many factors as possible that may affect peoples behavior.

Holistic Organizational Behavior : All concerned stake holders are taken
into consideration , may be a clerk, operator , Manager.




Cost Benefit Analysis




tions
Potential
Benefits
Potential
Costs
Propos
ed OB
Compare
Decide
LIMITATIONS OF ORGANIZATIONAL BEHAVIOR
Problems exist in OBs nature and Use

It Cannot avoid Conflict and Frustration, It is a way to improve but not the
end all of all solutions.

Major Limitations:
1 Behavioral Bias
2 Diminishing returns
3Unethical Manipulations
The three major limitations of Organizational behaviour are:
Behavioral Bias- A narrow viewpoint that emphasizes satisfying employee
experiences while overlooking the broader system of the organization in
relation to all its public. Sound OB should recognize a social system in
which many types of human needs are served in many ways.
The Law of diminishing returns- More of a good thing is not necessarily
good. For any situation there is an optimum amount of desirable
practice. Organizational effectiveness is achieved not by maximizing
human variable but by combining all system variables together in a
balanced way.
Unethical Manipulation of people-Knowledge and techniques can be used
to manipulate people unethically.

UNIT -1
Topic-2



Models of Organizational Behavior
ORGANIZATIONAL BEHAVIOR SYSTEM
Organizations achieve their goals by Creating, Communicating, and
operating an Organizational Behavior system
Management's
Philosophy Values Vision Mission
Goals
Organizationa
l Culture
Social
Environment
Formal
Organization
Informal
Organization
Leadership
Communicatio
n Group
Dynamics
Quality of work
Life
Outcomes
Performance
Employee satisfaction
Personal Growth and development
ELEMENTS OF THE SYSTEM
Fact Premises
Value premises

Vision
Mission
Goals
MODELS OF ORGANIZATION
Models of Organizational Behavior constitute the belief system that
dominates managements thought and affects managements actions in
each organization. It is very important for the managers to recognize the
nature, significance and effectiveness of their own models as well as
the models of others around them.
Assumptions about Employees- Theory X and Theory Y by Mc Gregor
(1957)

THEORY X
The typical person dislikes work and avoid it if possible
The typical person lacks responsibility, has little ambition and seeks
security above all
Most people must be coerced, controlled, and threatened with punishment
to get them to work
With these assumptions the managerial role is to coerce and control
employees

THEORY Y
Work is as natural as play or rest .People are not inherently lazy. They have
become that way as a result of experience
People will exercise self direction and self control in the service of the
objectives to which they are committed
People have potential. Under proper condition they learn to accept and
seek responsibility. They have imagination, ingenuity and creativity that
can be applied to work
With these assumptions the managerial role is to develop the potential in
employees and help them release that potential toward common
objectives.
FIVE MODELS OF ORGANIZATIONAL BEHAVIOR-
The five models of Organizational Behavior Autocratic, Custodial,
Supportive, Collegial and System, in the order mentioned , represent
the historical evolution in management practice. Organizations differ
amongst themselves in the model practiced by it. The practices may
vary within the departments or branches of one organization. Also, the
practices of individual managers may differ from their organizations
prevailing model because of the managers personal preference or
different conditions in their department.
AUTOCRATIC MODEL
In it the manager has the power and authority to command over the people.

Employees have simply to follow instruction given by management.

Employees are ordered and directed to do assigned work.

Employees are paid minimum wages for minimum performance.

In it the communication is one way i.e. downward only.

CUSTODIAL MODEL
It is based on the economic resources of the organization rather than on
the personal dependence.

Managerial orientation moved towards to pay for employees benefits.

The employees feel security as they became dependent on organization.

In it management decides what benefits and rewards should be given to the
employees.


SUPPORTIVE MODEL
This model depends on managerial leadership.

The aim of manager is to support employees in their achievement.

The focus is primarily on participation & involvement of employees.

It is similar to McGregors Theory Y
COLLEGIAL MODEL
The term collegial refers to a body of people having common purpose.

It is based on TEAM concept.

Control is basically through Self- Discipline.

Each employee develops high degree of understanding towards others and
shares common goals.

SYSTEM MODEL
Managers show caring and Compassion .

A build of trust , integrity and Ethics infused.

Employees experience a sense of Psychological ownership.

Develops passion and commitment to meet organizational goals.

Autocrati
c
Custodial Supportive Collegial System
Basis of
Model
Power Economic
Resources
Leadership Partnership Trust,
Community
meaning
Managerial
Orientation
Authority Money

Support Team Work Caring
Compassio
n
Employee
orientation
Obedienc
e
Security
and
benefits
Job
Performanc
e
Responsibl
e Behavior
Psychologi
cal
Ownership
Employee
Psychologica
l
Result
Depende
nce on
boss
Dependenc
e on
Organizatio
n
Participatio
n
Self
Discipline
Self
Motivation
Employee
needs met
Subsisten
ce
Security Status and
Recognitio
n
Self
actualizatio
n
Wide range
Performance
result
Minimum Passive
cooperation
Awakened
Drives
Moderate
enthusiasm
Passion
and
Commitme
nt to O
Goals
UNIT-1
Historical perspective & Challenges & Opportunities of OB






Topic-3
HISTORICAL BACKGROUND OF ORGANIZATIONAL BEHAVIOR


Taylorism and Scientific Management

The Human Relations Movement

Theory X and Theory Y

Schools of Thought in Organizational Behavior

HISTORY
Certainly large numbers of people have been doing work for a long time. Pyramids and
many other huge monuments and structures were built, armies and governments
were organized, Civilizations spread over vast territories. This took organization
and management. There are some writings from antiquity that suggest that
systematic approaches to management and organization did evolve and were
transmitted to others.
But the primary influences in organizations and management today stem from more
recent events.
Protestant Reformation and the Protestant Ethic
Some would claim that to begin to understand our organizations today we need to look
at the Protestant Reformation and the Protestant Ethic. A new ethic began to
evolve, an ethic that shifted the orientation of one's life from the "next world" to
this world. This ethic is best embodied in quotes from Luther ("All men possess a
calling in the world and the fulfillment of its obligation is a divinely imposed duty")
and Calvin ("Disciplined work raises a person above the calling into which he was
born and is the only sign of his election by God to salvation"... "The soul is naked
before God without Church or communion-religion is a personal matter; worldly
success and prosperity are construed as signs of God's approval").
Over time, the Protestant Reformation provided an ideological foundation
for the modern industrial society by suggesting that work is now a
profound moral obligation, a path to eternal salvation. The focus is this
world and materialism, not next world. The individual's obligation is
self-discipline and systematic work. It should be clear that the factory
system which began to evolve late in the 18th Century could never have
flourished without the ideological underpinnings of this profound shift
in philosophy as exemplified by the Protestant Ethic.

SCIENTIFIC MANAGEMENT

Scientific Management
The Industrial Revolution that started with the development of steam power and
the creation of large factories in the late Eighteenth Century lead to great
changes in the production of textiles and other products. The factories that
evolved, created tremendous challenges to organization and management
that had not been confronted before. Managing these new factories and later
new entities like railroads with the requirement of managing large flows of
material, people, and information over large distances created the need for
some methods for dealing with the new management issues.
The most important of those who began to create a science of management was
Frederic Winslow Taylor, (1856-1915). Taylor was one of the first to attempt to
systematically analyze human behavior at work. His model was the machine
with its cheap, interchangeable parts, each of which does one specific
function. Taylor attempted to do to complex organizations what engineers
had done to machines and this involved making individuals into the
equivalent of machine parts. Just as machine parts were easily
interchangeable, cheap, and passive, so too should the human parts be the
same in the Machine model of organizations.

This involved breaking down each task to its smallest unit and to figure out
the one best way to do each job. Then the engineer, after analyzing the
job should teach it to the worker and make sure the worker does only
those motions essential to the task.. Taylor attempted to make a science
for each element of work and restrict behavioral alternatives facing
worker. Taylor looked at interaction of human characteristics, social
environment, task, and physical environment, capacity, speed,
durability, and cost. The overall goal was to remove human variability.
The results were profound. Productivity under Taylorism went up
dramatically. New departments arose such as industrial engineering,
personnel, and quality control. There was also growth in middle
management as there evolved a separation of planning from operations.
Rational rules replaced trial and error; management became formalized
and efficiency increased.
Of course, this did not come about without resistance. First the old line
managers resisted the notion that management was a science to be
studied not something one was born with (or inherited). Then of course,
many workers resisted what some considered the "dehumanization of
work." To be fair, Taylor also studied issues such as fatigue and safety
and urged management to study the relationship between work breaks,
and the length of the work day and productivity and convinced many
companies that the careful introduction of breaks and a shorter day
could increase productivity. Nevertheless, the industrial engineer with
his stop watch and clip-board, standing over you measuring each little
part of the job and one's movements became a hated figure and lead to
much sabotage and group resistance.
The core elements of scientific management remain popular today. While a
picture of a factory around 1900 might look like something out of
Dickens, one should not think the core concepts of scientific
management have been abandoned. They haven't. They have merely
been modified and updated.
THE HUMAN RELATIONS MOVEMENT

Despite the economic progress brought about in part by Scientific
Management, critics were calling attention to the "seamy side of
progress," which included severe labor/management conflict, apathy,
boredom, and wasted human resources. These concerns lead a number
of researchers to examine the discrepancy between how an
organization was supposed to work versus how the workers actually
behaved. In addition, factors like World War I, developments in
psychology (eg. Freud) and later the depression, all brought into
question some of the basic assumptions of the Scientific Management
School. One of the primary critics of the time, Elton Mayo, claimed that
this "alienation" stemmed from the breakdown of the social structures
caused by industrialization, the factory system, and its related
outcomes like growing urbanization.

WESTERN ELECTRIC STUDIES
The Western Electric (Hawthorne Works) Studies (1923-1933) Cicero, , ILL.
The most famous of these studies was the Hawthorne Studies which
showed how work groups provide mutual support and effective
resistance to management schemes to increase output. This study
found that workers didn't respond to classical motivational approaches
as suggested in the Scientific Management and Taylor approaches, but
rather workers were also interested in the rewards and punishments of
their own work group. These studies, conducted in the 1920's started as
a straightforward attempt to determine the relationship between work
environment and productivity. The results of the research led
researchers to feel that they were dealing with socio-psychological
factors that were not explained by classic theory which stressed the
formal organization and formal leadership. The Hawthorne Studies
helped us to see that an organization is more than a formal arrangement
of functions but is also a social system. In the following chart, we can
see a comparison of traditional assumptions vs. a newer "human
relations" view.

Traditional Assumptions
people try to satisfy one class of need at work:
economic need
no conflict exists betwene individual and
organizational objectives
people act rationally to maximize rewards
we act individually to satisfy individual needs
Human relations Assumptions
organizations are social systems, not just technical
economic systems
we are motivated by many needs
we are not always logical
we are interdependent; our behavior is often
shaped by the social context
informal work group is a major factor in
determining attitudes and performance of
individual workers
management is only one factor affecting behavior;
the informal group often has a stronger impact
job roles are more complex than job descriptions
would suggest; people act in many ways not
covered by job descriptions
there is no automatic correlation between
individual and organizational needs
communication channels cover both
logical/economic aspects of an organization and
feelings of people
teamwork is essential for cooperation and sound
technical decisions
leadership should be modified to include concepts
of human relations
job satisfaciton will lead to higher job productivity
management requires effective social skills, not
just technical skills
Results of the Hawthorne Studies and the related research
These studies added much to our knowledtge of human behavior in
organizations and created pressure for management to change the
traditional ways of managing human resources. The Human Relations
Movement pushed managers toward gaining participative support of
lower levels of the organization in solving organization problems. The
Movement also fostered a more open and trusting environment and a
greater emphasis on groups rather than just individuals

DOUGLAS MCGREGOR'S THEORY X AND THEORY Y

Douglas McGregor was one of the great popularizers of Human Relations
approach with his Theory X and Theory Y. In his research he found that
although many managers spouted the right ideas, their actual managers
indicated a series of assumptions that McGregor called Theory X.
However, research seemed to clearly suggest that these assumptions
were not valid but rather a different series of notions about human
behavior seemed more valid. He called these Theory Y and urged
managers to managed based on these more valid Theory Y notions.

Work is inherently distasteful to most people
Most people are not ambitious, have little desire
for responsibility, and prefer to be directed
Most people have little capacity for creativity in
solving organizational problems
Motivation occurs only at the physiiological and
security levels
Most people must be closely controlled and often
coerced to achieve organizational objectives
Work is as natural as play if the conditions are
favorable
Self-control is often indispensible in achieving
organizational goals
The capacity for creativity is spread throughout
organizations
Motivation occurs at affiliation, esteem, and self-
actualization levels, not just security, physiological
levels
People can be self-directed and creative at work if
properly motivated
SCHOOLS OF HISTORICAL THOUGHT AND THEIR COMPONENTS BY
DECADE

Org. theory prior to 1900: Emphasized the division of labor and the
importance of machinery to facilitate labor
Scientific management(1910s-)--Described management as a science with
employers having specific but different responsibilities; encouraged the
scientific selection, training, and development of workers and the equal
division of work between workers and management
Classical school( 1910s- ) Listed the duties of a manager as planning,
organizing, commanding employees, coordinating activities, and
controlling performance; basic principles called for specialization of
work, unity of command, scalar chain of command, and coordination of
activities
Human relations(1920s-)Focused on the importance of the attitudes and
feelings of workers; informal roles and norms influenced performance
Classical school revisited (1930s):Re-emphasized the classical principles
Group dynamics(1940s) Encouraged individual participation in
decision-making; noted the impact of work group on performance
Bureaucracy--(1940s) Emphasized order, system, rationality,
uniformity, and consistency in management; lead to equitable treatment
for all employees by management
Leadership(1950s)Stressed the importance of groups having both social
task leaders; differentiated between Theory X and Y management
Decision theory(1960s) Suggested that individuals "satisfice" when
they make decisions
Sociotechnical school(1960s) Called for considering technology and work
groups when understanding a work system
Envir. and tech. system(1960s) Described the existence of mechanistic and
organic structures and stated their effectiveness with specific types of
environmental conditions and technological types
Systems theory-(1970s): Represented organizations as open systems with
inputs, transformations, outputs, and feedback; systems strive for
equilibrium and experience equifinality
Contingency theory(1980s): Emphasized the fit between organization
processes and characteristics of the situation; called for fitting the
organization's structure to various contingencies
A TIMELINE OF MANAGEMENT

1880 - Scientific Management
Frederick Taylor decides to time each and every worker at the Midvale Steel
Company. His view of the future becomes highly accurate:
"In the past man was first. In the future the system will be first."
In scientific management the managers were elevated while the workers'
roles were negated.
"Science, not rule of thumb," said Taylor.
The decisions of supervisors, based upon experience and intuition, were
no longer important. Employees were not allowed to have ideas of
responsibility. Yet the question remains -- is this promotion of managers
to center-stage justified?

1929 - Taylorism
The Taylor Society publishes a revised and updated practitioner's manual:
Scientific Management in American Industry.
1932 - The Hawthorne Studies
Elton Mayo becomes the first to question the behavioural assumptions of
scientific management. The studies concluded that human factors were often
more important than physical conditions in motivating employees to greater
productivity.
1946 - Organization Development
Social scientist Kurt Lewin launches the Research Center for Group Dynamics at
the Massachusetts Institute of Technology. His contributions in change
theory, action research, and action learning earn him the title of the "father of
organization development." Lewin is best known for his work in the field of
organization behavior and the study of group dynamics. His research
discovered that learning is best facilitated when there is a conflict between
immediate concrete experience and detached analysis within the individual.

1949 - Sociotechnical Systems Theory
A group of researchers from London's Tavistock Institute of Human
Relations, led by Eric Trist, studied a South Yorkshire coal mine in 1949.
Their research leads in the development of the Sociotechnical Systems
Theory which considers both the social and the technical aspects when
designing jobs. It marks a 180-degree departure from Frederick Taylor's
scientific management. There are four basic components to
sociotechnical theory:
environment subsystem
social subsystem
technical subsystem
organizational design
1954 - Hierarchy of Needs
Maslow's hierarchy of needs theory is published in his book Motivation and
Personality. This provides a framework for gaining employees'
commitment.
1954 - Leadership/Management
Drucker writes The Practice of Management and introduces the 5 basic
roles of managers. He writes, "The first question in discussing
organization structure must be: What is our business and what should
it be? Organization structure must be designed so as to make possible
the attainment of objectives of the business for five, ten, fifteen years
hence."
1959 - Hygiene and Motivational Factors
Frederick Herzberg developed a list of factors which are closely based on
Maslow's Hierarchy of Needs, except it more closely related to work.
Hygiene factors must be present in the job before motivators can be
used to stimulate the workers.

1960s - Organization Development
In the 1950s and 1960s a new, integrated approach originated known as
Organization Development (OD): the systematic application of
behavioral science knowledge at various levels (group, intergroup, and
total organization) to bring about planned change
1960 - Theory X and Theory Y
Douglas McGregor's Theory X and Theory Y principles influence the design
and implementation of personnel policies and practices.

Late 1960s - Action Learning
An Unheralded British academic was invited to try out his theories in
Belgium -- it led to an upturn in the Belgian economy. "Unless your
ideas are ridiculed by experts they are worth nothing," says the British
academic Reg Revens, creator of action learning:
L = P + Q ([L] Learning occurs through a combination of programmed
knowledge [P] andthe ability to ask insightful questions [Q])
Note that his work has had little impact on this side of the ocean, although
it remains one of the best ways to learn and to improve an organization.

1964 - Management Grid
Robert Blake and Jane Mouton develop a management model that
conceptualizes management styles and relations. Their Grid uses two axis.
"Concern for people" is plotted using the vertical axis and "Concern for
task" is along the horizontal axis. The notion that just two dimensions can
describe a managerial behavior has the attraction of simplicity.
1978 - Performance Technology
Tom Gilbert publishes Human Competence: Engineering Worthy Performance. It
describes the behavioral-engineering model which become the bible of
performance technology. Gilbert wrote that accomplishment specification is
the only logical way to define performance requirements. Accomplishments
are the best starting points for developing performance standards. In
addition, accomplishments are the best tools for the development of
performance-based job descriptions as they allow management to describe
the measurement that is important to the organization, specific to the
position, and observable.

1978 - Excellence
McKinsey's John Larson asks colleague Tom Peters to step in at the last minute and make a
presentation that leads to "In Search of Excellence." Thus Tom Peters spawns the birth of the
"management guru business."
1990 - Learning Organization
Peter Senge popularized the "Learning Organization" in The Fifth Discipline: The Art and Practice of
the Learning Organization. He describes the organization as an organism with the capacity to
enhance its capabilities and shape its own future. A learning organization is any organization
(e.g. school, business, government agency) that understands itself as a complex, organic
system that has a vision and purpose. It uses feedback systems and alignment mechanisms to
achieve its goals. It values teams and leadership throughout the ranks. He called for five
disciplines:
System Thinking
Personal Mastery
Mental Models
Shared Vision
Team Learning
1995 - Ethics
On December 11, 1995 a fire burned most of Malden Mills to the ground and put
3,000 people out of work. Most of the 3,000 thought they were out of work
permanently. CEO Aaron Feuerstein says, "This is not the end" -- he spent
millions keeping all 3,000 employees on the payroll with full benefits for 3
months until he could get another factory up and running. Why? He answers,
"The fundamental difference is that I consider our workers an asset, not an
expense."
Business Process Management (BPR) - 2000
This is actually a slow advance in process management:
Record Management
Workflow - 1970
Business Process Re-engineering (BPR) - 1990
Business Process Management (BPR) - 2000
CONTINUING CHALLENGES
Managing in a global environment- Changes in the global marketplace have brought
the need to think globally. For any company competing in the global marketplace it
is essential to understand the diverse cultures of the individuals involved and
develop cross cultural sensitivity. Hofstede(1983) found five dimensions of cultural
differences that formed the basis for work related attitudes. These are
Individualism (a cultural orientation in which people belong to loose social
framework and their primary concern is for themselves and their families)versus
collectivism(a cultural orientation in which people belong to tightly knit social
framework and they depend strongly on large extended families or clans); power
distance(the degree to which culture accepts unequal distribution of power);
uncertainty avoidance(the degree to which a culture tolerates ambiguity and
uncertainty); masculinity(the cultural orientation in which assertiveness and
materialism are valued) versus femininity(the cultural orientation in which
relationships and concern for others are valued) and time dimension(whether a
cultures values are oriented towards the future or towards the past and present). It
is also required for these companies to bring in structural changes as and when
required based on the demands of the global environment. Many organizational
structures have become flatter as a measure of lowering cost and remaining
competitive while some structures have grown more complex as a result of
mergers, acquisitions and new ventures. Several organizations are hiring
contingent workforces while others are moving from a traditional to a team based
structure.

Managing workforce diversity- Workforce diversity has always been an
important issue for organizations. Diversity encompasses all forms of
differences among individuals, including culture, gender, age, ability,
religious affiliation, personality, economic class, social status, military
attachment and sexual orientation. Today the workforce has become richly
diverse in terms of age, gender, educational backgrounds, talents and
perspectives to their jobs. New labour force has emerged and managements
leadership practices must change to match the new conditions. These fast
moving developments have given new emphasis to leadership ability. Some
companies are discovering that demonstrating a sense of caring, really
listening to employees and being concerned with both competence and
relationships are among the keys to the motivation of the present
workforce. Other companies are urging their managers to respond to a
diverse workforce by building pride without devaluing others, empowering
some without exploiting others , and demonstrating openness, confidence,
authentic compassion and vulnerability. Diversity can enhance
organizational performance
but five problems are particularly important: resistance to change,
cohesiveness, communication problems, conflicts and decision making.


Managing Technological Innovation- Examples of the impact of technology
includes the increasing use of robots and automated control system in
the assembly lines, shift from manufacturing to service economy,
widespread use of Internet and the need to respond to societal
demands for improved quality of goods and services at acceptable
prices. The great benefit of technology is that it allows people to do
more and better work, but it also restricts people in many ways-thus
having both benefits as well as costs. Each of the technological
advancements places increased pressure on OB to maintain a delicate
balance between technical and social systems.Technological
innovations like expert systems, robotics, world wide web etc have
been responsible to large extent for the advent of alternative work
arrangements like Telecommuting, Hoteling and Satellite offices and
also has started affecting the very nature of the management job like
developing technical competency of themselves and also of the
workers, motivating employees for reinvention, dealing with employee
stress, depression, anxiety and helping employees to adjust to
technological changes.

Managing ethical issues at work- Formal relationships create complex
problems of cooperation, negotiation and decision making due to
differences in resource power .This may give rise to many ethical
issues in the organization like employee theft, comparable worth of
employees, conflict of interest, sexual harassment, romantic
involvements, organizational justice, whistle blowing. Managers must
confront these ethical challenges of individual and group level and also
those ethical issues that are encountered in organizational level like
environmental issues and corporate social responsibility and handle
them successfully.

IMPORTANCE OF ORGANIZATIONAL BEHAVIOR FOR THE MANAGERS

Organizational behavior provides a useful set of tools at five levels of
analysis.
It helps managers to look at the behavior of individuals within an
organization.
It aids their understanding of the complexities involved in interpersonal
relations, when two people (two coworkers or a superior-subordinate
pair) interact.
Organizational Behavior is valuable for examining the dynamics of
relationships within small groups, both formal teams and informal
groups.
When two or more groups need to coordinate their efforts, managers
become interested in the intergroup relations that emerge.
Organizations can also be viewed and managed as whole systems that
have inter organizational relationships.