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Management of Organizational Behaviour 1 Management of Organizational Behaviour 1

Course Content Course: Management of Organizational Behaviour (for B. Tech final year students) Course Course Content Course: Management of Organizational Behaviour (for B. Tech final year students) Course Outline · Organizations: Formal - Informal; Scientific Management and Human Relation Era : Hawthorne Studies; Classical Organization Theory and Design; Modern Organization Theory: Organization as an Open-System. · Motivation: Content theories; Process theories; Reinforcement Theories; · Group Dynamics and Team Development: Types of Groups and their attributes; Quality Circles and their role in Total Quality Management (TQM). 2

Leadership & Influence Strategies - The Classical Theories of leadership: Iowa, Ohio and Michigan Leadership & Influence Strategies - The Classical Theories of leadership: Iowa, Ohio and Michigan Leadership studies. Trait theory of leadership; Group and Exchange theory of leadership; Charishmatic and Transformational leadership theories; Indian Researches on Leadership and Influence strategies. · Organizational Culture and Climate: Recent Developments in the area. Indian studies on Organizational culture. Work Culture. · Stress in work settings: Organizational stressors, extraorganizational stressors and group stressors; Effect of occupational stress, and individual dispositions and their role in work stress. · Decision Making: Contemporary models of Behavioural DM; The Delphi Technique and the Nominal Group Technique. 3

Books: 1. Jewell, L. N. , & Siegall, M. (1990). Contemporary Industrial/Organizational Psychology. West Books: 1. Jewell, L. N. , & Siegall, M. (1990). Contemporary Industrial/Organizational Psychology. West Publishing Company, USA. 2. Katz, D. , & Kahn, R. L. (1966). The Social Psychology of Organizations. New York: Wiley 3. Robbins, S. P. (2009). Organizational Behaviour. Prentice-Hall Inc. NJ. 4. Hellriegel, D. , Slocum, J. W. , & Woodman, R. W. (2001). Organizational Behavior. Thomson Asia Pte Ltd. , Singapore. 5. Luthans, F. (1995). Organizational Behaviour. Mc. Graw-Hill, Inc. New Delhi, New York 6. Sekarn, U. (1996). Organizational Behaviour: Text and Cases. Tata Mc. Graw Hill, New Delhi 7. Blanchard, K. H. & Hersey, P. (1993). Management of Organizational Behavior: Utilizing Human Resources. Prentice-Hall India. 4

Reference Books: 1. Dunnett (1998). Handbook of Industrial-Organizational Psychology. Jaico Pub, Mumbai. 2. Ansari, Reference Books: 1. Dunnett (1998). Handbook of Industrial-Organizational Psychology. Jaico Pub, Mumbai. 2. Ansari, M. A. (1990). Managing people at work: Leadership styles and influence strategies. New Delhi: Sage. 3. Sinha, J. B. P. (1990). Work Culture in Indian Context. Sage, New Delhi. 5

 • What’s Management? • What’s Management as an academic discipline? • Misconceptions & • What’s Management? • What’s Management as an academic discipline? • Misconceptions & Myths? • A Journey in the history of Management Education? 6

What is Management? The process of coordinating work activities so that they are completed What is Management? The process of coordinating work activities so that they are completed efficiently and effectively with and through people. Efficiency – doing things right (means) Effectiveness – doing right things (ends) 7

FOUR FUNCTIONS OF THE MANAGERIAL PROCESS PLANNING CONTROLLING ORGANIZING LEADING 8 FOUR FUNCTIONS OF THE MANAGERIAL PROCESS PLANNING CONTROLLING ORGANIZING LEADING 8

The Planning Process Planning is the process of deciding what objectives to pursue during The Planning Process Planning is the process of deciding what objectives to pursue during a future time period and what to do to achieve those objectives. Formal Plan : Written, documented plan developed through an identifiable process. Functional Plans: Originate from the functional areas of organization as production, marketing, finance, and personnel. The planning horizon: Short Range, Intermediate, and Long Range 9

Operational Vs Strategic Planning: Analogous to top-level long-range planning; covers a relatively long period; Operational Vs Strategic Planning: Analogous to top-level long-range planning; covers a relatively long period; affects many parts of the organization. Operations or tactical planning: Short-range planning; done primarily by middle to lower-level managers, it concentrates on the formulation of functional plans. Strategy: Outlines the basic steps management plans to take to Strategy reach an objective or a set of objectives; outlines how management intends to achieve its objectives. Grand or Corporate Strategies: Address which business an organization will be in and how resources will be allocated among those businesses. 10

Growth Strategy: Used when the organization tries to expand, as measured by sales, product Growth Strategy: Used when the organization tries to expand, as measured by sales, product line, number of employees, or similar measures. Stability Strategy: Used when the organization is satisfied with its present course (status quo strategy) Defensive Strategy: Used when a company wants or needs to reduce its operation. Strategic Management: Formulation, proper implementation, and continuous evaluation or strategic plans; determines the longrun directions and performance or an organization. The essence of strategic management is developing strategic plans and keeping them current. 11

IDENTIFYING MISSION: [A] Defines the basic purpose(s) of an organization: why organization exists. [B] IDENTIFYING MISSION: [A] Defines the basic purpose(s) of an organization: why organization exists. [B] Identifying past and present strategies. [C] Diagnosing past and present performance. Setting Objectives: Statements outlining what the organization is trying to achieve; give an organization and its members direction. POLICIES: Broad, general guides to action that constrains or directs the attainment of objectives. PROCEDURES: Series of related steps or tasks expressed in chronological order for a specified purpose. RULES: Requires specific and definite actions to be taken or not to be taken in a given situation. 12

ORGANIZING Grouping activities, assigning activities, and providing the authority necessary to carry out activities. ORGANIZING Grouping activities, assigning activities, and providing the authority necessary to carry out activities. Span of Management: Number of subordinates a manager Management can effectively manage; also called span of control. 13

What’s Management as an academic discipline An interdisciplinary field where input comes from various What’s Management as an academic discipline An interdisciplinary field where input comes from various other core disciplines, such as: Behavioural Sciences (Psychology, Economics, Pol. Sc. , Anthropology, Sociology) Engineering Mathematics/Statistics - DM Models Computer Science / IT - MIS/ERP DSS Law - Legal System Commerce /Accounting - Book writing - Ethics Finance Philosophy 14

Misconceptions & Myths Some people believe that management is mainly concerned with book keeping Misconceptions & Myths Some people believe that management is mainly concerned with book keeping (accounting) It is all about mathematical modeling. It is primarily concerned with financial analysis. Unless you have an MBA degree you have nothing to do with Management! Probably many more!! 15

A Journey in the history of Management Education Initially, in India, Management programme started A Journey in the history of Management Education Initially, in India, Management programme started within the commerce department. Even, at one point of time, having an B. Com/M. Com was considered equivalent to MBA. In the west, it was more focused on quantitative techniques. 16

What is an Organization? ? • • Two or more people working together Formalized What is an Organization? ? • • Two or more people working together Formalized Goals Formal Hierarchy Social orientation 17

Environmental Factors affecting Organizations Social Economic Political Cultural 18 Environmental Factors affecting Organizations Social Economic Political Cultural 18

 What Will Work Be Like in the Near Future? Fortune magazine identifies six What Will Work Be Like in the Near Future? Fortune magazine identifies six trends that will reshape the workplace in the near future. These trends are: • “The average company will become smaller, employing fewer people. ” • · “The traditional hierarchical organization will give way to a variety of organizational forms, the network of specialists foremost among these. ” • · “Technicians, ranging from computer repairmen to radiation therapists, will replace manufacturing operatives as the worker elite. ” • “The vertical division of labor will be replaced by a horizontal division. ” • · “The paradigm of doing business will shift from making a product to providing a service. ” • · “Work itself will be redefined: constant learning, more high-order thinking, less nine-to-five. ” How will these trends affect the nature of managerial work in the future? First, managerial jobs will be changed. Managers will need to develop substantive expertise—a specialty in, say, finance, marketing, or computer systems, etc. Managers must also possess skills at coordinating a team of specialists. Second, managerial jobs will be renamed. Rather than being called managers or facilitators or coaches or mentors, people in these jobs will likely be called coordinators. Third, “tomorrow’s manager-replacements will have to excel at striking all kinds of deals. ” Fourth, these new coordinators must be able “to make others feel that they care. ” This enrichment module is adapted from: Kiechel III, W. How we will work in the year 2000. Fortune, May 17, 1993, 38 -41, 44, 46 48, 52. 19

Management Teaching Methodology • • Business Games Simulation Exercises Case Study Method Emphasis on Management Teaching Methodology • • Business Games Simulation Exercises Case Study Method Emphasis on real life examples 20

Foundation Competencies for Individual and Managerial Effectiveness • • Managing self competency. Managing communications Foundation Competencies for Individual and Managerial Effectiveness • • Managing self competency. Managing communications competency. Managing diversity competency. Managing ethics competency. Managing across cultures competency. Managing teams competency. Managing change competency. 21

Preview Case: Cynthia Danaher Questions: 1. Why a Change was needed for Cynthia in Preview Case: Cynthia Danaher Questions: 1. Why a Change was needed for Cynthia in her leadership style? Was she right? 2. Was there any alternative way for Cynthia? 3. Learning lessons from the case. 22

Rational System Model Rational System Scientific Management – F. W. Taylor (1911) Taylor's scientific Rational System Model Rational System Scientific Management – F. W. Taylor (1911) Taylor's scientific management consisted of four principles: (prescription-action sequence can be a paradigm) 1. 2. 3. 4. Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task”. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. 23

Scientific Management – F. W. Taylor (1911) Taylor viewed man as one driven by Scientific Management – F. W. Taylor (1911) Taylor viewed man as one driven by ‘fear of hunger’, and ‘search for profit’. If economic reward is tied up with the efforts put on the job, worker will respond with his maximum physical capability. Appendage to industrial machine. Money is prime motivator. 24

Division of Labour – Adam Smith (1937) Departmentalization • Specialization by the purpose of Division of Labour – Adam Smith (1937) Departmentalization • Specialization by the purpose of the task • Specialization by Clientele • Specialization by process of the task • Specialization by the Geographical location 25

Theory of Bureaucracy Max Weber, 1947 1. “The regular activities required for the purpose Theory of Bureaucracy Max Weber, 1947 1. “The regular activities required for the purpose of the organization are distributed in a fixed way as official duties” 2. “The organization of offices follows the principles of hierarchy, that is, each lower office is under the control and supervision of higher one” 3. “Control of organizational activities by a consistent system of abstract rules…. consist of the application of these rules to particular cases” 4. “The ideal official conducts his office…. (in) spirit of formalistic impersonality” 5. “Employment constitutes a career. There is system of promotion according to seniority or number of achievements or both” 26

Salient Common features 1. Goal specificity 2. Formalization 3. Organizational Rationality 4. Concept of Salient Common features 1. Goal specificity 2. Formalization 3. Organizational Rationality 4. Concept of Human Nature 27

Social System Model Hawthorne Studies “The Hawthorne Studies were conducted from 1927 -1932 at Social System Model Hawthorne Studies “The Hawthorne Studies were conducted from 1927 -1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School Professor Elton Mayo examined productivity and work conditions. ” 28

Hawthorne Studies Mayo wanted to find out what effect fatigue and monotony had on Hawthorne Studies Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity. 29

Mayo’s Experiment • Five women assembled telephone relays, one supplied the parts. • Made Mayo’s Experiment • Five women assembled telephone relays, one supplied the parts. • Made frequent changes in working conditions with their consent. • Records were kept of relays made, temperature and humidity of rooms, medical and personal histories, eating and sleeping habits, and bits of conversation on the job. • No one supervised the girls. • They were told to work as they felt and at a comfortable pace. 30

Mayo’s Experiment Cont. • Productive capacity was measured by recording the girls’ output for Mayo’s Experiment Cont. • Productive capacity was measured by recording the girls’ output for two weeks before the study began. • First five weeks, no changes were made. • Third stage, a pay system was ensured allowing the girls’ to earn in proportion to their efforts. • Eight weeks later, two five-minute rest pauses were added. 31

Mayo’s Experiment Cont. • Eighth phase, workday ended a half-day early. • Ninth phase, Mayo’s Experiment Cont. • Eighth phase, workday ended a half-day early. • Ninth phase, the girls finished an hour earlier than usual. • Five-day week introduced. • Girls went back to no breaks, lunches and a full work week, output declined for those twelve weeks. 32

Results • Researchers found that output rates weren’t directly related to the physical conditions Results • Researchers found that output rates weren’t directly related to the physical conditions of the work. • Output went up when: – – – They were put on piece-work for eight weeks. Two five minute rest pauses were introduced for five weeks. Rest pauses were lengthened to ten minutes. A hot meal was supplied during first pause. They were dismissed at 4: 30 p. m. instead of 5: 00 p. m. 33

Results Cont. • Output slightly fell when six five minute pauses were added. • Results Cont. • Output slightly fell when six five minute pauses were added. • It remained the same when they were dismissed at 4: 00 p. m. instead of 4: 30 p. m. • Mayo believes “what actually happened was that six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. The consequence was that they felt themselves to be participating freely and without afterthought, and were happy in the knowledge that they were working without coercion from above or limitations from below. ”

Conclusions • Work is a group activity. • Social world for an adult is Conclusions • Work is a group activity. • Social world for an adult is primarily patterned about work. • Need for recognition, security and sense of belonging. • Complaints, commonly a symptom manifesting disturbance of an individual’s status position. 35

Maslow’s (1954) Need Hierarchy Model Maslow believed that each person has an essential nature Maslow’s (1954) Need Hierarchy Model Maslow believed that each person has an essential nature that “presses” to emerge. In his view, we all have higher-level growth needs – such as self-actualization and understanding of ourselves – but that these higher needs only assume a dominant role in our lives after our more primitive needs are satisfied. Self-Actualization Esteem Belongingness Safety Physiological 36

Mc. Gregor’s (1960) theory X and theory Y Theory X is based on the Mc. Gregor’s (1960) theory X and theory Y Theory X is based on the following assumptions 1. “The average human being has an inherent dislike of work and will avoid it if he can”. 2. “Because of this human characteristics of dislike of work, most people must be coerced, controlled, directed and threatened with punishment to get them to put forth adequate effort towards the achievement of organizational objectives”. 3. “The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all”. 37

Mc. Gregor’s (1960) theory X and theory Y cont… On the other hand, theory Mc. Gregor’s (1960) theory X and theory Y cont… On the other hand, theory Y puts the burden of motivation on the organization and suggests that human nature is different from what theory X suggests. There are six major assumptions, some of which contradicts those of theory X and some additional ones: 1. “The expenditure of physical or mental efforts in work is as natural as play or rest”. 2. “External control and the threat of punishment are not the only means for bringing about efforts towards organizational objectives. Man will exercise self direction and self control in the service of the objectives to which he is committed”. 38

Mc. Gregor’s (1960) theory X and theory Y cont… 3. “Commitment to objective is Mc. Gregor’s (1960) theory X and theory Y cont… 3. “Commitment to objective is a function to the reward associated with their achievement”. 4. “The average human being learns under proper conditions, not only to accept but to seek responsibility”. 5. “Capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problem is widely, not narrowly, distributed in the population”. 6. “Under the conditions of modern industrial life the intellectual potentialities of the average human being are only partially utilized”. 39

Open System Approach 1. 2. 3. 4. 5. 6. Importation of Energy The Throughput Open System Approach 1. 2. 3. 4. 5. 6. Importation of Energy The Throughput The Output Systems as Cycles of Events Negative Entropy Information Input, Negative feedback, and the coding process 7. The Steady State and Dynamic Homeostatis 8. Differentiation 9. Integration and Coordination 10. Equifinality 40