Introduction to Human

Behaviour in Organization
 People are Important for
organizations
• Motivated employees can make a significant difference
to the company's bottom line in terms of bringing in
new orders, meeting customer needs, developing new
products and performing heroic efforts to achieve a
company goal,"
• According to the American Society for Training and
Development (ASTD): “A high-knowledge, multi-skilled
workforce is the most important competitive resource
available to organizations today”
 Putting
Putting People
People First
First
• People are the key….. Sam Walton
• People are the greatest asset….Jack Welch
• Employee first, customer second…Vineet Nayar
• The inventory, the value of my company, walks
out the door every evening…. Bill gates
• People are definitely a company’s greatest asset. It
doesn’t make any difference whether the product is
cell phones or cars or cosmetics. A company is
only as good as the people it keeps…..Anil Ambani
 Successful organizations put their people first …..
• Google, Federal Express, HP, TATA Group
• Federal Express, from its inception, has put its people first
both because it is right to do so and because it is good for
business as well……. Frederick W. Smith Founder, Chairman &
CEO, FedEx Corporation
Over the years, FedEx had established its reputation as being
one of the most employee-friendly companies in the world
and is also credited for introducing many innovative HR
practices. The people-service-profit (PSP) philosophy
which FedEx introduced since its inception in 1973 was one-
of-its-kind at the time. The formal HR policy linked
employees directly to profitability and long-term growth.
 2016- India's Best Companies to Work For

• As a part of the India’s Best Companies to Work for 2016 study, about 800
organisations across industries, employee strength and revenue brackets
applied to be assessed. Over 155,119 employees were surveyed, making it
the largest survey of workplace cultures in corporate India. As a part of
this programme, the organisations were studied under two dimensions.
• First, being a unique employee-centric framework that measures the
levels of Trust, Pride and Camaraderie prevalent in an organisation.
• Second, through a questionnaire seeking to understand the people
practices, philosophy and values of an organisation. In the 13th year of
assessment, Great Place To Work® Institute, India has recognised the
100 best workplaces that comprise of organisations across 16 industries,
with employee strength varying from less than 500 to more than 10,000,
shattering the myth that organisations of certain legacy, size or revenue
are more likely to become great workplaces.
 2016- India's Best Companies to Work For
NO OF
RANK ORGANISATION INDUSTRY EMPLOYE
ES
1 Google India Pvt. Ltd. Information Technology | Software 1,683

2 American Express India Financial Services & Insurance | Banking/Credit 10,498

Services

3 Ujjivan Financial Services Pvt. Financial Services & Insurance 7,853

Ltd.
4 Teleperformance India Information Technology 4,638
5 Godrej Consumer Products Ltd. Manufacturing & Production | Fast Moving 2,284
Consumer Goods

6 Marriott Hotels India Pvt. Ltd. Hospitality | Food and Beverage Service 8,200

7 SAP Labs India Pvt. Ltd. Information Technology | Software 5,339

8 The Oberoi Group Hospitality | Hotel/Resort 4,000

9 Lemon Tree Hotels Ltd. Hospitality | Hotel/Resort 2,768
10 Intuit India Product Information Technology | Software 943
Development Centre Pvt. Ltd.
 Outcomes
• Companies that offer good employee benefits and
that have friendly conditions are more profitable
than those that are less people oriented.
• An organization that applies good people
management practices can have-
– A Strong Reputation That Attracts Talent
– Higher Employee Engagement
– Better Retention of Key Talent
– Customer Satisfaction
– Better Financial Results
 Research Findings
• People who are satisfied with the way they are
treated on their jobs generally are more pleasant to
their co-workers and bosses and are less likely to
quit than those who are dissatisfied with the way
others treat them.
• People who are carefully trained to work together in
teams tend to be happier and more productive than
those who are simply thrown together without any
definite organizational support .
 Where Managers Work
Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on a relatively continuous basis
to achieve a common goal or set of
goals.
 Management Functions

Planning Organizing

Management
Functions

Controlling Leading
Management Functions (cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.
Management Functions (cont’d)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to
be grouped, who reports to whom, and
where decisions are to be made.
 Management Functions (cont’d)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.
Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.
 Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.

Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
 ESSENTIAL MANAGERIAL SKILLS

CONCEPTUAL SKILLS
The ability to solve complex
problems
HUMAN SKILLS
The ability to work well with
people
TECHNICAL SKILLS
The ability to perform specific tasks

Lower-level Middle-level Upper-level

Managers Managers Managers
Effective Versus Successful Managerial
Activities (Luthans)
1. Traditional management
• Decision making, planning, and controlling
2. Communication
• Exchanging routine information and processing
paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking
• Socializing, politicking, and interacting with others
Allocation of Activities by Time
3

What is Organizational Behaviour?

• OB is the study of individual and
group dynamics in organizations
It investigates the impact that
individuals, groups and structure
have on behaviour within
organizations, for the purpose of
applying such knowledge towards
improving an organization's
effectiveness .
 OB : It’s Basic Nature
• OB applies the scientific method to practical
managerial problems.
• It focuses on three-level analysis
• It is multidisciplinary in nature
• Complements intuition with systematic study
• One needs to take a contingency approach in
OB
Components of Organizational Behaviour

Understanding
organizational
behavior
requires studying

Individuals in Group and Team Organizational

Organizations Processes Processes
 The three-level analysis

The Organization

Change
Organizational culture
Decision making
The Group Leadership

Power and politics

Negotiation
Conflict
Communication
The Individual Groups and teams

Motivating self and others

Emotions
Values and attitudes
Perception
Personality
Basic OB
Model
 Contributing Disciplines

Psychology

Social Psychology

Anthropology

Sociology
 Complements intuition with
systematic study
• Intuition- A gut feeling not necessarily supported
by research
• Systematic study-looking at relationships,
attempting to attribute causes and effects and
drawing conclusions based on scientific evidence.
• Evidence- based management(EBM) complements
systematic study by basing managerial decisions
on best available scientific evidence.
 There Are Few Absolutes in OB
Contingency variables: "It Depends!!!"
Situational factors that make the main relationship
between two variables change---e.g., the relationship
may hold for one condition but not another.

X leads to Y under Z situation

 Fundamental Assumptions
• Individuals are different
• Behaviour of an individual is caused not random
• Largely individual behavior is predictable
• OB believes in a whole person approach
• Individuals like to be treated fairly and respectfully
• There exists mutuality of interest between organisation and
people
• Organisations are part of the social systems
• OB has few absolutes
 Emerging Challenges in OB

• Responding to economic pressure

• Responding to globalization
• Managing diversified workforce
• Improving people skills
• Customer focus
• Stimulating innovation and change
• Structuring organizations and work arrangements
• Working in Networked organizations
• Helping Employees to Balance Work &Life
• Empowering people
• Developing Ethical organizations
• Coping with temporariness
A Downside to Empowerment?
 Discuss
• How can the field of OB contribute to both the
effective functioning of organizations and to the
well being of individuals? Are these goals
inconsistent? Why or why not?
• What is contingency approach and why it is so
popular in the field of OB?
• Discuss the Challenges for OB