Fundamentals of Organizational Behaviour.pptx

By
Narendra Salunke
Google Classroom Code: qt57wbr
CO1: DESCRIBE the major theories, concepts, terms, models,
(Remembering) frameworks and research findings in the field of
organizational behavior.

Organizational Behaviour
 Organizational Behaviour is a field of study that
investigates the impact that individuals, groups and
organizational structures have on behaviour within
organization for the purpose of applying such knowledge
towards improving an organizations effectiveness.
 Organizational Behaviour can be defined as the
understanding, prediction and management of how
human behaviour affects the performance of the
organization

Who is a Manager & What is
Management?

Manager
 Takes Decisions
 Manage Resources
 Takes Responsibility
 Plans, Organizes, Leads and
Controls

General Rules (Universal Rules)
 Human Resource have been, are and
will continue to be the major
challenges and critical to competitive
advantage
 The answer to the successful
Organization: “People are the key”

Scope:
Individual Level
•Perception
•Aspirations
•Attitude
•Motivation
Group Level
•Group Dynamics
•Group Norms
•Intra Group &
Intergroup
Relations
•Leadership
•Communication
Organizational Level
•Organizational
Structure
•Culture
•Change Management
•Environmental
Impacts
•Technology

Importance of OB
9. Improving Ethical Behaviour
10. Group Dynamics
1. Stimulating Innovation & Change
2. Improving Customer Services
3. Responding to Globalization
6. Balancing work life
7. Managing Work force Diversity
8. Improving People Skill
4. Responding to Economic Pressure
5. Creating positive work
environment
Imp of OB

Contributing fields of OB
Psychology
Economics

Interesting Fact:
1826
1839
1847
1947
2018

Evolution of OB
Scientific
Management
Human
Relation
Movement
OB
Industrial
Revolution

Pre – Classical Contributions

I. INDUSTRIAL REVOLUTION
 One to One relationship in Organization
 People used to work in small group or alone
 Faced exploitation by employer as there were no stipulated
conditions to regulate the employment conditions
 The growth of factory system further aggravated the
conditions of employment

Adam Smith (1723 – 1790)
 Economist
 Published book: “The Wealth of Nations” (An Inquiry
in to Nature & Causes of Wealth of Nations) in 1776
 Advocated division of labor
 Gave the example of manufacturing pins to illustrate
his point

Robert Owen (1771-1858)
(New Lanark Mill)
 First to recognize, how the growing factory system is
demeaning to the workers
 HRM Pioneer
 Proposed Legislative Reforms regarding Standard
Working Day 0f 10.5 Hrs
 Refused to employ children below the age of 10 yrs
 Improved Living Conditions of Employee
 Father of Personnel Administration
 Silent Monitor Concept

Silent Monitor:
The 'silent monitors' were hung next to each worker in
the mills, with each side displaying a different colour.
•'Bad' behaviour was represented by the colour black;
•indifferent' was represented by blue;
•'good' by yellow;
•and
•'excellent' by white.

Charles Babbage(1792-1871)
 Mathematician
 Author of the book “Economy of Machinery &
Manufactures” in 1832
 Father of Modern Computing
 First Mechanical Calculator & Analytical Engine
 Supporter & Advocate of Division of Labor: Saves
Time, Reduce Wastage, High skills can be attained
 Devised Profit Sharing Plan

Adrew Ure & Charles Dupin
(1778-1857 & 1784-1873)
 British & French Academician
 Advocated the study of Management

Henry R. Towne (1844-1924)
 Author of research Paper: “The Engineer as an
Economist”
 Emphasized the need to consider Management as
separate field of study
 Emphasized the importance of Business Skills for
running business
 Need to develop Management Principles

Max Weber (1864 to 1920)
 Sociologist
 Claimed that the Industrial Revolution's focus on
efficiency constrained the worker to a kind of
"prison" and "stripped a worker of their individuality"
 Proposed Bureaucratic model or Bureaucratic
management: organization shall be rested on rational
and legal principles and maximized technical
efficiency."

Classical Contributions
II. Scientific Management

Frederick Winslow Taylor (1856-1915)
(Started working as apprentice in Midvale Steel Co. & rose to the
post of Chief Engineer in 6 years)
 Father of Scientific Management
 Machine model of Organization
 Wrote the revolutionary book: “Principles of
Scientific Management”: Gave 4 Step scientific
management plan
a. Develop Science for each element of Job
b. Scientifically Select employees & Train them to do these Jobs
c. Supervise employees to follow the prescribed method to follow
the Job
d. Continue to plan the work but use the workers to actually get the
work done

•Tackled “Soldiering Problem”
1. Fear of loosing Jobs
2. Faulty Wage System
3. Use of Outdated Methods
•Two Major Management Practices evolved:
a. Piece Rate Incentive System
b. Time & Motion Study

Frank & Lillian Gilbreth
(1868-1924 & 1878-1972)
 Frank Gilbreth: Father of Motion Studies
 Motion Studies:
- Finding out best sequence & Minimum no. of motions
required to complete a job
- Exploring new ways of eliminating unnecessary motions
 Devised a classification scheme to label 17 basic hand
motions

Henry Gantt (1861-1919)
 Task Bonus System
 Bonus System for Foreman
 Gantt Charts

Elton Mayo
 Hawthorne Experiment
- AT & T Founded in 1876 (Divided in 1984)
- By 1929: 40,00 workers were there in Western Electric
Plant of Hawthorne (Chicago, USA)
- In 1927, Researchers Elton Mayo & Fritz Roethlisberger
were invited to join the research
- Consisted of 4 - Parts

1. Illumination Experiment
 Carried out to find out relationship between Output &
Illumination
2. Relay Assembly Test Room Experiment

• Group of 6 Girls was selected
• Informal Environment was maintained
• Productivity & Morale went high
• Conclusion: Socio-psychological Factors such as
Feeling of being Important, Recognition,
Attention, Participation, Non Directive
Supervision held the key for higher production

3. Mass Interview Program:
 Regarding Work, Working Conditions, Supervision
 Direct Questions: Responses were guarded
 Indirect Method: Confirmed the importance of Social
Factors at Work

4. Bank Wiring Test Room Experiment
 Carried out by Roethlisberger & Dickson
 Objective: To develop new method of observation &
Finding out the causes of restricting the output
 Group of 14 workers were selected
 Observations:
-Employees were restricting their o/p
- Group has evolved with their own “unofficial”
productivity norms
- Isolation, Harassment & Punishment to Non-
followers

Contribution
 Organization is also a social system, wherein group
psychology plays an important role, hence informal
group efforts shall more be relied.
 Productivity of the employee is not the function of
only physical condition of the work & Money Wages
paid to them.
 Employee can be motivated by psychological and
social wants
 Productivity of the employee depends heavily upon
satisfaction of the employee in their work situation.

IV. Organizational Behaviour
 The study of group was emphasized in Human Relations
Movement
 Research based new approached developed in late 1950’s
and early 1960’s: called “Organizational Behaviour
 1970s: Theories of Motivation, Leadership, Job
Satisfaction
 1980s: Organizational Culture, Team Work, Political Skills
in an Organization
 1990s: Personal Integrity, Character, Virtues, Ethics
 2000s: Fred Luthans: POB (Positive Organizational
Behaviour): Confidence, Hope, Optimism

Models of OB:
Sr. No. Model Name
(Driving Power)
Description
1 Autocratic
(Authority/
Power)
•Manager has the power to command his/her
employee
•Psychological Result is “Increased Dependence on
Boss”
2 Custodial
(Security:
Salary/Money)
•Organization satisfy security & Welfare needs of
employees
•Focuses on better employee satisfaction,
•Results in dependence on Organization rather on
Boss
3 Supportive
(Support)
•Depends on leadership instead of Power or Money,
•Support employees Job performance,
•Psychological result is the feeling of participation
and task involvement
4 Collegial
(Team Work)
•Management is seen as joint contributor rather than
boss
•Employee response to this situation is responsibility
•Psychological result is “Self discipline”, enthusiasm

Sr. No. Model Name Organizations
1 Autocratic
(Authority)
•Military
•Police Force etc
2 Custodial
(Salary/Money)
•Government & Semi Govt. Organizations
•Public Sector Banks
3 Supportive
(Support)
•NGOs
•Educational Institutions
4 Collegial
(Team Work)
•Wipro
•Infosys
•HDFC
5 System Model
(Emotions)
•Google
•Facebook
•TCS
Models of OB:

 Behavioural Bias
 Indiscipline & Irresponsible Behaviour
 Law of Diminishing Returns
 Unethical Practices & Manipulation
 Not an absolute answer

Behavioural Bias
Stakeholders’ Expectations
Employee
Satisfaction
Stellar Services & Products
Organization Performance
Organization Profitability

Indiscipline & Irresponsible Behaviour

Unethical Practices & Manipulation

Questions in University Exams
1. Define “OB”. Explain theoretical behaviouristic framework and
its practical implications in handling professionals at
organization. (April 2018)
2. Explain four models of OB with suitable examples. (April 2018)
3. “Organizational Theories study organizations to identify how
they solve problems and How they maximize efficiency and
productivity” Do you agree or disagree with statement? Why?
(Oct 2017)
4. Define OB. Explain various models of OB (Oct 2017)
5. Why Organizational Behaviour is needed to study in modern
era? Explain. (April 2015, Oct 2016)
6. Explain various theoretical frameworks of OB. (Oct 2016)
7. “Behaviour is predictable : so there is no need to study OB
formally.” Comment. (April 2016)

Model Answer to Q3
 Statement & Clearly state do you agree or disagree 1M
 (If you are agree with statement)
 Connection between employee behaviour and
Organization Productivity & Problem Solving 1M
 Explain in brief, how following theories help predict the
employee behaviour
 Cognitive Theory
 Behaviouristic Theory
 Social Cognitive theory (2M each =) 6M
 Overall Representation of Answer 2M

MCQs
Q. Which of the following field of study is one of the
contributors in developing OB?
a. History
b. Political Science
c. Fine Arts
d. None of these

Q2. Who proposed Legislative Reforms regarding
Standard Working Day and Age of workers?
1. Charles Babbage
2. Adam Smith
3. Robert Owen
4. Henry Gyantt

Q3. Who is considered as father of scientific
management?
a. Adam Smith
b. Charles Babbage
c. Elton Mayo
d. Frederick W Taylor

Q4. Who gave the Cognitive Framework of OB?
a. Edward Tolman
b. Evan Pavlov
c. John Watson
d. Albert Bandura

Q5. Which of the following model of OB is based on
dictating power of Manager/Owner?
a. Autocratic Model
b. Custodial Model
c. Supportive Model
d. Collegial Model

Fundamentals of Organizational Behaviour.pptx

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