Introduction to organizational Behaviour

VIKAS 6th semester

What Managers Do
Managers (or administrators)
Individuals who achieve goals through other people.

Managerial Activities Make decisions Allocate resources Direct activities of others to attain goals

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.

What are Organizations? Groups of people who work interdependently toward some purpose Structured patterns of interaction Coordinated tasks Work toward some purpose

Why Study Organizational Behavior

Understand organizational events

Influence organizational events

Organizational Behavior Research

Predict organizational events

Enter Organizational Behavior

Organizational behavior (OB)
A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization s effectiveness.

Replacing Intuition with Systematic Study

Intuition A feeling not necessarily supported by
research.

Systematic study
Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors.

Replacing Intuition with Systematic Study

Preconceived Notions

The Facts

Organizational Behavior Anchors

Multidisciplinary Anchor Systematic Research Anchor

Open Systems Anchor

Organizational Behavior Anchors

Multiple Levels of Analysis Anchor

Contingency Anchor

Toward an OB Discipline

Psychology

Contributing Disciplines to the OB Field

The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Contributing Disciplines to the OB Field (contd)

Sociology
The study of people in relation to their fellow human beings.

Contributing Disciplines to the OB Field (contd)

Social Psychology
An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

Contributing Disciplines to the OB Field (contd)

Anthropology
The study of societies to learn about human beings and their activities.

Contributing Disciplines to the OB Field (contd)

Political Science The study of the behavior of individuals and groups within a political environment.

Source: Drawing by Handelsman in The New Yorker, Copyright 1986 by the New Yorker Magazine. Reprinted by permission.

There Are Few Absolutes in OB

Contingency variables
Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.

Contingency Variables

Challenges and Opportunities for OB

Responding to Globalization
-Increased foreign assignments Working with people from different cultures Coping with anti-capitalism backlash Overseeing movement of jobs to countries with low-cost labor

Managing Workforce Diversity

Embracing diversity Changing U.S. demographics Implications for managers Recognizing and responding to differences

Employment Relationship
Employability
New deal employment relationship Continuously learn new skills

Contingent work
No contract for long-term employment Free agents, temporary-temporaries Minimum hours of work vary

Employability vs Job Security

Job Security
Lifetime job security Jobs are permanent Company manages career Low emphasis on skill development

Employability
Limited job security Jobs are temporary Career selfselfmanagement High emphasis on skill development

Challenges and Opportunities for OB (contd)

Improving Quality and Productivity
Quality management (QM) Process reengineering

Responding to the Labor Shortage

Changing work force demographics Fewer skilled laborers Early retirements and older workers

Improving Customer Service

Increased expectation of service quality Customer-responsive cultures

Improving Quality and Productivity

Quality management (QM)
The constant attainment of customer satisfaction through the continuous improvement of all organizational processes. Requires employees to rethink what they do and become more involved in workplace decisions.

Process reengineering
Asks managers to reconsider how work would be done and their organization structured if they were starting over. Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.

Challenges and Opportunity for OB (contd)

Improving People Skills Empowering People Stimulating Innovation and Change Coping with Temporariness Working in Networked Organizations Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior

Basic OB Model, Stage I

Model
An abstraction of reality. A simplified representation of some real-world phenomenon.

The Dependent Variables

Dependent variable
A response that is affected by an independent variable.

The Dependent Variables (contd)

Productivity A performance measure that includes effectiveness and efficiency.

Effectiveness Achievement of goals. Efficiency The ratio of effective output to the input required to achieve it.

The Dependent Variables (contd)

Absenteeism
The failure to report to work.

Turnover
The voluntary and involuntary permanent withdrawal from an organization.

The Dependent Variables (contd)

Organizational citizenship behavior (OCB)
Discretionary behavior that is not part of an employee s formal job requirements, but that nevertheless promotes the effective functioning of the organization.

The Dependent Variables (contd)

Job satisfaction
A general attitude toward one s job, the difference between the amount of reward workers receive and the amount they believe they should receive.

The Independent Variables

Independent variable - The presumed cause of
some change in the dependent variable. Independent Variables

IndividualIndividual-Level Variables

GroupGroup-Level Variables

Organization SystemSystem-Level Variables

Basic OB Model, Stage II

nowledge Management Defined

Any structured activity that improves an organizations capacity to acquire, share, and use knowledge for its survival and success

Intellectual Capital Human Capital - Knowledge that people possess and generate Structural Capital - Knowledge captured in systems and structures Relationship Capital - Values derived from satisfied customers, reliable suppliers, etc.

Knowledge Management Processes nowledge

Knowledge acquisition Grafting Individual learning Experimentation Knowledge sharing Communication Communities of practice Knowledge use Awareness Empowerment

Organizational Memory
The storage and preservation of intellectual capital Retain intellectual capital by:
Keeping knowledgeable employees Transferring knowledge to others Transferring human capital to structural capital

Successful companies also unlearn.

Individual Behaviour
Biographical Characteristics Personal characteristicssuch as age, gender, and marital statusthat are objective and easily obtained from personnel records.

Ability, Intellect, and Intelligence

Ability An individual s capacity to perform the various tasks in a job. Intellectual Ability The capacity to do mental activities.

Multiple Intelligences Intelligence contains four subparts: cognitive, social, emotional, and cultural.

Dimensions of Intellectual Ability

Number aptitude Verbal comprehension Perceptual speed Inductive reasoning Deductive reasoning Spatial visualization Memory

Abilities
Physical Abilities - The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics. Flexibility Factors
Extent flexibility Dynamic flexibility Explosive strength

Strength Factors
Dynamic strength Trunk strength Static strength

Other Factors Body coordination Balance Stamina

The Ability-Job Fit

Employees Abilities

Ability-Job Fit

Jobs Ability Requirements

What is Personality?
The sum total of ways in which an individual reacts and interacts with others. Relatively stable pattern of

behaviors and consistent internal states that explain a person's behavioral tendencies

Personality Personality Traits Enduring characteristics that describe an individual s behavior. Determinants
Heredity Environment Situation

Personality - Basic assumptions of individual differences (IDs)

1. The assumption of stability
A combination of traits that make individuals unique but also make their thought & behaviour consistent over time

2. The assumption of broad underlying dimensions

Common dimensions to explain IDs Factor analysis

3. IDs are normally distributed

The Myers-Briggs Type Indicator

Myers-Briggs Type Indicator (MBTI) A personality test that taps four characteristics and classifies people into 1 of 16 personality types. Personality Types
Extroverted vs. Introverted (E or I) Sensing vs. Intuitive (S or N) Thinking vs. Feeling (T or F) Judging vs. Perceiving (P or J)

The Big Five Model of Personality Dimensions

5 factors: a framework to understand individual differences Normally distributed: most people are in the middle The big five provides an account of the structure of personality

The Big Five Model of Personality Dimensions

Extroversion
Sociable, gregarious, and assertive

Agreeableness
Good-natured, cooperative, and trusting.

Conscientiousness
Responsible, dependable, persistent, and organized.

Emotional Stability
Calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative).

Openness to Experience
Imaginativeness, artistic, sensitivity, and intellectualism.

The big 5 extraversion introversion

Traits defining extraversion:
Venturesomeness: socially confident Affiliativeness: more warm & friendly Energy: prefer more than too little Ascendance: more assertive

Better at jobs with high levels of stimulus, novelty, variety

The big 5 neuroticism stability

Neuroticism a high level of negative Neuroticism: affect Traits correlating to this factor:
Anxiety Tenseness Low self-esteem Guilt-proneness Emotional control Irrationality Shyness Moodiness

The big 5 conscientious expedient

Conscientious Conscientious: strong sense of obligation & duty, At work punctual, systematic, order & work: predictable environments Expedient Expedient: individualistic At work overlook rules & procedures, work: pragmatic, responsive, adaptable The best predictor of performance

The big 5 open closed to experience

Open actively seek new experience Open:
aesthetic interests, analytical, intellectual, imaginative, abstract, diversity of interests

At work work:
creative problem-solvers, abstract thinkers

Closed practical, down to earth Closed: At work focus on accomplishing tasks work:

The big 5 agreeable hostile

Agreeable Agreeable: maintain good relationships & serve others At work natural team players, adaptive work: Hostile mistrustful, irritable, headstrong Hostile: At work not easily fooled, lower work: performers Highly consistent from childhood onwards

Freud & the dynamics of personality

Personality is the outcome of dynamic processes The conscious:
thoughts & perceptions

The pre-conscious: prememories & stored information

The unconscious:
phobias, traumas, sexual urges, anxieties

Freud & the dynamics of personality

Tripartite structure of personality The id pleasure principle id: The ego: reality principle ego The superego: values & morals superego The id (pleasure) & the superego (morality) struggle for control over the ego (reality)

Freud & the dynamics of personality

Defense mechanisms Repression motivated forgetting Repression: Projection externalizing difficult/ Projection: positive feelings
distortions of reality, alienation

Reaction formation reflecting formation: opposite feelings

denial, regression, displacement

Psycho-sexual stages
Oral stage (0 2): mouth
dependent & trusting attitudes

Anus stage (2 4): anus

(non)conforming & (un)controlled attitudes

Phallic stage (4 puberty):

relations & attraction develops

Genital stage (adult life):

self-centeredness ends we derive pleasure from developing our relationships

Major Personality Attributes Influencing OB

Locus of control - The degree to which people believe they are masters of their own fate. Internals Individuals who believe that they control what happens to them. Externals Individuals who believe that what happens to them is controlled by outside forces such as luck or chance. Machiavellianism (Mach) - Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. Conditions Favoring High Machs Direct interaction Minimal rules and regulations Emotions distract for others

Major Personality Attributes Influencing OB

Self-esteem (SE) - Individuals degree of liking or disliking themselves. Self-monitoring - A personality trait that measures an individuals ability to adjust his or her behavior to external, situational factors. Type A personality

Risk Taking
High Risk-taking Managers
Make quicker decisions Use less information to make decisions Operate in smaller and more entrepreneurial organizations

Low Risk-taking Managers

Are slower to make decisions Require more information before making decisions Exist in larger organizations with stable environments

Risk Propensity
Aligning managers risk-taking propensity to job requirements should be beneficial to organizations.

Personality Types
Type As are always moving, walking, and eating rapidly; feel impatient with the rate at which most events take place; strive to think or do two or more things at once; cannot cope with leisure time; are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire. Type Bs never suffer from a sense of time urgency with its accompanying impatience; feel no need to display or discuss either their achievements or accomplishments; play for fun and relaxation, rather than to exhibit their superiority at any cost; can relax without guilt.

Proactive Personality Identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs. Creates positive change in the environment, regardless or even in spite of constraints or obstacles.

Achieving Person-Job Fit

Personality-Job Fit Theory (Holland) Identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover. Personality Types Realistic Investigative Social Conventional Enterprising Artistic

Social learning locus of control

Internal I make things happen Internal: External Things happen to me External: At work work:
internals perform better have better perception of their work, effort and working conditions externals: feel less connection between their effort & the outcome/ under-valuation

LoC may change through new experiences

Conceptions of intelligence (I)

Cognitive processes (explicit theory): theory) 1. Pure speed: simple information speed
processing

2. Choice speed time needed to make speed:

a choice

3. Speed of lexical access retrieving access:

information from L-T memory

4. Speed of reasoning processes processes:

higher order information processing

Measurement of explicit I factors

G: the innate ability to perceive relationships & educe co-relationships (only one factor) Need for specific ability factors (aptitudes): Spatial ability Memory Verbal reasoning Verbal fluency Perceptual speed Inductive reasoning Numerical ability

Emotions Defined
Psychological and physiological episodes experienced toward an object, person, or event that create a state of readiness.

Positive Emotions at Pike Place

Employees at Pike Place Fish Market in Seattle turned a money-losing, morale-draining business into a world-famous attraction by deciding to have fun at work, such as tossing fish and joking with customers.

Emotions- Why Emotions Were Ignored in OB

The myth of rationality Organizations are not emotion-free. Emotions of any kind are disruptive to organizations. Original OB focus was solely on the effects of strong negative emotions that interfered with individual and organizational efficiency.

What Are Emotions?

Affect
A broad range of emotions that people experience.

Emotions
Intense feelings that are directed at someone or something.

Moods
Feelings that tend to be less intense than emotions and that lack a contextual stimulus.

Types of Emotions
Activated Negative
Fearful Astonished Elated

Activated Positive

Sad

Unpleasant

Pleasant

Cheerful

Bored

Content

Tranquil

Emotion Continuum
The closer any two emotions are to each other on the continuum, the more likely people are to confuse them.

Emotion Dimensions
Variety of emotions Positive Negative Intensity of emotions Personality Job Requirements Frequency and duration of emotions How often emotions are exhibited. How long emotions are displayed.

Attitudes versus Emotions

Attitudes
Judgments about an attitude object Based mainly on rational logic Usually stable for days or longer

Emotions
Experiences toward an attitude object Based on awareness of our senses Occur briefly, usually lasting minutes

Emotions, Attitudes and Behavior

Perceived Environment

Beliefs

Attitude

Feelings Behavioral Intentions

Emotional Episodes

Behavior

Emotional Labor
Effort, planning and control needed to express organizationally desired emotions during interpersonal transactions. Emotional labor higher when job requires: frequent and long duration display of emotions displaying a variety of emotions displaying more intense emotions Influenced by culture and other situational factors

Felt versus Displayed Emotions

Felt Emotions An individual s actual emotions. Displayed Emotions Emotions that are organizationally required and considered appropriate in a given job.

Emotional Labor Issues

Difficult to hide true emotions, especially anger Emotional dissonance
Conflict between true and required emotions Potentially stressful with surface acting Less stress through deep acting

Emotional Intelligence Defined

Ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others

Model of Emotional Intelligence

Highest

Relationship Management

Managing other peoples emotions

Social Awareness

Understanding and sensitivity to the feelings, thoughts, and situation of others Controlling or redirecting our internal states, impulses, and resources Understanding your own emotions, strengths, weaknesses, values, and motives

SelfSelf-management

Lowest

SelfSelf-awareness

Improving Emotional Intelligence

Emotional intelligence is a set of competencies (aptitudes, skills) Can be learned, especially through coaching EI higher in people with extroversion, conscientiousness, agreeableness, emotional stability, and low neuroticism

Emotions- Why Emotions Were Ignored in OB

The myth of rationality
Organizations are not emotion-free.

Emotions of any kind are disruptive to organizations.

Original OB focus was solely on the effects of strong negative emotions that interfered with individual and organizational efficiency.

Gender and Emotions

Women Can show greater emotional expression. Experience emotions more intensely. Display emotions more frequently. Are more comfortable in expressing emotions. Are better at reading others emotions. Men Believe that displaying emotions is inconsistent with the male image. Are innately less able to read and to identify with others emotions. Have less need to seek social approval by showing positive emotions.

External Constraints on Emotions

Organizational Influences Cultural Influences

Individual Emotions

Affective Events Theory (AET)

Emotions are negative or positive responses to a work environment event.
Personality and mood determine the intensity of the emotional response. Emotions can influence a broad range of work performance and job satisfaction variables.

Implications of the theory:

Individual response reflects emotions and mood cycles. Current and past emotions affect job satisfaction. Emotional fluctuations create variations in job satisfaction. Emotions have only short-term effects on job performance. Both negative and positive emotions can distract workers and reduce job performance.

Affective Events Theory (AET)

Source: Based on N.M. Ashkanasy and C.S. Daus, Emotion in the Workplace: The New Challenge for Managers, Academy of Management Executive, February 2002, p. 77.

OB Applications of Understanding Emotions

Ability and Selection Emotions affect employee effectiveness. Decision Making Emotions are an important part of the decision-making process in organizations. Motivation Emotional commitment to work and high motivation are strongly linked. Leadership Emotions are important to acceptance of messages from organizational leaders.

OB Applications (contd)
Interpersonal Conflict - Conflict in the workplace and individual emotions are strongly intertwined. Customer Services - Emotions affect service quality delivered to customers which, in turn, affects customer relationships. Deviant Workplace Behaviors Negative emotions lead to employee deviance (actions that violate norms and threaten the organization). Productivity failures Property theft and destruction Political actions Personal aggression

Ability and Selection

Emotional Intelligence An assortment of noncognitive skills, capabilities, and competencies that influence a persons ability to succeed in coping with environmental demands and pressures.
Emotional Intelligence (EI)
Self-awareness Self-management Self-motivation Empathy Social skills

Research Findings
High EI scores, not high IQ scores, characterize high performers.