ORGANIZATION BEHAVIOR

Developer Renu Kotian

Defining Organization Behavior

...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 organizations effectiveness.

Why study OB?

To learn about yourself and how to deal with others You are part of an organization now, and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time Some of you may want to be managers or entrepreneurs

Behavioural science

Contribution Learning Motivation Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress

Unit of analysis

Output

Whats OB made of
Psychology Individual Group dynamics Work teams Communication Power Conflict Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture Behavioural change Attitude change Communication Group processes Group decision making Comparative values Comparative attitudes Cross-cultural analysis Anthropology Organizational culture Organizational environment Conflict Intraorganizational politics Power Organization system Study of Organizational Behaviour

Sociology

Group

Social Psychology

Political Science

Challenges organizations
Organizational Level Productivity Developing Effective Employees Global Competition Managing in the Global Village

faced

by

Group Level Working With Others Workforce Diversity Workplace

Individual Level Job Satisfaction Empowerment Behaving Ethically

If you had to define a companies structureHow would you do it?

3 Parameters of Structure:
Structure is the degree of complexity, formalization and centralization in the organization. Complexity is the degree of vertical, horizontal and spatial differentiation in an organization Formalization is the degree to which jobs within the organization are standardized. Centralization is the degree to which

Why do Structures Differ?.....

Increase in the number of employees results in
High complexity High formalization Decentralization

Power control
An organization structure is the result of power struggle by internal constituencies who are seeking to further their interests

Why do Structures Differ?.....

Three Dimensional Model of the Environment
Stable Abundant Complex Simple Scarce Dynamic

Classical Views of Structure

Division of Labour Specialization; breaking jobs down into simple and repetitions tasks Unity of Command a subordinate should have only one superior to whom he or she is directly responsible. Responsibility - an obligation to perform Line Authority authority to direct the

Classical Views of Structure

Chain of Command the superiorsubordinate authority chain that extends from the top of the organization to the lowest echelon Staff Authority positions that support, assist and advise line managers Span of Control the number of subordinates a manger can efficiently and effectively divert Departmentation - Grouping of activities

Departmentation by Function Departmentation byFunction

Departmentation by Product

Departmentalization by Product

Departmentalization by Customer Departmentation byCustomer

Departmentation Departmentalization by Geography Geography

by

Departmentation by Process

Departmentalization by Process

THE MATRIX STRUCTURE

Departmentalization by Process

Flexibility

Internal Focus

External Focus

Control

Competing Values Framework

Internal-External Dimension
Inwardly toward employee needs and concerns and/or production processes and internal systems or Outwardly, toward such factors as the marketplace, government regulations, and the changing social, environmental, and technological conditions of the future

Flexibility-Control Dimension
Flexible and dynamic, allowing more teamwork and participation; seeking new opportunities for products and services or Controlling or stable, maintaining the status quo and exhibiting less change

Mintzberg`s Five Design Configurations

Mintzberg`s Configurations

Five

Design

The Operating Core: Employees who perform the basic work related to the production of products and services The Strategic Apex: Top level managers who are charged with the overall responsibility of the organization The Middle Level: Managers who connect the operating core to the strategic apex The Techno-Structure: Analysts who have the responsibility for effecting certain forms of standardization in the organization

Example Posts
Strategic Apex
Board of Directors, Chief Executive Officer

Techno Structure
Strategic Planning, Personnel Training, Operations Research, Systems Analysis and Design

Support Staff
Legal Counsel, Public Relations, Payroll, Mailroom Clerks, Cafeteria Workers

Middle Line
VP Operations, VP Marketing, Plant Managers Sales Managers

Operating Core
Purchasing Agents, Machine Operators, Assemblers, Sales Persons, Shippers

The Simple Structure

Low complexity Low formalization Centralized authority

The Machine Bureaucracy

High in complexity, formalization and centralization Key part is technostructure

The Bureaucracy

Professional

High in complexity, formalization Low centralization

The Divisional Structure

A set of autonomous units coordinated by central headquarters

The Adhocracy
A structure characterized as low in complexity, formalization

Lets see how much we know

01. Organizational Behavior:

a. Is the study of large organizations and their structure b. Seeks to understand, explain, predict and change human behaviour c. Is the process of organizing the company d. Is the process of corporate governance

02. Interpersonal, decisional and informational managerial roles were identified by whom:
a. b. c. d. Hawthorn Hertzberg Mintzberg Wheatley

03. The roots of organizational behavior come from research results from:
a. b. c. d. e. Sociology and Psychology Engineering Anthropology All of the above a) and c)

04. Which statement is true?

a. b. c. d. Organizational behavior explores managerial roles and challenges Organizational behavior is the study of financial capital applications Organizational behavior is the study of technological capital applications Organizational behavior is the dividing up of tasks and work roles

05. The benefit (s) of studying Organizational Behavior are/is:

a. Improved managerial effectiveness b. Effective managers c. Become better at influencing others d. Manage your life outside work better e. All of the above

06. GHOST is:

a. b. A model for assessing the impact of OB on management Goals, human resources, organizational structure and technology Goodwill, hygiene, opportunity, standards, time-management The unseen, internal, organizational model

c. d.

07. Open Systems Framework:

a. b. c. Refers to forces of governance, ethical behavior and globalization Describes the internal organization Consists of the external task environment, inputs to the organization, outputs of the organization and feedback processes Describes individual boundaryspanning roles

d.

08. The includes:

a. b. c. d.

formal

organization

Beliefs, assumptions, values and unspoken norms of behavior Technology, structure and other visible parts of the organization Both the overt and covert aspects of the organization The open systems interactions

09. The includes:

a. b. c. d.

informal

organization

Beliefs, assumptions, values and unspoken norms of behavior Technology, structure and other visible parts of the organization Both the overt and covert aspects of the organization The open systems interactions

10. A system of control and performance monitoring of top management is: a. Behavior science b. Formal organization structure c. Informal organization structure d. Corporate governance

11. A word that implies that the world is free from national boundaries and is really a borderless world is: a. b. c. d. Internationalism Globalization Transnationalism Multinationalism

12. The key types of workplace diversity are:

a. b. c. Stereotyping, sex, age, mental and physical disability, ethics Sensitivity, organizational culture, management style, creativity, age Cultural, sexual orientation, age, racial and ethnic, mental and physical disability, gender Sexual orientation, mental and physical disability, whistle-blowing, cultural, age

d.

TEST 2

The coming Organization

of

the

New

Rapid and unexpected change Increasing diversity Change in managerial behaviour Adoption to computer technology

The Mechanistic Structure

The Structure

Mechanistic

High horizontal differentiation Rigid hierarchical relationships Fixed duties High formalization Formalized communication channels Centralized decision authority

The Organic Structure

The Organic Structure..

Low horizontal differentiation Collaboration (both horizontal and vertical) Adaptable duties Low formalization Informal communication Decentralized decision authority

Why do Structures Differ?

Strategy Strategy Structural Option Innovation Organic: loose structures; low division of labour, low formalization, decentralized. Cost Mechanistic: tight control; minimizatio extensive division of labour, high n formalization, high centralization. Initiation Mechanistic and Organic: mix of loose and tight properties; tight controls for current activities, loose controls for newer

Why do Structures Differ?....

Technology Unit Production Mass Process Production Production

Moderate High vertical Structural Low vertical differentiation characteristi differentiation vertical Low horizontal differentiation Low cs differentiation Low formalization High horizontal horizontal differentiation differentiation Low High formalization formalization

Technology
Task variability Few Exceptions Well-defined Problem Analyzability Ill-defined Craft Routine 1 3 2 4 Non routine Many Exceptions Engineering

Technology
Input A B C D Output A. Long-linked Technology
Transformational Process

Client A

Client B

B. Mediating Technology
Resources A B C D

Transformational Process

Output

Feedback

C. Intensive Technology