Organizational Behavior - MGT502

MGT502 - Organizational Behavior - Lecture Handout 01

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OVERVIEW OF COURSE

This subject/course is designed to teach the basic language of organizational behavior to diverse audience/students, including those who are studying this as a supporting subject for their bachelor degree program. This course is designed to provide you the foundations of organizational behavior whether you intend to work in any field of interest.

MGT502 - Organizational Behavior - Lecture Handout 02

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ORGANIZATIONAL BEHAVIOR

Overview

In last lecture we tried to understand the term of organizational behavior its need and its impact on the organization. The focus in this discussion is to have concept of about different core concepts of the organizational behavior and the increasingly important role of this subject in the ever-changing domestic and global business environment Today we will be covering following topics:

Course Structure of OB

MGT502 - Organizational Behavior - Lecture Handout 03

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ORGANIZATIONS: THE IMPORTANT COMPONENT

Overview

Organizational structure and culture affect how people and groups behave in an organization. Together they provide a framework that shapes attitudes, behaviors, and performance. Organizations need to create a structure and culture that allow them to manage individuals and inter-group relations effectively.

MGT502 - Organizational Behavior - Lecture Handout 04

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UNDERSTANDING THE BASICS OF HUMAN BEHAVIOR

Overview

Organizational behavior is not a designated function or area. Rather, it is a perspective or set of tools that all managers can use to carry out their jobs more effectively.
The ability to use the tools of organizational behavior to understand behavior in organizations is one reason for studying this topic. A second reason is to learn how to apply these concepts, theories, and techniques to improve behavior in organizations so that individuals, groups, and organizations can achieve their goals. Managers are challenged to find new ways to motivate and coordinate employees to ensure that their goals are aligned with organizational goals.

MGT502 - Organizational Behavior - Lecture Handout 05

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INDIVIDUAL DIFFERENCES: ABILITIES AND PERFORMANCE

Overview

Understanding and managing global organizational behavior begins with understanding the nature of the differences between national cultures and then tailoring an organization’s strategy and structure so that the organization can manage its activities as it expands abroad. To succeed, global companies must help their managers develop skills that allow them to work effectively in foreign contexts and deal with differences in national culture.

MGT502 - Organizational Behavior - Lecture Handout 06

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UNDERSTANDING THE VALUES

Overview

Work values, attitudes, and moods have important effects on organizational behavior. Work values (a worker’s personal convictions about the outcomes one should expect from work and how one should behave at work) are an important determinant of on-the-job behavior. Job satisfaction and organizational commitment are two key work attitudes with important implications for understanding and managing behaviors such as organizational citizenship behavior, absenteeism, and turnover. Work moods are also important determinants of behavior in organizations. This chapter makes the following points:

MGT502 - Organizational Behavior - Lecture Handout 07

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ATTITUDES AT WORK

Overview

Why is it important to know an individual’s values? Although they do not have a direct impact on behavior, values strongly influence a person’s attitudes. Knowledge of an individual’s value system can provide insight into his/her attitudes. Managers should be interested in their employees’ attitudes because attitudes give warnings of potential problems and because they influence behavior. Satisfied and committed employees, for instance, have lower rates of
turnover and absenteeism. Given that managers want to keep resignations and absences down— especially among their more productive employees—they will want to do those things that will generate positive job attitudes.

MGT502 - Organizational Behavior - Lecture Handout 08

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PERSONALITY

Overview

Individual differences can be divided into personality and ability differences. Understanding the nature, determinants, and consequences of individual differences is essential for managing organizational behavior. An appreciation of the nature of individual differences is necessary to understand why people behave in certain ways in an organization. A review of the personality literature offers general guidelines that can lead to effective job performance. As such, it can improve hiring, transfer, and promotion decisions. Because personality characteristics create the parameters for people’s behavior, they give us a framework for predicting behavior. For
example, individuals who are shy, introverted, and uncomfortable in social situations would probably be ill-suited as salespeople. Individuals who are submissive and conforming might not be effective as advertising “idea” people.

MGT502 - Organizational Behavior - Lecture Handout 09

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EMOTIONS AND MOOD

Overview

Can managers control the emotions of their colleagues and employees? No. Emotions are a natural part of an individual’s makeup. Where managers err is if they ignore the emotional elements in organizational behavior and assess individual behavior as if it were completely rational. As one consultant aptly put it, “You can’t divorce emotions from the workplace because you can’t divorce emotions from people.’’ Managers who understand the role of emotions will significantly improve their ability to explain and predict individual behavior.

MGT502 - Organizational Behavior - Lecture Handout 10

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PERCEPTION

Overview

Individuals behave in a given manner based not on the way their external environment actually is but, rather, on what they see or believe it to be. An organization may spend millions of dollars to create a pleasant work environment for its employees. However, in spite of these expenditures, if an employee believes that his or her job is lousy, that employee will behave accordingly. It is the employee’s perception of a situation that becomes the basis for his or her behavior. The employee who perceives his/her supervisor as a hurdle reducer who helps him/her do a better job and the employee who sees the same supervisor as “big brother, closely monitoring every
motion, to ensure that I keep working” will differ in their behavioral responses to their supervisor. The difference has nothing to do with the reality of the supervisor’s actions; the difference in employee behavior is due to different perceptions.

MGT502 - Organizational Behavior - Lecture Handout 11

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PERCEPTION, ATTITUDES AND PERSONALITY

Overview

Perception and attribution are important topics because all decisions and behaviors in organizations are influenced by how people interpret and make sense of the world around them and each other. Perception is the process by which individuals select, organize, and interpret sensory input. Attribution is an explanation of the cause of behavior. Perception and attribution explain how and why people behave in organizations and how and why they react to the behavior of others. This chapter makes the following points:

MGT502 - Organizational Behavior - Lecture Handout 12

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PERCEPTION AND DECISION MAKING

The Link between Perception and Individual Decision Making

Individuals in organizations make decisions; they make choices from among two or more alternatives.
- Top managers determine their organization’s goals, what products or services to offer, how best to finance operations, or where to locate a new manufacturing plant.
- Middle- and lower-level managers determine production schedules, select new employees, and decide how pay raises are to be allocated.

MGT502 - Organizational Behavior - Lecture Handout 13

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MOTIVATION-THE BASIC CONCEPT

Overview

Motivating and rewarding employees is one of the most important and one of the most challenging activities that managers perform. Successful managers, such as Angel Lorenzo, in our chapter-opening Manager's Dilemma, understand that what motivates them personally may have little or no effect on others. Just because you're motivated by being part of a cohesive work team, don't assume everyone is. Or just because you're motivated by challenging work doesn't mean that everyone is. Effective managers who want their employees to put forth maximum effort recognize that they need to know how and why employees are motivated and to tailor their motivational practices to satisfy the needs and wants of those employees.

MGT502 - Organizational Behavior - Lecture Handout 14

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MOTIVATIONAL THEORIES

Overview

The theories and approaches we're going to look at in this section represent current state-of-theart explanations of employee motivation. Although these may not be as well known as some of the early theories of motivation, they do tend to have substantive research support. What are these contemporary motivation approaches? We're going to look at six: three-need theory, goalsetting theory, reinforcement theory, designing motivating jobs, equity theory, and expectancy theory.

MGT502 - Organizational Behavior - Lecture Handout 15

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REWARD SYSTEMS

Overview and Learning Objectives

Understand the nature of employee motivation.
Recognize the importance of creating a workplace that inspires and supports employee motivation.
Identify aspects of today's workplace that can affect employee motivation.
Understand the nature of employee motivation.
Recognize the importance of creating a workplace that inspires and supports employee motivation.
Identify aspects of today's workplace that can affect employee motivation.

MGT502 - Organizational Behavior - Lecture Handout 16

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REVIEW OF PART-I

Organizational Behavior

Interdisciplinary field dedicated to better understanding and managing people at work

Behavior function

Behavior is a function of both the Person and the Environment. B = f (P/E)

Organization

System of consciously coordinated activities of two or more people

E-business

Running the entire business via the Internet

MGT502 - Organizational Behavior - Lecture Handout 17

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FOUNDATIONS OF GROUP BEHAVIOR

Overview

Organizations are not just collections of individuals working alone; members are usually clustered into groups or teams. Groups can accomplish things that are difficult for individuals working alone. The use of groups poses special challenges for management. Thus, this focuses on the nature and functioning of work groups and teams, such as how work groups develop and how group membership affects individual behavior.

MGT502 - Organizational Behavior - Lecture Handout 18

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UNDERSTANDING TEAMS

Overview

Few trends have influenced employee jobs as much as the massive movement to introduce teams into the workplace. The shift from working alone to working on teams requires employees to cooperate with others, share information, confront differences, and sublimate personal interests for the greater good of the team.

MGT502 - Organizational Behavior - Lecture Handout 19

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GROUP DECISION MAKING

Overview

Group and organizational effectiveness hinge on minimizing process losses, achieving process gains, aligning group goals with organizational goals, and having the appropriate level of group cohesiveness. Three types of groups that are especially important in many organizations include the top management team, self-managed work teams, and research and development teams. This chapter makes the following points:

MGT502 - Organizational Behavior - Lecture Handout 20

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COMMUNICATION

Overview

Communication is one of the most important processes that take place in organizations. Effective communication allows individuals, groups, and organizations to achieve their goals and perform at a high level, and it affects virtually every aspect of organizational behavior. This chapter makes the following points.

MGT502 - Organizational Behavior - Lecture Handout 21

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COMMUNICATION

Overview

An organization’s effectiveness hinges on good communication, as does the effectiveness of groups and individuals inside the organization. This chapter focuses on the nature of communication, one of the most important processes in an organization. The communication process and its functions are described, as are communication problems and how to avoid them. Methods and patterns of communication in organizations are also considered.

MGT502 - Organizational Behavior - Lecture Handout 22

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LEADERSHIP THEORIES

Overview

Leadership

Leadership plays a central part in understanding group behavior, for it is the leader who usually provides the direction toward goal attainment. Therefore, a more accurate predictive capability should be valuable in improving group performance.

LEADERSHIP THEORIES

MGT502 - Organizational Behavior - Lecture Handout 23

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LEADERSHIP APPLICATION

Overview

Leaders at all levels in an organization help individuals, groups, and the organization as a whole achieve their goals and can thus have profound effects in organizations. The approaches to leadership covered help explain how leaders influence their followers and why leaders are sometimes effective and sometimes ineffective.

MGT502 - Organizational Behavior - Lecture Handout 24

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POWER AND POLITICS

Overview

If you want to get things done in a group or organization, it helps to have power. As a manager who wants to maximize your power, you will want to increase others’ dependence on you. You can, for instance, increase your power in relation to your boss by developing knowledge or a skill that he needs and for which he perceives no ready substitute, but power is a two-way street. You will not be alone in attempting to build your power bases. Others, particularly employees and peers, will be seeking to make you dependent on them. The result is a continual battle. While you seek to maximize others’ dependence on you, you will be seeking to minimize your dependence on others, and, of course, others you work with will be trying to do the same. Few employees relish being powerless in their job and organization. It has been argued, for instance, that when people in organizations are difficult, argumentative, and temperamental, it may be because they are in positions of powerlessness, where the performance expectations placed on them exceed their resources and capabilities.

MGT502 - Organizational Behavior - Lecture Handout 25

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POWER AND POLITICS

Overview

MGT502 - Organizational Behavior - Lecture Handout 26

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CONFLICT AND NEGOTIATION

Overview

Many people automatically assume that conflict is related to lower group and organizational performance. This chapter has demonstrated that this assumption is frequently incorrect. Conflict can be either constructive or destructive to the functioning of a group or unit. Levels of conflict can be either too high or too low. Either extreme hinders performance. An optimal level is where there is enough conflict to prevent stagnation, stimulate creativity, allow tensions to be released, and initiate the seeds for change, yet not so much as to be disruptive or deter coordination of activities.

MGT502 - Organizational Behavior - Lecture Handout 27

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CONFLICT AND NEGOTIATION

Overview

Many people automatically assume that conflict is related to lower group and organizational performance. This chapter has demonstrated that this assumption is frequently incorrect. Conflict can be either constructive or destructive to the functioning of a group or unit. As shown in Exhibit 14-8, levels of conflict can be either too high or too low. Either extreme hinders performance. An optimal level is where there is enough conflict to prevent stagnation, stimulate creativity, allow tensions to be released, and initiate the seeds for change, yet not so much as to be disruptive or deter coordination of activities.

MGT502 - Organizational Behavior - Lecture Handout 28

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REVIEW OF PART-II

Group

Two or more freely interacting people with shared norms and goals and a common identity

Formal group

Formed by the organization

Informal group

Formed by friends or those with common interests.

Group Cohesiveness

A "we feeling" binding group members together

Roles

Expected behaviors for a given position.

MGT502 - Organizational Behavior - Lecture Handout 29

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REVIEW OF PART-II

Organization

System of consciously coordinated activities of two or more people

Organizational Behavior

Interdisciplinary field dedicated to better understanding and managing people at work

Theory Y

McGregor's modern and positive assumptions about employees being responsible and creative

Total quality management

An organizational culture dedicated to training, continuous improvement and customer satisfaction

MGT502 - Organizational Behavior - Lecture Handout 30

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FOUNDATIONS OF ORGANIZATIONAL STRUCTURE

Overview

No other topic in management has undergone as much change in the past few years as that of organizing and organizational structure. Traditional approaches to organizing work are being questioned and reevaluated as managers search out structural designs that will best support and facilitate employees' doing the organization's work—ones that can achieve efficiency but also have the flexibility that's necessary for success in today's dynamic environment. Recall that organizing is defined as the process of creating an organization's structure. That process is important and serves many purposes. The
challenge for managers is to design an organizational structure that allows employees to effectively and efficiently do their work. Just what is an organization's structure? An organizational structure is the formal framework by which job tasks are divided, grouped, and coordinated. When managers develop or change an organization's structure, they are engaged in organizational design, a process that involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.

MGT502 - Organizational Behavior - Lecture Handout 31

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ORGANIZATIONAL DESIGN

The Basics of Organizational Structure

Organizational structure defines how job tasks are formally divided, grouped, and coordinated.
The organization chart is a visual representation of this division, grouping, and coordination

MGT502 - Organizational Behavior - Lecture Handout 32

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WORK DESIGN AND TECHNOLOGY

Overview

This lecture considers the creation and use organizational structure and culture to manage individuals and inter-group relations effectively, particularly between different functions and divisions. It describes how managers group people and resources, integrate people and groups to stimulate them to work together, and how organizational values and norms influence inter-group relationships and organizational effectiveness.

The Matrix Structure

MGT502 - Organizational Behavior - Lecture Handout 33

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HUMAN RESOURCE POLICIES AND PRACTICES

Human Resource Management

“Managerial function that tries to match an organization’s needs to the skills and abilities of its employees”

MGT502 - Organizational Behavior - Lecture Handout 34

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HUMAN RESOURCE POLICIES AND PRACTICES

Job Analysis

Job analysis is the procedure through which you determine the duties and nature of the jobs and the kinds of people who should be hired for them. You can utilize the information it provides to write job descriptions and job specifications, which are utilized in recruitment and selection, compensation, performance appraisal, and training.

I. Steps in Job Analysis

Job Analysis process has following steps:

MGT502 - Organizational Behavior - Lecture Handout 35

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HUMAN RESOURCE POLICIES AND PRACTICES

Overview

In this lecture, we first discuss the concept of career, career planning and development. Next, we distinguish between job security and career security. Then, we identify several factors that affect career planning and discuss both individual and organizational career planning. We next address career paths and discuss career development, then, career planning and development methods are described. We devote the last part of the chapter to a discussion of developing unique segments of the workforce.

MGT502 - Organizational Behavior - Lecture Handout 36

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ORGANIZATIONAL CULTURE

Overview

Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people. This overall perception becomes, in effect, the organization’s culture or personality. These favorable or unfavorable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures.

MGT502 - Organizational Behavior - Lecture Handout 37

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ORGANIZATIONAL CHANGE

How to Change a Culture

If the culture no longer supports the goals and strategy of an organization, it should be changed.
Mergers and acquisitions generally result in a change in culture.

MGT502 - Organizational Behavior - Lecture Handout 38

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CHANGE MANAGEMENT

Resistance to Change

Rate of Technological Change

One of the well-documented findings is that organizations and their members resist change.
- It provides a degree of stability and predictability to behavior.
- There is a definite downside to resistance to change. It hinders adaptation and progress.
Read more: MGT502 - Organizational Behavior - Lecture Handout 38

MGT502 - Organizational Behavior - Lecture Handout 39

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ORGANIZATIONAL DEVELOPMENT

Organizational development (OD) is a term used to encompass a collection of planned-change interventions built on humanistic-democratic values that seek to improve organizational effectiveness and employee well-being.

The OD paradigm values human and organizational growth, collaborative and participative processes, and a spirit of inquiry.

MGT502 - Organizational Behavior - Lecture Handout 40

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STRESS AND MANAGING STRESS

Overview

Stress affects individual well-being and has the potential to affect the extent to which individuals and organizations achieve their goals and perform at a high level. Stress is bound up with workers’ personal lives; thus the study of stress also entails exploring the nature of work-life linkages.

MGT502 - Organizational Behavior - Lecture Handout 41

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REVIEW OF PART-III

Organization

System of consciously coordinated activities of two or more people

Unity of Command Principle

Each employee should report to a single manager

Organization Chart

MGT502 - Organizational Behavior - Lecture Handout 42

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FUTURE DIRECTIONS IN ORGANIZATIONS

High-Performance Organization

Business organizations today face unprecedented challenges. Across virtually every industry, managers are confronted with new conditions of rapid technological change and intense global competition – conditions that demand capacities of leadership, adaptability, and coordination on a scale never before imagined. As traditional sources of competitive advantage are being eroded, organization design is becoming a crucial strategic differentiator. This course aims to prepare you to help lead in the design of high-performance organizations, whether as a manager or a consultant.

Basic Systems View o f Organization