OB Unit - 1
OB Unit - 1
OB Unit - 1
“OB is a field of study that investigates the impact that individuals, groups and
structures have on behaviour within organizations for the purpose of applying such
knowledge towards improving an organization’s effectiveness.”
___ Stephen P. Robbins
• OB is the study of learning how to predict human behavior and then apply it in
some useful way to make the organization more effective. It helps in the
effective utilization of people working in the organization and guarantees the
success of the organization.
• OB helps managers to understand the basis of motivation and what he should
do to motivate their subordinates.
• OB helps to maintain cordial industrial relations which help to increase the
overall productivity of the industry.
• It helps greatly in improving bur inter-personal relations in the organizations.
• It helps managers apply appropriate motivational techniques in accordance with
the nature of individual employees who exhibit a learning difference in many
respects.
2. Group Level – Deals with the concepts at the group level. Examples
of group-level concepts are team, conflict, leadership, power, and
politics. Group-level concepts may include how groups are formed,
how to make effective teams, how individually and collectively the
group activities can be improved, how to motivate employees, and
which type of group would be suitable for a particular assignment.
Importance
The importance of organizational behaviour is
• Organizational behaviour helps to build a better relationship in an
organization by achieving social, corporate and people’s objectives
• Organizational behaviour fosters goodwill of the organization
• Organizational behaviour helps to create sustainable competitive
advantages by covering people into valuable resources through various
practices
• Organizational behaviour helps in better coordination within the
organization
• Organizational behaviour includes behaviour, change management, training
and development, teams and leadership etc.
• Organizational behaviour is significant as it helps to achieve objectives at a
fast pace
• Organizational behaviour facilitates motivation
• Organizational behaviour improves relations in an organization.
• Organizational behaviour helps in optimal utilization of resources.
• Organizational behaviour results in higher levels of efficiency.
• Organizational behaviour is multidisciplinary as it applies different types of
theories, methods and techniques to evaluate the performances.
ORGANIZATIONAL BEHAVIOUR NATURE:
4. A Normative Science:
Organizational Behaviour is a normative science also. While the positive
science discusses only cause effect relationship, O.B. prescribes how the
findings of applied researches can be applied to socially accepted
organizational goals. Thus, O.B. deals with what is accepted by individuals
and society engaged in an organization. Yes, it is not that O.B. is not
normative at all. In fact, O.B. is normative as well that is well underscored by
the proliferation of management theories.
MANAGEMENT FUNCTIONS
• Planning
• Organizing
• Leading
• Controlling
❖ Planning:
Managers first need to develop a plan, then organize their resources and delegate
responsibilities to employees according to the plan, then lead others to efficiently
carry out the plan, and finally evaluate the plan’s effectiveness as it is being
executed and make any necessary adjustments.
In the planning stage, managers establish organizational goals and create a course
of action to achieve them. During the planning phase, management makes strategic
decisions to set a direction for the organization. Managers can brainstorm different
alternatives to achieve the objective before choosing the best course of action.
While planning, managers typically conduct in-depth analysis of the organization’s
current state of affairs, taking into consideration its vision and mission and
evaluating what resources are available to meet organizational objectives.
While planning, managers usually evaluate internal and external factors that may
affect the execution of the plan, such as economic growth, customers and
competitors. They also establish a realistic timeline for achieving the goal or goals
based on the organization’s available finances, personnel and resources. Managers
may have to take additional steps, such as seeking approval from other
departments, executives or their board of directors before proceeding with the plan.
❖ Organizing:
When assigning team member roles, managers should explain and ensure that
employees understand their individual duties. To help employees feel engaged and
productive, managers should ensure that employees are assigned an appropriate
amount of work and an appropriate amount of time to complete their work.
Here are some examples of the organizing function:
• If the company’s brand manager works part-time and the organization’s goal
is to launch a new advertising campaign for a product, the brand manager
may not take on the significant responsibility of managing the campaign
besides their regular duties. The company may hire an advertising agency to
help with the promotion of the product.
• If a company’s sales in a geographic area have grown exponentially,
management may plan to split the territory in two and need to divide the
current team working in the territory and hire additional staff members as
needed.
❖ Leading:
• Directing: The manager leads by deciding with little input from the
employee. This is an effective leadership style for new employees who need
a lot of initial direction and training.
• Coaching: The manager is more receptive to input from employees. They
may pitch their ideas to employees to work cooperatively and build trust
with team members. This style of leadership is effective for individuals who
need managerial support to further develop their skills.
• Supporting: The manager decides with team members but focuses more on
building relationships within the team. This style of leadership is effective
for employees who have fully developed skills but are sometimes
inconsistent in their performance.
• Delegating: The leader provides a minimum of guidance to employees and
is more concerned with the vision of the project than day-to-day operations.
This style of leadership is effective with employees able to work and
perform tasks on their own with little guidance. The leader can focus more
on high-level goals than on tasks.
➢ Controlling:
Controlling is the process of evaluating the execution of the plan and making
adjustments to ensure that the organizational goal is achieved. During the
controlling stage, managers perform tasks such as training employees as necessary
and managing deadlines. Managers monitor employees and evaluate the quality of
their work. They can conduct performance appraisals and give employees
feedback, providing positive remarks on what they are doing well and suggestions
for improvement. They may also offer pay raise incentives to high-performing
employees.
Budget adjustments
Managers monitor the budget and resources to ensure that they are using the
resources available and not going over budget. For example, a manager may notice
that she is going over budget on a project but be unsure what is causing the project
to go over budget. In this situation, she will need to identify whether there is a
general problem with overspending or whether one department, in particular, is
going over budget. Once the manager identifies the source of the overspending, she
must take action to curb overall spending and make cuts as necessary to balance
the budget.
Staffing adjustments
Organization behavior examines and gathers the insights on employee behavior, as how
to drive them with the proper motivation by understanding them a little better.
Organizational behavior should start with the role of the managers and how well they
incorporate moral and support down the hierarchy. Managerialism is not just about
gaining profits, and executing control but, creating a safe space for interaction of
different opinions and to be able to work as a group and achieve organizational goals.
As they say, there is no I in Team. The organization that works together, grows
together.
It all comes down to the question of, what role should the manager play, keeping in
mind what should be expected of him/her with respect to organizational behavior?
• As a manager, he probably fulfill many different roles every day.
• For instance, as well as leading the team, resolving a conflict, negotiating new
contracts, representing your department at a board meeting, or approving a
request for a new computer system.
• Put simply, you're constantly switching roles as tasks, situations, and
expectations change. Management expert and Professor Henry Mintzberg
recognized this, and he argued that there are ten primary roles or behaviors that
can be used to categorize a manager's different functions.
• Figurehead.
• Leader.
• Liaison.
• Monitor.
• Disseminator.
• Spokesperson.
• Entrepreneur.
• Disturbance Handler.
• Resource Allocator.
• Negotiator.
From MINTZBERG ON MANAGEMENT by Henry Mintzberg. Copyright © 1989 by Henry Mintzberg. Reprinted by
permission of Free Press, a division of Simon & Schuster, Inc.
Category Roles
Figurehead
Leader
Interpersonal Liaison
Monitor
Disseminator
Informational Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Decisional Negotiator
Role of Managers:
Figure Head –
In this role, the manager performs duties of ceremonial nature, such as,
attending an employee’s wedding, taking the customer to lunch, greeting the
tourist dignitaries and so on.
As a manager, you have social, ceremonial and legal responsibilities. You're
expected to be a source of inspiration. People look up to you as a person
with authority, and as a figurehead.
Leader Role –
In this role, the manager is a leader, guiding the employees in the right path,
with the proper motivation and encouragement.
This is where you provide leadership for your team, your department or
perhaps your entire organization; and it's where you manage the
performance and responsibilities of everyone in the group.
Liaison Role –
In this role, the manager cultivates contacts outside the vertical chain of
command to collect useful information for the organization.
Managers must communicate with internal and external contacts. You need
to be able to network effectively on behalf of your organization.
➢ Informational Role:
Monitor Role –
Disseminator Role –
Spokesperson Role –
➢ Decisional Role :
• Entrepreneurial role –
In this role, the manager acts as an entrepreneur, always thirsty for new
knowledge and innovation to improve the organization. Nowadays, it doesn’t
matter if the organization is bigger or better, but it is necessary that it grows
consistently. Innovation is creating new ideas which may either result in the
development of new products or services or improving upon the old ones.
This makes innovation an important function for a manager.
As a manager, you create and control change within the organization. This
means solving problems, generating new ideas, and implementing them.
In this role, the manager acts a disturbance handler, where the manager has to
work reactively like a firefighter. The manager should come up with solutions
to any problem that arises and handle it in an orderly way.
In this role, the manager acts as a resource allocator where the manager must
divide work and delegate authority among his subordinates. The manager
should plan out which subordinate will get what based on the abilities and
who will be more suited into a particular task.
You'll also need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning staff and other
organizational resources.
• Negotiator –
In this role, the manager acts as a negotiator where the manager at all levels
has to spend considerable time in negotiations. The president of a company
may negotiate with the union leaders about a new strike issue or the foreman
may negotiate with the workers about a grievance problem, etc.
You may be needed to take part in, and direct, important negotiations within
your team, department, or organization.
Management Skills
When we talk about managerial skills, we talk about the skills of a manager to
maintain high efficiency in the way how his or her employees complete their
everyday working tasks. Because of that, managers will need skills that will
help them to manage people and technology to ensure an effective and
efficient realization of their working duties.
• Technical skills
• Conceptual skills
• Human or interpersonal management skills
➢ Technical Skills
• As the name of these skills tells us, they give the manager knowledge and
ability to use different techniques to achieve what they want to achieve.
Technical skills are not related only for machines, production tools or other
equipment, but also they are skills that will be required to increase sales,
design different types of products and services, market the products and
services, etc.
• Technical skills are most important for first-level managers. What it comes
to the top managers, these skills are not something with high significance
level. As we go through a hierarchy from the bottom to higher levels, the
technical skills lose their importance.
➢ Human Skills
• Ability to work with, understand, and motivate other people, both
individually and in groups, describes human skills.
• These skills enable managers to become leaders and motivate employees for
better accomplishments. Additionally, they help them to make more
effective use of human potential in the company. Simply, they are essential
skills for all hierarchical levels in the company.
➢ Conceptual Skills
• The mental ability to analyze and diagnose complex situations.
• Decision making, for example, requires managers to spot problems, identify
alternatives that can correct them, evaluate those alternatives, and select the
best one.
• Conceptual skills are vital for top managers, less critical for mid-level
managers and not required for first-level managers. As we go from the
bottom of the managerial hierarchy to the top, the importance of these skills
will rise.
People skills
❖ The ability to relate to others.
“Having the ability to relate to others and their position or viewpoint is crucial in
business,” Hockett says. “By having a well-rounded personality and set of
experiences, it’s usually possible to relate to almost anyone.” Sometimes being able to
relate to others simply means that you’re willing to agree to disagree with mutual
respect; letting them know you understand their position.
This is the most fundamental people skill because it encompasses your persona and
ability to get along with other colleagues, persuade others to listen to your ideas, and
much more, Taylor says. “If you have a gift for the spoken and written word, you will
always put your best foot forward. Being articulate is highly prized in today’s
workplace, when time is at a premium and technology requires constant
communication.”
“If you're patient with others and can keep a level head in stressful situations, it will
definitely be noticed by management and perceived as a very strong asset,” says Amy
Hoover, president of Talent Zoo. “When your boss is forced to deal with a situation
where people have lost their cool he or she will certainly remember the troublemakers
when the next promotion comes available.”
You can only accelerate your career if you’re trustworthy. “Without it, you can’t get
projects done or get cooperation,” Taylor says. “No one can operate in a vacuum for
long.”
“Having the ability to place yourself in someone else’s shoes is a key people skill,”
says Ryan Kahn, a career coach, founder of The Hired Group, star of
MTV’s Hired! and author of Hired! The Guide for the Recent Grad. It allows us to
create relationships with others, provides insights into people’s motives and allows us
to predict responses.
“Offer support, sympathy and feedback in your daily business life,” Taylor suggests.
“It will bring you positive emotional returns – part of ‘corporate karma.’” If you
contribute to a dehumanized company, both you and your employer will have limited
growth potential, she says.
Hockett reminds us that things are not always black and white, and in order to have
effective relationships with others we need to show compassion where appropriate.
“In a perfect world there would be no hiccups, but life happens and knowing when to
show compassion when others face challenges is important.”
Hearing someone and actively listening to them are two different things, Hockett
explains. Most people hear someone speak and start to form a response in their mind
(or worse, starting talking) before the person finishes what they’re saying. “The key is
to actively listen, which takes more time but produces better results. It means you
listen without interruption and then take the time to think and form a response before
replying. It takes practice, but it pays off.”
Taylor says the axiom “we were given two ears and one mouth” speaks volumes. “Be
a good listener and remain sensitive to the needs of your workers and boss. This
people skill can be practiced; and once honed, you’ll see the difference in the positive
reaction of those around you.”
People know when you’re truly interested in them, Kahn says. “If you’re not showing
a genuine interest – asking thoughtful questions and considering about their answers –
your interaction can actually have an opposite effect to the one intended. Take care to
remember names, dates and important life events.”
➢ Flexibility.
Being "likable" or having a "good personality" are highly contingent and context
dependent attributes, Parnell explains. “Your prison-bound uncle's personality may
not be likeable at the Thanksgiving table, but it may serve him well once incarcerated.
Supreme communicators have a keen ability to shift gears when the context calls for
it, and a deep well of communication options to choose from. This way, they can
respond accordingly to what the current situation requires.”
Taylor agrees. She adds: “If you can bend your own rules and beliefs, you are by
definition a ‘good people person.’”
➢ Good judgment.
Good judgment is a key people skill that comes directly from learning, listening to
others and observing the world around you, Kahn says. “It allows you to wisely select
friends and associates, determine reactions and responses, and make sound decisions.”
Parnell adds: “Pay attention to your gut - it often has something valuable to say.”
There’s a good chance that at some point in your career you’ll have to sell others on
your ideas, products or services. Whether you’re up for a promotion, pitching a
project, or selling clothing in a retail store, you need to be able to form a strong,
convincing argument for why you, or your products, are the very best, or the “right”
one.
➢ Negotiation skills.
Good negotiating skills are beneficial with both internal and external discussions,
Hoover says. “Internally, job offers and salary discussions greatly benefit from solid
negotiating, as well as when it's time to pitch a new idea or sway coworkers to your
way of thinking. Externally, both vendors and customers often require negotiations
and you can really become the hero when you are successful in either scenario.”
“To create trust and respect in others, people need to know that their point of view and
feedback will be considered and used,” Kahn says. Being known as someone who
keeps an open mind also makes you more approachable and easier to work with.
“Who doesn’t enjoy laughing? It’s ‘the great diffuser’ of tension and conflict. If you
can jam the system of tension or routine with levity, you will thrive in your job,”
Taylor says. “It was once said that ‘nobody ever died of laughter,’ and if you can
retain some lightheartedness in your job, you’re likely to get more air time during
meetings and overall.”
Knowing what, how, and when to say things to others is critical. For example, if
someone just loss their job, it’s probably not a good idea to talk about your promotion.
This seems trivial, but it’s one of the primary reasons why people encounter
communication breakdowns with each other, Hockett explains.
➢ Honesty.
The saying, “honesty is the best policy” is not only true, it’s essential in building trust
among your colleagues, Taylor says. “Once you lose it, it’s almost impossible to
regain.
Kahn agrees and says people want to work with those that they know they can
trust. “Honesty is the foundation of any relationship, particularly in business.”
Work is a series of problem solving situations, but if you’re proactive, you’ll take the
pressure off your boss and colleagues, Taylor says. This is a great people skill to have
in the workplace.
➢ Leadership skills.
If you can motivate a team and help those around you do their best work, you'll be
more successful even if you're not in management, Hoover says.
➢ Good manners.
“Using ‘please’ and ‘thank you’ goes a long way in the realm of people skills,”
Taylor explains. While seemingly obvious, some need little reminders. Keeping a post
it with a smile or another icon can remind us that work is more than getting something
accomplished, it’s how we get it accomplished.
“People want others to believe in them, regardless of how successful they might be.
By showing support in the form of encouragement, you can put someone back on
track or keep them headed in the right direction,” Hockett explains.
Taylor says: “Not only should you praise and recognize your staff, all the while being
accessible and upbeat. You should also be motivational around your boss and
colleagues. Employees at all levels want to be around enthusiastic people with drive
and high energy.”
“When workers know how to conduct themselves with people sensitivity, their career
outlook is much more enhanced,” Taylor says. “Employees who are aware of the
‘human factor’ in the workplace understand how to get things done.” Assuming the
work is satisfying, it’s how people feel at work that will determine their loyalty and
contributions.
Hockett concludes: “Nowadays many of us live in two worlds, the real and digital one.
Make sure that your people skills are consistent across both.”