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Management Process and

Organisational Behaviour

Subject Code: MB

0038/MBF 101

Revised Edition: Spring 2010

BKID

B1621

Sikkim Manipal University


Directorate of Distance Education
Department of Management and Commerce
Board of Studies
Chairman
HOD Management and Commerce
SMU DDE

Mr. Pankaj Khanna


Director
HR, Fidelity Mutual Fund

Additional Registrar
SMU DDE

Mr. Shankar Jagannathan


Former Group Treasurer
Wipro Technologies Limited

Dr. T. V. Narasimha Rao


Adjunct Faculty and Advisor
SMU DDE

Mr. Abraham Mathew


Chief Financial Officer
Infosys BPO

Prof. K. V. Varambally
Director
Manipal Institute of Management, Manipal
Revised Edition: Spring 2010
Printed: June 2012
This book is a distance education module comprising a collection of learning
materials for our students. All rights reserved. No part of this work may be
reproduced in any form by any means without permission in writing from Sikkim
Manipal University, Gangtok, Sikkim. Printed and Published on behalf of Sikkim
Manipal University, Gangtok, Sikkim by Manipal Global Education Services
Manipal 576 104. Printed at Manipal Technologies Limited, Manipal.

Authors Profile:
Dr (Col) P. S James earned his Doctoral Degree from Devi Ahiliya University,
Indore. He completed MBA from UBS, Chandigarh & Israel Asper School of
Management of University of Manitoba, Canada. He also holds a Masters Degree in
Psychology from Madras University and a Masters Degree in Defence Studies from
Defence Services Staff College, Wellington. He served the Indian Army for 24
years. His professional experience includes successfully handling leadership roles
as founder Dean of Saintgits Institute of Management, founder President of Indeco
Leisure Hotels Pvt Ltd. and Head of National Cadet Corps in Trichy, Joint Director
of Human Resources at Army Headquarters. His excellence in professional
activities was awarded with The Chief of the Army Staff Commendation, The Order
of the Dronacharya and UN Service Medal for excellence. Presently, he is a
Professor at T.A Pai Management Institute, (TAPMI), Manipal. He is a consultant in
the areas of Development of Organizational Vision and Mission, Leading Change in
organizations to include Organizational Design, Competency Mapping, Training
Effectiveness Evaluation and Organizational Stress Measuring and mitigation.
Peer Reviewers Profile:
Dr. Juin Choudhury earned her Doctorate in Management from Indian School of
Mines, Dhanbad. She holds her Masters in Psychology from Vinoba Bhave
University, Hazaribagh. She has a rich experience of six years in research and
development, and is a part of academia for more than nine years. Presently, she is
an Associate Professor at The Institute of Finance and International Management
(IFIM), Bangalore. She has published more than 20 research papers and articles in
different journals and magazines including Indian Journal of Economics and Journal
of Social Science and Productivity. She also has advisory experience with several
organisations such as Pepsico (Calcutta) and Syscon Microfinance Solution. She is
a specialist in Human Resource Management, Organisational Behaviour,
Organisational Development and Industrial Relations.
In House Content Review Team
Dr. Sudhakar G. P.
HOD
Management and Commerce
SMU DDE, Bangalore

Prof. Vidya M. V.
Assistant Professor
Management and Commerce
SMU DDE, Bangalore

Contents
Unit 1
Understanding an Organisation

Unit 2
Introduction to Management and Management Process

20

Unit 3
Planning and Decision Making

43

Unit 4
Organising and Staffing

62

Unit 5
Leading

89

Unit 6
Controlling

107

Unit 7
Introduction to Organisational Behaviour

135

Unit 8
Individual Behaviour 1
(Personality and Perception)

156

Unit 9
Individual Behaviour 2
(Values, Attitudes, and Emotions)

180

Unit 10
Individual Behaviour 3 (Learning and Motivation)

203

Unit 11
Group Behaviour 1 (Introduction to Group Behaviour) 225
Unit 12
Group Behaviour 2 (The Team)

249

Unit 13
Group Behavior - 3 (Leadership)

272

Unit 14
Power, Politics, Conflict, Negotiation and Stress

302

Unit 15
Organisational Culture and Change

326

MB 0038/MBF 101
Management Process and Organisational
Behaviour
Course Description
Management Process and Organisational Behaviour (MPOB) is a
fundamental subject in management education because it forms the
foundation on which other knowledge in managing is built. Management is
the process of getting activities completed efficiently and effectively with and
through other people. Process means a sequence of interdependent and
linked procedures that enable creating some output. Combining these, we
can say that Management Process (MP) is that sequence of independent
and linked procedures that enable getting activities completed efficiently and
through people. It follows that to manage efficiently and effectively, we have
to follow a sequence of actions or procedures.
Organisational Behaviour (OB) on the other hand is how people behave in
their individual capacity and as part of the organisation. Since activities get
completed with and through people, it follows that the MP and OB has to
coexist. MPOB is the study of this inseparable linkage that creates an
efficient and effective output with and through people. If you have closely
observed, you will find that a term effective has been added in the earlier
sentence. Efficiency is about creating an output using the optimal input, for
example, a salesperson who sells 10 pieces of an item in one call can be
told to be more efficient than one who sells 10 pieces in two visits. But it is
possible that the second person has created a long lasting relation with the
client and thereafter ensures regular order without any further visits. This is
about being effective. In other words, efficiency means that we are doing
things right and effectiveness means that we are doing the right thing.
Management is about both efficiency and effectiveness.
What will we learn about Management Process (MP)
Take the case of making a car, selling it, and servicing it. It requires detailed
planning of what type of car to make, where to set up the factory, how to get
raw material and people, how to ship the finished products, how to sell

them, etc. Once things are planned, we have to get the people and get
various activities of making the car done by the people or in other words, we
have to organise the activities and connect them which is called organising.
Each of these would need people and this matching of people to various
activities is called staffing. Wherever there are people, we need a leader
and peoples output is based on leadership. Therefore, leading becomes
important. When the cars come out, we should ensure that the cost is
appropriate, all parts are fitting well, and there are no deviations. This is the
role of controlling. These actions which form the part of MP can be formally
put as 1) planning, 2) organising, 3) staffing, 4) leading (in earlier literature,
this was called directing), and 5) controlling.
What will we learn about Organisational Behaviour (OB)
Each organisation has its own way of behaving. For example, Airtel will
have one way of behaving and Vodafone another way, even though both
are mobile providers. This is because the vision and mission are different for
these and consequently the strategy, structure, system, etc are also unique
to each of these. People are the critical resource and they behave differently
as individuals and as employees of an organisation. Moreover, the individual
behaviour and workplace behaviour influence each other. The purpose of
both MP and OB are creating efficient and effective output. If people have to
make efficient and effective output, they have to have high motivation, job
satisfaction, low absenteeism, and turnover. Therefore, Robbins, a noted
thinker on OB takes the view that OB is the study of the impact of
absenteeism, turnover and job satisfaction and motivation on the
productivity and effectiveness of an organisation.
Linkage or connection between MP and OB
The management processes such as planning, organising, staffing, leading,
and controlling affect people and the way the resources are deployed.
Peoples absenteeism, turnover, and job satisfaction on the other hand
impact productivity and effectiveness. Thus both MP and OB affect
productivity and effectiveness. For example, planning is about taking all
factors into consideration and taking a decision; however, it is the people
who take decisions, and it is the people who act on the decisions. Their
individual and/or collective perceptions, biases, learning, etc affect the

decisions. Decisions affect productivity and organisational effectiveness and


this usually happens through the OB factors that we discussed above.
Similarly, organising means the way we get various jobs organised
(e.g. centrally done, done at various places, outsourced, etc) which in turn
affect the productivity and the effectiveness as also the way the people are
deployed, their job satisfaction, absenteeism, turnover, etc. Staffing is, of
course, filling people in the organisation. By now, it is evident that
Management Process and Organisational Behaviour are intrinsically
connected. Better the management process, better the organisational
productivity and effectiveness and better the variables of OB such as job
satisfaction, turnover, etc, better the productivity and effectiveness. Thus,
both lead to productivity and effectiveness, and this is the reason why we
learn MPOB as an entity. You can say that MP and OB are two sides of a
coin and much like both sides of a coin are required to create value; both
MP and OB are required to create value. Hence we study them together.
Course Objectives:
The course Management Process and Organisational Behaviour of MBA
1stSemester helps students to understand and apply the concepts of
Management Process and Organisational Behaviour for creating an efficient
and effective output.
After studying this subject, you should be able to:
explain the concept of organisation and its components.
define the concept of management.
list the principles of management.
explain the concept of management process.
describe the process of planning and decision making.
describe the process of organising, staffing, leading and controlling
analyse the relationship between management process and organisation
behavior
explain the concepts relating to individual behavior such as personality,
perception, values, attitudes, emotions, learning and motivation.
explain the concepts relating to group behavior such as the group, the
teams and leadership.

describe the concepts of power, politics, conflict, negotiation and change


explain the concept of organisational culture and change.

The Self Learning Material (SLM) for this subject is divided into 15 units.
Units 1 to unit 6 pertains to Management Process and unit 8 to unit 15
discusses Organizational Behaviour. A brief description of all the 15 units is
given below:
Unit 1: Understanding an Organisation
This unit explains the concept of an organisation and its various
components. It explains the relevance of vision and mission of an
organisation. It also explains the concepts of strategy, structure, systems,
processes, jobs and tasks.
Unit 2: Introduction to Management and Management Process
This unit defines the concept of management, describes it evolution,
explains its principles. It also explains the steps involved in management
process.
Unit 3: Planning and Decision Making
This unit defines the concept of planning and describes the importance of
planning. It lists the different types of planning and explains the various
steps in planning. It also discusses on decision making and explains the role
of models in planning and decision making.
Unit 4: Organising and Staffing
This unit defines organising and describes it importance. It also explains on
organisational division and span of control. It also distinguishes between
concepts of line and staff. It describes the link between staffing and HR
management.
Unit 5: Leading
This unit explains the concept of leading. It differentiates between the
concept of directing and leading. It also explains the importance and
describes the functions of leading.
Unit 6: Controlling.
This unit defines the concept of controlling and explains the process of
controlling. It identifies critical control points and states how control is used
as a feedback system. It also explains the various control techniques.

Unit 7: Introduction to Organisational Behaviour


This unit describe the historical perspective of the discipline of
organisational behaviour and its various approaches. It defines the concept
of organisational behaviour. It also explains the relationship between
management process and organisational behaviour. The unit also states the
relationship between globalisation and organisation behaviour as well as
lists the limitations of organisational behaviour.
Unit 8: Individual Behavior 1 (Personality and Perception)
This unit defines the concept of personality and identify its determinants. It
explains personality traits and explains how personality attributes affects
OB. The unit also explains the concept of perception and list its importance.
Unit 9: Individual Behaviour 2 (Values, Attitudes and Emotions)
This unit defines the concept of values, attitudes and emotions. It also states
how values impact outcomes. The unit explains the implications of
emotional labour and also the impact of attitudes on job satisfaction,
commitment, engagement and organisational citizenship behaviour. It also
states the Indian perspective on Emotional Intelligence.
Unit 10: Individual Behaviour 3 (Learning and Motivation)
The unit defines the concepts of learning and motivation . It also explains
the various theories of learning and motivation. The unit also discusses the
application of learning in organsiations.
Unit 11: Group Behaviour 1 (Introduction to Group Behaviour)
The unit defines the concept of groups. It also explains group process and
stages of group formation. It explains about work group behaviour and
factors affecting group behaviour.
Unit 12: Group Behaviour 2 (The Team)
The unit defines the concept of teams and lists the characteristics of an
effective team. It also explains the steps involved in designing a team and
states the key issues in team building.
Unit 13: Group Behaviour 3 (Leadership)
This unit define what leadership is and explains its importance. It describes
the theories of leadership and distinguishes between leadership and

management. It also explains contingency leadership and transformational


leadership.
Unit 14: Power, Politics, Conflict, Negotiation and Stress
This unit describes the concept of power, politics, negotiation, conflict and
stress. It further explains the ways of managing conflicts and strategies for
negotiations.
Unit 15: Organisational Culture and Change
This unit defines the concept of organisational culture and change. It also
explains the fundamental of organisational culture and change. It also
describes the steps of leading change.

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