The Challenges Facing

Management
• In the 1980s and 1990s managers were
preoccupied with restructuring their
organizations to improve Productivity and
meet the competitive challenges in the
international marketplace and
Quality Expectations of customers.
Thus the resulting organizations offered
short-run benefits in terms of lowered costs
and Improved Technology.
Now-a-days it is very tough time for managers. The
reason is “ the increasing danger of Disruptive
Change”.
Consider the following Changes in the Nature of Work:
• The Blending of Tech and Human components of work
• Jobs are less tightly Defined
• Contingent workers
• Customers Influence the work that is performed
within the organization
• Teams rather than Individuals
• All of the above points represent the
Disruptive Change and require new
thinking and new ways of managing. For
example; “Disappearance of Tightly
defined and programmed jobs”;

The nature of work is changing so rapidly

that Rigid Job Structure impede the work
to be done now, and that drastically
change in the following year, month or
even week times.
Following are the near future
workplace environment;

1. Knowledge workers will not

have a Traditional Contractual
Relationship with employers.
Instead they will Rent their
services to different companies
at different
• Corporate Headquarters- Heart Centers-
Downsizing, Rightsizing…..
…….welcome form of Sizing
companies
• Productivity……driven by Speed and
Efficiency
• Internet workplace…..Irregular
Schedules and Work/Life balance
 ORGANIZATIONAL
BEHAVIOR
1. MANAGERS
• Get things done through others
• Make Decisions, Allocate Resources
Direct the Activities of Others to Attain Goals.
• The people who Oversee the Activities of others and who
are Responsible to Achieve a Common Goal are
Managers
2. ORGANIZATION
• Consciously Coordinated Social Unit,
• Composed of two or more people,
• Function on a relatively Continuous Basis
to Achieve a Common Goal or Set of Goals.
• 2. WHAT MANAGERS DO?
• 2.1. MANAGEMENT FUNCTIONS:
i. Planning
ii. Organizing
• iii. Leading
• iv Controlling
 ORGANIZATIONAL
BEHAVIOR
• 2.2. MANAGEMENT ROLES
A. Interpersonal
B. Informational
C. Decisional

• 2.3. MANAGEMENT SKILLS

A. Technical
B. Human
C. Conceptual
• 3. ORGANIZATIONAL BEHAVIOR
 ORGANIZATIONAL BEHAVIOR
• It 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.
 Complementing Intuition
with Systematic Study
• Improving the Predictive Ability by
Supplementing Intuition by using more
Systematic Approach

• Through Systematic Approach More

Accurate Predictions of Behavior can be
Made

• Fundamental Consistencies underlying

the Behavior of all Individuals that can be
Identified and Modified
 Complementing Intuition
with Systematic Study
• Thus Behavior is generally Predictable
and the Systematic Study of Behavior
is a Means to making reasonably Accurate
Predictions.
SYSTEMATIC STUDY:
-Looking at the Relationships, Causes
and Effects
-Conclusions on the basis of Scientific
Evidence
 Complementing Intuition
with Systematic Study
• Systematic Study adds to Intuition about
Why I do?
What I do?
What makes others do something?

• One’s Intuitive views of behavior can be

enhanced with a systematic analysis,
consequently it will Improve Accuracy in
Explaining and Predicting Behavior
 CONTRIBUTING DISCIPLINES
TO THE OB
• PSYCHOLOGY:
Psychology’ contribution mainly at the Individual
or
Micro Level of Analysis
-Studying and Attempting to Understand
Behavior
-Measure, Explain and Change Behavior
-Learning, Perception, Personality, Counseling
Emotions
-Motivation, Leadership Effectiveness,
Performance Appraisal
CONTRIBUTING DISCIPLINES TO
THE OB

Understanding of Macro concepts

– Group processes and Organization

• Social Psychology:
It Focuses on People’s Influence on One
Another.
Change; how to implement it and How to
reduce Barriers to its Acceptance.
CONTRIBUTING DISCIPLINES
TO THE OB
• Sociology:
“Study of Group Behavior in
Organizations”

It has contributed to Research on;

Organizational Culture, Formal
Organization Theory & Structure,
Communications, Power,Conflict.
 ABSOLUTES IN OB
• Humans are Complex creatures
- Anybody’s Ability to Make Simple and Accurate
Generalizations about Humans is Limited.
-People act differently in the Same Situation
-OB was developed by taking general Concepts
and applying them to a Situation, Person or Group.
-Thus it has become possible to offer reasonably
Accurate Explanations of Human Behavior and to
Make Valid Predictions
 CHALLENGES AND
OPPERTUNITIES FOR OB
• Changes are taking place in the
Organizations at a rapid pace:
-more and more women at workplace
-people of different color, race,
nationalities have to work together
-increasing use of temporary workers
 CHALLENGES AND
OPPERTUNITIES FOR OB
-downsizing has become a
common activity

-global competition

-learning to adapt changes by

employees has become a
necessity for the survival
of company
 CHALLENGES AND
OPPERTUNITIES FOR OB
• Critical Issues for which OB offers
Solutions:
1.Responding to Globalization

i. Increased Foreign Assignments

ii. Working with people from different
Cultures
iii. Overseeing Movement of Jobs to
Low-
Cost Labor Countries
 CHALLENGES AND
OPPERTUNITIES FOR OB

2. Managing Workforce Diversity

Categories of Workforce Diversity-

i. Minorities
ii. Local Population
iii. Ex-Defense Personnel
iv. Disabled Persons
v. Displaced Persons
vi. Gender Issues
vii. Age Factor
viii. Temporary/ Contracts
 CHALLENGES AND
OPPERTUNITIES FOR OB
Implications of Workforce Diversity
• Workforce Diversity is Inevitable
-in order to cope with it one must Learn to Value
and Respect Culture and ways of Behaving that
are Different from one’s own

• Managing Workforce Diversity- a Priority

-penetration in new markets
- Diverse Teams Enhance Creativity, Flexibility,
Response to Change

• Workforce Potential Maximization

-Link Concerns for diversity to every
Business Strategy
 CHALLENGES AND
OPPERTUNITIES FOR OB
• Embracing Diversity:
-Organizations must Accommodate Diverse
groups of people by addressing their different
Lifestyles, Work styles, Needs
-Managers should recognize Individual Differences
and respond to those Differences in ways that ensure
employee Retention, and greater Productivity without
any Discrimination.
-Positive management of Diversity Increase
Creativity, Innovation and Effective Decision making by
providing different Perspectives on Problems.
 CHALLENGES AND
OPPERTUNITIES FOR OB
• Improving Quality and Productivity
-Any Effort at Improving Quality and
Productivity
must include their Employees.
OB helps in Planning Changes,
Carrying out Changes

• Responding to Labor Shortage

-In tight labor markets those
Managers who
do not understand Human
Behavior Fails
to treat employees properly
 CHALLENGES AND
OPPERTUNITIES FOR OB
• IMPROVING CUSTOMER
SERVICE
--ORGANIZATIONS and CUSTOMERS
-Organizations can’t Exist without Customers.
Management Needs to Ensure that employees
Do What it takes to Please Customers.

--EMPLOYEE BEHAVIOR and

CUSTOMER
SATISFACTION
OB helps managers achieve this purpose and
thus Contribute to Improving an organization's
Performance by Showing managers How
employees Behavior is Associated with
Customer Satisfaction.
 CHALLENGES AND
OPPERTUNITIES FOR OB
--EMPLOYEE BEHAVIOR and
CUSTOMER SATISFACTION

OB helps managers achieve this

purpose
and thus Contribute to Improving an
organization's Performance by
Showing
managers How employees Behavior
is
Associated with Customer
Satisfaction.
 CHALLENGES AND
OPPERTUNITIES FOR OB
• Improving People Skills
-gaining insights into specific people skills:
designing motivating jobs,
techniques for improving
communication skills, Creating
more effective Teams

• Empowering People
-Putting employees in charge of what they
do.
Managers give up Control, and
Employees take Responsibilities
• Stimulating Innovation and Change
- Employees can be the Front runners for
Innovation
and Change or they can be the greatest
Hurdle.
OB provides techniques for the attainment of
these goals through employees
• Coping with Temporariness:
Managers have to learn to live with Flexibility,
Spontaneity and Unpredictability prevalent in
the present Business Environment which has
given rise to
the temporary nature of Work Assignments.
 CHALLENGES AND
OPPERTUNITIES FOR OB
• Working in Networked Organizations
-Communication technology
Now it is possible to work from non Office Locations in
a Networked organization
• Helping Employees Balance Work-Life
Conflicts
Balancing Work Life with Personal Life has become
Priority of today’s Employees
• Improving Ethical Behavior
 OB MODEL
• Three Levels of Analysis in OB
Each Level is constructed on the
Previous Level
• Dependant Variables:
Productivity,
Absenteeism,
Turnover,
Job Satisfaction,
Deviant Workplace Behavior
Organizational Citizenship
Behavior
Factors to be Explained and are
Influenced/ Affected by other Factor (s).
 OB MODEL
Dependant Variables
• PRODUCTIVITY
It is Concerned with
Effectiveness and Efficiency
-OB Concern:
Any organization must know what
elements
INFLUENCE/ will INFLUENCE
the Effectiveness and the Efficiency
of the INDIVIDUAL, GROUP,
ORGANIZATION
 OB MODEL
• ABSENTEEISM:

-Itcauses Disruption in the Production

Cycle/ Value Creation and has direct
Impact on the
Effectiveness and Efficiency of the
Organization.
-Is there any condition where Absence
benefits the Organization?
 OB MODEL
• TURNOVER:
The permanent Withdrawal of Employees
from an Organization.
-Higher rate of Turnover has negative
implications for the efficiency and
effectiveness in an Organization
-It facilitates Organizational Flexibility
and Employee Independence
 OB MODEL
• DEVIANT WORK PLACE BEHAVIOR
(ANTISOCIAL BEHAVIOR)
-Deliberate Insult, Teasing, Acts of
Sabotage, Gossips, Stealing, and so on.
- It is a Voluntary Behavior that Violates
the Organizational Norms and
consequently inflict Harm to the
Organization.
-In most case It is a Response due to
Dissatisfaction
-Managers must address the problems by Eliminating
its Root Causes
 OB MODEL
• ORGANIZATIONAL CITIZENSHIP BEHAVIOR:
-Discretionary Behavior
e.g., volunteering for Extra work
• JOB SATISFACTION:
-Satisfied employees are more Productive
than the Dissatisfied ones, thus it has
direct impact on the Organizational
Efficiency & Effectiveness
 OB MODEL
INDEPENDENT VARIABLES
(Causes of Change in Dependent Variables)

1. Individual-Level Variables

-People enter organizations having

certain Characteristics that
Influence their Behavior
-They have great Impact on
employee Behavior
 Individual-Level
Variables

• BIOGRAPHICAL Characteristics:
-AGE, GENDER, MARITAL STATUS, RACE, NATIONALITY
• ABILITY
• ATTITUDES
• PERSONALITY
• VALUES
• EMOTIONS
• PERCEPTION
• INDIVIDUAL DECISION MAKING
• LEARNING
• MOTIVATION
 OB MODEL
INDEPENDENT VARIABLES
Individual-Level
-People enter the organizations carrying
with them Certain Characteristics
- These Characteristics are not easy to
Alter/Change for any organization
-These Characteristics have great Impact
on Employee Behavior
 OB MODEL
INDEPENDENT VARIABLES

• GROUP-LEVEL VARIABLES
The Behavior of people in Group is more
than the Sum of the total of all the
Individuals acting in their Own way.
• ORGANIZATION SYSTEM LEVEL
VARIABLES
Organization Culture and Design,
HR Policies/ Practices INFLUENCE
dependant behavior.
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
Now we look at How Basic Individual
Differences Affect Employee
Performance and Satisfaction.

Employee’s Performance and

Satisfaction is Affected by his/her
ABILITIES
and
BIOGRAPHICAL CHARACTERISTICS
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
ABILITY
An Individual’s Capacity to Perform the
various Tasks in a Job.
-What one can do at this point of time
• INTELECTUAL ABILITY
• PHYSICAL ABILITY
INTELECTUAL ABILITY
-Mental Activities-
THINKING-
REASONING-
PROBLEM SOLVING
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
-SMART PEOPL:
LEADERS OF GROUPS
-IQ TESTS:
Tools for measurement for
Intellectual Ability
SAT, GMAT, GRE
etc.
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
Seven (7) Dimensions
1. NUMBER APTITUDE
Speedy, Accurate Arithmetic
2. VERBAL COMPREHENSION
Understand – What is HEARD &
READ
3. Perceptual Speed
Identify Visual Similarities &
Differences Quickly and Accurately
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
Seven (7) Dimensions
4. INDUCTIVE REASONING
Identify Logical Sequence in Problem
Solving
5. DEDUCTIVE RESONING
Use Logic for Implications of Argument
6. SPATIAL VISUALIZATION
Ability to visualize Changed Position of
an
Object
7. MEMORY
Retaining, Recall : PAST EXPERIENCES
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
- Different Jobs require different
Intellectual
Abilities
Thus, High IQ may not be required
for all jobs.
- But people having Intellectual Abilities
Perform Better in their Jobs
INTELLIGENCE IS BETTER PREDICTOR
OF PERFORMANCE Because:
-Intelligent People-
Learn Quickly
More Adaptable to Change
Invent Solutions to Problems
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
-Intelligent People
Better Performers
BUT
Not Satisfied with the Job
and
More Critical in Evaluating
Job Conditions

THEY EXPECT MORE

 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
Another way of looking at Intelligence
1. Cognitive : Aptitudes-
Traditional Intelligence Tests
2. Social : Ability to Relate to Others
3. Emotional : Identify- Understand-Manage
EMOTIONS
4. Cultural : Awareness of and Function
in Cross Cultural Word
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
INTELECTUAL ABILITY
Another way of looking at Intelligence
LIMITATIONS

-Measurement of Intelligence other than

Cognitive NOT EASY
-But all of these Factors Affect Person’s
Intelligence Level
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR

PHYSICAL ABILITIES
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
ABILITY-JOB FIT

• Performance enhances with the

increase in Ability-Job Fit

• Ability Requirements of Jobs, e.g.,

Pilot- Spatial Visualization
• Limitations of Job frustrates an able
person
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
BIOGRAPHICAL CHARACTERISTICS

• OB is concerned with Finding and Analyzing

the Variables that have an Impact on Employee

PRODUCTIVITY,
ABSENCE,
TURNOVER,
DEVIANCE,
CITIZENSHIP,
SATISFACTION
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR
DATA about Biographical Characteristics is
easily Definable and Readily Available
in comparison to other Variables

BIOGRAPHICAL CHARACTERISTICS

• AGE :
• GENDER:
• RACE:
• TENURE:
 FOUNDATIONS OF
INDIVIDUAL BEHAVIOR

LEARNING
In order to Explain and Predict Behavior one
needs to know HOW PEOPLE LEARN
Definition:
“ RELATIVE PERMANENT CHANGE
IN BEHAVIOR THAT OCCURS AS A
RESULT OF EXPERIENCE”
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
LEARNING
• If an individual behaves, reacts,
responds as a result of EXPERIENE in a
manner different from previous
behavior-
Then LEARNING has Taken Place

• Learning involves
1. CHANGE
2. PERMANENCY
3. EXPERIENCE
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
1. CHANGE :
(A) Favorable Behaviors
(B) Unfavorable Behaviors

2. PERMANENCY: Long-lasting effect

3. EXPERIENCE:
(A) Direct - Observation or Practice
(B) Indirect - Reading
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
THEORIES OF LEARNING

1. CLASSICAL CONDITIONING

2. OPERANT CONDITIONING

3. SOCIAL LEARNING
 THEORIES OF LEARNING
CLASSICAL CONDITIONING

• Russian Physiologist- Ivan Pavlov- 1900s

Unconditioned Stimulus
Unconditioned Response
Conditioned Stimulus
Conditioned Response
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
CLASSICAL CONDITIONING
• When the Stimuli, One Unconditioned (Compelling)
Other Neutral are PAIRED
the Neutral Stimulus becomes CONDITIONED
and thus,
adapts the Properties of the Unconditioned Stimulus
Learning a Conditioned Response involves building up
ASSOCIATION between a Conditioned Stimulus and

An Unconditioned Stimulus
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
CLASSICAL CONDITIONING
• It is PASSIVE:
--Classical Conditioning explains Simple
Reflexive behavior.
--Something HAPPENS and we REACT in a
Specific Way
--It is Elicited in Response to a specific
Identifiable Event
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
OPERANT CONDITIONING
• BEVIOR IS A FUNCTION OF ITS
CONSEQUENCES
--People learn to Behave to Get something
they Want
or
To Avoid something they Don’t Want
--It is a Voluntary Behavior

--Tendencies to Repeat such behavior;

-Reinforcement
-Lack of Reinforcement
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
SOCIAL LEARNING

Learning through OBSERVATION and DIRECT

EXPERIENCE
• Learning by Observing What Happens to
Others
- learning from Watching Models which
may be:
Showbiz personalities, Political
Leaders,
Film or TV Performers, Teachers, Parents
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
SOCIAL LEARNING
INFLUENCE OF MODELS
Following processes determine
the Influence of Models on the Individuals

1. ATTENTION PROCESS
2. RETENTION PROCESS
3. MOTOR REPRODUCTION PROCESS
4. REINFORCEMENT PROCESS
 FOUNDATIONS OF INDIVIDUAL
BEHAVIOR
LEARNING
SHAPING BEHAVIOR
Molding Individuals by Guiding their
Learning in Gradual Steps

• Positive Reinforcement
• Negative Reinforcement
• Punishment
• Extinction
 ATTITUDES and JOB
SATISFACTION
EVALUATIVE STATEMENTS
FAVORABLE or UNFAVORABLE
CONCERNING;
PEOPLE, OBJECTS, EVENTS
COMPONENTS OF ATTITUDE
1. COGNITIVE COMPONENT
2. AFFECTIVE COMPONENT
3. BEHAVIORAL COMPONENT