INSTRUCTOR’S MANUAL CHAPTER
1
Introduction to Organizational Behaviour
Learning Outcomes 1 2 3 4 5 6
Define organizational behaviour. behaviour. Explain the goals and forces of organizational behaviour. Understand the evolution and fundamental concepts of organizational organizational behavior. Explain the distinction between the theories of organizational organizational behaviour. Understand the major approaches approaches of organization organization behaviour. Discuss how organizational behaviour responds to globalization, diversification and technolog technologyy advancement.
Chapter Outline/Intro Outline/Introduction duction 1 If people are regarded as organizations’ most important asset then understanding how humans behave in organizations is imperative. Tus, managers and future managers need to develop their interpersonal skills to understand their employees better. 2 Understanding organizational behaviour allows the managers to better manage employeemanager relations, improves job satisfaction, and stimulates innovation and creativity thus guiding him into creating a dynamic working climate.
1.1
Definition
1 According to Gary Johns, “Organizations are social inventions for accomplishing accomplishing goals through group efforts”. Tere are three significant aspects in the above definition, which are as follows: Social Inven Inventions: tions: It is the people that primarily make up an organization. Accomplishing Accomplish ing Goals: Goals: All organizations have reasons for their existence. Tese reasons are the goals towards which all organizational efforts are directed. Group Effort: Individuals in themselves have physical and intellectual limitations and these limitations can only be overcome by group efforts. 2 Organizational behaviour is concerned with people’s thoughts, feelings, emotions and actions in setting up a work. •
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1.2
Goals of Organizational Behaviour
1 Describe – Describe systematically how people behave under a variety of conditions. 2 Understand – Understand why people behave as they do.
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3 Predict – Te managers would have the capacity to predict which employees might be dedicated and productive, or which ones might cause problems. 4 Control – Managers need to be able to improve results through the actions they and their employees take, and organizational behaviour can aid them in their pursuit of this goal.
1.3
The Importance of Organizational Behaviour
1 Developing interpersonal skills Skills can be obtained through organizational behaviour exposure. Organizational behaviour exposes managers to highly-needed interpersonal skills such as leading, motivating, analytical ability, decision-making skills and many others. 2 Personal development through organizational behaviour A person has to understand himself first before understanding others. Understanding others leads to personal development and can also lead to enhanced self-knowledge and self-insight. 3 Achieving organizational and individual effectiveness Understanding organizational behaviour aids managers to become better people-oriented managers. 4 Sharpening and refining our decisions and actions Organizational behaviour sharpens and enlarges the domain of our common sense into making good decisions executed in our actions.
1.4
Forces or Elements of Organizational Behaviour
1 People: People make up the internal social system in the organization. Tey consist of individuals and groups. 2 Structure: Structure defines the formal relationship and use of people in the organization. 3 echnology: echnology imparts the physical and economic conditions within which people work. 4 Social System: Te social system provides an external environment within which the organization operates.
1.5
Evolution of Organizational Behaviour
1 Scientific Management Approach Tis theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job and making sure that the workers follow the prescribed method of doing the job. 2 Bureaucratic Approach Max Weber’s idea of bureaucracy was logical, rational and efficient. He made the naive assumption that one structure would work best for all organizations. 3 Hawthorne Studies Te findings of these studies were given a new name ‘human relations’. Te workers are influenced by social factors and the behaviour of the individual worker is determined by the group.
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1.6
Basic Models of Organization Behaviour
1 Autocratic Model Te autocratic model depends on power. Tose who are in command must have the power to demand “you do this-or else”, meaning that an employee who does not follow orders will be penalized. 2 Te Custodial Model A successful custodial approach depends on economic resources. Te resulting managerial orientation is focused towards money to pay wages and benefits. 3 Te Supportive Model Te supportive model depends on leadership instead of power or money. 4 Te Collegial Model Te collegial model depends on the management’s building a feeling of partnership with employees. 5 Te System Model It is the result of a strong search for higher meaning at work by many of today’s employees; they want more than just a paycheck and security from their jobs.
1.7
Fundamental Concepts of Organizational Behaviour
NATURE OF PEOPLE
1 Individual Differences: Individuals are different in their physical and mental traits. 2 A Whole Person: Tis means that the individual does not only come with skills and intelligence but also a personal life, needs and desires. 3 Motivated Behaviour: It is the urge of the individual to satisfy a particular need that motivates him to do an act. 4 Human Dignity/Value of the Person: It stresses that people are to be treated with respect and dignity. NATURE OF ORGANIZATION
1 Social System: A system is a group of independent and interrelated elements comprising a unified whole. 2 Mutual Interest: Organizations need people and people in return need organizations. Organization needs employees to reach its objectives and people need organizations to help them reach individual needs and objectives. 3 Holistic Organizational Behaviour: Holistic organizational behaviour interprets peopleorganization relationships in terms of the whole person, whole group, whole organization and whole social system.
1.8
Approaches to Organizational Behaviour
1 Human Resources Approach Te human resources approach is concerned with the growth and development of people towards higher levels of competency, creativity and fulfilment, because people are the central resource in any organization.
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2 A Contingency Approach A contingency approach to organizational behaviour implies that different situations require different behavioural practices for effectiveness instead of following a traditional approach for all situations. 3 Productivity Approach Productivity is a ratio that compares units of output with units of input. 4 Systems Approach A system is an interrelated part of an organization or a society that interacts with everyone related to that organization or society and functions as a whole. 5 Interdisciplinary Approach Te combination of people from different disciplines if managed properly will enhance productivity and work methods.
1.9
Response of Organizational Behaviour on Globalization and Diversification
1 Social Conditions In many countries due to poorly developed resources, there is shortage of managerial personnel, scientists and technicians. Hence the required skills must be temporarily imported from other countries, and training programs need to be developed to train the local workers. 2 Political Conditions When the government is unstable, organizations become cautious about further investments. Tis organizational instability leaves workers insecure and causes them to be passive and low in taking any initiatives. 3 Economic Conditions Te most significant economic conditions in less developed nations are low per capita income and rapid inflation. Inflation makes the economic life of workers insecure when compared to developed countries. 4 Organization Culture Differences Changes in the global marketplace have brought the need to think globally. For any company competing in the global marketplace it is essential to understand the diverse cultures of the individuals involved and develop cross-cultural sensitivity. 5 Workforce Diversification Whenever an organization expands its operations to other countries, it tends to become multicultural and will then face the challenge of blending various cultures together.
1.10 Response on Organizational Behaviour and Technological Advancement Te great benefit of technology is that it allows people to do more and better work, but it also restricts people in many ways – thus having both advantages as well as disadvantages. Each technological advancement places increased pressure on organizational behaviour to maintain a delicate balance between technical and social systems.
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Summary Organizational behaviour is concerned with people’s thoughts, feelings, emotions and actions in setting up a work. Understanding individual behaviour is in itself a challenge, but understanding group behaviour in an organizational environment is a monumental managerial task. Goals of organization behaviour are to describe, understand, predict and control.
