Fundamentals of OB
CHAPTER 1
MANAGEMENT
⚫ Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, staffing, directing and
controlling organizational resources.
⚫ Organizational resources include men(human
beings), money, machines and materials.
Definitions
⚫ Louis E Boone & David L Kurtz- The use of people
and other resources to accomplish objectives.
⚫ Mary Parker Follet- the act of getting things done
through people.
⚫ Frederick Taylor defines Management as the art
of knowing what you want to do in the best and
cheapest way.
Evolution of Management Thoughts
⚫Industrial revolution in 18th and 19th century
England.
⚫Development of invention led to emergence of
different management thoughts
[Link] Science approach
Motivation, group Dynamics, leadership
Maslow, Vroom , Herzberg
2. Scientific school approach to
Evolution of Management Thoughts
3. System approach to management
Attention is paid to overall effectiveness to the
entire system( Operation research, OB ,MIS)
4. Contingency Approach to management
Situation demands
FUNCTIONS OF MANAGEMENT
FUNCTIONS OF MANAGEMENT
⚫ PLANNING
⚫ ORGANIZING
⚫ STAFFING
⚫ DIRECTING
⚫ CONTROLLING
⚫ LEADERSHIP
⚫ MOTIVATION
⚫ COMMUNICATION
PLANNING
• Planning is determining the objectives and formulating
the methods to achieve them. It is more simply said than
done. A job well planned is half done. During planning
one needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my objective?
• What resources do I have and do I need to accomplish
the same?
• What are the methods and means to achieve the
objectives?
• Is this the optimal path?
Principles of Planning
⚫ Take Time to Plan
⚫ decide in advance what to do, how to do, when to
do, who is to do
⚫ Involve and Communicate with all those
Concerned
⚫ Plans must be Flexible and Dynamic
⚫Mental exercise that require imagination,
foresight and sound judgment.
Process of Organizing
⚫ Determine what is to be done/ Division of Work:
⚫ Assign Tasks: Departmentalization:
⚫ Link Departments: Hierarchy Development:
⚫ Decide how much Authority to Designate/
Authority, Responsibility and Delegation:
⚫ Decide the Levels at which Decisions are to be
made / Centralization vs. Decentralization:
⚫ Decide how to Achieve Coordination:
Techniques for achieving coordination.
⚫ Coordination by Rules or Procedures
⚫ Coordination by Targets or Goals:
⚫ Coordination through the Hierarchy
⚫ Coordination through Departmentalization
⚫ Using a Staff Assistant for Coordination:
⚫ Using a Liaison for Coordination:
⚫ Using a Committee for Coordination
⚫ Using Independent Integrators for Coordination:
⚫ Coordination through Mutual Adjustment:
STAFFING
Definition 1
⚫ Part of management process which is concerned
with recruitment ,selection, placement, utilization
and development of employees.
⚫ It's about systematic procurement, allocation,
utilization, conservation and development of
human resource.
DIRECTING/LEADING
⚫Provides positive and dynamic leadership
⚫Provides maximum opportunities
⚫Provides proper motivation of personnel
⚫Ability to command people
CONTROLLING CONCEPTS
⚫ Feed Forward Control-Control that attempts to
identify and prevent deviations before they occur is
called feed forward control, sometimes called
preliminary or preventive control.
⚫ Concurrent Control-Control that monitors
ongoing employee activities during their progress,
to ensure they are consistent with quality
standards, is called concurrent control.
⚫ Feedback Control-In this case, the control takes
place after the action. Sometimes called post-action
Steps in the Control Process
⚫ Establish Standards of Performance
⚫ Measure Actual Performance
⚫ Compare Performance to Standards:
⚫ Take Corrective Action
Meaning of Organization
Behavior
Levels
OB research covers three levels of analysis:
⚫ Micro: The individual level, including
topics like job satisfaction, personality,
and motivation
⚫ Meso: The group level
⚫ Macro: The organization level
DEFINITION OF ORGANIZATION
BEHAVIOR
⚫ Organizational Behavior (OB) is the study of
how people interact in a work environment
and the processes that affect the
organization as a whole. OB is a
multidisciplinary field that draws on
principles from psychology, sociology,
anthropology, and other disciplines.
Scope of Organizational Behavior
Four elements of OB(SCOPE)
⚫PEOPLE
⚫ENVIRONMENT
⚫TECHNOLOGY
⚫STRUCTURE
SCOPE OF OB
⚫ELEMENTS OF OB
⚫IMPACT OF PERSONALITY ON
PERFORMANCE
⚫MOTIVATION OF EMPLOYEES
⚫LEADERSHIP
⚫STRUCTURE OF TEAM AND GROUPS
⚫PERCEPTION
⚫DEVELOPMENT OF SOFT SKILLS
SCOPE OF OB
⚫Improvement/enhancement of individual and
organization development.
⚫Individual behavior ,group behavior, power and
politics, attitude and learning.
⚫Organization design
⚫Job design
⚫Culture and environment factors
⚫Management of change ,conflict and stress
⚫Organization Development & study of emotions.
IMPORTANCE OF OB
⚫ Helps to improve skills
⚫ Improve marketing process by understanding
consumer (buying) behavior
⚫ Help to understand basis of motivation and different
ways to motivate employees properly.
⚫ Understanding personnel nature is important to
manage them.
⚫ The scientific study of behavior helps to understand
and predict organizational events.
IMPORTANCE OF OB
⚫Helps to increase efficiency and effectiveness of
organization
⚫Provide direction to the organization
⚫Maintain interrelation within the organization
⚫Increase productivity of the organization
⚫Create healthy , ethical and smooth environment
in organization
Relationship with OB and the Individual
⚫OB is concerned with what people do in an
organization and how that behavior affects
performance of the organization.
⚫It emphasis behavior related to job, work,
absenteeism, turnover, productivity, performance
and management.
⚫Include core topics of motivation, leadership
behavior, interpersonal communication, learning,
Growing importance of interpersonal Skill
⚫Organization need to develop their managers
interpersonal skills in order to get and retain hi
performance of the employees.
⚫Wages and fringes are no longer important to the
employees.
⚫Quality of job and supportiveness are first priority.
⚫A manager with good interpersonal skills is likely
to make the workplace more pleasant.
⚫People skills are important than technical skills.
Models of OB
⚫ AUTOCRATIC
⚫ CUSTODIAL
⚫ SUPPORTIVE
⚫ COLLEGIAL
⚫ STIMULUS-ORGANISM-BEHAVIOR-
CONSEQUENCE (SOBC )
Limitations of OB
⚫ OB cannot abolish conflicts and
frustrations, but can only reduce them.
⚫ Difficult to manage workforce diversity
⚫ Its knowledge do not help to manage
personal life better.
⚫ Corporate reorganisation
⚫ Managers expect quick fix solutions- not
possible
⚫ Law of diminishing returns.
Values
Values
⚫ Values describe individual or personal
standards of what is valuable or important.
⚫ Values tend to influence attitude and
behavior.
⚫ In a company's
⚫ organizational culture, values are
foundation of employees attitudes ,
motivations and expectations, value define
their behavior.
Attitude
⚫ Attitude is a person's overall feelings,
beliefs, and evaluations about their job,
coworkers, and the company. It's a way of
thinking that shapes how people relate to
the world, both at work and outside of it.
Emotions
What is Emotional Intelligence?
⚫ Have you ever thought of why people of
average intelligence outperform people with
the highest levels of intelligence majority of
the time ?
How to Improve Your Emotional Intelligence
1. Observe how you react to people. ...
2. Look at your work environment. ...
3. Do a self-evaluation. ...
4. Examine how you react to stressful situations. ...
5. Take responsibility for your actions. ...
6. Examine how your actions will affect others –
before you take those actions.
IQ and EQ
Intelligence Quotient is used to determine
academic abilities and identify individuals
with off-the-chart intelligence or mental
challenges.
EQ is a better indicator of success in the
workplace and is used to identify leaders,
good team players, and people who best
work by themselves.
Emotional competencies framework
An Overview of the Test
Definition: The Meyers-Briggs Type Indicator (MBTI) is a self-help
assessment test which helps people gain insights about how they work
and learn. It is a framework for relationship-building, developing positivism,
and achieving excellence.
Based on the answers to the questions on the inventory, people are
identified as having one of 16 personality types. The goal of the MBTI is
to allow respondents to further explore and understand their own
personalities including their likes, dislikes, strengths, weaknesses,
possible career preferences, and compatibility with other people.
No one personality type is "best" or "better" than another. It isn't a tool
designed to look for dysfunction or abnormality. Instead, its goal is
simply to help you learn more about yourself
Extraversion (E) – Introversion (I)
The extraversion-introversion dichotomy was first explored by Jung in his
theory of personality types as a way to describe how people respond and
interact with the world around them. While these terms are familiar to
most people, the way in which they are used in the MBTI differs
somewhat from their popular usage.
Extraverts (also often spelled extroverts) are "outward-turning" and tend
to be action-oriented, enjoy more frequent social interaction, and feel
energized after spending time with other people. Introverts are "inward-
turning" and tend to be thought-oriented, enjoy deep and meaningful
social interactions, and feel recharged after spending time alone.
Sensing (S) – Intuition (N)
This scale involves looking at how people gather information
from the world around them. Just like with extraversion and
introversion, all people spend some time sensing and intuiting
depending on the situation. According to the MBTI, people tend
to be dominant in one area or the other.
People who prefer sensing tend to pay a great deal of attention
to reality, particularly to what they can learn from their own
senses. They tend to focus on facts and details and enjoy getting
hands-on experience. Those who prefer intuition pay more
attention to things like patterns and impressions. They enjoy
thinking about possibilities, imagining the future, and abstract
theories.
Thinking (T) – Feeling (F)
This scale focuses on how people make decisions based
on the information that they gathered from their sensing
or intuition functions. People who prefer thinking place a
greater emphasis on facts and objective data.
They tend to be consistent, logical, and impersonal when
weighing a decision. Those who prefer feeling are more
likely to consider people and emotions when arriving at a
conclusion.
Judging (J) – Perceiving (P)
The final scale involves how people tend to deal with the
outside world. Those who lean toward judging prefer structure
and firm decisions. People who lean toward perceiving are
more open, flexible, and adaptable. These two tendencies
interact with the other scales.
Remember, all people at least spend some time extraverting.
The judging-perceiving scale helps describe whether you
extravert when you are taking in new information (sensing and
intuiting) or when you are making decisions (thinking and
feeling).
Johari Window
The Johari window is a technique that helps
people better understand their relationship with
themselves and others. It was created by
psychologists Joseph Luft and Harrington
Ingham in 1955, and is used primarily in self-
help groups and corporate settings as a
heuristic exercise.
How is the Johari Window Model used?
This model is also referred to as a 'disclosure/feedback model of "self-
awareness" and by some people an "information processing tool".
● The Johari Window actually represents information - feelings,
experience, views, attitudes, skills, intentions, motivation, etc - within
or about a person - in relation to their group, from four perspectives,
which are described below.
● The model can also be used to represent the same information for a
group in relation to other groups. Terminology hereafter refers to 'self'
and 'others': 'self' means oneself (the person subject to the analysis).
'Others' means other people in the person's group or team.
The four Johari Window perspectives are called 'regions' or
'areas' or 'quadrants'. Each of these regions contains and
represents the information - feelings, motivation, etc - known
about the person, in terms of whether the information is known or
unknown by the person, and whether the information is known or
unknown by others in the group. The four regions in the model
are outlined in detail below.
Four Regions of the Johari Window
Model
1. What is known by the person about him/herself and is also known
by others - open area, open self, free area, free self, or 'the
arena'
2. What is unknown by the person about him/herself but which
others know - blind area, blind self, or 'blindspot'
3. What the person knows about him/herself that others do not know
- hidden area, hidden self, avoided area, avoided self or 'facade'
4. What is unknown by the person about him/herself and is also
unknown by others - unknown area or unknown self
