Organizational Behavior 10e - Stephen P. Robbins - Jackson.com.np

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ORGANIZATIONAL BEHAVIOR

Ace Institute of Management

M
-
B
-
A
-
e

Term I
V

Spring

Trimester 20
11

Module 1: Organizational Behaviour

Module 1: Organizational Behavior & Leadership


Ace Institute of Management

PowerPoint Compilation by Course Moderator
Satish

Jung
Shahi

© 2003 Prentice Hall Inc. All rights reserved.

1

2

Ice Breaker Game:

Questions:


Gender: Female? Male?


Origin:
Valley?
Outside?


Religion: Muslim? Christian? Buddhist? Hindu? Others
?


Ethnicity: Lama/Sherpa? Rai/Limbu? Gurung? Magar?
Thakali? Newar? Chhetri? Bahun? Others?


Employment: Yes? No? “In between” jobs?


Status: Married? Unmarried? Single? [Children?]


Living status: Parents? Self?


Lifestyle: Somewhat private? Social?


Extracurricular: Games? Music? Movies? Reading?


Pets: Dogs? Cats? Others?


Travelled: Abroad, where? Inside Nepal? None?


Choice: Home Assignments? Class Tests? Both? None?

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1

3

Theme:


“People are like
fingerprints,
unique in their
own ways.”

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1

4

The Organization

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5

Some definitions of OB:


“Organizational Behavior is a field of study that
investigates the impact that individuals, groups
and structure have on behavior within
organizations, for the purpose of applying such
knowledge toward improving and organization's
effectiveness,”

-

Stephen P. Robbins.




Organizational Behaviour is the study and
application of knowledge about how people


as
individuals and as groups


act within
organizations,”

-

Keith Davis & John Newstorm.

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1

6

The Organization


Mission


Vision


Goals


Objectives



What do you plan to achieve in
the next five years?

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7

Individual Goals


You have to work hard to be
good.


When goal is easy, stretch.


Be yourself, you are the best
contributor to who can make a
difference.


Best way to change a habit is to
be determined.


Learn from past mistakes and not
repeat them.


You can make a difference, the
choice is entirely yours.

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8

We the People


People constitute an organization’s most important
vital factor in its success or failure.


Eg. Nepal Army, A
-
I
-
M, Citizen’s Bank, Chaudhary
Group, Kantipur Television Pvt. Ltd., C
-
I
-
A, Shell Oil
Company, Dell, FedEx, etc.


It is only the people who can deal with four “any”


anybody, anyplace, anytime, and anyway environment
of the future.


An organization may start with zero funding but will
become financially viable with creativity
resourcefulness, hardworking and honest people.


Over abundance of finances and materials may go to
waste if handled by incompetent and dishonest people.

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1

9

Types of Organization:

IMAGINE, how would it be:

Case 1: If your grandfather was running a
supermarket 50 years ago in Kathmandu?

Case 2: If you were to open a supermarket now in
Kathmandu?

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10

Traditional & Learning Organizations:

Functions

Traditional Org.

Learning Org.

Determination of
Overall
Directions:


The top mgmt.
provides vision.


Shared vision
though teamwork.


Idea Formulation
& Implementation:


Top mgmt.
decides what is to
be done.


Takes place at all
levels.


Nature of Org.
Thinking:


Each person is
responsible for
one's individual
job, duties, &
needs.


Both individual
and others job
with utmost care
for work inter
-
linkages.

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11

Types of Organization:

Functions

Traditional Org.

Learning Org.

Conflict
Resolution:


Use of power &
influence.


Use of
collaborative
learning &
problem solving.


Leadership &
Motivation:


Leader
establishes org.
vision, provides
rewards &
punishment, &
maintains overall
control.


Leader builds a
shared vision,
empowers the
personnel,
inspires
commitment &
encourages
teamwork.


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1

12

Extra Reading 1 & Discussion:


A New Kind of Company

(Newsweek International, published on
04/07/2005)



What makes Ratan Tata a good manager?



What does your own bosses, i.e. managers do
at your respective offices?

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13

What Managers Do (Cont’d):

Managerial Activities


Make decisions


Allocate resources


Direct activities of others
to attain goals


What else?

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14

Management Functions:

Management

Functions

Planning

Organizing

Leading

Controlling

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Management Functions (cont’d)

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Management Functions (cont’d)

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Management Functions (cont’d)

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Management Functions (cont’d)

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E X H I B I T

1
-
1a

Mintzberg’s Managerial Roles

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20

E X H I B I T

1
-
1b

Mintzberg’s Managerial Roles (cont’d)

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E X H I B I T

1
-
1c

Mintzberg’s Managerial Roles (cont’d)

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Management Skills:

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Effective Versus Successful Managerial
Activities (Luthans):

1.
Traditional Management.


Decision making, planning, and controlling.

2.
Communications.


Exchanging routine information and processing
paperwork.

3.
Human Resource Management.


Motivating, disciplining, managing conflict, staffing,
and training.

4.
Networking.


Socializing, politicking, and interacting with others.

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E X H I B I T

1
-
2

Allocation of Activities by Time:

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E X H I B I T

1
-
6

Basic OB Model, Stage I:

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Food for Thought: How true is it?


Happy workers are productive workers.


All individuals are most productive when their bosses are
friendly, trusting and approachable.


The best leaders are those that exhibit consistent
behaviour, regardless of the situations they face.


Interviews are effective selection devices for separating job
applicants who would be high
-
performing employee from
those who would be low performers.


Everyone wants a challenging job.


You have to scare people a little to get them to do their
jobs.


Because specific goals intimidate people, individuals work
harder when asked just to do their best.


Everyone is motivated by money.


Most people are much more concerned with the size of their
own salaries than with the size of other people's salaries.


The most effective work groups are devoid of conflict.

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Food for Thought: How true is it? (cont’d)


Answer:

For most part, they are all false and we shall
touch on each later in this course. Moreover, what it
matters is that many of the views on human
behaviour are based on intuition rather than facts to
a layperson. That is where O
-
B could have the
answers as it involves a systematic approach to the
study of behaviour.

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In the End…

1.
Go through “Extra Reading 2


U
-
turn on a Train” for
next class.

2.
Also, Robbins Chapter 1.

3.
Please utilize your time doing a lot of extra readings.
Remember, a quiz is scheduled for Session
Three
.

4.
Drive Safely!!!

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29

Historical Perspective on O
-
B:

School


Decade


Emphasis


Adam Smith's pin
manufacturing in
1776

<1900

(Perspective:
Structural)


Little formal mgmt.: The military & the
church as basic models. More
importance on division of labour &
machinery to assist workers.


Scientific Mgmt.

(Frederick W.
Taylor)


1910s

(Perspective:
Structural)


Management as a science with
employees having specific but different
responsibilities with white colour versus
blue division of work. Time and motion
study, carrot and stick principle.


Classical Mgmt.

(Hendry Fayol: 14
Principles of Mgmt,
Chester Bernard)


1920s

(Perspective:
Structural)


Listed the duties of manager as planning,
organizing, commanding employees,
coordinating activities & controlling
performance, unity of command, scalar
chain of command.


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30

Historical Perspective on O
-
B
(cont’d)

School


Decade


Emphasis


Bureaucracy

(Max Weber)


1920s

(Perspective:
Structural)


Order, system, uniformity,
consistency in mgmt., rule of
law as against whimsical or
arbitrary application of rules.


Human Relations

(Dale Carnegie, A. Maslow &
Douglas Mcgregar)

Hawthorne Experiment

(Elton Mayo & Associates)


>1920s

(Perspective:
Behavioural)

Order, system, uniformity,
consistency in mgmt, rule of
law against whimsical or
arbitrary application of rules.


Group Dynamics

(Kurt Lewin, L. Coch)


1940s

(Perspective:
Behavioural)


Individual participation in
decision
-
making, impact of
group works in performance.


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31

Historical Perspective on O
-
B
(cont’d)

School


Decade


Emphasis


Leadership


1950s

(Perspective:
Behavioural)


Social and task leaders.


Socio
-
technical

(Trist & Bamforth)


1960s

(Perspective:
Integrative)


Considering technology &
work group in understanding
a work system.


System Theory

(Jack Smith in General
Motors)


1960s

(Perspective:
Integrative)


Organization as an open
system with inputs, process
& outputs, & feedback.


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32

Historical Perspective on O
-
B
(cont’d)

School


Decade


Emphasis


Enriching Jobs

(F. Herzberg, J. R. Hackman
& G. Oldham)


Late 1950s

Mid 1970s

(Perspective:
Integrative)


Fit between organizational
processes & design of the
job.

O
-
B Today: Contingency
perspective, dynamic &
unpredictable)


1990s, 2000s

(Perspective:
Integrative)


A global arena, T
-
Q
-
M, I
-
T,
Business ethics, access to
most skilled workforce.


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33

Contributing Disciplines to the O
-
B Field:

E X H I B I T

1
-
3a

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Contributing Disciplines to the O
-
B Field (cont’d)

E X H I B I T

1
-
3b

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35

Contributing Disciplines to the O
-
B Field (cont’d)

E X H I B I T

1
-
3c

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Contributing Disciplines to the O
-
B Field (cont’d)

E X H I B I T

1
-
3d

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Contributing Disciplines to the O
-
B Field (cont’d)

E X H I B I T

1
-
3f

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38

Food for Thought:

The importance of other disciplines are also rapidly
increasing with the workplace turning more and more
complex. What do you think of these fields?


Society & Culture.


Media & Society.


Research Methodology.


Ethnicity & Society.


Education & Society.


Economy & Society.


Technology & Society.


History & Society.


Gender & Society.

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1

39

Extra Reading 2 & Discussion:


“U
-
Turn on a Train”

(Outlook, published on 19/06/2006)



Is Laloo Prasad Yadav a
good
manager?


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Enter Organizational Behavior

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There Are Few Absolutes in OB

Contingency

Variables

x

y

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The Dependent Variables

x

y

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The Dependent Variables (cont’d)

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44

The Dependent Variables (cont’d)

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The Dependent Variables (cont’d)

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The Dependent Variables (cont’d)

deviant workforce behaviour

Voluntary behaviour that violates significant
organizational norms and, in so doing, threatens the well
-
being of the organization or its members.

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47

The Independent Variables

Independent

Variables

Individual
-
Level
Variables

Organization

System
-
Level

Variables

Group
-
Level

Variables

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48

Extra Reading
3

& Discussion:



Himalayan Vistas


(
Forbes Asia
, published on
06
/0
3
/2008)

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49

"People are the key"


Sam Walton, founder of Wal
-
Mart.
There are many solutions being offered to deal with
the challenges in modern management. However, the
simple and most profound solution may be sought by
looking at the following notes:


Only true & lasting competitive advantages comes
through human resources and how they are managed.


The people, their ideas, their productivity, their willing
to change and their ability to learn are the main
things.


The fact that human resources do make a difference.


It is only the people who can deal with four 'any':
anybody, anyplace, anytime and anyway environment
of the future.

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50

Challenges and Opportunities in O
-
B:


Downsizing/Rightsizing
-

'Lean & Mean' organizations .


Quality & Productivity (Up)


T
-
Q
-
M; Reengineering.


Information Technology.


In the past 25 years, the global network of computers,
telephones & television has increased its capacity a
million times over.


Today's $1,000 laptop computer is many times powerful
than a $100 million worth mainframe computer.


A three
-
minute Kathmandu
-
Janakpur phone call cost
around Rs. 20, but a page of e
-
mail to the United States
cost less than a rupee in the 1980s. It would have cost
more than Rs. 200 per page on a telegram.


No modern day communication medium has ever grown
faster than the Internet.

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Challenges and Opportunities in O
-
B (cont’d):


Responding to Globalization
.



Improving People Skills.


Managing Workforce Diversity
.


Responding to the Labor Shortage.


Improving Customer Service.


Improving
Ethic
al Behaviour
.


Stimulating Innovation Change.


Coping with “Temporariness”.


Working in Networked Organizations.


Helping Employees Balance Work
-
Life Conflicts.


Creating a Positive Work Environment.



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52

Emerging Trends in O
-
B:


Kaizan Approach:


It is a Japanese management practice that focuses
continuous improvement in a product rather than
resting on the laurels of success. It means training all
employees throughout the organization to build basic
skills such as problem solving & communications. The
training is thus incorporated into the workflow
procedure that usually involves self
-
managed work
teams. Like T
-
Q
-
M, it also means empowering
employees to make decisions regarding work
procedures and make suggestions on work issues
such as save workspace, reduce waste, and lower
costs.

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53

Emerging Trends in O
-
B
(cont’d):


Quality Circles:


This involves a workgroup of employees who meet
regularly to discuss their quality problems, investigate
causes, recommend solutions, & take corrective
actions.

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Emerging Trends in O
-
B
(cont’d):


Management by Objective (M
-
B
-
O):



M
-
B
-
O is a management program that encompasses
specific goals, participatively set, for an explicit time
period, with feedback on goal progress. It emphasizes
participatively set goals that are tangible, verifiable &
measurable. It was originally proposed more than 50
years ago as a means of using goals to motivate people
rather than control them.


The key elements of M
-
B
-
O are:


Goal specificity.


Participative decision
-
making.


An explicit time period.


Performance feedback.

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55

O
-
B in the Nepali Context:

Past/Present

1

Since the restoration of democracy in 1990, economic policy has been
liberalized; market opened & foreign direct investment & transfer of technology
encouraged.

2

Nepal recognized as the 148th member of the World Trade Organization in
Cancun, Mexico on 12 September 2003. Nepal's formal application to obtain
W
-
T
-
O membership was filed on July 1998. Nepal is the only country where
the United Nations established a separate W
-
T
-
O Cell to make the
transformation process much easy.

3

However, the history of privatisation in Nepal that was supposed to support the
successive government's liberal economic environment looks extremely grim.
Out of 14 privatised units excluding two liquidations, four have already closed
down while the rest are struggling to survive.

4

Multiple trade unions & widespread politicalization of management is existent.
General belief exists that motivation is generally money based with low priority
on productivity.

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56

O
-
B in the Nepali Context (cont’d):

5

Nepali management is still based on process concept where people aspect
remains neglected. Management is still mostly tradition bound with deep
-
rooted paternalism. Staffing usually not based on merit & needs with massive
family relations & political influences in human resource management.

6

Authority remains centralized to top management but mgmt tends not to
accept final responsibility & seem afraid to delegate. Leadership usually lacks
democratic or participative orientation with existing only one
-
way "top
-
to
bottom" communication. Control is generally for threat & punishment rather
than correction of performance to set future standards.

7

Unity of direction is unclear but chain of command is very strong & deep
-
rooted with utmost importance to hierarchy. In most private sector, employee
reports to various bosses. Individual goals do not get internalised with
organizational goals & interpersonal relationships are dominated by conflicts &
personality clashes.

8

Long term planning is lacking with most plans based only on annual budget
announcements. Those involved in implementation are ignored in the planning
process.

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57

O
-
B in the Nepali Context (cont’d):

9

The ongoing Maoist/political conflict has still painted a grim picture in Nepali
business environment.

Future:

1

Trends are changing with entry of more multinationals in the Nepali market.
Government attracting more foreign direct investment with projects such as
the Special Economic Zones (S
-
E
-
Zs) to make the economy more sound &
professional.

2

Non
-
residential Nepalis urging more direct role in Nepali business
environment. Formulation of Act to provide legal backing is currently under
progress.

3

Nepal declares it is willing to become a transit hub between upcoming global
players India & China.

4

Fresh B
-
B
-
A/M
-
B
-
A graduates with the background of modern business
education are entering the job market. Even public administration is being
revamped to give fresh look.

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58

In the End…

1.
Go through Robbins Chapter 1 & 2 for next class.

2.
Quiz scheduled for Session
Three
; Duration 1 Hr, 30
Mins; 90 marks worth, will bear 5% in your total
grading.

3.
All the Best
!!!