ORGANIZATIONAL BEHAVIOUR

DASUNI WEERARATHNE

INTRODUCTION Organizational behavior is the term used to describe how people within their organizations act, individually or in groups & how organizations function in terms of their structure, process and culture.

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1.1 Compare and contrast different organizational structures and culture

• 1.1.1 Identify two organization with similarities with business.

OVERVIEW OF TATA AND FORD MOTORS

Jamsetji Nusserwanji Tata Henry Ford

TATA MOTORS

• Jamsetji Nusserwanji Tata started a private trading firm laying foundation to the TATA group in 1868.

• Tata motors was established in 1945 as a locomotive manufacturing unit.

• It tied up with Daimler-Benz and entered commercial vehicle segment in 1954

• vision is to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.''

• The company’s Mission is “Leadership with trust.”

Objectives• Employee Focus: Make the organization a Great Place to work • Community Focus: Be a responsible corporate citizen• Supplier Focus: Treat Suppliers as partners• Shareholders Focus: Demonstrate superior results• Customer Focus: Improve Customer Satisfaction.

1.1 Compare and contrast different organizational structures and culture

• 1.1.2 Compare and contrast the structure and culture of the two selected organization.

• Power Culture –The organization is controlled by key central figures, often the owners or founders of the organization.

• Role Culture - Work is controlled by procedures and rules and the role, or job description and other formal signals as to what is expected of them.

• Task culture – Management is seen as completing a succession of

projects or solving problems, often as part of team.

• People Culture - Individual is the central point. A culture in which activity is strongly influenced by the wishes of the individuals.

Types of Cultures

Organisational Structure TATA

• relatively flat structure• narrow span of control• Based on the divisions, Tata Motors has a mixed organisational

structure.• Two main divisions based on product type viz.

• Commercial vehicle and • Passenger cars division

CULTURE –(broader perspective)

Tata motors• Tata’s follow a very strong culture giving much

importance to ethics and moral values.• Tata companies also extend social welfare activities to

communities around their industrial units.• Very strong employee relationships.• In conclusion TATA has a People Culture witch Individual

is the central point. A culture in which activity is strongly influenced by the wishes of the individuals

CEO’s ROLE IN LEADING TRANSFORMATION AT TATA• The role of CEOs is unique in that they stand at the top of

the pyramid and all the other members of the organization take cues from them.

• Building a strong and committed top team.

• Role-modeling desired mind-sets and behavior.

• Relentlessly pursuing goals.

Ford Motor Company• American multinational automaker, founded by Henry Ford on June

16, 1903 with headquarters at Deaborn, Michigan• Second largest automaker of US and fifth largest worldwide.• Ranked 9th on the 2012 Fortune 500 list.• Symbol of success for other motor companies in the world.

Organizational structure

CEO

CHAIRMAN

Chief financial officer

Chief operating officer

Chief technical officer

Executive vice presidents

Group vice presidents

Very complex structure fairly mechanistic in nature.

Rigid departmentalization Low span of control High Centralization

Organizational Culture• People Orientation - care for clients, stock holders and employees.• Aggressiveness - employee involvement plan• Team Orientation - importance of working together as one team to achieve

automotive leadership• Outcome Orientation - focus on quality • Attention to detail • Innovative and risk taking

• In conclusion we can say that FORD has amore of a Power Culture in witch the organization is controlled by key central figures, often the owners or founders of the organization.

FORD’S CEO LEADS CULTURAL CHANGE

• CEO of ford is working hard to change work habits of employees.

• Wants managers to think more about customers than their own careers.

• Top priority is to encourage leadership team to admit mistakes, share more information and cooperate across divisions.

1.2 Explain the relationship between an organization structure and culture and impact on the performance of the business.

• 1.2.1 Relationship between structure and culture

• To reach their goals effectively organizations always need to have a formal structure. This is important to distribute tasks into different groups to ensure that no two people are working on the same project or task so that we get the most output for our input. Because organizations cannot be run without people, this tends to create different informal structures or environments in the organization which leads to different attitudes, perceptions, behaviors and traits with lots different types of aptitudes. So when employees are supposed to work together on a task in the constraints of a formal structure to reach a certain objective there are certain ways to speak and interact, which in effect forms an organizational culture, where it may be created knowingly or unknowingly by the employees. Organizational culture in some way defines the organizational structure of an organization but the structure also partially defines the culture of an organization.

Organizational Structure and Culture Definitions

OrganizationalStructure

OrganizationalCulture

The formal system of work roles andauthority relationships that govern

how associates and managersinteract with one another.

Involves the values and normsshared by managers and associates

that influence behavior. It is apowerful force in organizations.

Structural Characteristics

Span of Control

HeightDepartmentation

The number of individuals a manager directly oversees.

Span of Control

Average Span of Control: Effects on Height of the Hierarchy

Average span of Four Average span of TenHighest

Lowest

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Associates

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Developing Organizational Culture

Organizational Culture

NormsReinforcing Outcomes

Shared Values

Individual and Group Behavior

• 1.2.2 Explain impact of structure and culture on performance of the business.

-Organizational design-leadership -Job design -Motivation-Employee engagement-Communication-Decision making -Performance management-Reward Management-Welfare management-Employee resourcing & Training development

What is organizational culture?

A system of shared meanings and common beliefs held by

organizational members that determines, in a large degree, how

they act towards each other.

• “The way we do things around here.”

• Implications:

Culture is a perception

Culture is shared

Culture is descriptive

Organizational Culture(Leadership)

Competing Values Model of Organizational Culture

EffectivenessCohesion and Morale

LeadershipMentors and Coaches

Clan

EffectivenessCreativity and Innovation

LeadershipEntrepreneurs and

Innovators

Adhocracy

EffectivenessGoal Achievement and

Winning

LeadershipHard Drivers and

Competitors

Market

EffectivenessEfficiency and Order

LeadershipMonitors and Organizers

Hierarchy

Internal Focus/Integration External Focus/Differentiation

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Relationships between OC and employees

• Gives identity-Identity of company, automatically became the identity of people who work in the company, as well.

• The people end up affecting the culture as much as the culture is affecting them.

How Organizational culture affect the Organization?

• It helps to manifests or understands in:1. the ways the organization conducts its business, treats its

employees, customers, and the wider community.2. the extent to which autonomy and freedom is allowed in

decision making, developing new ideas, and personal expression.

3. how power and information flow through its hierarchy.4. the strength of employee commitment towards collective

objectives.

ORGANIZATIONAL CULTURE PROFILE

Impact of OC to employees performance

• High Performance when:• the OC is effective and can be accepted by the employees . This

can lead to motivation to the employees to increase their productivity.

• For example, if the organizational culture is Innovative, and the employees likes to improve and to do new things, then these can lead to high performance.

• Low Performance when:• the culture of the organization is not proper and transparent and

it is not accepted by the employees.• For example, if the organizational culture is team oriented and

the employee is individualistic who likes to do work in individual, then this can lead to low performance.

Impact of OC to employees satisfaction

• Employee satisfaction is the terminology used to describe whether employees are happy and contented and fulfilling their desires and needs at work.

• High satisfaction when the employees is willing to adapt the organizational culture.

• Low satisfaction when the employees is unwilling to adapt the organizational culture.

ORGANIZATIONAL CULTURE

"...We believe that organizations will ultimately get only as far as their organizational cultures take them."

IMPORTANCE OF ORGANIZATIONAL CULTURE

The Culture decides the way employees interact at their workplace.

The organization culture brings all the employees on a common platform.

It is the culture of the organization which extracts the best out of each team member

1.3 Discuss the factors that effect individual behavior at work.

1.3.1 Factors effecting employee behavior,

Main factors

1.Attitudes 2.Personality3.Perception4.Learning

Sub factors 1. Conflict

2. Stress

3. Change

1.3.2 Discuss above factors with regard to performance.

1. Perception

“ WE DON’T SEE THINGS AS THEYARE, WE SEE THINGS AS WE ARE.”

Perception is the process of receiving information about and making sense of the world around us. It involves deciding which information to notice, how to categorize this information and how to interpret it within the framework of existing knowledge

• The filtering process is called perceptual selectivity.It says that the world picture that our brains actually hold is not a whole or accurate one. This may be determined by any or all of the following .-Context-Nature of the stimuli-Internal factors-Fear or trauma

So we see what we wont to see in a situation including the one of the factor or all factors together.

Common clashes of perception at work at TATA and FORD,

-Race and gender- This is very important and sensitive factor. People all ways communicate with each other at work. A joke , comment or gesture that one person may see can be offensive or a insult to the receiver.

-Managers and Staff- ‘ Them and us’ perceptions due to experience level of managerial and non managerial personnel.

-Work cultures Different departments and functions have their on cultures, So the view of a situation and importance can differ to one a another.

2. Attitudes

Attitudes structure can be described in terms of three components.

Affective component: this involves a person’s feelings / emotions about the attitude object. For example: “I am scared of spiders”.

Behavioral (or cognitive) component: the way the attitude we have influences how we act or behave. For example: “I will avoid spiders and scream if I see one”.

Cognitive component: this involves a person’s belief / knowledge about an attitude object. For example: “I believe spiders are dangerous”.

Attitudes help people to adapt to their work environment

An understanding of attitudes is also important because attitudes help the employees to get adjusted to their work. If the management can successfully develop a- positive attitude among the employees, they will be better adjusted to their work

2.1 Compare the effectiveness of different leadership styles and different organization.

• 2.1.1 Identify effectiveness of different leadership styles in your chosen organization

• 2.1.2 Compare the effectiveness of this leadership styles. Advantages & disadvantages.

Basic Leadership Style

•Autocratic•Bureaucratic•Laissez-faire•Democratic

Autocratic Leadership Style

• The classical approach• Manager retains as much power and decision making authority as possible• Does not consult staff, nor allowed to give any input• Staff expected to obey orders without receiving any explanations• Structured set of rewards and punishments

Bureaucratic Leadership Style

• Manages “by the book¨• Everything done according to procedure or policy• If not covered by the book, referred to the next level above• A police officer not a leader• Enforces the rules

The Democratic Leader

Develops plans to help staff evaluate their own performance

• Allows staff to establish goals• Encourages staff to grow on the job and be promoted• Recognizes and encourages achievement

Laissez-Faire Leadership Style

• Also known as the “hands-off¨ style• The manager provides little or no direction and gives staff as much freedom as possible• All authority or power given to the staff and they determine goals, make decisions, and resolve problems on their own

TATA motors are using Autocratic Leadership style is being used when a leader dictates policies and procedures, decides what goals are to be achieved, and directs and controls all activities without any meaningful participation by the subordinates. This leader has full control of the team leaving low autonomy within the group.

At FORD motors the democratic leadership style used and it is a is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. Everyone is given a seat at the table, and discussion is relatively free-flowing.

Democratic Leadership at FORD

AdvantagesEmployees actively involved in decision makingHigher employee moraleStronger employee commitment to established goals

DisadvantagesTime consumingNot everyone likes to participate in decision making.

2.2 Organization Theories• Scientific managementmanagement of a business, industry, or economy, according to principles of efficiency derived from experiments in methods of work and production, especially from time-and-motion studies.

• Classical administrationclassical approach differed from scientific management in that it focused on efficiency through management training and behavioral characteristics• Human relations approachIn the early 1920s, a shift away from classical management theory took place as theorists began to consider the human side of an organization and the social needs of employees.

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• System approachThis approach entails analysis of problems and synthesis solutions. In the analysis phase, a given situation is examined to identify the forces affecting it. The situation is viewed as a system composed of interconnected parts and related to other systems

• Contingency approachAlso known as situational approach, is a concept in management stating that there is no one universally applicable set of management principles (rules) by which to manage organizations.

• Modern management approachThis approach takes a realistic view in management and organization. It discards the universal validity of principles. Executives are advised to be situation oriented and not stereo-typed. So executives become innovative and creative. This approach does not have theoretical base. An executive is expected to know all the alternative courses of action before taking action in a situation which is not always feasible.

2.3Approaches to management

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TATA MOTORS use the system approach. This approach entails analysis of problems and synthesis solutions. In the analysis phase, a given situation is examined to identify the forces affecting it. The situation is viewed as a system composed of interconnected parts and related to other systems.

Advantages • It aims at meaningful analysis of organizations and their management.• It facilitates the interaction between organization and its environment.• It guide manager to avoid analyzing problems in isolation and to develop an integrated approach.Disadvantages• The approach does not recognize the differences in systems.• Over-conceptual• Systems philosophy does not specify the nature of interactions and interdependencies.• Unpractical: It cannot be easily and directly applied to practical problems.• Lack of Universality• Complex System

FORD Motors use the Modern management approach in their organization here are both advantages and disadvantages of this approach to management.

• AdvantagesTop-level managers in bureaucratic organizational structures exercise a great deal of control over organizational strategy decisions, which is ideal for business owners with a command and control style. Strategic decision-making time can be shorter in a tall organizational structure, since less individuals are involved in the process. Standardization and best-practices are often highlights in companies with tall organizational structures, ensuring that work is consistently completed efficiently and effectively.• DisadvantagesBureaucratic structures can discourage creativity and innovation throughout the organization. No matter how ingenious a business owner is, it is virtually impossible for a single individual to generate the range of strategic ideas possible in a large, interdisciplinary group. Front-line employees may receive less satisfaction from their jobs in a rigidly bureaucratic organization, increasing employee turnover rates. Organizations bound by rigid controls can also find themselves less able to adapt to changing conditions in the marketplace, industry or legal environment.

3.1 Motivation Problem How effect in motivation or

demotivation

Needs to make a quick decision

It will motivate for quick decision making / it will demotivate for the department since employees will not feel as part of the team.

Urgent tasks are accomplished under tight deadlines

Demotivates the staff as their satisfaction towards work and happiness is invisible.

Productivity is increased & workloads are assigned to staff (work process are streamlined & has a close oversights)

Employees are gradually de motivated for the work process & is under stress which leads them to be frustrated. The management is motivated since the work processes are streamlined.

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Autocratic

3.2 Usefulness of motivation theories

Different motivational theories are:• Maslow hierarchy of needs theory.• ERG motivation theory Alderfer.• McClelland achievement and acquired needs theory.• Stacey Adams equity theory.• Hertzberg hygiene factors and motivators theory.• Rewarding• Equity Theory

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Maslow’s Needs Hierarchy Theory ( TATA )• Abraham Maslow elaborate that peoples are motivated by five

essential needs and he demonstrated it in a pyramid that calls hierarchy of needs.

Three Need Theory (FORD)

• Three Needs Theory is also known as, Acquired Needs Theory, McClelland's Human Motivation Theory Motivational Needs Theory, and Learned Needs Theory.

• According to this theory, three motivators that believed we all have: a need for achievement, a need for affiliation, and a need for power.

3.3 If I was the manager ….

I would start the transition by ,

• Finding out what top management expects of me.

• Establish my authority. • Get to know my operation. • Get to know my people. • Communicate my expectations.

I WON'T BE…

Playing favorites. Doing the work. Let your employees be the

technical workers. Being emotional.

Lying your way out of things. Trying to be "One of the Gang."

Taking credit for your employee's successes. Blaming management for problems.

Selling out your employees.Refusing to make a proper commitment to

the job. Neglecting to grow into the job.

Attitudes for Successful Supervision that I will use

I'm A member of managementResponsible for the performance of my entire team Easy to work for Easy to get along with Able to forgive myself for mistakes

4.1 Explain the nature of groups and group

behavior within organization.• 4.1.1 Explanation of the term group and

description formal and informal groups.

Group – Is any collection of people who perceive themselves to be a group. Group has three attributes such as

A Sense of identity (Existence)Loyalty to the group (Conformity)Purpose and leadership (Guiding factor/ Goals)

4.1 Explain the nature of groups and group behavior within organization.

• Informal Groups- Set up within or across organization due shared interest or friendship.

• Formal Groups –Is made up functional or task groups with an organization. This groups are formed by the organization's design, departments, or to perform a specific task.

Group Development – Groups “mature”, “Tuckman (2001)” identified four stages in this development such are:• Forming It is seen as a collection of individuals. It is

characterized by uncertainty. Individuals wishes to impress personality on the group.

• Storming It frequently involves more or less open conflict. Changes may be suggested in group’s original objectives, leadership, procedures and norms. It is characterized by intra-group conflict.

• Norming It is a period of settling down. There will be arguments in work sharing, output levels and group customs. Characterized by close relationships and cohesiveness.

• Performing Performances will be achieved at the earlier stages, but the fourth stage marks the point where the difficulties of growth and development. The group is fully functional.

• Adjourning its a temporary group; it is being characterized by concern with wrapping up activities rather than performance .

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4.1.3 Advantages and disadvantages of group decision making.

Advantages Disadvantages

o Generates more complete information and knowledge.

o Generates more diverse alternatives.

o Increases acceptance of a solution.

o Increases legitimacy of decision.

o Time consumingo Minority dominationo Pressures to conformo Ambiguous

responsibility

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4.2 Discuss factors that may promote or inhibit the development of effective team work in organization.

• 4.2.1 Discuss team building

This refers to the various activities undertaken to motivate the team members and increase the overall output. Team won’t perform own their own , it should motivate , groom the team members and keep them busy.

• 4.2.2 Characteristic of effective and ineffective work teams.

Effective Team ineffective Team

Low rate of labour turn over High rate of labor turnover

Low accident rate High accident rate

Low absenteeism High absenteeism

Higher performance Low performance

Quality out put Poor coordination & work

Individual target achieved Individual target not achieved

4.3 Evaluate the impact of technology on team function within a given organization.

• The use of new technologies can improve and in some cases hinder team functioning.

• As technology changes teams must update and maintain their knowledge in order to function effectively.

• Technologies which have improved team functions• e-mail• mobile phones• blackberry• groupware• computers

4.3 Evaluate the impact of technology on team function within a given organization.

Advantages• e-mail allows asynchronous communication which means team members

do not need to be in the same place at the the same time in order to communicate effectively. e-mail also has it's negative aspects in terms of managing e-mail and the misuse of e-mail.

• Mobile phones have come a long way from the yuppie bricks of the 1980s and there are now more mobile phones in the UK then there are people. Mobile phones allow teams to communicate even when team members are out of the office, on the road or otherwise unavailable. Sometimes having always access to team members can hinder team functioning.

• Phone technologies such as blackberry and 3G datacards allow team members to work and communicate remotely and this out in the field or with clients.

• Groupware enables teams to plan meetings, collaborate, delegate all within a virtual environment which can often be accessed remotely from anywhere in the world.Disadvantages : Lack of human communication and relationships

• IN CONCLUTION OB matters at three critical levels. It matters because it is all about things you care about. OB can help you become a more engaged organizational member. Getting along with others, getting a great job, lowering your stress level, making more effective decisions, and working effectively within a team…these are all great things, and OB addresses them!

Referencing

• Pippa Riley (2011), “Organization and behavior”, first edition, London: Viva books, page 9-230.

• Edexcel Managing Human Resources Notes (Unit 24) for BTEC HNC level 4 & HND level 5

• Pippa Riley (2011), “Management Leading People and Professional Development”, first edition, London: Viva books, page 107 - 357.

• http://www.emeraldinsight.com/doi/abs/10.1108/01409170810846821• http://www.hr.com/en/app/blog/2013/04/different-leadership-styles-

and-their-advantages-a_hfcoua95.html• TATA and FORD company websites

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THANK YOU