organisational behaviour-1 (3)
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ORGANISATION
WE ARE BORN IN ANORGANISATION,EDUCATED BY
ORGANISATIONS & MOST OF US SPENDMUCH OF OUR LIFE WORKING INORGANISATIONS - AMITAI ETIZIONI
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What is an Organisation ?
• An organisation is a group of individuals ,who
come together to realise their goals .
• An organisation requires –
• People
• Goals
•
Relationships• Organisations are created and
maintained by people .
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Definition
• Mooney and Reily- , “Organisation is the formof every human association for the attainmentof common purpose”.
• McFarland ,- “An identifiable group of peoplecontributing their efforts towards theattainment of goals”.
•
Oliver Sheldon,- “ The process of combiningthe work which individuals and groups have toperform” is an organisation.
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Characteristics of an Organisation
• 1.Social Unit –An organisation consists of people.According to Amitai Etizioni ,an organisationcomes into existence in the circumstances
described below:• a.When there are persons who are able to
communicate with each other.
• B.When there are people who are willing to
contribute collectively and individually
• C.When there are people who are desirous ofsatisfying personal and social needs.
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• 2. Goals – Goals are the desired state of affairs,ultimate purpose and performance of an organisation .Goals are derived from the needs ,desires,purpose andgoals of people.(Individual goals—earning livelihood)
• Mutually agreed goals become organisational goals.Members of an organisation contribute their potentialtowards realisation of common goals.
• CONGRUENCE (DISSIMILARITY ) arises when
there is conflict (difference) between individual andorganisational goals
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• 3. Substitution of Personnel – Organisation has along term existence .But people working thereare continuously replaced—
promotions,transfers,resignation,retirement,death etc.
• The poem “The Brooke” by Lord
Tennyson describes the brooke by saying’ “men
may go,men may come ,but I go on foreever”. • So also the organisation it is constant but people
working may come and go .
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• 4. Structure – A structure is an orderly arrangement ofactivities .It is used to developroles,tasks,relationship,positions,authority,accountability etc.
• 5.Divisions of labour – It is the sub-divisions of tasks .
• ie -goals subdivided into sub goals-
• tasks identified to workout goals –
•
tasks divided into manageable component-• each task assigned to a position-
• performed by people
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• 6. Existence of power – Organisations assign
authority to persons occupying various
positions to use it to direct the organisational
resources in the pursuit of goals.Every
department or division will be given power
.There will be many power centres in
organisation.
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• 7.Rules and regulations –These are the writtendirections to be followed without any deviations.Theseare guidelines .If broken will be penalised /punished.
• 8.System –Organisations are a systems of interrelatedand inter dependent sub-systems.The elements areinput,process and output.
• Inputs are-physical,financial ,human resources.
• Output are –the productivity ,sales,profit etc
• Processes are –
planning,organising,staffing,directing,controlling etc.
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• 9. Co-operation & Communication-
• Co-operation implies sharing of efforts.Tocomplete tasks there must be proper
coordination.Leads to better harmony• Communication is –sharing of feelings ,it is
the transmission of direction of the top
management to the lower levels and reportingthe performance to the top level .(the chainof command)
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• 10.Openness – Organisations as systems receiveexternal inputs and export their outputs.
• Internal factors like goals,policies,resources,managerial behaviour are internal to theorganisation
• External factors like political ,economical,technological ,legal etc are outside managerialcontrol.
• So organisations need to be open anddynamic to interact with and coordinate both theexternal and internal factors
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Functions of an organisation
• 1.To facilitate management
• 2.To optimise the utilisation of resources
•
3.To encourage growth• 4.To manage the environment
• 5.To economise on costs
• 6.To stimulate creativity.
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Classification of organisation
• Talcott Parson classification
• On FUNCTIONAL BASIS
• ECONOMIC –INDUSTRIAL /COMMERCIALBUSINESS ORGANISATION.
• POLITICAL –PARLIAMENT/LEGISLATIVEBODY/POLITICAL BODIES/ASSOCIATIONS/GROUPS
• RELIGIOUS-TEMPLES,MOSQUES,CHURCHES,WAKF
BOARDS,TRUSTS• MAINTENANCE-MAINTAINING PEACE/JUSTICE—
POLICE/JUDICIAL
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• SOCIAL –developing social groups to create
values-CLUBS –GATHERING/ASSOCIATIONS
• MUTUAL BENEFITS –regulate trade ,upkeep
dignity /protect interests of members-TRADE
UNION/PROFESSIONAL BODIES
• SERVICE –providing service integral to
society-Schools ,universities,hospitals,welfare
bodies
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• Chester I Bernard classification Oforganisation –
• On FORMALITY BASIS -
• FORMAL –REALISING COMMON OBJECTIVESTHROUGH A STRUCTURE – REGISTEREDCOMPANIES /BODIES
•INFORMAL –PROVIDING SOCIALSATISFACTION –GROUPS FOUND IN FORMALORGANISATIONS
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Principles of an organisation
• Principle of objectives
• Principle of specialisation
• Principle of co-ordination
• Principle of authority and responsibility
• Principle of span
• Principle of continuity(ongoing concern)
• Principle of balance
• Principle of exception
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The Men/People
/Personnel/Human Capital/Social
Capital
The Managers –Subordinates -Colleagues
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Terms used to describe people
(employees) in an organisation
• Thus at first employees were considered Cost
• Then Human Resource ,now widelyrecognised as Human captial (
education,training ,experience ,skill)• Investing in human capital results in
increases productivity and customer
satisfaction.• Even going beyond this is the recent term
• “Social capital”
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• Ie social capital (who you know-
networks,connections,friends)
• and
• “Positive Psychological capital” ( who you are
–confidence,hope,optimism etc) and (who you
are in terms of confidence ,hope etc )and
(who you can become in terms of the above
characteristics)
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ORGANISATIONAL BEHAVIOUR
(OB)
Sam Walton (Founder Wal-Mart)-
“PEOPLE ARE THE KEY” forsuccessful organisations
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Behaviour
• Behaviour is the actions and reactions of an individual in a situation
• Eg- if you meet a friend the smile on your face reflects emotionalfeelings,if angry you might bang on furniture or yell .
• These outward expressions provide an understanding of behaviour.Inorganisations human resources are precious and their behaviour is unique.
•
Understanding of their interactions is important to integrate human effortto realise goals of the organisation.Lewins --
• B=f(P,E,O)
• B=individual behaviour
• P=person
• E=environment• O=Organisation
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DEFINITION
• FRED LUTHANS – “Organisational behaviour isdirectly concerned with the understanding,production and control of human behaviour in
organisations”. • NEWSTROM & DAVIS – “Organisational
behaviour is the study and application ofknowledge about how people act within an
organisation .It is a human tool for human benefit.It applies broadly to the behaviour of people inall types of organisation”.
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OB is
• Meaning –It tries to understand the behaviour,attitudes and performance of the people inorganisations
• Scope –It is the micro –study of the people’s
behaviour• Area of emphasis –It emphasises on applied
psychology in organisation
• Nature –It is predictive in nature
• Aim -To explain and predict the behaviour ofindividuals and groups in organisations
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Characteristics /Features of OB
• 1.Behavioural approach to management
• 2.Cause and effect relationship
• 3.It is a branch of social sciences
• 4.Three levels of analysis (ie individual behaviour,inter-individual behaviour and behaviour oforganisation )
• 5.Its a science as well as an art (systematic knowledgeof human behaviour is science and its application of
behavioural knowledge and skills is an art)• 6.A rational thinking process
• 7.Beneficial to both individuals and organisations
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Key elements/Forces of OB
• 1.People
•
2.Structure
• 3.Technology
• 4.Environment
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Goals of OB
• 1.Describe
•
2.Understand
• 3.Predict
• 4.Control
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• A. Understanding human behaviour –
•
1.Individual behaviour• 2.Interpersonal behaviour
• 3.Group behaviour
•4.Intergroup behaviour
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• B. Influencing the human behaviour –
• 1.Leadership
•
2.Motivation• 3.Communication
• 4.Organisational change and development
•5.Organisational climate
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Approaches which influenced OB
• Behavioural Approach –
• 1. Group influences ---Mary Parker Follet.
• 2.Hawthorne studies —Elton Mayo
• 3.Maslow’s needs theory –Abraham Maslow
• 4.Theory X and Theory Y –Douglas McGregor
• 5.Model 1 versus Model II values –Chris
Argyris.
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THE HAWTHORNE STUDIES
• A large research programme conducted between
1927 and 1932 at WESTERN ELECTRIC ‘S
HAWRHORNE PLANT near Chicago
• Plant produced various parts for telephoneswitching systems
• Several management bigwigs like ----
• ELTON MAYO, FRITZ ROETHLISBERGER ,HARVARDFACULTY members and WILLIAM DICKSON (chief
of Hawthorne’s Employer relations research dept)
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• They conducted series of experimental and
observational studies in the plant and conducted
employee interviews between 1924 and 1932 .
• They were –
• Illumination Experiment (1924-27)
• Relay Assembly Test Room Experiments(1927-28)
• Experiments in interviewing workers(1928-31)
• Bank wiring room experiment(1931-32)
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ILLUMINATION EXPERIMENT
• The first major experiment
• The purpose was to study the different levels
of lighting on productivity.
• The experimental design used a control group
and test group.
• Control group –lighting was not varied
• Experimental (test)group –changes in lighting
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• Result of the experiment –
• As lighting for experimental group was
increased productivity went up,
• Also subsequently when lighting was reduced
,the productivity again went up
• For control group there was no change in
lighting ,but still productivity went up
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• Conclusion of the study was baffling to the
researchers –
• SIMPLY BEING PART OF THE EXPERIEMENT
,WHICH FOCUSED NEW AND GREATER
ATTENTION ON THE WORKERS INCREASED
PRODUCTIVITY
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Relay Room Experiments
• The research was undertaken to study the workerssegregated on the basis of a different range of workingconditions variables.
• The study tested the effect of thirteen variables like --
• EFFECT OF WORK PLACE
• METHOD OF PAYMENT
• REST BREAKS
•
LENGTH OF WORK DAY• WORK SCHEDULES ETC
• ON PRODUCTIVITY
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• The same control and experimental design
was used and the researcher found the results
to be practically identical to the illumination
experiment .
• ie—EVERY TEST PERIOD RESULTED IN
HIGHER PRODUCTIVITY- (WORKERS FELT
IMPORTANT WHEN ATTENTION WAS FOCUSEDON THEM)
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EXPERIMENTS IN INTERVIEWING
WORKERS
• Here the researchers directly started going tothe workers to talk about ,what was in theiropinion important to them (kept various variablesof previous experiments aside)
• 20,000 thousand workers were interviewed overa period of 2 years
• There were no preconceptions as-
• The interviewers set out to skillfully listen whatthe workers was saying about himself and the job.
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• The researchers skillfully listened to what the
workers was saying about himself and the job
• Thus the experiment discovered INFORMAL
ORGANISATION AND ITS RELATION TO
FORMAL ORGANISATION
• ALSO LEAD TO BETTER UNDERSTANDING
OF THE SOCIAL AND INTERPERSONALDYNAMICS OF PEOPLE AT WORK
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BANK WIRING ROOM EXPERIMENTS
• This experiment was done in the bank wiring room
• Based on observational analysis of informal workgroups
• It helped to understand that behavioural norms set bythe work group had a powerful influence over theproductivity of the group.
• The higher the norms greater the productivity and viceversa
• Helped to understand the power of peer group andthe importance of group influence on workersbehaviour and productivity .
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• Thus workers gave the following reasonswhy productivity increased –
• Small group
• Type of supervision• Earnings
• Novelty of the situation
• Interest in the experiment• Attention received in the test room
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Human Relations Approach
• The Hawthorne studies led to laying thefoundation for the human relations approach.
• The BASIS OF THIS APPROACH WAS THAT
PEOPLE RESPONDED PRIMARILY TO THEIRSOCIAL ENVIRONMENT
• THAT MOTIVATION DEPENDS MORE ONSOCIAL NEEDS THAN ECONOMIC NEEDS ANDTHAT SATISFIED EMPLOYEES WORK HARDERTHAN UNSATISFIED EMPLOYEES.
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• The values of HUMAN RELATION APPROACH
WAS EXEMPLIFIED IN THE WORK OF -
• DOUGLAS McGREGOR an MIT
psychologist who proposed two sets of
assumptions about human motivation that an
manager can hold.
• He called these assumptions THEORY X ANDTHEORY Y
‘
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Douglas McGregor ‘s Theory X and
Theory Y (assumptions & beliefs )**• As per this a manager’s behaviour towards his
workers and his management style will differ based onthe assumptions guiding his behaviour .
• THEORY X –
•1.THE AVERAGE PERSON DISLIKES WORK AND WILLAVOID IT IF POSSIBLE
• 2.BECAUSE PEOPLE DISLIKE WORKING ,MANAGERSHAVE TO CONTROL ,DIRECT AND COERCE ANDTHREATEN EMPLOYEES TO GET THEM TO WORKTOWARDS ORGANISATIONAL GOALS
• 3.THE AVERAGE PERSON WANTS SECURITY ,AVOIDSRESPONSIBILITY and HAS LITTLE AMBITION
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• THEORY Y - (more positive andoptimistic view of employees)
• 1.THE AVERAGE PERSON DOES NOT LIKE DISLIKEWORK ,IT IS AS NATURAL AS PLAY
• 2.PEOPLE ARE INTERNALLY MOTIVATED TOREACH OBJECTIVES TO WHICH THEY ARECOMMITTED
• 3.PEOPLE ARE COMMITTED TO GOALS TO THEDEGREE THAT THEY RECEIVE PERSONALREWARDS WHEN THEY REACH THEIROBJECTIVES.
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• 4.PEOPLE WILL BOTH SEEK AND ACCEPTRESPONSIBILITY UNDER FAVOURABLE CONDITIONS
• 5.PEOPLE HAVE THE CAPACITY TO BE INNOVATIVE INSOLVING ORGANISATIONAL PROBLEMS
• 6.PEOPLE ARE BRIGHT ,BUT UNDER ORGANISATIONALCONDITIONS THEIR POTENTIALS ARE UNDERUTILISED.
• (So these assumptions or beliefs about human
motivation strongly affects management behaviour.)
Ab h M l ’ Th f
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Abraham Maslow’s Theory of
Motivation (1943)
• Abraham Maslow’s theory assumes that motivationarises from a hierarchical series of needs.
• As the needs at each level are satisfied the individualprogresses to the next higher level
• Maslow’s heirarchy of needs –
• 1.Physiological needs
• 2.Safety needs
•
3.Social needs• 4.Esteem needs
• 5.Self Actualisation needs
OB i fl d b h f ll i
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OB influenced by the following
trends:
• The systems approach
• The socio – technical approach
• The democratic approach
• The contingency approach
• The interactional approach
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• Systems approach –this theory viewsorganisations as complex systems consistingof interrelated elements like materials
,information,finance, etc which interact witheach other to produce profits and products.
• Democratic approach – Here importance wasgiven to workplace ,human
dignity,participation and involvement ofemployees as means to increase productivity.
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• The socio-technical approach – Important workwas done at Tavistock institute in England wherethe term “socio-technical system” coined .Here itwas demonstrated that TECHONOLOGY was
important determinant in firms, which would orcould influence culture and structure of theorganisation.
• Trist and his colleagues demonstrated that
changing technology from small group work tothree shift working disrupted workers output andproductivity.
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• Contingency approach – As per this approach the
aqppropriate managerial behaviour in a situation
depends on the elements of that situation.
• Interactional approach – This approach statesthat relationship is not simple and one-way.
There is continuous interactions ie-causes and
effects .Eg-There is a relation between workplace
experiences and the attitudes of employees
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Behaviourist Theories
• The classical behaviorist who based their study onpsychology were –
• Russian pioneer –Ivan Pavlov
• American –John B.Watson
They attributed learning to the association orconnection between STIMULUS and RESPONSE ( S-R) ieit deals with respondent conditioning /classicalconditioning
Classical conditioning is a type of conditioning inwhich an individual responds to some stimulus thatwould not ordinarily produce such a response
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• The OPERANT BEHAVIORISTS -THE WELLKNOWN AMERICAN PSYCHOSLOGISTB.F.SKINNER -gave more attention to the rolethat CONSEQUENCES/RESPONSE PLAY IN
LEARNING OR• THE RESPONSE –STIMULUS (R-S)
• It deals with operant conditioning /instrumentalconditioning
• Operant conditioning is a type of conditioningin which desired voluntary behaviour leads to areward or prevents a punishment
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Classical Conditioning
• The individual• Stimulus (S) Response (R)
• 1.Is struck by pin 1. flinches
•
2.Is tapped below• Kneecap 2. flexes lower leg
• 3.Is shocked by electric
• Current 3. jumps/screams
• 4.Is surprised by loud• sound 4. jumps/screams
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Operant conditioning
• The individual• Response (R) Stimulus (S)
• 1.Work 1. is paid
• 2.Talks to others 2. meets people
• 3.Enters a restaurant 3. obtains food• 4.Enters a library 4. finds a book
• 5.Increases productivity 5. receives merit pay
• 6.Completes a difficult
• Assignment 6. receives praise and
• promotion
Albert Band ra ‘s Social Co niti e
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Albert Bandura ‘s Social Cognitive
Theory
• Social learning states that the position thatbehaviour can be best explained in terms of acontinuous reciprocal interaction amongcognitive ,behavioural and environmental
determinants• i.e The person and environmental situations do
not function as independent units but inconnection with behaviour itself reciprocally
interact to determine behaviour.• (Cognitive means related to knowledge or
opinion )
Social Cognitive Theory (SCT) Albert
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Social Cognitive Theory (SCT)-Albert
Bandura
• 1.Symbolizing
• 2.Forethought
• 3.Observational
• 4.Self-regulatory
• 5.Self-reflective
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• Symbolizing—Employees process visualexperiences (Customer named –Mr.Applegate)into Cognitive model (Apple) that then serves asfuture guides for action (ie remembering hisname easily )
• Forethought – Here employees plan theiraction(what am I going to do ?) Anticipate the
consequences(What am I going to get for it )anddetermine the performance (What myperformance goal is )
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• Observational - Employees learn byobserving the performance of referent (peersor supervisors) and the consequence they
receive for their actions (What they get for it)• Self –regulatory –Employees self control their
actions by setting internal standards (aspiredlevels of performance )and then by evaluating
the set standard with the achievedperformance in order to improve it .
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• Self-reflecting – Employees reflect back on
their actions (how did I do ?) and determine
how strongly they believe they can
successfully accomplish the task in the future
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Models of OB
• Authocratic Model
• The custodial Model
• The supportive Model
• Normative Model
• Empirical Model
•
Ecological model• Ideographic Model etc.
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Challenges & Opportunities for OB
• Some critical Ob issues affecting managers
are –
• Managerial challenges
• Workplace challenges
• Organisational challenges
• Global challenges
• Environmental challenges
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Managerial challenges
• Workforce diversity
• Demographics of workforce
• Dual career couples
• Growing no of youngsters
• Gender factor
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Workplace challenges
• Employee privacy
• Employee rights
• Unionism
• Changed employee expectations
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Organisational Challenges
• Improving quality and productivity
• Managing technology and innovations
• Coping with temporariness
• Ethical behaviour
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Global challenges
• 1.Managing global environment• 2.Managing cultural diversity
• 3.Environmental challenges(these are )-
• a.Ecology
• b.Air,water and soil pollution• c.Personnel policies
• d. Consumerism
• e.R&D
• f.International policies
• g. National economy
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• Bill Gates observed , “The inventory
,the value of my company ,walks out the
door every evening”
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• Thank you
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Questions relevant to the topic
• 1.Review the fundamental concepts that form the basis oforganisational behaviour.which concepts do you think aremore important than the others?Explain
• 2.Organisational behaviour is selfish and manipulative,because it serves only the interests of management’s
.Comment• 3.Define OB.Explain the key elements in understanding OB
• 4.How is an organisation a social system ?Explain in detail
• 5.Give some Eg’s of problems a manager might face for
which a knowledge of organisational behaviour might provebeneficial for finding solutions.