ORGANIZATIONAL

BEHAV

IOR

H U M A N BE H A V I O

R AT W

O R K

UNIT-1

Introduction to Organizational Behavior

Topic-1Meaning, Fundamental concepts, characteristics & limitations of OB

UNDERSTANDING ORGANIZATIONAL BEHAVIORDefinitionOrganizational Behavior is the study and application of knowledge about

how people –as individuals and as groups –act within organization.

Meaning of Organizational behavior Organizational behavior is the systematic study of human behavior,

attitudes and performance within an organizational setting; drawing on theory methods and principles from such disciplines as psychology, sociology and cultural anthropology to learn about individual perceptions, values, learning capacities and actions while working in groups and careful application of knowledge about how people- as individuals and as groups- act within the total organization; analyzing the external environment’s effect on the organization and its human resources, missions, objectives and strategies.

GOALS OF ORGANIZATION BEHAVIORFour Goals

Describe: To describe systematically how people behave under variety of conditions

Understand: To understand why people behave as they do

Predict: Predicting future employee behavior

Control: Control at least partially and develop some human activity at work.

FORCES : FOUR KEY FORCESPeople

Structure

Technology

Environment

EnvironmentGovt

CompetitionSocial

Pressures

PeopleIndividuals

Group

TechnologyMachineryComputers

StructureJobs

RelationshipsOB

CONTRIBUTIONS TO THE STUDY OF ORGANIZATIONAL BEHAVIOR

Individual

Group

Organization

OrganizationalBehaviorSocial Psychology

Political Science

Anthropology

Psychology

Sociology

Discipline Unit of Analysis Output

INTERDISCIPLINARY NATURE OF OBTheories :offer explanation of how and why people think , feel and act as

they do.

Research :is a process of gathering and interpreting relevant evidence that willeither support a behavioral theory or help change it.

Practice Information : Generally increase trend of using theory and research in practice

Practice

Theory Research

FUNDAMENTAL CONCEPTS Fundamental concepts are basic principles that form a strong

foundation for OB. OB has a set of fundamental concepts revolving around 1.The nature of people and

2.Organizations. Individual Differences Social

SystemPerception

Mutual InterestA whole person EthicsMotivated BehaviorDesire for InvolvementValue of a person

THE NATURE OF PEOPLEThe six basic concepts relevant to the nature of people are: Law of individual differences-Each person is substantially different from all

others in terms of their personalities, needs, demographic factors and past experiences and/or because they are placed in different physical settings, time periods or social surroundings. This diversity needs to be recognized and viewed as a valuable asset to organizations.

Perception- Perception is the unique way in which each person sees, organizes and interprets things based on their background of individual differences. Each person reacts not to an objective world, but to a world judged in terms of his/her own beliefs, values and expectations. Sometimes it may lead to selective perception in which people tend to pay attention to only those things that are consistent with or reinforce their own expectations. Selective perceptions may lead to misinterpretation of single events at work or create a barrier in the search for new experience. Managers need to recognize the perceptual differences among the employees and manage them accordingly.

A whole person- People function as total human beings. People are physical, mental, social and spiritual beings and the organization actually employs the whole person rather than certain characteristics. There are spillover effects between the work life and life outside work and management’s focus should be in developing not only a better employee but also a better person in terms of growth and fulfillment. If the whole person can be developed , then benefits will extend beyond the firm into the larger society in which each employee lives.

Motivated behavior- Individual’s behavior are guided by their needs and the consequences that results from their acts. In case of needs, people are motivated not by what others think they ought to have but by what they themselves want. Motivation of employees is essential to the operation of organizations and the biggest challenge faced by managers.

Desire for Involvement-Many employees actively seek opportunities at work to become involved in relevant decisions, thereby contributing their talents and ideas to the organization’s success. Consequently, organizations need to provide opportunities to the employees for meaningful involvement.

Value of the Person- People want to be treated with care, dignity and respect and increasingly they are demanding such treatment from their employers. They want to be valued for their skills and abilities and to be provided with opportunities to develop themselves.

THE NATURE OF ORGANIZATIONS The three key concepts related to the nature of organizations are: 1.Social Systems2.Mutual Interest3.Ethics

Social systems- Sociology tells that organizations are social systems. Just have people have psychological needs they also have social roles and status. Their behavior is influenced by their group as well as their by their individual drives. Two types of social systems exist side by side in the organization- the formal (official ) social system and the informal social system- each influencing and getting influenced by the other.

Mutual Interest-There is a mutuality of interest between the organization and its employees. Organization needs employees to reach its objectives and people need organizations to help them reach individual objectives. Mutual interest provides a superordinate goal – one that can be attained only through the integrated efforts of individuals and their employees.

Ethics- Ethics is the use of moral principles and values to affect the behavior of individuals and organizations with regard to choices between what is right and wrong. In order to ensure a higher standard of ethical performance by managers and employees companies have established codes of ethics, publicized statements of ethical values and set up internal procedures to handle misconduct. Since Organizational behavior involves people, ethical philosophy is involved in one way or another in each action they take. When organization’s goals and actions are ethical, individual, organizational and social objectives are more likely to be met.

TRIPLE REWARD SYSTEM

Employee Goal

Organizational Goals

Superordinate goal of mutual Interest

Mutual accomplishment of

goals

Ethics Employee

Security

Organization

BASIC APPROACHES OF ORGANIZATIONAL BEHAVIOR The four basic approaches of OB are:

Human Resources ( supportive) approach- Employee growth and development toward higher levels of competency, creativity and fulfillment are encouraged and supported because people are the central resource in any organization and society.

Contingency approach-Different managerial behaviors are required by different environments for effectiveness.

Results-oriented approach-Outcomes of organizational behavior programs are assessed in terms of their efficiency.

1 Knowledge X Skill = Ability2 Attitude X Situation = Motivation3 Ability x Motivation = Potential Human Performance4 Potential Performance xResources x opportunity = Organizational results

Systems approach- All parts of an organization interact in a complex relationship. Systems approach takes an across- the board view of people in organizations and analyses issues in terms of total situations and as many factors as possible that may affect people’s behavior.

Holistic Organizational Behavior : All concerned stake holders are taken into consideration , may be a clerk, operator , Manager.

Cost Benefit Analysis

tions

Potential

Benefits

Potential Costs

Proposed OB

Compare

Decide

LIMITATIONS OF ORGANIZATIONAL BEHAVIORProblems exist in OB’s nature and Use

It Cannot avoid Conflict and Frustration, It is a way to improve but not the end all of all solutions.

Major Limitations:1 Behavioral Bias2 Diminishing returns3Unethical Manipulations

The three major limitations of Organizational behaviour are: Behavioral Bias- A narrow viewpoint that emphasizes satisfying

employee experiences while overlooking the broader system of the organization in relation to all its public. Sound OB should recognize a social system in which many types of human needs are served in many ways.

The Law of diminishing returns- More of a good thing is not necessarily good. For any situation there is an optimum amount of desirable practice. Organizational effectiveness is achieved not by maximizing human variable but by combining all system variables together in a balanced way.

Unethical Manipulation of people-Knowledge and techniques can be used to manipulate people unethically.

UNIT -1Topic-2

Models of Organizational Behavior

ORGANIZATIONAL BEHAVIOR SYSTEMOrganizations achieve their goals by Creating, Communicating,

and operating an Organizational Behavior systemManagement's

Philosophy Values Vision Mission Goals

Organizational Culture

Social Environmen

tFormal

Organization

Informal Organizatio

n

Leadership Communicati

on Group Dynamics

Quality of work Life

OutcomesPerformance

Employee satisfactionPersonal Growth and development

ELEMENTS OF THE SYSTEMFact PremisesValue premises

VisionMissionGoals

MODELS OF ORGANIZATIONModels of Organizational Behavior constitute the belief system

that dominates management’s thought and affects management’s actions in each organization. It is very important for the managers to recognize the nature, significance and effectiveness of their own models as well as the models of others around them.

Assumptions about Employees- Theory X and Theory Y by Mc Gregor (1957)

THEORY X The typical person dislikes work and avoid it if possible The typical person lacks responsibility, has little ambition and

seeks security above all Most people must be coerced, controlled, and threatened with

punishment to get them to work With these assumptions the managerial role is to coerce and

control employees

THEORY Y Work is as natural as play or rest .People are not inherently

lazy. They have become that way as a result of experience People will exercise self direction and self control in the service

of the objectives to which they are committed People have potential. Under proper condition they learn to

accept and seek responsibility. They have imagination, ingenuity and creativity that can be applied to work

With these assumptions the managerial role is to develop the potential in employees and help them release that potential toward common objectives.

FIVE MODELS OF ORGANIZATIONAL BEHAVIOR-The five models of Organizational Behavior – Autocratic,

Custodial, Supportive, Collegial and System, in the order mentioned , represent the historical evolution in management practice. Organizations differ amongst themselves in the model practiced by it. The practices may vary within the departments or branches of one organization. Also, the practices of individual managers may differ from their organization’s prevailing model because of the manager’s personal preference or different conditions in their department.

AUTOCRATIC MODELIn it the manager has the power and authority to command

over the people.

Employees have simply to follow instruction given by management.

Employees are ordered and directed to do assigned work.

Employees are paid minimum wages for minimum performance.

In it the communication is one way i.e. downward only.

CUSTODIAL MODELIt is based on the economic resources of the organization

rather than on the personal dependence.

Managerial orientation moved towards to pay for employees benefits.

The employees feel security as they became dependent on organization.

In it management decides what benefits and rewards should be given to the employees.

SUPPORTIVE MODELThis model depends on managerial leadership.

The aim of manager is to support employees in their achievement.

The focus is primarily on participation & involvement of employees.

It is similar to McGregor’s Theory Y

COLLEGIAL MODELThe term collegial refers to a body of people having common

purpose.

It is based on TEAM concept.

Control is basically through Self- Discipline.

Each employee develops high degree of understanding towards others and shares common goals.

SYSTEM MODELManagers show caring and Compassion .

A build of trust , integrity and Ethics infused.

Employees experience a sense of Psychological ownership.

Develops passion and commitment to meet organizational goals.

Autocratic

Custodial

Supportive

Collegial System

Basis of Model

Power Economic Resources

Leadership

Partnership

Trust, Community meaning

Managerial Orientation

Authority

Money Support Team Work

Caring Compassion

Employee orientation

Obedience

Security and benefits

Job Performance

Responsible Behavior

Psychological Ownership

Employee Psychological Result

Dependence on boss

Dependence on Organization

Participation

Self Discipline

Self Motivation

Employee needs met

Subsistence

Security Status and Recognition

Self actualization

Wide range

Performance result

Minimum

Passive cooperation

Awakened Drives

Moderate enthusiasm

Passion and Commitment to O Goals

UNIT-1Historical perspective & Challenges & Opportunities of OB

Topic-3

HISTORICAL BACKGROUND OF ORGANIZATIONAL BEHAVIOR

Taylorism and Scientific Management

The Human Relations Movement

Theory X and Theory Y

Schools of Thought in Organizational Behavior

HISTORYCertainly large numbers of people have been doing work for a long time. Pyramids and

many other huge monuments and structures were built, armies and governments were organized, Civilizations spread over vast territories. This took organization and management. There are some writings from antiquity that suggest that systematic approaches to management and organization did evolve and were transmitted to others.

But the primary influences in organizations and management today stem from more recent events.

Protestant Reformation and the Protestant EthicSome would claim that to begin to understand our organizations today we need to look at

the Protestant Reformation and the Protestant Ethic. A new ethic began to evolve, an ethic that shifted the orientation of one's life from the "next world" to this world. This ethic is best embodied in quotes from Luther ("All men possess a calling in the world and the fulfillment of its obligation is a divinely imposed duty") and Calvin ("Disciplined work raises a person above the calling into which he was born and is the only sign of his election by God to salvation"... "The soul is naked before God without Church or communion-religion is a personal matter; worldly success and prosperity are construed as signs of God's approval").

Over time, the Protestant Reformation provided an ideological foundation for the modern industrial society by suggesting that work is now a profound moral obligation, a path to eternal salvation. The focus is this world and materialism, not next world. The individual's obligation is self-discipline and systematic work. It should be clear that the factory system which began to evolve late in the 18th Century could never have flourished without the ideological underpinnings of this profound shift in philosophy as exemplified by the Protestant Ethic.

SCIENTIFIC MANAGEMENTScientific ManagementThe Industrial Revolution that started with the development of steam power and

the creation of large factories in the late Eighteenth Century lead to great changes in the production of textiles and other products. The factories that evolved, created tremendous challenges to organization and management that had not been confronted before. Managing these new factories and later new entities like railroads with the requirement of managing large flows of material, people, and information over large distances created the need for some methods for dealing with the new management issues.

The most important of those who began to create a science of management was Frederic Winslow Taylor, (1856-1915). Taylor was one of the first to attempt to systematically analyze human behavior at work. His model was the machine with its cheap, interchangeable parts, each of which does one specific function. Taylor attempted to do to complex organizations what engineers had done to machines and this involved making individuals into the equivalent of machine parts. Just as machine parts were easily interchangeable, cheap, and passive, so too should the human parts be the same in the Machine model of organizations.

This involved breaking down each task to its smallest unit and to figure out the one best way to do each job. Then the engineer, after analyzing the job should teach it to the worker and make sure the worker does only those motions essential to the task.. Taylor attempted to make a science for each element of work and restrict behavioral alternatives facing worker. Taylor looked at interaction of human characteristics, social environment, task, and physical environment, capacity, speed, durability, and cost. The overall goal was to remove human variability.

The results were profound. Productivity under Taylorism went up dramatically. New departments arose such as industrial engineering, personnel, and quality control. There was also growth in middle management as there evolved a separation of planning from operations. Rational rules replaced trial and error; management became formalized and efficiency increased.

Of course, this did not come about without resistance. First the old line managers resisted the notion that management was a science to be studied not something one was born with (or inherited). Then of course, many workers resisted what some considered the "dehumanization of work." To be fair, Taylor also studied issues such as fatigue and safety and urged management to study the relationship between work breaks, and the length of the work day and productivity and convinced many companies that the careful introduction of breaks and a shorter day could increase productivity. Nevertheless, the industrial engineer with his stop watch and clip-board, standing over you measuring each little part of the job and one's movements became a hated figure and lead to much sabotage and group resistance.

The core elements of scientific management remain popular today. While a picture of a factory around 1900 might look like something out of Dickens, one should not think the core concepts of scientific management have been abandoned. They haven't. They have merely been modified and updated.

THE HUMAN RELATIONS MOVEMENT

Despite the economic progress brought about in part by Scientific Management, critics were calling attention to the "seamy side of progress," which included severe labor/management conflict, apathy, boredom, and wasted human resources. These concerns lead a number of researchers to examine the discrepancy between how an organization was supposed to work versus how the workers actually behaved. In addition, factors like World War I, developments in psychology (eg. Freud) and later the depression, all brought into question some of the basic assumptions of the Scientific Management School. One of the primary critics of the time, Elton Mayo, claimed that this "alienation" stemmed from the breakdown of the social structures caused by industrialization, the factory system, and its related outcomes like growing urbanization.

WESTERN ELECTRIC STUDIESThe Western Electric (Hawthorne Works) Studies (1923-1933) Cicero, , ILL.The most famous of these studies was the Hawthorne Studies which showed

how work groups provide mutual support and effective resistance to management schemes to increase output. This study found that workers didn't respond to classical motivational approaches as suggested in the Scientific Management and Taylor approaches, but rather workers were also interested in the rewards and punishments of their own work group. These studies, conducted in the 1920's started as a straightforward attempt to determine the relationship between work environment and productivity. The results of the research led researchers to feel that they were dealing with socio-psychological factors that were not explained by classic theory which stressed the formal organization and formal leadership. The Hawthorne Studies helped us to see that an organization is more than a formal arrangement of functions but is also a social system. In the following chart, we can see a comparison of traditional assumptions vs. a newer "human relations" view.

Traditional Assumptions people try to satisfy one class of need at

work: economic need no conflict exists betwene individual and

organizational objectives people act rationally to maximize rewards we act individually to satisfy individual

needs

Human relations Assumptions organizations are social systems, not just

technical economic systems we are motivated by many needs we are not always logical we are interdependent; our behavior is often

shaped by the social context informal work group is a major factor in

determining attitudes and performance of individual workers

management is only one factor affecting behavior; the informal group often has a stronger impact

job roles are more complex than job descriptions would suggest; people act in many ways not covered by job descriptions

there is no automatic correlation between individual and organizational needs

communication channels cover both logical/economic aspects of an organization and feelings of people

teamwork is essential for cooperation and sound technical decisions

leadership should be modified to include concepts of human relations

job satisfaciton will lead to higher job productivity

management requires effective social skills, not just technical skills

Results of the Hawthorne Studies and the related researchThese studies added much to our knowledtge of human

behavior in organizations and created pressure for management to change the traditional ways of managing human resources. The Human Relations Movement pushed managers toward gaining participative support of lower levels of the organization in solving organization problems. The Movement also fostered a more open and trusting environment and a greater emphasis on groups rather than just individuals

DOUGLAS MCGREGOR'S THEORY X AND THEORY Y

Douglas McGregor was one of the great popularizers of Human Relations approach with his Theory X and Theory Y. In his research he found that although many managers spouted the right ideas, their actual managers indicated a series of assumptions that McGregor called Theory X. However, research seemed to clearly suggest that these assumptions were not valid but rather a different series of notions about human behavior seemed more valid. He called these Theory Y and urged managers to managed based on these more valid Theory Y notions.

Work is inherently distasteful to most people

Most people are not ambitious, have little desire for responsibility, and prefer to be directed

Most people have little capacity for creativity in solving organizational problems

Motivation occurs only at the physiiological and security levels

Most people must be closely controlled and often coerced to achieve organizational objectives

Work is as natural as play if the conditions are favorable

Self-control is often indispensible in achieving organizational goals

The capacity for creativity is spread throughout organizations

Motivation occurs at affiliation, esteem, and self-actualization levels, not just security, physiological levels

People can be self-directed and creative at work if properly motivated

SCHOOLS OF HISTORICAL THOUGHT AND THEIR COMPONENTS BY DECADE

Org. theory prior to 1900: Emphasized the division of labor and the importance of machinery to facilitate labor 

Scientific management(1910s-)--Described management as a science with employers having specific but different responsibilities; encouraged the scientific selection, training, and development of workers and the equal division of work between workers and management

Classical school( 1910s- ) Listed the duties of a manager as planning, organizing, commanding employees, coordinating activities, and controlling performance; basic principles called for specialization of work, unity of command, scalar chain of command, and coordination of activities

Human relations(1920s-)Focused on the importance of the attitudes and feelings of workers; informal roles and norms influenced performance

Classical school revisited (1930s):Re-emphasized the classical principles

Group dynamics(1940s) Encouraged individual participation in decision-making; noted the impact of work group on performance

Bureaucracy--(1940s) Emphasized order, system, rationality, uniformity, and consistency in management; lead to equitable treatment for all employees by management

Leadership(1950s)Stressed the importance of groups having both social task leaders; differentiated between Theory X and Y management

Decision theory(1960s) Suggested that individuals "satisfice" when they make decisions

Sociotechnical school(1960s) Called for considering technology and work groups when understanding a work system

Envir. and tech. system(1960s) Described the existence of mechanistic and organic structures and stated their effectiveness with specific types of environmental conditions and technological types

Systems theory-(1970s): Represented organizations as open systems with inputs, transformations, outputs, and feedback; systems strive for equilibrium and experience equifinality

Contingency theory(1980s): Emphasized the fit between organization processes and characteristics of the situation; called for fitting the organization's structure to various contingencies

A TIMELINE OF MANAGEMENT

1880 - Scientific ManagementFrederick Taylor decides to time each and every worker at the

Midvale Steel Company. His view of the future becomes highly accurate:

"In the past man was first. In the future the system will be first."

In scientific management the managers were elevated while the workers' roles were negated.

"Science, not rule of thumb," said Taylor.The decisions of supervisors, based upon experience and

intuition, were no longer important. Employees were not allowed to have ideas of responsibility. Yet the question remains -- is this promotion of managers to center-stage justified?

1929 - TaylorismThe Taylor Society publishes a revised and updated practitioner's manual:

Scientific Management in American Industry. 1932 - The Hawthorne StudiesElton Mayo becomes the first to question the behavioural assumptions of

scientific management. The studies concluded that human factors were often more important than physical conditions in motivating employees to greater productivity.

1946 - Organization DevelopmentSocial scientist Kurt Lewin launches the Research Center for Group Dynamics at

the Massachusetts Institute of Technology. His contributions in change theory, action research, and action learning earn him the title of the "father of organization development." Lewin is best known for his work in the field of organization behavior and the study of group dynamics. His research discovered that learning is best facilitated when there is a conflict between immediate concrete experience and detached analysis within the individual.

1949 - Sociotechnical Systems TheoryA group of researchers from London's Tavistock Institute of

Human Relations, led by Eric Trist, studied a South Yorkshire coal mine in 1949. Their research leads in the development of the Sociotechnical Systems Theory which considers both the social and the technical aspects when designing jobs. It marks a 180-degree departure from Frederick Taylor's scientific management. There are four basic components to sociotechnical theory:

environment subsystem social subsystem technical subsystem organizational design

1954 - Hierarchy of NeedsMaslow's hierarchy of needs theory is published in his book Motivation and

Personality. This provides a framework for gaining employees' commitment.

1954 - Leadership/ManagementDrucker writes The Practice of Management and introduces the 5 basic roles

of managers. He writes, "The first question in discussing organization structure must be: What is our business and what should it be? Organization structure must be designed so as to make possible the attainment of objectives of the business for five, ten, fifteen years hence."

1959 - Hygiene and Motivational FactorsFrederick Herzberg developed a list of factors which are closely based on

Maslow's Hierarchy of Needs, except it more closely related to work. Hygiene factors must be present in the job before motivators can be used to stimulate the workers.

1960s - Organization DevelopmentIn the 1950s and 1960s a new, integrated approach originated

known as Organization Development (OD): the systematic application of behavioral science knowledge at various levels (group, intergroup, and total organization) to bring about planned change

1960 - Theory X and Theory YDouglas McGregor's Theory X and Theory Y principles influence

the design and implementation of personnel policies and practices.

Late 1960s - Action LearningAn Unheralded British academic was invited to try out his

theories in Belgium -- it led to an upturn in the Belgian economy. "Unless your ideas are ridiculed by experts they are worth nothing," says the British academic Reg Revens, creator of action learning:

L = P + Q ([L] Learning occurs through a combination of programmed knowledge [P] andthe ability to ask insightful questions [Q])

Note that his work has had little impact on this side of the ocean, although it remains one of the best ways to learn and to improve an organization.

1964 - Management GridRobert Blake and Jane Mouton develop a management model that

conceptualizes management styles and relations. Their Grid uses two axis. "Concern for people" is plotted using the vertical axis and "Concern for task" is along the horizontal axis. The notion that just two dimensions can describe a managerial behavior has the attraction of simplicity.

1978 - Performance TechnologyTom Gilbert publishes Human Competence: Engineering Worthy Performance.

It describes the behavioral-engineering model which become the bible of performance technology. Gilbert wrote that accomplishment specification is the only logical way to define performance requirements. Accomplishments are the best starting points for developing performance standards. In addition, accomplishments are the best tools for the development of performance-based job descriptions as they allow management to describe the measurement that is important to the organization, specific to the position, and observable.

1978 - ExcellenceMcKinsey's John Larson asks colleague Tom Peters to step in at the last minute and make a

presentation that leads to "In Search of Excellence." Thus Tom Peters spawns the birth of the "management guru business."

1990 - Learning OrganizationPeter Senge popularized the "Learning Organization" in The Fifth Discipline: The Art and

Practice of the Learning Organization. He describes the organization as an organism with the capacity to enhance its capabilities and shape its own future. A learning organization is any organization (e.g. school, business, government agency) that understands itself as a complex, organic system that has a vision and purpose. It uses feedback systems and alignment mechanisms to achieve its goals. It values teams and leadership throughout the ranks. He called for five disciplines:

System Thinking Personal Mastery Mental Models Shared Vision Team Learning

1995 - EthicsOn December 11, 1995 a fire burned most of Malden Mills to the ground and

put 3,000 people out of work. Most of the 3,000 thought they were out of work permanently. CEO Aaron Feuerstein says, "This is not the end" -- he spent millions keeping all 3,000 employees on the payroll with full benefits for 3 months until he could get another factory up and running. Why? He answers, "The fundamental difference is that I consider our workers an asset, not an expense."

Business Process Management (BPR) - 2000This is actually a slow advance in process management: Record Management Workflow - 1970 Business Process Re-engineering (BPR) - 1990 Business Process Management (BPR) - 2000

CONTINUING CHALLENGESManaging in a global environment- 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. Hofstede(1983) found five dimensions of cultural differences that formed the basis for work related attitudes. These are Individualism (a cultural orientation in which people belong to loose social framework and their primary concern is for themselves and their families)versus collectivism(a cultural orientation in which people belong to tightly knit social framework and they depend strongly on large extended families or clans); power distance(the degree to which culture accepts unequal distribution of power); uncertainty avoidance(the degree to which a culture tolerates ambiguity and uncertainty); masculinity(the cultural orientation in which assertiveness and materialism are valued) versus femininity(the cultural orientation in which relationships and concern for others are valued) and time dimension(whether a culture’s values are oriented towards the future or towards the past and present). It is also required for these companies to bring in structural changes as and when required based on the demands of the global environment. Many organizational structures have become flatter as a measure of lowering cost and remaining competitive while some structures have grown more complex as a result of mergers, acquisitions and new ventures. Several organizations are hiring contingent workforces while others are moving from a traditional to a team based structure.

Managing workforce diversity- Workforce diversity has always been an important issue for organizations. Diversity encompasses all forms of differences among individuals, including culture, gender, age, ability, religious affiliation, personality, economic class, social status, military attachment and sexual orientation. Today the workforce has become richly diverse in terms of age, gender, educational backgrounds, talents and perspectives to their jobs. New labour force has emerged and management’s leadership practices must change to match the new conditions. These fast moving developments have given new emphasis to leadership ability. Some companies are discovering that demonstrating a sense of caring, really listening to employees and being concerned with both competence and relationships are among the keys to the motivation of the present workforce. Other companies are urging their managers to respond to a diverse workforce by building pride without devaluing others, empowering some without exploiting others , and demonstrating openness, confidence, authentic compassion and vulnerability. Diversity can enhance organizational performance

but five problems are particularly important: resistance to change, cohesiveness, communication problems, conflicts and decision making.

Managing Technological Innovation- Examples of the impact of technology includes the increasing use of robots and automated control system in the assembly lines, shift from manufacturing to service economy, widespread use of Internet and the need to respond to societal demands for improved quality of goods and services at acceptable prices. The 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 benefits as well as costs. Each of the technological advancements places increased pressure on OB to maintain a delicate balance between technical and social systems.Technological innovations like expert systems, robotics, world wide web etc have been responsible to large extent for the advent of alternative work arrangements like Telecommuting, Hoteling and Satellite offices and also has started affecting the very nature of the management job like developing technical competency of themselves and also of the workers, motivating employees for reinvention, dealing with employee stress, depression, anxiety and helping employees to adjust to technological changes.

Managing ethical issues at work- Formal relationships create complex problems of cooperation, negotiation and decision making due to differences in resource power .This may give rise to many ethical issues in the organization like employee theft, comparable worth of employees, conflict of interest, sexual harassment, romantic involvements, organizational justice, whistle blowing. Managers must confront these ethical challenges of individual and group level and also those ethical issues that are encountered in organizational level like environmental issues and corporate social responsibility and handle them successfully.

IMPORTANCE OF ORGANIZATIONAL BEHAVIOR FOR THE MANAGERS

Organizational behavior provides a useful set of tools at five levels of analysis.

It helps managers to look at the behavior of individuals within an organization.

It aids their understanding of the complexities involved in interpersonal relations, when two people (two coworkers or a superior-subordinate pair) interact.

Organizational Behavior is valuable for examining the dynamics of relationships within small groups, both formal teams and informal groups.

When two or more groups need to coordinate their efforts, managers become interested in the intergroup relations that emerge.

Organizations can also be viewed and managed as whole systems that have inter organizational relationships.