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ORGANIZATION
BEHAVIOR
Developer
Renu Kotian
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Defining Organization Behavior
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...a field of study that
investigates the impact thatindividuals, groups andstructure
have on behaviorwithin organizations, for thepurpose of applying
such
knowledge toward improvingan organizationseffectiveness.
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Why study OB?
To learn about yourself and how todeal with others
You are part of an organization now,
and will continue to be a part ofvarious organizations
Organizations are increasingly
expecting individuals to be able towork in teams, at least some
of thetime
Some of you may want to bemanagers or entrepreneurs
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Whats OB made of
Social Psychology
Psychology
Behaviouralscience
Contribution Unit of analysis
Output
Anthropology
Sociology
Political Science
Study ofOrganizational
Behaviour
Organizationsystem
LearningMotivationPerceptionTrainingLeadership effectivenessJob
satisfactionIndividual decision makingPerformance appraisal
Attitude measurementEmployee selectionWork designWork stress
Group dynamicsWork teamsCommunicationPowerConflict
Intergroup behaviour
Formal organization theoryOrganizational
technologyOrganizational changeOrganizational culture
ConflictIntraorganizational politics
Power
Organizational cultureOrganizational environment
Behavioural changeAttitude changeCommunicationGroup
processesGroup decision making
Group
Comparative valuesComparative attitudesCross-cultural
analysis
Individual
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Challenges faced byorganizations
Workplace
Organizational Level
Productivity Developing Effective Employees Global Competition
Managing in the Global Village
Group Level
Working With Others Workforce Diversity
Individual Level
Job Satisfaction Empowerment Behaving Ethically
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If you had to define acompanies structureHowwould you do it?
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3 Parameters of Structure:
Structure is the degree of complexity,formalization and
centralization in theorganization.
Complexity is the degree of vertical,horizontal and spatial
differentiation in anorganization
Formalization is the degree to which jobswithin the organization
are standardized.
Centralization is the degree to which
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Why do Structures Differ?.....
Increase in the number ofemployees results in
High complexity
High formalizationDecentralization
Power controlAn organization structure is the resultof power
struggle by internalconstituencies who are seeking to
further their interests
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Why do Structures Differ?.....
Three Dimensional Model of the Environment
Abundant
Scarce
Complex
Simple
Stable
Dynamic
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Classical Views of Structure
Division of Labour Specialization;breaking jobs down into simple
andrepetitions tasks
Unity of Command a subordinate shouldhave only one superior to
whom he or sheis directly responsible.
Responsibility - an obligation to perform
Line Authority authority to direct the
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Classical Views of Structure
Chain of Command the superior-subordinate authority chain that
extendsfrom the top of the organization to thelowest echelon
Staff Authority positions that support,assist and advise line
managers
Span of Control the number ofsubordinates a manger can
efficiently andeffectively divert
Departmentation - Grouping of activities
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Departmentation by FunctionDepartmentation by Function
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Departmentalization by ProductDepartmentation by Product
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Departmentalization by CustomerDepartmentation by Customer
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Departmentalization by Geography
Departmentation byGeography
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Departmentalization by ProcessDepartmentation by Process
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Departmentalization by ProcessTHE MATRIX STRUCTURE
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Flexibility
Control
Interna
lFocus
Extern
alFo
cus
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Competing Values Framework
Internal-External DimensionInwardly toward employee needs and
concerns and/orproduction processes and internal systems
or
Outwardly, toward such factors as the marketplace,government
regulations, and the changing social,environmental, and
technological conditions of thefuture
Flexibility-Control DimensionFlexible and dynamic, allowing more
teamwork andparticipation; seeking new opportunities for
productsand services
or
Controlling or stable, maintaining the status quo and
exhibiting less change
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Mintzberg`s Five Design
Configurations
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Mintzberg`s Five DesignConfigurations
The Operating Core: Employees who perform thebasic work related
to the production of productsand services
The Strategic Apex: Top level managers who arecharged with the
overall responsibility of theorganization
The Middle Level: Managers who connect the
operating core to the strategic apex
The Techno-Structure: Analysts who have theresponsibility for
effecting certain forms ofstandardization in the organization
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Example Posts
Strategic Apex
Board of Directors, Chief Executive Officer
Techno Structure
Strategic Planning, Personnel Training, Operations
Research, Systems Analysis and Design
Support Staff
Legal Counsel, Public Relations, Payroll, Mailroom
Clerks,Cafeteria Workers
Middle LineVP Operations, VP Marketing, Plant Managers
SalesManagers
Operating Core
Purchasing Agents, Machine Operators, Assemblers,Sales Persons,
Shi ers
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The Simple Structure
Low complexityLow formalization
Centralized authority
The Machine Bureaucracy
High in complexity, formalization andcentralization
Key part is technostructure
Th P f i l
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The ProfessionalBureaucracy
High in complexity, formalization
Low centralization
The Divisional Structure
A set of autonomous unitscoordinated by central headquarters
The Adhocracy
A structure characterized as low in
complexity, formalization
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Lets see how much we know
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01. Organizational Behavior:
a. Is the study of largeorganizations and their structure
b. Seeks to understand, explain,
predict and change humanbehaviour
c. Is the process of organizing the
companyd. Is the process of corporate
governance
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02. Interpersonal, decisional andinformational managerial
roles
were identified by whom:
a. Hawthorn
b. Hertzberg
c. Mintzberg
d. Wheatley
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03. The roots of organizationalbehavior come from research
results from:
a. Sociology and Psychology
b. Engineeringc. Anthropology
d. All of the above
e. a) and c)
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04. Which statement is true?
a. Organizational behavior exploresmanagerial roles and
challenges
b. Organizational behavior is the study of
financial capital applicationsc. Organizational behavior is the
study of
technological capital applications
d. Organizational behavior is the dividing
up of tasks and work roles
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05. The benefit (s) of studyingOrganizational Behavior
are/is:
a. Improved managerialeffectiveness
b. Effective managers
c. Become better at influencingothers
d. Manage your life outside workbetter
e. All of the above
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06. GHOST is:
a. A model for assessing theimpact of OB on management
b. Goals, human resources,organizational structure
andtechnology
c. Goodwill, hygiene, opportunity,standards, time-management
d. The unseen, internal,organizational model
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07. Open Systems Framework:
a. Refers to forces of governance,ethical behavior and
globalization
b. Describes the internal organization
c. Consists of the external taskenvironment, inputs to
theorganization, outputs of the
organization and feedbackprocesses
d. Describes individual boundary-spanning roles
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08. The formal organizationincludes:
a. Beliefs, assumptions, values andunspoken norms of
behavior
b. Technology, structure and othervisible parts of the
organization
c. Both the overt and covert aspects ofthe organization
d. The open systems interactions
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09. The informal organization
includes:a. Beliefs, assumptions, values and
unspoken norms of behavior
b. Technology, structure and othervisible parts of the
organization
c. Both the overt and covert aspectsof the organization
d. The open systems interactions
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10. A system of control andperformance monitoring of top
management is:a. Behavior science
b. Formal organization structurec. Informal organization
structure
d. Corporate governance
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.world is free from nationalboundaries and is really a
borderless world is:
a. Internationalism
b. Globalization
c. Transnationalism
d. Multinationalism
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12. The key types of workplace
diversity are:a. Stereotyping, sex, age, mental andphysical
disability, ethics
b. Sensitivity, organizational culture,management style,
creativity, age
c. Cultural, sexual orientation, age,racial and ethnic, mental
and
physical disability, genderd. Sexual orientation, mental and
physical disability, whistle-blowing,
cultural, age
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TEST 2
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The coming of the NewOrganization
Rapid and unexpected change
Increasing diversity
Change in managerial behaviourAdoption to computer
technology
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The Mechanistic Structure
Th M h i i
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The MechanisticStructure
High horizontal differentiation
Rigid hierarchical relationships
Fixed dutiesHigh formalization
Formalized communication channels
Centralized decision authority
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The Organic Structure
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The Organic Structure..
Low horizontal differentiation
Collaboration (both horizontal andvertical)
Adaptable duties
Low formalization
Informal communicationDecentralized decision authority
h d S iff ?
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Why do Structures Differ?Strategy
Strategy Structural OptionInnovation Organic: loose structures;
low
division of labour, lowformalization, decentralized.
Costminimization
Mechanistic: tight control;extensive division of labour,
highformalization, high centralization.
Initiation Mechanistic and Organic: mix ofloose and tight
properties; tightcontrols for current activities,loose controls for
newer
Wh d S Diff ?
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Why do Structures Differ?....Technology
UnitProduction
MassProduction
ProcessProduction
Structural
characteristics
Low vertical
differentiationLow horizontaldifferentiation
Lowformalization
Moderate
verticaldifferentiation
Highhorizontaldifferentiation
Highformalization
High vertical
differentiationLowhorizontaldifferentiation
Lowformalization
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Technology
Non routine
Routine
Craft
Engineering
1 2
3 4
Well-defined
Ill-defined
Task variability
Few Exceptions Many Exceptions
Problem
Analyzability
T h l
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Technology
A B C DInput Output
A. Long-linked Technology
Client A Client BTransformational
Process
B. Mediating Technology
Resources
AB
C
D
Transformational
Process
Feedback
Output
