MGT. FUNCTION & OB

Organizational Behavior

Elements of an Organization

• People/Staff: Individuals who make up the organization.

• Infrastructure: Physical structures such as buildings and vehicles.

• Technology: Tools and equipment like machines and medications.

• Resources: Financial assets required for operations.

• Common Objective/Goal: The organization’s mission that guides all activities.

Structure of Organizations

• Organizations consist of Goals, Objectives, and Tasks.

• Key components: Infrastructure, People/Staff, Technology, and Resources.

• Managers plan and control the organization, while owners may or may not be part of management.

Alternative Definition of an Organization

• An organization is formed through the interactions and contributions of people towards achieving objectives, coordinated through structure and managed by leadership (Mullins 1996).

The Hawthorne Studies

Background

• Conducted at the Hawthorne plant of the Western Electric Company in the late 1920s and early 1930s.

Findings

• Elton Mayo was hired to analyze productivity related to illumination levels.

• Conducted studies in the Relay Room and Bank Wiring Room to observe worker behavior.

Bank Wiring Room Study

• Introduced an incentive pay system, expecting increased individual output.

• No output increase was observed; workers established informal norms to avoid quota increases.

Impact of the Hawthorne Studies

• Elton Mayo is recognized as the father of the Human Relations movement.

• Acknowledged the link between productivity and employee satisfaction, emphasizing that human factors matter in organizational settings.

Enter Organizational Behavior (OB)

• OB is a discipline exploring the effects of individuals, groups, and structure on behavior within organizations, aiming to enhance organizational effectiveness through systematic study.

Disciplines Contributing to Organizational Behavior

Psychology

• Examines behavior, focusing on:

  • Learning

  • Motivation

  • Personality

  • Emotions

  • Job satisfaction

  • Leadership effectiveness

Sociology

• Studies social groups and their dynamics:

  • Work teams

  • Organizational culture

  • Intergroup behavior

Social Psychology

• Merges psychology and sociology, focusing on interpersonal influences:

  • Attitude change

  • Group processes

Anthropology

• Investigates human societies and their cultures, emphasizing:

  • Cultural implications in organizations

Political Science

• Studies behavior within political contexts, especially regarding power dynamics in organizations.

Fundamentals of Individual Behavior

Psychologist Kurt Lewin's Equation

• B = F(P, E): Behavior (B) is a function (F) of the Person (P) and Environment (E).

Determinants of Personality

• Inherited Characteristics: Intelligence, age, gender, and religious beliefs.

• Learned Characteristics: Including perception, attitude, personality, and values.

Personality Traits

The Big Five Personality Dimensions

1. Extroversion: Sociable and energetic.

2. Agreeableness: Compassionate and cooperative.

3. Conscientiousness: Organized and dependable.

4. Neuroticism: Stability vs. emotional distress.

5. Openness to Experience: Creativity and curiosity.

Personality Definition

• Individual’s consistent pattern of thinking, feeling, and acting, shaped by both internal factors and external circumstances.

Origins of Personality

• Nature: Biological heritage

• Nurture: Influenced by life experiences and environment.

Determinants of Personality

• Heredity: Genetic influences and brain functions.

• Environment: Family, culture, education, workplace.

Personality Models

• Traits vs. Types: Traits are single dimensions, while types represent clusters of traits.

• Myers-Briggs Type Indicator: Classifies individuals based on extroversion/introversion, judging/perceiving, etc.

• Type A/B Personality: Type A is competitive and time-urgent, Type B is more relaxed.

Affectivity

• Positive Affectivity: Tendency to feel good.

• Negative Affectivity: Tendency to feel bad.

Additional Personality Traits in Work Context

• Self-Efficacy: Beliefs about one's ability to succeed.

• Authoritarianism: Beliefs in hierarchical structures.

• Machiavellianism: Using deceit to manipulate others.

Values in the Workplace

• Value System: Hierarchy based on personal convictions.

• Types of values include economic, aesthetic, social, political, religious.

• Rokeach Value Survey: Differentiates between terminal values (end-goals) and instrumental values (behavioral strategies).

Leadership

Definition and Importance

• Leadership: The art of influencing people toward achieving group goals.

• Must involve recognition of differences among group members and managing how power is distributed.

Leadership Functions

• Combine group maintenance and task-related activities essential for group effectiveness.

Leadership Styles

• Autocratic: Centralized authority, top-down.

• Democratic/Participative: Fostering group participation in decision-making.

• Free-Rein: Minimal input from leader; allows employees greater autonomy.

The Managerial Grid

• Developed by Robert Blake and Jane Mouton, assessing concern for people vs. concern for production.

• Distinct managerial styles include impoverished management, country club management, and team management.

Fielder's Contingency Approach

• Emphasizes situational factors affecting leadership effectiveness, including:

  • Position power

  • Task structure

  • Leader-member relations.

Motivation

Definition

• Motivation: Willingness to exert heavy effort towards goals that satisfy individual needs.

Theories of Motivation

• Various theories seek to explain why and how motivation occurs, including:

  • Maslow's Hierarchy of Needs

  • Alderfer's ERG Theory

  • Herzberg's Dual-Structure Theory

  • McClelland's Theory of Needs.

Maslow's Hierarchy of Needs

• Framework categorizing needs that motivate behavior into five levels: physiological, security, affiliation, esteem, and self-actualization.

  • Lower-order needs (physiological and security) must be fulfilled before higher-order needs (social, esteem, self-actualization) become relevant.

ERG Theory

• More flexible than Maslow's hierarchy, allowing for multiple needs to be pursued simultaneously and regression between needs based on fulfillment.

McClelland's Theory of Needs

• Focuses on the need for achievement, affiliation, and power as critical drivers of motivation in the workplace.

Expectancy Theory

• Asserts motivation is influenced by the anticipated outcomes based on effort invested, relationship between performance and rewards, and personal goal alignment.

Goal-Setting Theory

• Proposes that specific and challenging goals enhance motivation and performance, emphasizes goal acceptance and commitment.

Reinforcement Theory

• Discusses how behavior is shaped by its consequences, focusing on external environmental factors rather than internal states.

Theory X and Theory Y

• Proposes that managers' assumptions about employee nature greatly influence their management style, with Theory X adopting negative views and Theory Y adopting positive views on employee capabilities.