Mpo Notes
Mpo Notes
Mpo Notes
Managing people and organization (Birla Institute of Technology and Science, Pilani)
Sajin John
2020HB58042
Table of Contents
Module 1 – Introduction to Organizational Behavior (OB) ................................................................................................................. 3
What is Organizational Behavior ........................................................................................................................................................................................ 3
Challenges and Opportunities in OB ................................................................................................................................................................................... 4
SAJIN JOHN 2
Management Functions
Planning
SAJIN JOHN 3
SAJIN JOHN 4
SAJIN JOHN 5
SAJIN JOHN 6
Effective HR skills
Transactio
nal • Giving trusted advice
Performance, Services
results, • Being decisive
evidence- Talent • Knowing the business
based Management • Leading courageously
practice • Supporting others
• Command of HR
The New • Employee advocacy
Human • Driving for results
Resource • Comfort in own skin
Employee Managers Competenci
Engagement es • Collaborating
• Championing change
• Listening
• Generating new ideas
• Speaking persuasively
Big
Ethics
picture • Coaching for success
SAJIN JOHN 8
Diversity in organizations
Plant manager – Verbal comprehension
Diversity Management
- Ability to understand what is read or heard and
Process and programs by which managers make everyone the relationship of words to each other
more aware of and sensitive to the needs and differences of
Fire investigator – Perceptual speed
others.
- Ability to identify visual similarities and
• Surface-level diversity differences quickly and accurately
o Easily observable
o Age, Gender, Race Interior Decorator – Spatial Visualization
• Deep-level diversity - Ability to imagine how an object would look if its
o Aspect which are difficult to see position in space were changed
Individual differences shape preferences for rewards, Sales Person – Memory
communication styles, reactions to leaders, negotiation - Ability to retain and recall past experiences.
styles, and many other aspects of behaviour in
organizations. Market researcher – Inductive Reasoning
Increased diversity many also mean increases in - Ability to identify a logical sequence in a problem
discriminatory practices. and then solve the problem.
Supervisor – Deductive Reasoning
Surface level diversity / Biographical - Ability to use logic and assess the implications of
Characteristics an argument.
Objective and easily obtained personal characteristics.
Dimensions of Physical Ability
• Age – Older workers bring experience, judgment,
a strong work ethic, and commitment to quality • Strength Factors
• Gender – Few differences between men and o Dynamic Strength
women that affects job performance. o Trunk Strength
• Disability – Today’s organizations have started o Static Strength
making efforts to hire people with disabilities. o Explosive Strength
• Tenure – People with job tenure (seniority at a • Flexibility Factors
job) are more productive, absent less frequently, o Extent flexibility
have lower turnover, and are more satisfied. o Dynamic flexibility
• Race • Other Factors
• Religion o Body coordination
• Sexual Orientation o Balance
• Gender Identity o Stamina
• Cultural Identity
Role of Disabilities
Ability When focusing on ability, it can create problems when
An individual’s capacity to perform the various tasks in a attempting to develop workspace policies that recognize
job. diversity in terms of disabilities.
Intellectual Abilities It is important to recognize diversity and strive for it in
the hiring process
• The abilities needed to perform mental activities.
• General Mental Ability’s (GMA) is a measure of An organization needs to be careful to avoid
discriminatory practices by making generalizations about
overall intelligence.
people with disabilities.
• No correlation between intelligence and job
satisfaction.
Implementing Diversity Management Strategies
Physical Abilities
Making everybody more aware and sensitive to the need
• The capacity to do tasks demanding stamina, of others.
dexterity, strength, and similar characteristics.
- Attracting, Selecting, Developing, and Retaining
Dimensions of Intellectual Ability the Diverse Employees
- Working with Diversity in Groups
Accountant – Number aptitude - Effective Diversity Programs.
- Ability to do speedy and accurate arithmetic
SAJIN JOHN 9
SAJIN JOHN 10
What are the Major Job Attitudes? Negative people are usually not satisfied with
their jobs.
Job Satisfaction Those with positive core self-evaluation are more
A positive feeling about a job resulting from an satisfied with their jobs.
evaluation of its characteristics Job Conditions and CSR also play a part in Job
Satisfaction.
Job Involvement
Degree to which a person Identifies with a job Outcomes of Job Satisfaction
actively participates in it and considers Job Performance
performance important to self-worth.
Individuals with higher job satisfaction perform
Psychological Empowerment better, and organizations with more satisfied
Belief in the degree of influence over the job, employees tend to be more effective than those
competence, job meaningfulness, and autonomy. with fewer.
Satisfied workers are mor productive and more
Other Job Attitudes productive workers are more satisfied!
Organizational Citizenship Behaviour (OCB)
Organizational Commitment
Moderate correlation between job satisfaction
Degree to which an employee identified with and OCB
his/her organization and its goals and wishes to The discretionary behaviour that is not part of an
remain a member in the organization. employee’s formal job requirements, and that
Perceived Organizational Support (POS) contributes to the psychological and social
environment of the workspace is cal OCB
Degree to which an employee believes an
Customer Satisfaction
organization values his/her contribution and
cares about his/her well-being. Job Satisfaction is reciprocal to Customer
Satisfaction. (i.e. directly proportional).
Employee Engagement Satisfied frontline employees increase customer
Involvement with, satisfaction with and satisfaction and loyalty.
enthusiasm for the work he or she does. Absenteeism
SAJIN JOHN 11
Affect
SAJIN JOHN 12
SAJIN JOHN 13
SAJIN JOHN 14
o Conceptualizers (ENTP):
entrepreneurial, innovative, Extroversion
individualistic, and resourceful •Socialable, gregarious and assertive
• Research results on validity mixed
o MBTI® is a good tool for self-awareness Agreeableness
and counselling. •Good-natured, cooperative, and trusting
o Should not be used as a selection test for
job candidates. Conscientiousness
•Responsible, dependable, persistent, and organized
Emotional Stability
•Calm, self-confident, secure under stress (positive), versus
nervours, depressed, and insecure under stress (negative)
Openness to Experience
•Curious, imaginative, artistic, and sensitive
SAJIN JOHN 15
SAJIN JOHN 16
SAJIN JOHN 17
SAJIN JOHN 18
Organizational Constraints
Rational Decision Making o Organizations can constrain decision makers,
• The “perfect world” model assumes complete creating deviations from the rational model.
information, all options known, and maximum payoff o Managers shape decisions to reflect the
• Six-step decision-making process organization’s performance evaluation and
Bounded Reality reward system, to comply with formal
• The “real world” model seeks satisfactory and regulations, meet organizationally impose time
sufficient solutions from limited data and alternatives constraints.
Intuition
• A non-conscious process created from distilled Performance Evaluation
experience that results in quick decisions o Managerial evaluation criteria influence actions
– Relies on holistic associations Reward Systems
– Affectively charged – engaging the emotions o Managers will make the decision with the
greatest personal payoff for them
Common Biases and errors in Decision Making Formal Regulations
o Limit the alternative choices of decision makers
• Overconfidence bias
System-Imposed Time Constraints
• Anchoring bias
o Restrict ability to gather or evaluate information
• Confirmation bias
Historical Precedents
• Availability bias
o Past decisions influence current decisions
• Escalation of commitment
• Risk-aversion
Global Implications
• Hindsight bias
• Randomness error Attributions
• Risk aversion • There are cultural differences in the ways people
attribute cause to observed behavior
Reducing Biases and Errors Decision Making
• No research on the topic: assumption of “no
• Focus on goals
difference”
• Look for information that disconfirms your
• Based on our awareness of cultural differences in
beliefs
traits that affect decision making, this assumption is
• Don’t try to create meaning out of random events
suspect
• Increase your options
Ethics
• No global ethical standards exist
Individual Differences in Decision Making
• Asian countries tend not to see ethical issues in
Personality “black and white” but as shades of gray
• Conscientiousness may affect escalation of • Global companies need global standards for
commitment managers
– Achievement strivers are likely to increase
commitment Summary and Managerial Implications
– Dutiful people are less likely to have this
Perception
bias
• People act based on how they view their world
• Self-Esteem
• What exists is not as important as what is believed
– High self-esteem people are susceptible to
• Managers must also manage perception
self-serving bias
Individual Decision Making
Gender
• Most use bounded rationality: they satisfice
• Women analyze decisions more than
• Combine traditional methods with intuition and
men – rumination
creativity for better decisions
• Differences develop early
– Analyze the situation and adjust to culture
• Mental Ability
and organizational reward criteria
– Be aware of, and minimize, biases
SAJIN JOHN 19
Motivation
- Representative Participation
Job Characteristic Model
Job design suggests that the way elements in a job are Motivation – Action – Rewards
organized can influence employee effort.
SAJIN JOHN 20
• Gaining a sense of competence • Pay a lump sum at the end of a designated period of
• Making noticeable progress time based on individual and/or organizational
• Feeling inspired to be more responsible performance.
• Being an important part of an organization or
team Flexible Benefits
• Feeling accomplished
• Mastery of knowledge or a skill Flexible benefits give individual rewards by allowing each
• Feeling pride employee to choose the compensation package that best
satisfies his or her current needs and situations.
Using Rewards to Motivate Employees
Employee Recognition Programs
• Although pay is not the primary factor driving job
satisfaction, it is a motivator. Employee rewards needs to be intrinsic and extrinsic.
– Establish a pay structure Employee recognition programs are a good method of
– Variable-pay programs intrinsic rewards.
- The rewards can range from a simple thank-you
Establish a pay structure to more widely publicized formal programs.
- Advantages of recognition programs are that
they are inexpensive and effective.
Internal External - Some critics say they can be politically motivated
Pay Equity Pay Equity and if they are perceived to be applied unfairly,
they can cause more harm than good.
Global Implications
Variable-Pay Programs
Job Characteristics and Job Enrichment
– Piece-Rate Pay • Studies do not yield consistent results about
– Merit-Based Pay applicability to other cultures
– Bonuses Telecommuting
– Skill-Based Pay • Increasingly common. Altered completely in 2020.
– Profit-Sharing Plans Variable Pay
– Gainsharing • Most believe variable pay systems work best in
– Employee Stock Ownership Plans individualistic cultures such as the United States.
• Fairness is an important factor
Types of Variable-Pay Programs Flexible Benefits
• Popular in all cultures
Piece-Rate Pay Employee Involvement
• Pays a fixed sum of money for each unit of production • Differ among countries
completed. For example: Workers selling peanuts
and soda get Rs.10 for each bag of peanuts sold. Summary and Managerial Implications
Merit-Based Pay • Recognize individual differences
• Pays for individual performance based on • Use goals and feedback
performance appraisal results. If appraisals are • Allow employees to participate in decisions that
designed correctly, workers performing at a high affect them
level will get more pay. • Link rewards to performance
Bonuses • Check the system for equity
SAJIN JOHN 21
Group Properties
Norms
Roles Status
Group
Performance
Cohesiveness Size
But this framework assumes that the group becomes
more effective as it progresses through the first four • There are several properties of groups that help
stages shape group behavior and explain and predict
1. Not always true – group behavior is more complex individual behavior. They are roles, norms, status,
2. High levels of conflict may be conducive to high size, and cohesiveness.
performance
SAJIN JOHN 22
SAJIN JOHN 23
Why have Teams became so popular? Comparing Work Groups and Work Teams
• Great way to use employee talents
• Teams are more flexible and responsive to changes in
the environment
• Can quickly assemble, deploy, refocus, and disband
• Facilitate employee involvement
• Increase employee participation in decision making
• Democratize an organization and increase motivation
SAJIN JOHN 24
• A small business may have a client services group, – Good at backing up others, sensing when
but one person may focus on local clients, one person others need help
may focus on regional clients and a third person may • Openness
assist those individuals. – High levels tend to perform better,
• Before a small business creates a new product, it may constructive task conflict enhances the
organize a team composed of people from all effect; better communicators
departments – engineering, finance, legal, marketing, • Emotional Stability
etc. – to consider all aspects of the potential new – High levels deal better with task conflict and
product to avoid costly surprises down the road. leverage it for better performance
• Agreeableness
Types of Teams • Extraversion?
Problem-Solving Teams Turning Individuals into Team Players
- Groups of 5 to 12 employees from
the same department who met for a Selection
few hours each week to discuss • Make team skills one of the interpersonal skills in the
ways of improving quality, hiring process.
efficiency, and the work Training
environment. • Individualistic people can learn
Rewards
Self-Managed Work Teams • Rework the reward system to encourage cooperative
- Groups of 10 to 15 people who take efforts rather than competitive (individual) ones
on the responsibilities of their • Continue to recognize individual contributions while
former supervisor still emphasizing the importance of teamwork
Virtual Teams
Beware! Teams aren’t always the answer
- Teams that use computer technology to tie together
physically dispersed members in order to achieve a Teams take more time and resources than does individual
common goal work.
- To be effective, virtual teams need Three tests to see if a team fits the situation:
- trust among members, 1. Is the work complex and is there a need for
- Close monitoring different perspectives – will it be better with the
- To be publicized insights of more than one person?
2. Does the work create a common purpose or set of
Cross-Functional Teams
goals for the group that is larger than the
- Employees from about the same hierarchical aggregate of the goals for individuals?
level, but from direct work areas, who come 3. Are members of the group involved in
together to interdependent tasks?
accomplish a task.
- Very Common Global Implications
- Task forces
- Committees Extent of Teamwork
• Although work teams are pervasive in India, some
A Team-Effectiveness Model evidence suggests that most Indians are individual
players rather than team players
Self-Managed Teams
• Do not work well in countries with low tolerance for
ambiguity and uncertainty and a high-power distance
Team Cultural Diversity and Team Performance
• Diversity caused by national differences interferes
with team efficiency, at least in the short run
• After about three months, the differences between
diverse and non-diverse team performance disappear
SAJIN JOHN 25
– Do work that provides freedom, autonomy, and the Managers should modify the environment and select
chance to contribute team-oriented individuals to increase the chance of
– The tasks are whole and significant developing effective teams.
– Has members who believe in the team’s capabilities
Communications
SAJIN JOHN 26
SAJIN JOHN 27