ORGANIZATIONAL

BEHAVIOUR

DASUNI WEERARATHNE

INTRODUCTION
Organizational behavior is the term used to describe
how people within their organizations act,
individually or in groups & how organizations
function in terms of their structure, process and
culture.

1.1 Compare and contrast different organizational

structures and culture
1.1.1 Identify two organization with similarities with
business.

OVERVIEW OF TATA AND FORD

MOTORS

Jamsetji Nusserwanji Tata

Henry Ford

TATA MOTORS
Jamsetji Nusserwanji Tata started a private
trading firm laying foundation to the TATA group
in 1868.
Tata motors was established in 1945 as a
locomotive manufacturing unit.
It tied up with Daimler-Benz and entered
commercial vehicle segment in 1954

 vision is to be ''best in the manner in which we

operate, best in the products we deliver, and best in
our value system and ethics.''
The companys Mission is Leadership with trust.

Objectives
Employee Focus: Make the organization a Great
Place to work
Community Focus: Be a responsible corporate
citizen
Supplier Focus: Treat Suppliers as partners
Shareholders Focus: Demonstrate superior results
Customer Focus: Improve Customer Satisfaction.

1.1 Compare and contrast different organizational

structures and culture
1.1.2 Compare and contrast the structure and
culture of the two selected organization.

Types of Cultures
Power Culture The organization is controlled by key
central figures, often the owners or founders of the
organization.
Role Culture - Work is controlled by procedures and
rules and the role, or job description and other formal
signals as to what is expected of them.
Task culture Management is seen as completing a
succession of projects or solving problems, often as part
of team.
People Culture - Individual is the central point. A
culture in which activity is strongly influenced by the

Organisational Structure TATA

 relatively flat structure

narrow span of control
Based on the divisions, Tata Motors has a mixed
organisational structure.
Two main divisions based on product type viz.
Commercial vehicle and
Passenger cars division

CULTURE (broader perspective)

Tata motors

Tatas follow a very strong culture giving

much importance to ethics and moral values.
Tata companies also extend social welfare
activities to communities around their
industrial units.
Very strong employee relationships.
In conclusion TATA has a People Culture witch
Individual is the central point. A culture in
which activity is strongly influenced by the
wishes of the individuals

CEOs ROLE IN LEADING

TRANSFORMATION AT TATA
The role of CEOs is unique in that they stand
at the top of the pyramid and all the other
members of the organization take cues from
them.
Building a strong and committed top team.
Role-modeling desired mind-sets and
behavior.
Relentlessly pursuing goals.

Ford Motor Company

American multinational automaker, founded by Henry
Ford on June 16, 1903 with headquarters at Deaborn,
Michigan
Second largest automaker of US and fifth largest
worldwide.
Ranked 9th on the 2012 Fortune 500 list.
Symbol of success for other motor companies in the
world.

Organizational structure

Very complex structure fairly mechanistic in nature.

CEO
CHAIRMAN
Chief financial
officer

Chief operating
officer

Rigid departmentalization
Low span of control
High Centralization

Chief technical
officer

Executive vice
presidents

Group vice
presidents

Organizational Culture
People Orientation - care for clients, stock holders and employees.
Aggressiveness - employee involvement plan
Team Orientation - importance of working together as one team to
achieve automotive leadership
Outcome Orientation - focus on quality
Attention to detail
Innovative and risk taking
In conclusion we can say that FORD has amore of a Power Culture in
witch the organization is controlled by key central figures, often the
owners or founders of the organization.

FORDS CEO LEADS CULTURAL

CHANGE
CEO of ford is working hard to change work
habits of employees.
Wants managers to think more about
customers than their own careers.
Top priority is to encourage leadership team
to admit mistakes, share more information
and cooperate across divisions.

1.2 Explain the relationship between an

organization structure and culture and impact on
the performance of the business.

1.2.1 Relationship between structure and

culture

 To reach their goals effectively organizations always need

to have a formal structure. This is important to distribute
tasks into different groups to ensure that no two people
are working on the same project or task so that we get the
most output for our input. Because organizations cannot
be run without people, this tends to create different
informal structures or environments in the organization
which leads to different attitudes, perceptions, behaviors
and traits with lots different types of aptitudes. So when
employees are supposed to work together on a task in the
constraints of a formal structure to reach a certain
objective there are certain ways to speak and interact,
which in effect forms an organizational culture, where it
may be created knowingly or unknowingly by the
employees. Organizational culture in some way defines
the organizational structure of an organization but the
structure also partially defines the culture of an
organization.

Organizational Structure and

Culture Definitions
Organizational
Structure

The formal system of work roles and

authority relationships that govern
how associates and managers
interact with one another.

Organizational
Culture

Involves the values and norms

shared by managers and associates
that influence behavior. It is a
powerful force in organizations.

Structural Characteristics
Departmentation

Height

Span of Control
The number of individuals a manager directly oversees.

Span of Control

Organizational Level

Highest

Average span of Four

Average span of Ten

4
17
63

10
100
1000

250
Associates
1000
Associates

Lowest
Average Span of Control: Effects on Height of the Hierarchy

Developing Organizational Culture

Shared
Values

Reinforcing
Outcomes

Organizational
Culture

Individual and
Group Behavior

Norms

1.2.2 Explain impact of structure and culture on performance of the business.

-Organizational design
-leadership
-Job design
-Motivation
-Employee engagement
-Communication
-Decision making
-Performance management
-Reward Management
-Welfare management
-Employee resourcing & Training development

What is organizational culture?

A system of shared meanings and common beliefs

held by organizational members that determines, in a

large degree, how they act towards each other.

The way we do things around here.

Implications:
Culture is a perception
Culture is shared
Culture is descriptive

Stability/Control

Flexibility/
Discretion

Organizational Culture(Leadership)
Clan

Adhocracy

Leadership
Mentors and Coaches

Leadership
Entrepreneurs and
Innovators

Effectiveness
Cohesion and Morale

Effectiveness
Creativity and Innovation

Hierarchy

Market

Leadership
Monitors and Organizers

Leadership
Hard Drivers and
Competitors

Effectiveness
Efficiency and Order

Effectiveness
Goal Achievement and
Winning

Internal Focus/Integration

External Focus/
Differentiation

Competing Values Model of Organizational Culture

Relationships between OC and

employees

Gives identity
-Identity of company, automatically became the
identity of people who work in the company, as well.

The people end up affecting

the culture as much as the
culture is affecting them.

How Organizational culture affect

the Organization?
It helps to manifests or understands in:
1. the ways the organization conducts its
business, treats its employees, customers, and
the wider community.
2. the extent to which autonomy and freedom is
allowed in decision making, developing new
ideas, and personal expression.
3. how power and information flow through its
hierarchy.
4. the strength of employee commitment towards
collective objectives.

ORGANIZATIONAL CULTURE
PROFILE

Impact of OC to employees
performance
High Performance when:
the OC is effective and can be accepted by the
employees . This can lead to motivation to the
employees to increase their productivity.
For example, if the organizational culture is
Innovative, and the employees likes to improve and
to do new things, then these can lead to high
performance.

 Low Performance when:

the culture of the organization is not proper and
transparent and it is not accepted by the employees.
For example, if the organizational culture is team
oriented and the employee is individualistic who
likes to do work in individual, then this can lead to
low performance.

Impact of OC to employees
satisfaction
Employee satisfaction is the terminology used to
describe whether employees are happy and
contented and fulfilling their desires and needs at
work.
High satisfaction when the employees is willing to
adapt the organizational culture.
Low satisfaction when the employees is unwilling
to adapt the organizational culture.

ORGANIZATIONAL
CULTURE
"...We believe that
organizations will
ultimately get only as far
as their organizational
cultures take them."

IMPORTANCE OF ORGANIZATIONAL
CULTURE
The Culture decides the way
employees interact at their
workplace.
The organization culture brings all
the employees on a common
platform.
It is the culture of the organization
which extracts the best out of each
team member

1.3 Discuss the factors that effect individual behavior at work.

1.3.1 Factors effecting employee behavior,

Main factors

1.Attitudes
2.Personality
3.Perception
4.Learning

Sub factors
1. Conflict
2. Stress
3. Change

1.3.2 Discuss above factors with regard

to performance.
1. Perception

WE DONT SEE THINGS AS THEYARE, WE SEE THINGS AS WE ARE.

Perception is the process of receiving

information about and making sense of
the world around us. It involves deciding
which information to notice, how to
categorize this information and how to
interpret it within the framework of
existing knowledge

 The filtering process is called perceptual selectivity.

It says that the world picture that our brains actually
hold is not a whole or accurate one. This may be
determined by any or all of the following .
-Context
-Nature of the stimuli
-Internal factors
-Fear or trauma
So we see what we wont to see in a situation
including the one of the factor or all factors together.

Common clashes of perception at work at TATA and FORD,

-Race and gender- This is very important and sensitive

factor. People all ways communicate with each other at
work. A joke , comment or gesture that one person may
see can be offensive or a insult to the receiver.
-Managers and Staff- Them and us perceptions due to
experience level of managerial and non managerial
personnel.
-Work cultures Different departments and functions have
their on cultures, So the view of a situation and importance
can differ to one a another.

2. Attitudes
Attitudes structure can be described in
terms ofthree components.

Affective component: this involves a

persons feelings / emotions about the
attitude object. For example: I am scared
of spiders.
Behavioral(or cognitive) component: the
way the attitude we have influences how
we act or behave. For example: I will
avoid spiders and scream if I see one.
Cognitivecomponent: this involves a
persons belief / knowledge about an
attitude object. For example: I believe
spiders are dangerous.

Attitudes help people

to adapt to their work
environment
An understanding of
attitudes is also important
because attitudes help
the employees to get
adjusted to their work. If
the management can
successfully develop apositive attitude among
the employees, they will
be better adjusted to their
work

2.1 Compare the effectiveness of different

leadership styles and different organization.
2.1.1 Identify effectiveness of different leadership
styles in your chosen organization
2.1.2 Compare the effectiveness of this leadership
styles. Advantages & disadvantages.

Basic Leadership Style

Autocratic
Bureaucrati
c
Laissezfaire
Democratic

Autocratic Leadership Style

The classical approach
Manager retains as much
power and decision making
authority as possible
Does not consult staff, nor
allowed to give any input
Staff expected to obey
orders without receiving any
explanations
Structured set of rewards
and punishments

Bureaucratic Leadership Style

Manages by the
book
Everything done
according to procedure
or policy
If not covered by the
book, referred to the
next level above
A police officer not a
leader
Enforces the rules

The Democratic Leader

Develops plans to help
staff evaluate their own
performance
Allows staff to establish
goals
Encourages staff to grow
on the job and be
promoted
Recognizes and
encourages
achievement

Laissez-Faire Leadership Style

Also known as the

hands-off style
The manager provides
little or no direction and
gives staff as much
freedom as possible
All authority or power
given to the staff and
they determine goals,
make decisions, and
resolve problems on
their own

TATA motors are using

Autocratic Leadership
style is being used when a
leader dictates policies and
procedures, decides what
goals are to be achieved,
and directs and controls all
activities without any
meaningful participation by
the subordinates. This
leader has full control of the
team leaving low autonomy
within the group.

At FORD motors
thedemocratic leadership
style used and it is a is a
very open and
collegialstyleof running a
team. Ideas move freely
amongst the group and are
discussed openly. Everyone is
given a seat at the table, and
discussion is relatively freeflowing.

Advantages
Employees actively involved in
decision making
Higher employee morale
Stronger employee commitment to
established goals
Disadvantages
Time consuming
Democratic
Leadership
atin
Not everyone likes
to participate
decision making.
FORD

2.2 Organization Theories

Scientific management
management of a business, industry, or economy,
according to principles of efficiency derived from
experiments in methods of work and production,
especially from time-and-motion studies.

Classical administration
classical approach differed from scientific
management in that it focused on efficiency
through management training and behavioral
characteristics
Human relations approach
In the early 1920s, a shift away from classical
management theory took place as theorists
began to consider thehumanside of an

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 System approach
Thisapproachentails analysis of problems and synthesis
solutions. In the analysis phase, a given situation is examined to
identify the forces affecting it. The situation is viewed as
asystemcomposed of interconnected parts and related to
othersystems

Contingency approach
Also known as situationalapproach, is a concept in management
stating that there is no one universally applicable set of
management principles (rules) by which to manage
organizations.

Modern management approach

This approach takes a realistic view in management and
organization. It discards the universal validity of principles.
Executives are advised to be situation oriented and not
stereo-typed. So executives become innovative and
creative. This approach does not have theoretical base. An
executive is expected to know all the alternative courses
of action before taking action in a situation which is not
always feasible.

2.3Approaches to
management
TATA MOTORS use the system approach.
Thisapproachentails analysis of problems and
synthesis solutions. In the analysis phase, a
given situation is examined to identify the
forces affecting it. The situation is viewed as
asystemcomposed of interconnected parts and
related to othersystems.

53

Advantages
It aims at meaningful analysis of organizations and
their management.
It facilitates the interaction between organization
and its environment.
It guide manager to avoid analyzing problems in
isolation and to develop an integrated approach.

Disadvantages
The approach does not recognize the differences in
systems. Over-conceptual
Systems philosophy does not specify the nature of
interactions and interdependencies.
Unpractical: It cannot be easily and directly
applied to practical problems.
Lack of Universality
Complex System

FORD Motors use the Modern management approach in their

organization here are both advantages and disadvantages of this
approach to management.
Advantages
Top-level managers in bureaucratic organizational structures exercise
a great deal of control over organizational strategy decisions, which is
ideal for business owners with a command and control style. Strategic
decision-making time can be shorter in a tall organizational structure,
since less individuals are involved in the process. Standardization and
best-practices are often highlights in companies with tall
organizational structures, ensuring that work is consistently
completed efficiently and effectively.
Disadvantages
Bureaucratic structures can discourage creativity and innovation
throughout the organization. No matter how ingenious a business
owner is, it is virtually impossible for a single individual to generate
the range of strategic ideas possible in a large, interdisciplinary group.
Front-line employees may receive less satisfaction from their jobs in a
rigidly bureaucratic organization, increasing employee turnover rates.
Organizations bound by rigid controls can also find themselves less
able to adapt to changing conditions in the marketplace, industry or
legal environment.

3.1 Motivation Autocratic

Problem

How effect in motivation or

demotivation

Needs to make a quick It will motivate for quick

decision making / it will
decision

Urgent tasks are

accomplished under
tight deadlines
Productivity is
increased & workloads
are assigned to staff
(work process are
streamlined & has a

demotivate
for
the
department
since
employees will not feel as
part of the team.
Demotivates the staff as
their satisfaction towards
work and happiness is
invisible.
Employees are gradually de
motivated for the work
process & is under stress
which leads them to be
frustrated.
The

56

3.2 Usefulness of motivation

theories
Different motivational theories are:
Maslow hierarchy of needs theory.
ERG motivation theory Alderfer.
McClelland achievement and acquired needs
theory.
Stacey Adams equity theory.
Hertzberg hygiene factors and motivators theory.
Rewarding
Equity Theory
57

 Maslows
( TATA )

Needs

Hierarchy

Theory

Abraham Maslow elaborate that peoples are

motivated
by
five
essential
needs
and
he
demonstrated it in a pyramid that calls hierarchy of
needs.

 Three Need Theory (FORD)

Three Needs Theory is also known as, Acquired
Needs Theory, McClelland's Human Motivation
Theory Motivational Needs Theory, and Learned
Needs Theory.
According to this theory, three motivators that
believed we all have: a need for achievement, a need
for affiliation, and a need for power.

3.3 If I was the manager

.
I would start the transition by ,
Finding out what top management
expects of me.
Establish my authority.
Get to know my operation.
Get to know my people.
Communicate my expectations.

Playing favorites.
Doing the work. Let your employees be the
technical workers.
Being emotional.
Lying your way out of things.
Trying to be "One of the Gang."
Taking credit for your employee's successes.
Blaming management for problems.
Selling out your employees.
Refusing to make a proper commitment to
the job.
WON'T
BE
Neglecting toIgrow
into
the job.

Attitudes for Successful

Supervision that I will use
I'm
A member of management
Responsible for the performance of my entire team
Easy to work for
Easy to get along with
Able to forgive myself for mistakes

4.1 Explain the nature of groups and group

behavior within organization.

4.1.1 Explanation of the term group and

description formal and informal groups.
Group Is any collection of people who perceive
themselves to be a group. Group has three
attributes such as
A Sense of identity (Existence)
Loyalty to the group (Conformity)
Purpose and leadership (Guiding factor/ Goals)

4.1 Explain the nature of groups and group

behavior within organization.
Informal Groups- Set up within or across
organization due shared interest or friendship.
Formal Groups Is made up functional or task
groups with an organization. This groups are
formed by the organization's design, departments,
or to perform a specific task.

Group Development Groups mature, Tuckman (2001)

identified four stages in this development such are:
Forming It is seen as a collection of individuals. It is
characterized by uncertainty. Individuals wishes to impress
personality on the group.
Storming It frequently involves more or less open conflict.
Changes may be suggested in groups original objectives,
leadership, procedures and norms. It is characterized by
intra-group conflict.
Norming It is a period of settling down. There will be
arguments in work sharing, output levels and group
customs. Characterized by close relationships and
cohesiveness.
Performing Performances will be achieved at the earlier
stages, but the fourth stage marks the point where the
difficulties of growth and development. The group is fully
functional.
Adjourning its a temporary group; it is being characterized
by concern with wrapping up activities rather than
performance
.

65

4.1.3 Advantages and disadvantages of group decision making.

Advantages
o Generates more
complete
information and
knowledge.
o Generates more
diverse
alternatives.
o Increases
acceptance of a
solution.
o Increases
legitimacy of
decision.

Disadvantages
o Time consuming
o Minority
domination
o Pressures to
conform
o Ambiguous
responsibility

66

4.2 Discuss factors that may promote or inhibit the

development of effective team work in organization.
4.2.1 Discuss team building
This refers to the various activities undertaken to
motivate the team members and increase the
overall output. Team wont perform own their own , it
should motivate , groom the team members and
keep them busy.

 4.2.2 Characteristic of effective and

ineffective work teams.
Effective Team

ineffective Team

Low rate of labour turn over

High rate of labor turnover

Low accident rate

High accident rate

Low absenteeism

High absenteeism

Higher performance

Low performance

Quality out put

Poor coordination & work

Individual target achieved

Individual target not achieved

4.3 Evaluate the impact of technology on team

function within a given organization.
The use of new technologies can improve and in
some cases hinder team functioning.
As technology changes teams must update and
maintain their knowledge in order to function
effectively.
Technologies which have improved team functions
e-mail
mobile phones
blackberry
groupware
computers

4.3 Evaluate the impact of technology on team

function within a given organization.
Advantages
e-mailallows asynchronous communication which means team
members do not need to be in the same place at the the same time
in order to communicate effectively. e-mail also has it's negative
aspects in terms of managing e-mail and the misuse of e-mail.
Mobile phoneshave come a long way from the yuppie bricks of
the 1980s and there are now more mobile phones in the UK then
there are people. Mobile phones allow teams to communicate even
when team members are out of the office, on the road or otherwise
unavailable. Sometimes having always access to team members
can hinder team functioning.
Phone technologies such asblackberryand 3G datacards allow
team members to work and communicate remotely and this out in
the field or with clients.
Groupwareenables teams to plan meetings, collaborate, delegate
all within a virtual environment which can often be accessed
remotely from anywhere in the world.

Disadvantages : Lack of human communication and

relationships

 IN CONCLUTION OB matters at three critical levels. It

matters because it is all about thingsyoucareabout.
OB can help you become a more engaged
organizational member. Getting along with others,
getting a great job, lowering your stress level, making
more effective decisions, and working effectively
within a teamthese are all great things, and OB
addresses them!

Referencing
Pippa Riley (2011), Organization and behavior, first edition,
London: Viva books, page 9-230.
Edexcel Managing Human Resources Notes (Unit 24) for BTEC
HNC level 4 & HND level 5
Pippa Riley (2011), Management Leading People and Professional
Development, first edition, London: Viva books, page 107 - 357.
http://www.emeraldinsight.com/doi/abs/10.1108/01409170
810846821
http://www.hr.com/en/app/blog/2013/04/differentleadership-styles-and-their-advantages-a_hfcoua95.html
TATA and FORD company websites

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THANK YOU