1. ORGANIZATIONAL
BEHAVIOUR
UNIT-5
PRESENTED BY
K.BALASRI PRASAD
B.Sc (KU), M.B.A (OU), NET (UGC), (Ph.D) (MGU)

2. Organizational Culture :
Organizational culture is a system of
shared assumptions, values, and
beliefs, which governs how people
behave in organizations. These
shared values have a strong influence
on the people in the organization and
dictate how they dress, act, and
perform their jobs.

3. Factors influencing organizational culture:
• Influence of the founder (“shadow of the leader")
• Size & development stage of the business (e.g. start-up, multisite,
multinational)
• Leadership & management style
• Organizational structure, policies & practices
• Employee management reward structures (e.g. pay, bonuses,
individual v team rewards)
• Market /industries in which it operates
• Working environment & nature of tasks (e.g. physical, office, remote
working, flexible working)
• External environment (e.g. legal, economic, social)
• Attitude of organization to risk-taking & innovation
• Sector: e.g. service, manufacturing

4. Morale:
Morale (also known as esprit de corps) is the capacity of
a group's members to maintain belief in an institution or
goal, particularly in the face of opposition or hardship.
Morale is often referenced by authority figures as a
generic value judgment of the willpower, obedience,
and self-discipline of a group tasked with
performing duties assigned by a superior.
According to Alexander H. Leighton, "morale is the
capacity of a group of people to pull together persistently
and consistently in pursuit of a common purpose".

5. Types of Morale:
The following are the two types of morale:
1. Individual and Group Morale:
Individual morale is a single person’s attitude
towards work, environment etc.
Whereas group morale reflects the general attitude
of a group of persons.
Group morale is everybody’s concern and may go on
changing with the passage of time.
Individual and group morale are interested but not
necessarily identical. They have an effect on each other.
The individual’s personal perception of the present
conditions may be high but the group’s perception may be
low or vice-versa.

6. 2. High or Low Morale:
High morale exists when employee attitudes
are favourable to the total situation of a group and
to the attainment of its objectives.
Low morale exists when attitudes inhibit the
willingness and ability of an organization to attain
its objectives.
The words such as zeal, enthusiasm, loyalty,
dependability denote high morale.
Low morale may be described by words like
lack of interest, laziness, apathy, bickering, jealousy,
quarrelsome, pessimism, etc.

7. Organizational Effectiveness:
Organizational effectiveness is the concept of
how effective an organization is in achieving the
outcomes the organization intends to produce.
The efficiency with which an association is able to
meet its objectives. The main measure of
organizational effectiveness for a business will
generally be expressed in terms of how well its net
profitability compares with its target profitability.

8. Indicators of organizational effectiveness:
1. Communication Effectiveness
Did your employees understand, not just hear, your latest
communication message?
Do you have a measure for the effectiveness of your
communications?
2. Customer Relationships
We are not talking about customer satisfaction. Often times a
customer may be satisfied, but what is your relationship index with
them?
Focusing on customer satisfaction alone could lead to unprofitable
customers. Sure the customer is always right but are they the right
customer for you? Do you have a measure for customer
relationships?

9. 3. Employee Satisfaction
Happier employees will lead to happier customers. Do you have
an employee satisfaction index that measures: absenteeism,
complaints, turnover, and surveys?
4. Brand Image
Brand image is a leading indicator of success regarding how people
feel about your organization.
Use market research and survey your market to determine if
your brand image is rising or falling.
5. Distraction
Everybody has a job within your organization but how much time
do they spend on what they were hired to do?
Do you have a measure for administrative tasks, quality
improvement, and other management assignments?
How much time is spent on those tasks management asked you to
do but are not part of your job description?

10. 6. Trust
Do people believe in your organization/leaders? You could call this
the “foot-dragging” index.
Do you have a measure for determining your organizations level of
honesty and integrity both inside and outside of your organization?
7. Customer Frustration
Do you want your customers to have a consistent and beneficial
experience with your organization?
How do you seek out, count and measure the aggravations,
frustrations and negative surprises that your customers experience as
they do business with you?
Frustrated customers will eventually abandon your organization in
search of a more pleasant vendor experience. Are you measuring
customer frustrations?

11. 8. Supplier Relationships
How easy is the supplier to do business with? Are they responsive
to your needs? Is their quality more than sufficient?
How do you measure your supplier relationships?
9. Employee Competence
This is more than just training hours, it is about actually learning
something useful to your job. To do this right is difficult.
Develop a competency matrix defining the required skills versus
the required skill level.
Then measure everyone’s current skill as a percentage. The gaps
indicate the training required to move the organization toward higher
competence.
Are you measuring competence?

12. Achieving Organizational effectiveness
1. Be Clear About the Organization’s Goals: Help Employees
Understand Their Roles in Achieving Them
Managerial leaders need to set and communicate a clear vision, whether it’s for
the whole organization or just one team.
People want to understand the part they are expected to play in the overall
strategic picture and to have clarity about specific objectives and performance
standards for their tasks.
2. Ensure That the Organization Has the Right Number of Levels of
Work
Too many layers create unnecessary bureaucracy and keep employees feeling
suppressed in their decision-making.
Too few levels, on the other hand, cause problems in communication and gaps in
workflow.
People’s work roles can become overloaded with tasks that are either too
complex or too routine for their capabilities, and this leads to frustration and
underperformance.

13. 3. Make Managers Accountable For the Results of Their
Subordinates
This is a controversial idea–not only are managers accountable for
their own results, but also for the output of their direct reports.
4. Give Employees Sufficient Authority to Undertake Their
Responsibilities
There need to be boundaries, of course, and people have to be
capable of making decisions based on the skilled knowledge and
experience required.
The frustration comes when we feel our bosses don’t allow us or
trust us to make decisions within the scope of our capabilities and we
feel devalued.

14. 5. Create a Culture of Fairness, Honesty and Transparency
Employees need to feel that the organizational culture rewards honesty,
encourages fairness – whether in recruitment, training or salary negotiation – and
is open about changes going on.
6. Design and Maintain Felt-Fair Pay Systems in the Organization
Employees wanted to receive pay which was fair for the type and complexity
level of the work they performed.
An analysis of the accountabilities and work complexity factors in each role and
at each level needs to be undertaken to provide a starting point for calculating felt-
fair pay.
7. Make Managers Accountable for Coaching Their Staff
Many exit interviews with dissatisfied employees reveal that managers often
failed to support their subordinates to improve their performance or acquire new
skills.
Managers can be held accountable within their own performance evaluations for
employee coaching so that it no longer remains an optional extra but a pre-
requisite to good managerial performance.
Good coaching is simply about spending more time with employees, setting
them goals, giving them feedback and support and creating on-the-job
opportunities to learn and improve.

15. 8. Develop Your Employees and Create a Succession Plan
Managers may sometimes feel threatened by the idea of identifying and
developing successors for their own roles, but failure to plan for succession will
leave the organization vulnerable to unexpected and expensive changes.
9. Set Up Occupational Health and Social Facilities
Small changes can make a big difference, whether it’s a new water cooler or
access to subsidized healthcare or social facilities.
An extensive program of facilities – gym, in-house occupational counselors, and
staff restaurant – will clearly require significant financial investment, and a
thorough cost-benefit analysis, should be undertaken.
10. Create Opportunities for Employee Feedback and Participation
Managers are paid to manage and make decisions but they don’t necessarily
have all the answers all the time.
Employees who are invited to participate and contribute ideas are much more
likely to accept decisions and changes if they feel they have had an opportunity for
their opinions to be considered.

16. Managing conflict
What is a conflict & why does it occur ?
“ Disagreement between people with different ideas or beliefs, it also defines it as "
a fight or a struggle".
An organization, is but a collection of people from different cultural backgrounds,
they have different sets of values and ideas.
Causes of conflict :
Differing values (Ex: conservative v/s progressive minded)
Differing perspectives (Ex: limited v/s broad, domestic v/s
international)
Differing ideas (creative v/s mundane)
Different styles of solving organizational problems.
Differing agendas (sometimes hidden ones)
Differing attitudes (rigid v/s flexible)
Differing objectives and goals.
Differing circumstances.

17. How to manage conflicts in an organisation :
Basically there could be three situations in an organizational context.
1. Conflict with the boss.
2. Conflict with colleagues/peers.
3. Conflict with subordinates
1. Managing conflict with the boss :
All of us have read the famous rule,
Rule no. 1: Boss is always right.
Rule no. 2: In case the boss is wrong see rule no. 1.
This is not to say that one has to be yes man all the time. When ever
you face a conflict situation with your boss consider the following
approaches.
(i) Appreciate wider perspective : The boss has wider perspective
than you, therefore please consider whether there is
something you are not able to visualize that your boss has visualized?

18. (ii) Do not offend his authority : Every boss is sensitive to
maintaining his authority. If you have a better idea, put it in a
manner of suggestion, avoid offending his authority.
(iii) Evaluate the impact : Very carefully evaluate the impact of the
wrong decision of the boss on your position in particular
and on organization in general. Do not challenge his decision unless
you have to.
(iv) Avoid bitterness : If you have to differ with your boss, just
register your point of view without making it bitter.

19. 2. Managing conflict with peers/colleagues :
When ever you face a conflict situation with your colleagues, try
some of the following approaches.
(i) Communicate: Most of the time your colleagues may be differing
with you, either because they have not understood your point of
view properly or you have not communicated clearly enough.
Since you do not have any authority over them, enter into a dialogue
and discuss the issue with an open mind.
(ii) Conflict to Co-operation : Work towards skillfully converting
conflict in to a co-operation. Strive to appreciate their point of view.
Find out the ways and means to create a 'win-win' situation. If need
be ammend your approach and meet your colleagues midway.

20. 3. Managing conflicts with the subordinates :
In this situation you have the authority, yet you have to be skillful in managing the
conflict.
(i) Allow freedom to express : Give adequate freedom to your subordinates
to express their views freely, be patient listen to them carefully.
(ii) Allow dissent : Dissent is natural, manage disagreement constructively.
(iii) Build consensus : Identify the positive minded persons in your team and
convert them into the 'champions of causes’. Provide right kind of support, intervene
skillfully to build consensus.
(iv) Develop a common vision : Appreciate the fact that all your
subordinates may not have the broad vision and perspective like yours.
Its your responsibility to share your dreams and aspirations for the organization with
them and make them appreciate these. Through discussion, training and counseling
develop a common vision.