Organisational Behaviour Notes PDF

**[ORGANISATIONAL BEHAVIOR]** UNIT --I Before impending the nature and scope of **Organizational Behavior,** it is useful to understand the nature of related concepts, **viz., Management, Managers, And Organization.** **Management is,** as is too well-known, the art of getting things done through...

**[ORGANISATIONAL BEHAVIOR]** UNIT --I Before impending the nature and scope of **Organizational Behavior,** it is useful to understand the nature of related concepts, **viz., Management, Managers, And Organization.** **Management is,** as is too well-known, the art of getting things done through others. Stated differently, management is a social and technical process that utilizes resources, influences human action, and facilities changes to accomplish an organization's goals. Undoubtedly, what is not too well known is the fact that management is a bubbly factor in the life of an organization. The journey of up and downs of the firm largely depends on the quality of management. Proficient management will contribute to the success of the organization, whatever the constraints. Incompetent management will surely bankrupt the organization, an abundance of other resources notwithstanding. It is a fact, whether the organization is a profitable business unit or an entity whose mission is mere service to society. **Managers** are individuals who practice the art of management. In other words, it is those people who muster the needed resources of the organization, put them, to proper use, and strive to reach the organization's goals. In a typical business enterprise, managers include such a motley crowd of individuals as directors, managing directors, general managers, and high-level, middle-level, and low-level managers. These managers are also called executives. Administration is another term generally used in this context, but its usage is more in government departments and not in profit organizations. *Why OB is to be studied?* The following are the reasons to study organizational behavior: To learn about yourself and how to deal with others You are part of an organization now and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time. Some of you may want to be managers or entrepreneurs. **The importance of studying organizational behavior (OB)** OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively. It is concerned with the study of **what people do in an organization and how that behavior affects the performance of the organization.** There is increasing agreement as to the components of OB, but there is still considerable debate as to the relative importance of each: motivation, leader behavior, and power, interpersonal communication, group structure and processes, learning, attitude development, and perception, change processes, conflict, work design, and work stress. It is also important because it focuses on the following areas. OB is a way of thinking. OB is multidisciplinary. There is a distinctly humanistic orientation with OB. The field of OB is performance oriented. The external environment is seen as having significant impact on OB. **INTRODUCTION:** Each of us is a student of behavior. We are aware that certain types of behavior are linked to certain types of responsibilities. As we mature, we expand our observations to include the behavior of others. We develop generalizations that help us to predict and explain what people do and will do. How accurate are these generalizations? Some may represent extremely sophisticated appraisals of behavior and prove highly effective in explaining and predicting the behavior of others. Most of us also carry with us several beliefs that frequently **fail to explain why people do** **what they do**. As a result, a systematic approach to the study of behavior can improve an individual's explanatory and predictive abilities. Organizational Behavior (OB) is a study involving the impact of individuals, groups, and structure or behavior within the organization. This study is useful for the effective working of an organization. [It is a study of what people do within an organization and how their behavior affects the performance of an organization.] Organizational Behavior is concerned mainly with employment-related matters such as job, work, leaves, turnover, productivity, human performance, and management. Organizational Behavior also includes the core topics like motivation, leader behavior and power, interpersonal communication, group structure and process, learning attitude, perception, conflicts, work design, and work stress. Organizational Behavior introduces you to a comprehensive set of concepts and theories, it must deal with a lot of commonly accepted 'facts' about human behaviour and organizations that have been acquired over the years, like "you can teach an old dog new tricks". "Two heads are better than one". These facts are not necessarily true. Then one off-line objective of Organizational Behaviour is to replace popularly held notions. Organization Behaviour does offer challenges and opportunities for managers since it focuses on ways and means to improve productivity, minimize absenteeism, increase employee job satisfaction, etc. Organization Behaviour can offer managers guidance in creating an ethical work climate. This is because organizational behaviour can improve prediction of behavior. **Organizational Behaviour is an applied behavioural science** that is built on contributions from a number of other behavioural discipline like psychology, sociology, social psychology, anthropology and political science. Understanding Organizational Behaviour is becoming very important for managers. Due to global competition, it is becoming necessary for the employees to become more flexible and to cope with rapid changes. It is becoming challenging for the managers to use Organizational Behaviour concepts. Organizations are no longer constrained by national borders. Burger King is owned by a British firm, and McDonald's sells hamburgers in Moscow. Exaction Mobile, an American company receives 75% of its revenue from sales outside US. All the major automobile manufacturers build their cars outside their border, for example, Honda builds cars in Ohio, USA, Ford in Brazil, and Mercedes and BMW in South Africa. This shows that the world has become a global village. Hence, managers must diversify the workforce. Workforce diversity means that organizations are becoming more heterogeneous in terms of gender, race, and ethnicity. **Diversity is managed positively**, can increase creativity and innovation in organizations as well as improve decision-making by providing a different perspective on preplans. Quality management is driven by the constant attainment of customer satisfaction through continuous improvement of all organizational processes (productivity, absenteeism, turnover, job satisfaction and recently added fifth dependent variable is organizational citizenship). Behaviour is generally **predictable** if we know how the person perceives the situation and what is important to him or her. An observer sees the behavior as non-rational because he does not have the knowledge of the entire situation in the same way. However, predictability can be improved by replacing your intuition power with a more systematic approach. The systematic approach consists of important suits and relationships and will provide a base for more accurate predictions of the behavior. The systematic approach beholds a basic concept that behavior is not random. It projects the individual's belief, concept and then interest, etc. there are differences in every individual, and placed in similar situations they do not react alike. **However, there are some fundamental consistencies in everyone's behavior, which can be identified and modified to find out the individual differences.** Systematic study means looking at relationships, attempting to attribute causes and effects, and basing our conclusions on scientific evidence. That is data gathered under controlled conditions and interpreted in a rigorous manner. Systematic study replaces intuition. A systematic approach does not mean that things that are believed in an unsystematic way are necessarily incorrect. Sometimes, research findings may also run counter to what you thought was common sense. The objective of the systematic approach is to move away from intuitive views of behavior toward a systematic analysis. **DEFINATION's:** According to Keith Davis *"Organizational behavior is the study and application of knowledge about how people act within organizations. It is a human tool for human benefit. It applies broadly to the behavior of people in all types of organization such as businesses, government, schools, etc. It helps people, structure, technology, and the external environment blends into an effective operating system"*. Stephen Robins defines it as a *"field of study that investigates the impact that individuals, groups, and structure have on an organization for the purpose of applying such knowledge to improving an organization's effectiveness"*. There are many definitions of organizational behavior; every definition must include three essential features, (1) organizational behaviour is the study of human behaviour, (2) study about behaviour in organisations and (3) knowledge about human behaviour would be useful in improving an organisation's effectiveness. Organisational behaviour is the study of **what an individual thinks feels or does in and around an organisation, both individually and in group**. It investigates people's emotions and behaviour, behaviour & performances in a team, and systems & structures of organisations. It helps to explore and provide an understanding of all the factors that are necessary to create an effective organisation. **GOALS OF OB:** This description specifies the goals of organizational behavior: \"The goals of OB \[organizational behavior\] are to **Describe, predict, understand and control behavior**. Managers need to be able to explain why employees **engage** in some behaviors rather than others, **predict** how employees will respond to various actions and decisions, and **influence** how employees behave.\" **Practices to Influence and Sustain Desired Behaviors in Organizations...** There is a vast array of different types of practices that leaders and managers use to influence their employees toward achieving the organization\'s goals. More recently, they use a variety of practices to help employees to achieve their own goals, as well. Thus, it can be a challenge to efficiently categorize and explain the practices in a manner that is comprehensive and yet well organized. **Cultivating the Right Organizational Culture** Organizational culture can be explained as a combination of the members\' values, beliefs, assumptions, and ways that they interact with each other. Basically, an organization\'s culture is its personality. A person\'s personality influences every aspect of their life. The same is true of an organization\'s culture. That is why experts on strategic planning often assert that \"culture eats strategy for breakfast\" \-- that is, culture often determines whether strategies are successful or not. That is why so much of what happens in an organization starts from its culture, especially the behaviors that occur in it. The following topics refer to practices that might influence an organization\'s culture, and thus the overall behaviors in it. **Applying the Right Leadership** The culture of the organization, its current life cycle, and the nature of its strategic goals all help to suggest the types of leadership needed in an organization. For example, a start-up organization might want leaders who are visionary and charismatic in attracting more employees to join it. It might also want leaders who have strong expertise in the types of products and services that it delivers. However, as the organization evolves, it might want leaders with expertise in developing internal systems and practices to form a firm foundation for further growth. A complicating factor about leadership is that different leadership skills are required for leading oneself versus leading another individual versus leading a group versus leading an organization. If the organization\'s culture is quite traditional, then it might prefer a rather autocratic style of leadership; whereas, a more progressive organization might prefer a more participatory style. Also, it is important to remember that leaders cannot successfully lead others unless they first can successfully lead themselves. **Understanding How to Develop Great Leaders** The leaders in an organization are the \"engines\" that drive the activities in organizational performance. Thus, the expertise of the leaders is a critical component in the success of the organization itself. As discussed above, the nature of the leaders must match the models and styles preferred by the organization. That often requires further development of the leaders, including its executives, managers, and supervisors. **Finding the Right People** The most important asset in an organization is its people. As important as having the right kind of leaders and managers is having the right kind of employees \-- employees who can do a great job in doing the necessary work to best achieve the goals of the organization. This is where expertise in human resource management is vital to the success of the organization. However, small- to medium-sized organizations can still do that 20% of effort that generates 80% of the success in finding and equipping the right people. **Understanding Nature and Needs of Employees** Historical approaches to management treated employees like machines. The top priority was on efficiency \-- on producing more results in less time. However, today\'s approaches have changed dramatically. Today\'s leaders are realizing that they will get better performance if they treat their employees as individuals, each of whom is unique in their own interests and capabilities \-- and also in what motivates them. For the new generations in today\'s workforce, it is often far more important to find meaning and fulfillment in their work than to make more money. **Sustaining Strong Job Satisfaction** Research shows that the cost of hiring and re-training employees is one of the highest labor costs in organizations. Research also shows a strong correlation between job satisfaction and employee retention. Fortunately, there are a variety of approaches to support strong job satisfaction for employees. **Developing High-Performing Teams** Most of the significant accomplishments in organizations are done in teams. However, a team is often comprised of a wide diversity of values, perspectives, and opinions among its members. So teams must be carefully planned, organized, and supported. Also, a team is an organization \-- just a small one. Thus, team performance management is also critical to the success of a team. **FOUNDATIONS OF OB:** The subject OB is based on a few fundamental concepts which revolve around the nature of people and organizations. Such fundamental concepts are not peculiar to the field of OB. Every discipline, be it social sciences or physical sciences, will flourish on definite assumptions. For example, the famous principle which runs through financial accounting is that for every debit there shall be a corresponding credit. Similarly, the law of gravity is common whether it is in Bombay or Bangalore. 1\. There are differences between individuals. 2\. A whole person. 3\. Behavior of an individual is caused. 4\. An individual has dignity. 5\. Organizations are social systems 6\. Mutuality of interest among organizational members. 7\. Holistic Organizational behavior. INDIVIDUAL DIFFERENCES...people have much in common (they become excited or they are grieved by the loss of a loved one), but each person in the world is also individually different. Each individual is different from others in several ways. Whether it is intelligence, physique, personality or any such trait, one can find striking differences. The idea of individual differences comes originally from psychology. From the day of birth, each person is unique and individual experiences after birth make people even more different. Individual differences mean that management can get the greatest motivation among employees by treating them differently. If it were not for individual differences, some standard, across the board way of dealing with employees could be adopted and minimum judgement would be required thereafter. Because of individual differences, OB begins with the individual. Only a person can take responsibility and make decisions; a group by nature cannot do so. A group is powerless until individual acts therein. A WHOLE PERSON...when an individual is appointed, his/her skill alone is not hired, his/her social background -- likes and dislikes, pride and prejudices are also hired. A person's family life cannot be separated from factory life. It is for this reason that managers shall endeavor to develop a better employee out of a worker, but also a better person in terms of growth and fulfillment. CAUSED BEHAVIOR...Behaviour of an employee is caused and not random. The behavior is directed towards some end that the employee believes rightly or wrongly, is in his/her best interest. Thus when a worker comes late to his work, pelts stones at a running bus, or abuses the supervisor, there is a cause behind it. The manager must realize this basic principle and to solve the problem of late coming or stone pelting, he/she must discover the cause behind the behavior and tackle the issue at its root. HUMAN DIGNITY...this concept is of a different order from the other three because it is more an ethical philosophy than a scientific conclusion. It confirms that people are to be treated differently from other factors of production because they are of higher order in the universe. It recognizes human dignity because people are of a higher order; they want to be treated with respect and dignity and should be treated this way. Every job, however simple, entitles the people who do it to proper respect and recognition of their unique aspirations and abilities. the concept and human dignity reject the old idea of using employees are economic tools. Ethical philosophy is reflected in the conscience of humankind confirmed by the experience of people of all ages. It has to do with the consequences of our acts to ourselves and to others. It recognizes that life has an overall purpose and accepts the inner integrity of each individual. Since organizational behavior always involves people, ethical philosophy is involved in one way or another in each action. Human decisions cannot and should not be made apart from values. ORGANIZATIONAL AND SOCIAL SYSTEMS From sociology we learn that organizations are social systems; consequently activities therein are governed by social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status. Their behavior is influenced by their group as well as by their individual drives. In fact, two types of social systems exist side by side in organizations. One is the formal system and the other is the informal social system. The existence of a social system implies that the organizational environment is one of the dynamic change, rather than a static set of relations as revealed in an organizational chart. All parts of the system are interdependent and are subject to influence by any other part. Everything is related to everything else. MUTUALITY OF INTEREST..... Mutual interest is represented by the statement that organizations need people and people also need organizations. Organizations have a human purpose. They are formed and maintained on the basis of some mutuality of interest among their participants. People see organizations as means to help them reach their goals, while at the same time organizations need people to help reach organizational objectives. If mutuality is lacking, it makes no sense to try to assemble a group and develop co-operation, because there is no common base on which to build. Mutual interest provides a superordinate goal that unites the variety of needs that people bring to organizations. The result is that people are encouraged to attack organizational problems rather than each other. HOLISTIC CONCEPT....when the six fundamental concepts of OB are placed together, a holistic concept emerges. This concept interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. It takes across the broad view of people in an organization to understand as many as possible of factors that influence their behavior. Issues are analyzed in terms of the total situation affecting them rather than in terms of an isolated event or problem. **[HISTORY OF OB (OR) PREDECESSOR'S OF OB:]** By looking back at the history of organizational behavioural, you gain a great deal of insight into how the field got to where it is today. Three individuals are important who promoted ideas that had a major influence in shaping the direction and boundaries of Organizational Behaviour (OB). They are: *Adam Smith, Charles Babbage, and Robert Owen*. ***Adam Simth***, in his discussion made in *"The Wealth of Nations"* in 1776, brilliantly argued on the economic advantage that organization and society would reap from the division of labor --- called work application in industry. He illustrated it with the help of an application in the industry. He concluded that division of labor raises productivity by increasing each worker's skill and dexterity by saving time that is commonly lost in changing tasks and by encouraging the creation of labor-saving inventions and machinery. The result of his theory was seen in the 20th century in the form of extensive development of assembly---line production process. Charles Babbage, a British mathematics professor, in his book, "On the Economy of machinery and manufacturer" published in 1832 added to Smith's list of the advantage that accrued from division of labor, the following: i\. It reduces the time needed for learning a job. ii\. It reduces the waste of material during the learning stage. iii\. It allows for the attainment of high skill levels. iv\. It allows a more careful matching of people's skills and physical abilities with specific tasks. **Charles Babbage** also proposed that the economics from specialization **should be as relevant to doing mental work as physical labor.** This is reflected in the industry in the form of specialization in accounting, taxation, marketing, and organizational behavior. **Robert Owen**, a Welsh entrepreneur, was one of the first industrialists to recognize **how the growing factory system was demeaning workers**. He argued that **money spent on improving labour was one of the best investments that business executives can make**. He argued for **regulating hours of work for all**, **child labor too, public education, company-furnished meals at work, and business involvement in community projects**. *Classical Era* It covered the period from 1900 to 1930 approximately when the first general theory of management began to evolve. The major contributors were **F.W Taylor, Henry Fayol, Max Weber, Mary Parker Follett and Chester Barnard.** **[Scientific Management]** It was *Fredric Winslow Taylor* who [noticed that employees use vastly different techniques to do the same job --- which he improved]. At his time, there were no clear responsibilities laid for workers and management. The work done by workers was very slow. Workers' output never matched their abilities and attitudes. No effective work standards existed. Taylor made a **mental revolution** among both the workers and management by defining clear guidelines for improving production efficiency. The **four principles of management that he defined** are as follows: a\. Develop a science for each element of an individual. b\. Scientifically select, train, teach, and develop the worker. c\. Co-operate with the workers heartily so as to ensure that all work to be done is in accordance with the principles of the science that has been developed. d\. Divide work and responsibility almost equally between management and workers. **[Administrative Theory]** The administrative theory describes efforts to define the [universal functions that managers perform and principles that constitute good management practices]. The major contribution to this theory was that of a French industrialist, *Henry Fayol.* *Fayol* proposed that all managers perform five management functions: Planning, Organizing, Commanding, Co-ordinating, and Controlling. In addition, he described the practice of management as something distinct from accounting, finance, production, distribution, and so on. He proposed **14 principles of management** as below: i\. *Division of labor*: Specialization increases output by making employees more efficient. ii\. *Authority*: Authority gives management the right to order. Authority goes with responsibility. iii\. *Discipline*: Employees must obey and respect the rules. Good discipline is the result of effective leadership. iv\. *Unity of command*: Every employee should receive communication from only one person. v\. *Unity of direction:* Each group of organizational activities that have the same objective should be divided by one manager using one plan. vi\. *Remuneration*: Wages paid to workers should be fair. vii\. *Subordination of individual interest*: The interest of any one employee or group should not take precedence over the interests of the organization as a whole. viii\. *Centralisation*: The optimum degree of centralization should be maintained for each situation. ix\. *Scalar chain:* The Scalar chain measures the line of authority from top management to the lowest ranks. Communication should follow this chain. x\. *Order:* Material and people should be in the right place at the right time. xi\. *Equity*: Managers should be kind and fair to their subordinates. xii\. *Stability*: High employee turnover is inefficient. Management should provide personnel planning and ensure replacements. xiii\. *Initiative*: Employees allowed to originate and carry out plans will exert high levels of effort. xiv\. *Esprit-de-corps*: Promoting team spirit will build harmony and unity within the organization. **Structural theory** Simultaneously, the German sociologist *Max Weber* developed **a theory of authority structures and described organizational activity** as based on authority relation. He was one who looked at management and organizational behavior **from a structural perspective**. Weber described an ideal type of organization that he called a **bureaucracy**. The detailed features of his ideal bureaucratic structure are as follows: i\. Job --- specialization: Jobs are broken into simple, routine, and well-defined tasks. ii\. Authority hierarchy: Positions are organized in a hierarchy, each lower one controlled by and supervised by a higher one. iii\. Formal selection: All organization members be selected based on technical qualifications demonstrated by training, education, or exams. iv\. Rules and regulations. - To ensure uniformity and to regulate the actions of employees, managers must depend upon the company's rules. v\. Impersonality.- Rules and controls are applied uniformly. Avoiding involvement of personalities and personnel preferences. vi\. Career orientation: Managers are professionals and not owners of units they manage. They work for fixed salaries and pursue their careers within their organizations. **['Social Man' Theory ]** Taylor, Fayol and Weber could be faulted for forgetting that, human beings who are the core of every organization and humans are social animals. *Mary Parker Follett and Chester Barnard* saw the importance of the **social aspect** of organizations. Their ideas, though born in scientific management, did not achieve any large degree of recognition until the 1930's. **Mary first recognized that organization could be viewed from the perspective of individual and group behavior** Her humanistic ideas have influenced the way we look at motivation, leadership, power, and authority today. The Japanese put a lot of stress on group togetherness. On the other hand, **Barnard** **saw organizations as social systems that require human cooperation. Barnard maintained that success depends on maintaining good relations with people and introduced the idea that managers had to examine the environment and then adjust the organization to maintain the state of equilibrium.** **[Behavioural Era ]** "The people side" of organization came into its own during the period known as 'the behavioral era'. This era was marked by **human relations movement** and the widespread application of behavioural research. The era saw two events. It is during this time **Elton Mayo, Federick Roethlisberger** (Harvard business school) conducted number of experiments between 1924-33. It was these experiments paved to development of OB and throwing light that importance of influencing factors on human productivity **The birth of Personnel officer and the Creation of industrial Psychology'**. The Wages act of 1935 --- known to be **Magna Carta of labour** was passed in the U.S.A. It legitimized the role of trade unions and encouraged rapid growth in union membership which opened new avenues to improve handling labor. This saw that the essence of human relations movement is the belief that the key to higher productivity is in increasing labor satisfaction. Three persons are important who conveyed the message that human relations are most important. They were: **Dale Carnegie, Abraham Maslow and Douglas McGregor.** *Dale Carnegie* through his book ['How to Win Friends And Influence People'] conveyed the theme that the way to success was through winning cooperation of others. His main advice was: i\. To make others feel important through sincere appreciation of their efforts. ii\. To strive to make a good first impression. iii\. Win people to their way of thinking by letting others do the talking and never telling a man he is wrong. iv\. Change people by praising their good traits and giving the leader the opportunity to seek face. *Maslow* proposed a theoretical hierarchy of five Needs: Physiological, Safety, Social, esteem, and self-actualization. He advocated the need for satisfaction of each before turning to the next one. He believed that self-actualization --- that is, achieving one's full potential --- was the summit of a human beings existence. Managers who accepted his theory altered their organizations and management practices. *McGregor* is best known for his formulation of two sets of assumptions --- known as Theory X and Theory Y. The former assumes that people have little ambition, dislike work, want to avoid responsibility, and need to be closely directed to work effectively. The latter assumes that people can exercise self-direction, accept responsibility and consider work to be as natural as rest or play. McGregor believed that theory Y\'s assumptions better captured the true nature of workers and guided management better. ***Jacob Moreno*** created an analytical technique called **goniometry** for studying group interactions. He constructed a Sociogram that identified attraction, repulsion and indifference patterns among group members. *BF Skinner*: His research had a significant effect on the design of organizational training programs and reward system. He found that people will most likely engage in desired behavior if they are rewarded for doing so, these rewards are more effective if they immediately follow the desired response, and behavior that is not rewarded, or is punished, is less likely to be repeated. *David McMillan:* Research has been instrumental in helping organizations better to match people with jobs and in redesigning jobs for higher achievers to reanimate their motivation potential. He was able to differentiate people with a high need to achieve ---- **individuals who had a strong desire to succeed or achieve in relation to a set of Standard --- from people with a low need to achieve.** *Fred Fiedler* developed a comprehensive theory of Leadership. He developed a questionnaire to measure individuals inherent leadership characteristics and identified what type of leadership behaviour is most effective. *Fredrick Herzberg* work had a lion's contribution. His work sought an answer to the question of [what individuals want from their job.] He concluded that people want the job. The creation of jobs might not motivate people. If managers want to motivate workers, they should redesign jobs to allow workers to perform more varied tasks. The current interest in **enriching jobs** and **improving the quality of work-life** can be traced to Herzberg's research. *J. Richard Hackman and Greg Oldham* in 1970 explained [how job factors influenced employee motivation and satisfaction]. Their research also uncovered the core job dimensions-skill variety, task identity, task significance, authority, and feedback. **APPROACHES TO OB:** Four approaches to the study of organizational behavior have been discussed in the literature on the subject. The four approaches are -- *Human Resource Approach, Contingency Approach, Productivity Approach and Systems Approach.* **Human Resource Approach....**this approach recognizes the fact that people are the central resource in any organization and that they should be developed towards higher levels of competency, creativity, and fulfillment. People thus developed will contribute to the success of the organization. The human resource approach is also called the *supportive approach* in the sense that the manager's role changes from control of employees to active support of their growth and performance. The supportive approach contrasts with the traditional management approach of 1990's. In the traditional approach managers decided what employees should do and closely monitored their performance to ensure task accomplishment. In the human resources approach, role of managers change, as was stated above, from structuring and controlling to supporting. **Contingency Approach** is otherwise called as *"Situational Approach".* This approach is based on the premise that methods or behaviors which work effectively in one situation fail in another. OD programs, for example, may work brilliantly in one situation but fail miserably in another situation. Results differ because situations differ. The manager's task, therefore, is to identify which method will, in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of the organization's goals. The strength of the contingency approach lies in the fact it encourages analysis of each situation prior to action while at the same time discouraging the habitual practice of universal assumptions about methods and people. The Contingency approach is also more interdisciplinary, more system--oriented and more research--oriented than any other approach. **Productivity Approach......**Here in this approach Productivity which is the ratio of output to input, is a measure of an organization's effectiveness. It also reveals manager's efficiency in optimizing resource utilization. The higher the numerical value of the ratio, the greater the efficiency. Productivity is generally measured in terms of economic inputs and outputs, but human and social inputs and outputs also are important. For example, if better organizational behavior can improve job satisfaction, a human output or benefit occurs. In the same manner, when employee development programs lead to a by-product of better citizens in a community, a valuable social output occurs. Organizational behavior decisions typically involve human, social, and/or economic issues, and so productivity is usually a significant part of these decisions and is recognized and discussed extensively in the literature on OB. **Systems Approach.....**systems approach to OB views the organization as a united, purposeful system composed of interrelated parts. This approach gives managers a way of looking at the organization, whole person, whole group, and the whole social system. In so doing, the systems approach tells us that the activity of any segment of an organization affects, in varying degrees, the activity of every other segment. A Systems view should be the concern of every person in an organization. The Clerk at a service counter, the machinist, and the manager-all work with the people and thereby influence the behavioral quality of life in an organization and its outputs. Managers, however, tend to have larger responsibility, because they are the ones who make most of the decisions affecting human issues, and most of their daily activities are people- oriented. The role of the managers, then, is to use organizational behavior to help achieve individual, organization and social goals. Managers help build an organizational culture in which talents are utilized and further developed, people are motivated, teams become productive, organizations achieve their goals and society reaps the reward. **[EMERGING TRENDS IN ORGANISATIONAL BEHAVIOUR:]** Organizations have entered a new era characterized by rapid, dramatic, and turbulent changes. The accelerated pace of change has transformed how work is performed by employees in diverse organizations. Change has truly become an inherent and integral part of organizational life. Several emerging trends are impacting organizational life. Of these emerging trends, five will be examined: **Globalization, Diversity, Flexibility, Flat, And Networks**. These five emerging trends create tensions for organizational leaders and employees as they go through waves of changes in their organizations. These tensions present opportunities as well as threats, and if these tensions are not managed well, they will result in dysfunctional and dire organizational outcomes at the end of any change process. Organizations have witnessed a great development from the olden times particularly in respect of structure, operations, and people. There is a considerable change in the cross-cultural environment, influence of MNCs, and growth in technical know-how and quality management which has provided a different environment in modern organizations. **GLOBALIZATION -\>\>\>** Organizations operate in a global economy that is characterized by greater and more intense competition, and at the same time, greater economic interdependence and collaboration. More products and services are being consumed outside of their country of origin than ever before as globalization brings about greater convergence in terms of consumer tastes and preferences. Yet at the same time, in the midst of greater convergence, there is the opposite force of divergence at work where companies have to adapt corporate and business strategies, marketing plans, and production efforts to local domestic markets. To stay competitive, more organizations are embracing **offshore outsourcing**. Many functions are being shifted to India, the Philippines, Malaysia, and other countries for their low labor costs, high levels of workforce education, and technological advantages. According to the 2002-2003 Society for Human Resource Management (SHRM) Workplace Forecast, companies such as Ford, General Motors, and Nestle employ more people outside of their headquarters countries than within those countries. Almost any company, whether in manufacturing or services, can find some part of its work that can be done off-site. Forrester Research projects that 3.3 million U.S. service- and knowledge-based jobs will be shipped overseas by the year 2015, 70 percent of which will move to India. Communication and information sharing are occurring across the globe in multiple languages and multiple cultures. Global competition and global cooperation coexist in the new world economy. One major consequence of globalization is **greater mobility in international capital and labor markets.** This creates a global marketplace where there is more opportunity because there are more potential customers. However, there is also more competition, as local companies have to compete with foreign companies for customers. According to *Dani Rodrik*, professor of international political economy at Harvard\'s Kennedy School of Government, the processes associated with the global integration of markets for goods, services, and capital have created two sources of tension. *First*, reduced barriers to trade and investment accentuate the asymmetries between groups that can cross international borders, and those that cannot. In the first category are owners of capital, highly skilled workers, and many professionals. Unskilled and semiskilled workers and most middle managers belong to the second category. *Second*, globalization **engenders conflicts** within and between nations over domestic norms and the social institutions that embody them. As the technology for manufactured goods becomes standardized and diffused internationally, nations with very different sets of values, norms, institutions, and collective preferences begin to compete head-on in markets for similar goods. Trade becomes contentious when it unleashes forces that undermine the norms implicit in local or domestic workplace practices. **Trends Tensions** 1\. Globalization \-\-- Global versus Local 2\. Diversity \-\-- Heterogeneity versus Homogeneity 3\. Flexibility \-- Flexibility versus Stability 4\. Flat \-\-- Centralization versus Decentralization 5\. Networks \-- Interdependence versus Independence *Professor Rodrik* concluded that **\"the most serious challenge for the world economy in the years ahead lies in making globalization compatible with domestic social and political stability\"**. This implies ensuring that international economic integration does not lead to domestic social disintegration. Organizations that are confronted with this challenge will have to manage the tension created by the global integration versus local disintegration dilemma. The overall picture as a consequence of globalization is one of turbulence and uncertainty, in which a variety of contradictory processes present a wide range of both opportunities and threats that defy established ways of doing business and working in organizations. **Integration and exclusion coexist uneasily side-by-side in organizations.** For example, many apparent dichotomies or paradoxes---competition versus collaboration, market forces versus state intervention, global actions versus local solutions---are losing their sharp edges as contradictory forces appear to converge and reinforce each other in organizations across the globe. Companies that compete fiercely in some markets form strategic alliances in others; government guidance and regulation are required to make markets work effectively; and \"think globally, act locally\" has been adopted as a business strategy (or as a mantra) to deal with the challenges of doing business in the globalized economy. As organizations transform themselves to stay competitive, they will need to confront and resolve some, if not all, of these dichotomies or paradoxes. On another level, because of globalization, the fates of people living and working in different parts of the world are becoming intertwined. Global events may have a significant local impact. September 11, 2001 has been called the \"day that changed the world\". Heightened security concerns are changing expectations for people in organizations, and the role of organizations themselves. The threat of terrorism continues to be an ongoing concern worldwide. It has created a renewed focus on workplace security as employees experience a heightened sense of vulnerability in the workplace. Employee monitoring and screening are occurring more frequently. Concern over travel for business purposes is resulting in the increased use of alternate forms of communication such as teleconferencing and videoconferencing. **DIVERSITY** Globalization is impacting how organizations compete with each other. In combination with changing demographics, globalization is causing a rapid increase in diversity in organizations. Never before have people been required to work together with colleagues and customers from so many different cultures and countries. Diversity is moving American society away from \"mass society\" to \"mosaic society\". Organizations reflect this \"mosaic society\" in their more diverse workforce (in terms of not only race, ethnicity, or culture but also in terms of age, sexual orientation, and other demographic variables). More than ever, people have to interact and communicate with others who come from diverse backgrounds. This in turn has meant that employees need new relational skills to succeed. An emerging stream of research in international management has called these new relational skills \"cultural intelligence\". [Cultural intelligence] is defined as the capability to adapt effectively across different national, organizational, and professional cultures (Earley, Ang and Tan, 2005). More managers take up global work assignments in industries around the world. They learn how to work with people [who not only think and communicate differently but also do things differently]. Managers will need to develop their cultural intelligence to manage greater diversity in organizations. Diversity in organizations will continue to increase. As indicated by the U.S Census Bureau National Population Projections, the Hispanic population will increase by 11.2 percent between 2000 and 2025 to become the largest minority group in the United States. All other minority groups will increase by about 9 percent, while the number of Caucasians will decrease by approximately 19 percent. The world population is growing at a high rate in developing countries while remaining stable or decreasing in the developed world. The result will be income inequities and economic opportunities leading to increased immigration and migration within and between nations. More temporary workers will be used for specific tasks, and there will be greater demand for highly skilled workers. The aging American workforce population means more retirees and potential gaps in availability of experienced workers. According to American Association of Retired Persons (AARP), by 2015 nearly one in five U.S. workers will be age 55 or older. Retirees often want to keep a foot in the workplace. AARP\'s research shows that nearly 8 of 10 baby boomers envision working part time after retirement; 5 percent anticipate working full time at a new job or career; only 16 percent foresee not working at all. People of different ethnic and cultural backgrounds possess different attitudes, values, and norms. Increasing cultural diversity in both public and private sector organizations focuses attention on the distinctions between ethnic and cultural groups in their attitudes and performance at work. This greater focus can result in the tension between finding similarities and accentuating differences in the face of greater diversity in organizations. There is an ongoing debate between the heterogenists and the homogenists concerning the impact of greater diversity in organizations. The heterogenists contend that diverse or heterogeneous groups in organizations have performance advantages over homogeneous groups while the homogenists take the opposing view---that homogeneous groups are more advantageous than heterogeneous or diverse groups in organizations. According to the heterogenists, organizations with greater diversity have an advantage in attracting and retaining the best available human talent. The exceptional capabilities of women and minorities offer a rich labor pool for organizations to tap. When organizations attract, retain, and promote maximum utilization of people from diverse cultural backgrounds, they gain a competitive advantage and sustain the highest quality of human resources. Organizations with greater diversity can understand and penetrate wider and enhanced markets. Not only do these organizations embrace a diverse workforce internally, they are better suited to serve a diverse external clientele. Organizations with greater diversity also display higher creativity and innovation. Especially in research-oriented and high technology organizations, the array of talents provided by gender and ethnic-diverse organization becomes invaluable. Heterogeneous or diverse groups display better problem-solving ability as they are more capable of avoiding the consequences of groupthink, compared to highly cohesive and homogeneous groups that are more susceptible to conformity. On the other hand, greater organizational diversity has its drawbacks. With the benefits of diversity come organizational costs. Too much diversity can lead to dysfunctional outcomes. Diversity increases ambiguity, complexity, and confusion. Organizations with greater diversity may have difficulty reaching consensus and implementing solutions. [In many organizations, diversity can produce negative dynamics such as] **ethnocentrism, stereotyping and cultural clashes**. The homogenizes argue that homogeneous groups often outperform culturally diverse groups, especially where there is a serious communication problem. Cross-cultural training is necessary to enable culturally diverse groups to live up to their potential and overcome communication difficulties. The diversity movement, [according to the homogenizes, has the potential to polarize different social groups and harm productivity while breeding cynicism and resentment, heightening intergroup frictions and tensions, and lowering productivity,] just the opposite of what managing diversity is intended to accomplish. The challenge, therefore, is for management to manage the tension produced by heterogeneity versus homogeneity. If properly managed, organizations can reap the benefits of greater diversity. Aside from proper management, organizations need to learn to appreciate and value diversity before the benefits of diversity can be fully realized. To achieve this, diversity training programs may help people in organizations understand and value diversity. **FLEXIBILITY** Globalization and diversity trends are forcing organizations to become more flexible and adaptable. To be able to function globally and embrace diversity, leaders, and employees in organizations have to become more flexible and develop a wider repertoire of skills and strategies in working with diverse groups of people in the workplace as well as in the marketplace. The response to increased diversity has, in many cases, been increased organizational flexibility. Some organizations allow workers to have very different work arrangements (e.g. flex-time) and payment schedules. Some organizations (and workers) have found it convenient to treat some workers as independent consultants rather than employees. In certain occupations, advances in communication and information technologies have enabled telecommuting ---working at home via computer. One consequence of this is the blurring of boundaries between work and home, and where and when work occurs. The benefits of greater flexibility may be countered by the negative consequences of working 24/7 including higher stress and burnout. The response to increased competition, however, has resulted in the tension generated by the demands to be flexible and yet maintain some stability as changes are implemented in organizations. [To stay competitive, organizations are constantly changing and restructuring to increase flexibility and decrease costs. Business process reengineering, business process outsourcing, job redesign, and other approaches to optimize business processes have been implemented to increase operational and process efficiency while reducing the costs of doing business.] Changes in business and operational processes need time to stabilize for employees to learn the new processes, become familiar with them, and be able to operate effectively and efficiently. Yet, competitive pressures can cause organizations to go through a series of changes without giving employees adequate time for learning and training, and for the benefits of the change to be fully realized in the organization. This tension is well-captured by Columbia Business School professor Eric Abrahamson in his book, Change Without Pain (2004) in which he discussed how organizations can go through change overload and how employees can experience change fatigue and burnout. Professor Abrahamson proposes \"creative recombination\" as an alternative approach to the highly destructive, destabilizing and painful changes caused by \"creative destruction\". **FLAT** In a greater competitive marketplace, speed or response time is critical. How organizations response to customers and other stakeholders or be the first to market may make a significant difference as time is at a premium. Organizations that can develop new technologies faster or can adapt to changes in the market faster are the ones that will survive the competition. To maximize response time, organizations have been flattening their hierarchies and structures, in addition to other initiatives such as downsizing and networking. Flat organizations make decisions more quickly because each person is closer to the ultimate decision-makers. There are fewer levels of management, and workers are empowered to make decisions. Decision-making becomes decentralized. However, flat organizations create a new tension between decentralization and centralization. Among the drivers of decentralization are communications technologies that allow companies to push decision-making away from the core. Proponents of decentralization emphasize the idea that less hierarchical organizations mirror the efficiencies of the networks that enable them: they are faster, more resilient, more responsive, more flexible, and more innovative. Also, they argue, people who work within decentralized organizations feel empowered and energized. They do not need to focus on the chain of command and they do not feel constrained by it. Organizations are caught between the opposing forces of centralization and decentralization. They want to leverage the opportunities offered by decentralization and create nimbler and forceful organizations, but they cannot always do so because the forces of centralization come into play. There are obvious benefits to centralization as control is comparatively tighter and accountability is clearer compared to a flatter, more decentralized organizational structure. Take the example of IT operations. The key to a centralized organization\'s success is its responsiveness. If the centralized operation can be responsive to the needs of the business, then that approach can make sense. Several companies, such as DaimlerChrysler and PepsiCo, have migrated back to centralizing IT operations after attempts at decentralization. The debate over the centralization versus decentralization of operations in organizations is an enduring one. It is an age-old battle of standardization versus autonomy, corporate efficiency versus local effectiveness and pressure on costs and resources versus accommodation of specific local needs. Vacillation between centralization and decentralization is both non-productive and unnecessary. [Organizations, as they desire to become flatter, will need to be clear about how they need to respond to the tension between centralization and decentralization]. **NETWORKS** Organizations that flatten tend to encourage horizontal communication among workers. Rather than working through the organizational hierarchy, it is often faster for workers who need to coordinate with each other simply to communicate directly. Such organizations are highly networked. Another meaning of networked organizations refers to their relations with other organizations. Organizations that have downsized to just their core competencies must then outsource all the functions that used to be done in-house. To avoid losing time and effort managing contracts with suppliers, organizations have learned to develop close ties with their suppliers so that social mechanisms of coordination replace legal mechanisms, which are slow and costly. In many industries, such as the garment industry in Italy, strong relationships have developed between manufacturers and suppliers (and other manufacturers), so that considerable work is done without a contract and without even working out a firm price. For these networked organizations to work, high trust and social capital between organizations are key elements. [Networked organizations are particularly important in industries with complex products where technologies and customer needs change rapidly, such as in high technology industries.] Close ties among a set of companies enable them to work with each other in ways that are faster than arms-length contracts would permit and yet retains the flexibility of being able to drop the relationship if needed (as opposed to performing the function in-house). The trend towards networked organizations and structures creates a new tension between interdependence and independence. The forces of aggregation and disaggregation throw up new challenges for organizations, for example, the use of independent contractors, joint ventures, strategic partnerships and alliances even with competitors. [One advantage of networks is that organizations have greater flexibility and thus they can become more competitive in the global marketplace. Another advantage is that organizations do not require that many resources such as employee benefits, office space, and financing for new business ventures.] On the other hand, networks have distinct disadvantages. Organizations may find it [more difficult to control quality of goods or services] as they now have to depend on their partners in the networks to deliver the quality that is desired. Legal and contracting expertise as well as negotiation expertise will also be important for networks. Alternative forms of control may need to be developed to control quality. Alternative mechanisms for coordination may also need to be developed to manage the growing constellation and sometimes tenuous nature of other partner organizations in the network. All the five trends and the tensions they produce the result in greater organizational or system complexity for both leaders and employees in organizations. The tensions produced by these trends cannot be solved. They have to be managed. Effective approaches in organizational change will involve not one strategy but many alternatives and will require leaders and employees to develop greater resilience in confronting these tensions. **CONTRIBUTION OF VARIOUS DISCIPLINES TO OB:** **Psychology** Psychology has perhaps the first influence on the field of organizational behavior because it is a science of behavior. A psychologist studies almost all aspects of behavior. Psychology deals with studying human behavior that seeks to explain and sometimes change the behavior of humans and other animals. Psychologists are primarily interested in predicting the behavior of individuals to a great extent by observing the dynamics of personal factors. Those who have contributed and continued to add to the knowledge of OB are teaching theorists, personality theorists, counseling psychologists, and primary, industrial and organizational psychologists. Some of the numerous areas of interest within the disciplines of psychology are:  General Psychology  Experimental Psychology  Clinical Psychology  Consumer Psychology  Personality and Social Psychology  Industrial Psychology  Counseling Psychology  Educational Psychology  Consulting Psychology Understanding Psychological principles and their models helps significantly in gaining the knowledge of determinants of individual behavior such as o the learning process, o motivation techniques, o personality determinants and development, o perceptual process and its implications, o training process, o leadership effectiveness, o job satisfaction, o individual decision-making, o performance appraisal, o attitude measurement, o employee selection, o job design and work stress. **Sociology** The major focus of sociologists is on studying the social systems in which individuals fill their roles. The focus is on group dynamics. They have made their greatest contribution to OB through their study of group behavior in organizations, particularly formal and sophisticated organizations. Sociological concepts, theories, models, and techniques help significantly to understand better group dynamics, organizational culture, formal organization theory and structure, corporate technology, bureaucracy, communications, power, conflict, and intergroup behavior. Psychologists are primarily interested in focusing their attention on individual behavior. Key concepts of Sociology are; unabated Most sociologists today identify the discipline by using one of the three statements: Sociology deals with human interaction amid this communication are the key influencing factor among people in social settings. Sociology is the study of plural behavior. Two or more interacting individuals constitute a plurality pattern of behavior Sociology is the systematic study of social systems: A social system is an operational social unit that is structured to serve a purpose. It consists of two or more people of different statuses with various roles playing a part in a pattern that is sustained by a physical and cultural base. When analyzing organizing as a social system, the following elements exist: o People or actors o Acts or Behavior o Ends or Goals o Norms, rules, or regulations controlling conduct or behavior o Beliefs held by people as actors o Status and status relationships o Authority or power to influence other actors o Role expectations, role performances, and role relationships. Therefore, organizations are viewed by sociologists as consisting of a variety of people with different roles, statuses, and degrees of authority. The organization attempts to achieve generalized and specific objectives. To attain some of the abstract ends such as the development of company loyalty, the organization's leaders appeal to the shared cultural base. **Social Psychology** It has been defined as the scientific investigation of how the thoughts, feelings, and behavior of individuals are influenced by the actual, imagined, or implied presence of others. It deals with how people are affected by other individuals who are physically present or who are imagined to be present or even whose presence is implied. In general, sociology focuses on how groups, organizations, social categories, and societies are organized, how they function, and how they change. The unit of analysis is the group as a whole rather than the individuals who compose the group. Social Psychology deals with many of the same phenomena but **seeks to explain whole individual human interaction and human cognition influences culture and is influenced by culture**. The unit of analysis is the individual within the group. In reality, some forms of sociology are closely related to social psychology. Social Psychologists study an enormous range of topics including conformity, persuasion, power, influence, obedience, prejudice, discrimination, stereotyping, sexism and racism, small groups, social categories, inter-group behavior, crowd behavior, social conflict, social change, decision-making, etc. Among them, the most important topics relevant to the organizational behavior field are behavioral change, attitude change, communication, group process, and group decision-making. Social psychologists make significant contributions. Social psychologists make significant contributions to measuring, understanding, and improving attitudes, and communication patterns in how groups can satisfy individual needs and group decision-making processes. **Anthropology** The main aim of anthropology is to acquire a better understanding of the relationship between human beings and the environment. Adaptations to surroundings constitute culture. The manner in which people view their surroundings is a part of the culture. Culture includes those ideas shared by groups of individuals and languages by which these ideas are communicated. In essence, culture is a system of learned behavior. Their work on culture and environment has helped us to understand differences in fundamental values, attitudes, and behavior among people in different countries and within different organizations. Much of our current understanding of organizational culture, environments, and differences between national cultures are the results of the work of anthropologists or those using their methodologies. The world is the laboratory of anthropologists, and human beings must be studied in the natural habitat. Understanding the importance of studying man in natural settings over time enables one to grasp the range of anthropology. Familiarity with some of the cultural differences of employees can lead to greater managerial objectivity and depth in the interpretation of behavior and performance. Anthropologists contribute to the study of some aspects of organizational settings -- similar values, comparative attitudes, cross-cultural analysis between or among the employees. **Political Sciences** Contributions of political scientists are significant to the understanding of behavior in organizations. Political scientists study the behavior of individuals and groups within a political environment. They contribute to understanding the dynamics of power centers, structuring of conflict and conflict resolution tactics, allocation of power and how people manipulate power for individual self-interest and business field; organizations wanted to attain supremacy in their field and indulge in politicizing activities to gain maximum advantages by following certain tasks like Machiavellianism, coalition formation, malpractices, etc. The knowledge of political science can be utilized in the study of the behavior of employees, and executives at the micro as well as macro levels. **CHALLENGES AND OPPORTUNITIES TO OB:** Challenges and opportunities for organizational behavior are massive and rapidly changing for improving productivity and meeting business goals. Although the problems with organizations and the solutions over the ages have not changed, the emphasis and surrounding environmental context certainly have changed. Although the resulting lean and mean organizations offered some short-run benefits in terms of lowered costs and improved productivity, if they continued to do business, as usual, they would not be able to meet current or future challenges. As a Harvard Business Review article argues, "These are scary times for managers". The singular reason given for these frightening times -- the increasing danger of disruptive change. The nature of work is changing so rapidly that rigid job structures impede the work to be done now, and that may drastically change the following year, month, or even week. Main challenges and opportunities of organizational behavior are; 1. Improving Peoples' Skills. 2. Improving Quality and Productivity. 3. Total Quality Management (TQM). 4. Managing Workforce Diversity. 5. Responding to Globalization. 6. Empowering People. 7. Coping with Temporariness. 8. Stimulating Innovation and Change. 9. Emergence of E-Organisation and E-Commerce. 10. Improving Ethical Behavior. 11. Improving Customer Service. 12. Helping Employees Balance Work-Life Conflicts. 13. Flattening World. **IMPROVING PEOPLE'S SKILLS:** Technological changes, structural changes, Environmental changes are accelerated at a faster rate in the business field. Unless employees and executives are equipped to possess the required skills to adapt to those changes, the targeted goals cannot be achieved in time. *These two different categories of skills -- managerial skills and technical skills.* Some of the managerial skills include listening skills, motivating skills, planning and organizing skills, leading skills, problem-solving skills, decision-making skills. These skills can be enhanced by organizing a series of training and development programs, career development programs, induction, and socialization. **IMPROVING QUALITY AND PRODUCTIVITY.** Quality is the extent to which the customers or users believe the product or service surpasses their needs and expectations. For example, a customer who purchases an automobile has a certain expectation, one of which is that the automobile engine will start when it is turned on. If the engine fails to start, the customer's expectations will not have been met and the customer will perceive the quality of the car as poor. The key dimensions of quality as follows. **Performance**: Primary rating characteristics of a product such as signal coverage, audio quality, display quality, etc. **Features**: Secondary characteristics, added features, such as calculators, and alarm clock features in hand phone. **Conformance**: meeting specifications or industry standards, the workmanship of the degree to which a product's design or operating characteristics match pre-established standards **Reliability**: The probability of a product's falling within a specified period. **Durability**: It is a measure of a product's life having both economic and technical dimension. **Services**: Resolution of problem and complaints, ease of repair. **Response**: Human to human interfaces, such as the courtesy of the dealer « Aesthetics: Sensory characteristics such exterior finish. **Reputations**: Past performance and other intangibles, such as being ranked first. More and more managers are confronting to meet the challenges to fulfill the specific requirements of customers. To improve quality and productivity, they are implementing programs like total quality management and reengineering programs that require extensive employee involvement. **Total Quality Management (TQM)** Total Quality Management (TQM) is a philosophy of management that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes. The components of TQM are: \(a) An intense focus on the customer, \(b) Concern for continual improvement, \(c) Improvement in the quality of everything the organization does, \(d) Accurate measurement and, \(e) Empowerment of employees. **Managing Workforce Diversity** This refers to employing different categories of employees who are heterogeneous in terms of gender, race, ethnicity, relation, community, physically disadvantaged, elderly people, etc. The primary reason to employ the heterogeneous category of employees is to tap the talents and potentialities, harnessing the innovativeness, obtaining synergetic effect among the divorce workforce. In general, employees wanted to retain their individual and cultural identity, values and lifestyles even though they are working in the same organization with common rules and regulations. The major challenge for organizations is to become more accommodating to diverse groups of people by addressing their different lifestyles, family needs, and work styles. **RESPONDING TO GLOBALIZATION:** Today's business is mostly market-driven; wherever the demands exist irrespective of distance, locations, climatic conditions, the business operations are expanded to gain their market share and to remain in the top rank, etc. Business operations are no longer restricted to a particular locality or region. The company's products or services are spreading across nations using mass communication, the internet, faster transportation, etc. More than 95% of Nokia (Now Microsoft) hand phones are being sold outside of their home country Finland. Japanese cars are being sold in different parts of the globe. Sri Lankan tea is exported to many cities around the globe. Garment products of Bangladesh are exporting in the USA and EU countries. Executives of Multinational corporations are very mobile and move from one subsidiary to another more frequently. **Empowering People** The main issue is delegating more power and responsibility to the lower level cadre of employees and assigning more freedom to make choices about their schedules, operations, procedures and the method of solving their work-related problems. Encouraging the employees to participate in the work-related decision will sizable enhance their commitment to work. Empowerment is defined as putting employees in charge of what they do by eliciting some sort of ownership in them. Managers are doing considerably further by allowing employees full control of their work. Movement implies constant change an increasing number of organizations are using self-managed teams, where workers operate largely without a boss. Due to the implementation of empowerment concepts across all the levels, the relationship between managers and the employees is reshaped. Managers will act as coaches, advisors, sponsors, facilitators and help their subordinates to do their tasks with minimal guidance. **Coping with Temporariness** In recent times, the product life cycles are slimming, the methods of operations are improving, and fashions are changing very fast. In those days, the managers needed to introduce major change programs once or twice a decade. Today, change is an ongoing activity for most managers. The concept of continuous improvement implies constant change. In yesteryears, there used to be a long period of stability and occasionally interrupted by a short period of change, but at present, the change process is an ongoing activity due to competitiveness in developing new products and services with better features. Everyone in the organization faces today one of permanent temporariness. The actual jobs that workers perform are in a permanent state of flux. So, workers need to continually update their knowledge and skills to perform new job requirements. **Stimulating Innovation and Change** Today's successful organizations must foster innovation and be proficient in the art of change; otherwise, they will become candidates for extinction in due course of time and vanish from their field of business. Victory will go to those organizations that maintain flexibility, continually improve their quality, and beat the competition to the market place with a constant stream of innovative products and services. For example, Compaq succeeded by creating more powerful personal computers for the same or less money than EBNM or Apple, and by putting their products to market quicker than the bigger competitors. **The emergence of E-Organisation and E-Commerce** It refers to the business operations involving the electronic mode of transactions. It encompasses presenting products on websites and filling the order. The vast majority of articles and media attention given to using the Internet in business are directed at online shopping. In this process, the marketing and selling of goods and services are being carried out over the Internet. In e-commerce, the following activities are being taken place quite often -- the tremendous numbers of people who are shopping on the Internet, business houses are setting up websites where they can sell goods, conducting the following transactions such as getting paid and fulfilling orders. It is a dramatic change in the way a company relates to its customers. At present e-commerce is exploding. Globally, e-commerce spending was increasing at a tremendous rate. **Improving Ethical Behavior** The complexity in business operations is forcing the workforce to face ethical dilemmas, where they are required to define right and wrong conduct to complete their assigned activities. For example, Should the employees of a chemical company blow the whistle if they uncover that discharging its untreated effluents into the river are polluting its water resources? Do managers give an inflated performance evaluation to an employee they like, knowing that such an evaluation could save that employee's job?. The ground rules governing the constituents of good ethical behavior has not been clearly defined, differentiating right things from wrong behavior has become more blurred. Following unethical practices have become a common practice such as successful executives who use insider information for personal financial gain, employees in competitor businesses participating in massive cover-ups of defective products, etc. **Improving Customer Service** OB can contribute to improving organizational performance by showing drat how employees' attitudes and behavior are associated with customer satisfaction. In that case, service should be the first production-oriented by using technological opportunities like a computer, the internet, etc. To improve customer service we need to provide sales service and also the after-sales service. **Helping Employees Balance Work-Life Conflicts** The typical employee in the 1960s or 1970s showed up at the workplace Monday through Friday and did his or her job 8 or 9-hour chunk of time. The workplace and hours were specified. That's no longer true for a large segment of today's workforce. Employees are increasingly complaining that the line between work and non-work time has become blurred, creating personal conflict and stress. Many forces have contributed to blurring the lines between employees' work life and personal life. *First,* the creation of global organizations means their world never sleeps. At any time and on any day, for instance, thousands of General Electric employees are working somewhere. *Secondly*, communication technology allows employees to do their work at home, in their cars, or on the beach in Cox's Bazar. This lets many people in technical and professional jobs do their work anytime and from any place. Thirdly, organizations are asking employees to put in longer hours. Finally, fewer families have only a single breadwinner. Today's married employee is typically part of a dual-career couple. This makes it increasingly difficult for married employees to find the time to fulfill commitments to home, spouse, children, parents, and friends. Today's married employee is typically part of a dual-career couple. This makes it increasingly difficult for married employees to find the time to fulfill commitments to home, spouse, children, parents, and friends. Employees are increasingly recognizing that work is squeezing out personal lives and they're not happy about it. For example, recent studies suggest that employees want jobs that give them flexibility in their work schedules so they can better manage work/life conflicts. Also, the next generation of employees is likely to show similar concerns. A majority of college and university students say that attaining a balance between personal life and work is a primary career goal. They want a life as well as a job. **Flattening World** [Thomas Friedman's book The World Is Flat]: A Brief History of the Twenty-First Century makes the point that the Internet has "flattened" the world and created an environment in which there is a more level playing field in terms of access to information. This access to information has led to an increase in innovation, as knowledge can be shared instantly across time zones and cultures. It has also created intense competition, as the speed of business is growing faster and faster all the time. In his book Wikinomics, Don Tapscott notes that mass collaboration has changed the way work gets done, how products are created, and the ability of people to work together without ever meeting. \*\*\*\*\*THE END\*\*\*\*\*