Emergence of E-Organization

E- Commerce: It refers to the business operations involving electronic mode of transactions. It encompasses presenting products on websites and filling order. The vast majority of articles and media attention given to using the Internet in business are directed at on-line 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.

E-business: It refers to the full breadth of activities included in a successful Internet based enterprise. As such, e-commerce is a subset of e-business. E-business includes developing strategies for running Internet-based companies, creating integrated supply chains, collaborating with partners to electronically coordinate design and production, identifying a different kind of leader to run a ‘virtual’ business, finding skilled people to build and operate intranets and websites, and running the back room or the administrative side. E-business includes the creation of new markets and customers, but it’s also concerned with the optimum ways to combine Computers, the Web and Application Software. A sizable number of multinational corporations are selling goods and services via the Internet.

Growth rate of e-business: The application of Internet operations are initially covers a small part of the business. At this point, their e-commerce operations are secondary to their traditional business. An increasingly popular application of e-business is merely using the Internet to better manage an ongoing business. Later, there are millions of firms that are now selling anything over the Internet, but they are using e-business applications to improve communications with internal and external stakeholders and to better perform traditional business functions. Some companies are putting maximum effort in improving its internal efficiency and providing support to its wide-reaching dealer network and to on-line sellers by crating a shared and integrated network. The companies wanted to make creasing

E-Organizations: This embraces e-commerce and e-business. State and central governments, municipal corporations are using the Internet for extending all the public utility services more efficiently through internet.

The growing use of the Internet, tablet devices, and smart phones coupled with larger consumer confidence will see that ecommerce will continue to evolve and expand.

Personality Dimensions

Authoritarianism

Authoritarianism refers to build acceptance of authority. Authoritarian people believe in obedience and respect for authority. They rightly adhere to conventional values, are generally conservative endorse strong parental control in keeping the family close and together are concerned with toughness and power, are close minded and are generally less educated.

Because of their beliefs in the hierarchical order they make good followers, work better under directive supervision and are more productive within Authoritarian organizational structure.

Bureaucratic Personality

A Bureaucratic person differs from an Authoritarian person in that his respect of authority is not total and blind. But is based on respect from organizational rules and regulations. A bureaucratic person values subordination, rules, conformity, and orderly process in the organization and impersonal and formal relationships. They are generally not innovative, do not take risks and are at ease in following established directives. Bureaucratic mangers are better supervisors in type of works that are routine repetitive and proceduralised.

Machiavellianism

Machiavellianism personality emerges in manipulating others for purely personal gains and gaining and keeping control of others. People with Machiavellianism have high level of self-confidence and high self-esteem. They are cool and calculating and have no hesitation in using others or talking advantages of others in orders in order to serve their own goals. They believe that ends justify means and do not feel guilty in using unethical means to serve their own interest. They are skilled in influencing others and they approach the situations thoughtfully and logically. They would not hesitate to lie if necessary and they are not easily swayed by a sense of friendship, trust or loyalty. They are especially successful in exploiting structured situations and vulnerable people.

Locus of Control

Locus of control means whether people believe that they are in control of events or events control them. Those who have an internal sense of control believe that they control and shape the course of events in their life’s, those who have external locus of control tend to believe the events occur purely by chance or because of factors beyond their own control. Former categories of people seek opportunities for advancement, and rely more on their abilities and judgments at work – while later category of people remain mostly inactive and allow the events occur on their own.

Introvert and Extrovert Personalities

Introvert persons are basically shy, prefer to be alone and have difficulty in communicating. Introverts are behaviorally described as quite, introspective, intellectual, well ordered, emotionally unexpressive and value oriented – prefers small group of intimate friends and plans well ahead. Extroverts are outgoing, objective, and aggressive and relate well with people. Introverts are behaviorally described as ‘sociable, lively, impulsive, seeking novelty and change, carefree and emotionally expressive’.

Type A and B Personality

Personality has been grouped into two categories denoted by alphabets A and B Type A people feel a sense of time, urgency, or highly achievement oriented exhibit a competitive drive, and are impatient when their work is slowed for any reason. Such people are more to heart attack. On the other hand type B people are easy going do not have urgency for time and do not experience the competitive drive.

Self Esteem

Self-esteem is a measure of self-confidence and respect for ones abilities and motivation. Self-esteem is positively related to assertiveness, independence and creativity. High self-esteem people are very friendly, affectionate, find it easy to form interpersonal attachment and find good in other people. Low self-esteem people are usually critical of others, are generally depressed and blame others for their own failures.

Happiness

Emerging Challenges in the Field of OB

1. Workforce Diversity:
               Organizations are becoming increasingly cosmopolitan. Organization specialist must learn to live with diverse behaviors. Managers must learn to respect diversity. Diversity if managed positively enhances creativity and innovation in organization as well as ensures better decision–making by providing different perspectives on problems. When not managed, diversity leads to increased turnover, heightened inter-personal conflict and more strained communication.
2. Changed Employee Expectation:
               Traditional allurements such as job security, attractive remuneration housing does not attract, retain and motivate today’s workforce. Employees demand empowerment and expect equality of status with the management. Empowerment results in redefining jobs, both from the shop floor as well as the boardrooms. Expectations of equality break up the traditional relationship between employer and employee – top to bottom.
3. Globalization:
Growing internationalization of business has its impact on people management. Managements are required to cope with the problems of unfamiliar laws, languages, practices, competitors, attitudes and management styles, work ethics and more. To face this challenge the management must be flexible and pro-active. Being flexible and pro-active the management can make significant contribution to the company’s growth.
1.    Internationalization makes managers to increase their competencies.
2.    Globalization increases the number of managers and professions.
4. Improving Productivity and Quality:
               As organizations are exposed to competition, managers are seriously thinking of improving quality and productivity. In this context managers are implementing programmes like TQM (Total Quality Management) and Re-engineering programmes that requires employee involvement. TQM is a philosophy of management that is inspired by constant attainment of customer satisfaction of all organizational process.
               Re-engineering means radically re-building and redesigning those processes by which we create value for customers.
5. Changing Demographics Of Workforce:
               Major challenges from changing demographics of workforce relate to dual-career couples. Couples where both partners are actively pursuing professional careers. The increase in number of dual career profession limits individual flexibility and may hinder organization flexibility in acquiring and developing talent. Another change in the workforce demographics relates to the growing number of employees who are young.

14 Principles of Management – Henri Fayol

Henri Fayol was born in 1841 in a suburb of Istanbul, Turkey. Fayol studied at the mining school in Saint-Étienne and joined a mining company in Commentry as an engineer. By 1888, he was a director of the mine which now employed over 1000 people. It became one of the largest producers of iron and steel in France. Fayol stayed there for 30 years until 1918 by which time he had written down his management experiences in a book called “Administration Industrielle et Générale”, the book that would be his lasting legacy. This is an extraordinary little book that offers the first theory of general management and statement of management principles.

Fayol believed management theories could be developed, then taught. His theorising about administration was built on personal observation and experience of what worked well in terms of organisation. His aspiration for an "administrative science" sought a consistent set of principles that all organizations must apply in order to run properly.

Henri Fayol was one of the most influential contributors to modern concepts of management, having proposed that there are five primary functions of management: Planning, Organizing, Commanding, Coordinating and Controlling. Henri Fayol was the first to identify the four functions of management: planning, organizing, directing, and controlling, as known today. He then went on to explain that these functions should be carried out according to 14 principles of management, namely:

1. Specialization of labour. Specializing encourages continuous improvement in skills and the development of improvements in methods.

2. Authority. The right to give orders and the power to exact obedience.

3. Discipline. No slacking, bending of rules. The workers should be obedient and respectful of the organization.

4. Unity of command. Each employee has one and only one boss.

5. Unity of direction. A single mind generates a single plan and all play their part in that plan.

6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about.

7. Remuneration. Employees receive fair payment for services, not what the company can get away with.

8. Centralization. Consolidation of management functions. Decisions are made from the top.

9. Chain of Superiors (line of authority). Formal chain of command running from top to bottom of the organization, like military

10. Order. All materials and personnel have a prescribed place, and they must remain there.

11. Equity. Equality of treatment (but not necessarily identical treatment)

12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers.

13. Initiative. Thinking out a plan and do what it takes to make it happen.

14. Esprit de corps. Harmony, cohesion among personnel. It's a great source of strength in the organisation. Fayol stated that for promoting esprit de corps, the principle of unity of command should be observed and the dangers of divide and rule and the abuse of written communication should be avoided.

           Fayol has been described as the father of modern operational management theory. Fayol’s ideas had a major effect on how management functions in most established organisations. In many ways, they are the bible of management and the source of the idea that "managers have the right to manage". Whether knowingly or not, anyone who manages, even today, is almost certainly managing in accordance with Fayol's ideas and principles.

Various Definitions on Organisational Behaviour

Organisational Behaviour seeks knowledge of all aspects of behaviour in organisation settings through the systematic study of individual,group and organisation porcesses.OB practioners, researchers and academicians around the globe have defined OB. Some of the important definitions are listed below: 

"Organisational Behaviour is a way of thinking,a way of conceiving problems and articulation rsearch and actions for solutions."- Larry L.Cummings.

"Organisational Behaviour is a subject of management activities concerned with understanding, predicting and influencing individual behaviour in organisational settings." - Robert E. Callahan.

"Organisational Behaviour is the result of interaction and interdependency between formal organisation and the human factor variables." - Fred Luthans.

"The study and application of knowledge about human behaviour in organisations as it relates to the other system elements, such as structures, technology and the external social systems.”  - Keith Davis.

"Organisational Behaviours is a field of study that investigates the impact that individual, groups and structure have on behaviour within the organisations for the purpose of applying such knowledge towards improving an organisation's effectiveness."  -  Stephen .P. Robbins.

“Study and application of knowledge how people act or behave within organization. It is a human tool for human benefit. It applies broadly to the behaviour of people in all types of organizations such as business, government, schools and services organizations.” - Davis and Newstorm.

" The study of behaviour, attitudes and performance of workers in an organisational setting; the organisation's and groups' effects on the workers' perceptions, feelings, and actions, the environments' effect in the organisation and its human resources and goals, and the effect of the workers on the organisation and its effectiveness."  -  Szilagyi and Wallace.

“Organisational Behaviour is the study of human behaviour in organisational Settings, the interface between the human behaviour and the organisation,and the organisation itself.” -  Ricky W. Griffin, Gregory Moorhead.

“Actions and attitudes of individuals and groups toward one another and toward the organization as a whole, and its effect on the organization's functioning and performance. “ - Business Dictionary.com.

 “Organizational Behavior studies encompasses the study of organizations from multiple viewpoints, methods, and levels of analysis.” – Wiki Answers.

Organisational Behaviour - Definition

With the advent of globalization, Organisations are undergoing unprecedented and revolutionary change. From the speed of Decision Making, Technological and Global Perspective pressures, Mergers and Acquisitions, the need to rethink business processes and alliances, Organisations are constantly faced with shifting demands. All these challenges complicate their task of managing an organization. If the managers are to facilitate the smooth functioning of their organization, they have to effectively manage the most important resource available to them, i.e., the human resource. This is where OB plays an important role. OB is a study that helps managers in understanding and analyzing the nature of an organization’s workgroups and the individuals within a work group.

What does Organizational Behaviour study of Organisation

The study of organizational behaviour focuses on three characteristics aspects of organization. These are behaviour, structure and process.

Behaviour: Organizations are created by people to benefit people. In order to understand organization behaviour we must be able to understand the behaviour of individuals. The study of perception, job satisfaction, motivation and learning are all concerned with the behaviour of individuals. The study of behaviour includes how individuals respond to situations exposed to them.

Structure: The term structure refers to the fixed and formal relationships of the organization such as how jobs are assigned to various departments, who reports to whom and how the jobs and departments are arranged in an organizational chart. The structure of an organization has a large influence on behaviour of individuals working and the effectiveness of the organization.

Processes: The term processes in the context of organization refers to the interactions among the members of the organization. Communication, leadership and power are examples of some of the major organizational process.

Defining Organizational behavior 

Keith Davis  defines Organizational Behaviour “An academic discipline concerned with understanding human behaviour, describing human behaviour”. OB is not a discipline like other disciplines. It is an integration of several areas of knowledge such as sociology, psychology, anthropology, political science and economics.

According to Stephen Robbins;“OB is a field of study that investigates the impact of individual, groups and structure have on behaviour within the organisation”. He adds that the purpose of this study is to apply this knowledge and improve the organisational efficiency.

 “ Organizational behaviour is directly concerned with the understanding, prediction and control of human behaviour in organizations “.Fred Luthens

 “ Study and application of knowledge how people act or behave within organization. It is a human tool for human benefit. It applies broadly to the behaviour of people in all types of organizations such as business, government, schools and services organizations “.Davis and Newstorm 

In simple terms Organizational behavior is an academic discipline concerned with describing, understanding, predicting, and controlling human behavior in an organizational environment. It attempts to apply this knowledge in the effective management of human resources in an organization. OB is a discipline that studies the effect of organizational structure and design, and the changes in the organizational environment on the behavior of the workforce.

Source: Organisational Behaviour – Stephen Robbins

Defining Organisation

 A corporation can use the Internet to work seamlessly with professionals such as lawyers and accountants who remain "outside" the corporate walls as consultants rather than company employees... companies should focus on their core competencies... Despite the emergence of new, flexible boundaries, big companies won't deconstruct themselves into per-project production companies. Companies need to excel in consistent in-house execution of their core competencies.... they'll just use technology to do it more efficiently. Every company will experiment to find its optimal size and organizational structure...  Bill Gates, Business @ The Speed of Thought. 1999. Ch.8: "Change in the Boundaries of Business," pp.133ff.

The term “Organization” is a word that is used every day in different context to mean different things. Organisation is derived from the Greek word Organon, itself derived from the better-known word Ergon - meaning a compartment for a particular job.

There are a number of perspectives as how organization is viewed; from a Process - Related perspective, an organization is viewed as an entity and the focus is to complete a set of tasks or actions. From a Functional Perspective the focus is on how businesses or state authorities are used, Institutional Perspective views organization as a purposeful structure within a social context. Simply stated Management views organization from an instrumental point of view.

According to Stephen Robbins “Organisation is a consciously created aggregate or a group with the purpose of achieving some objective(s) and has a well defined structure”.

Key Concepts of Organisation 1.Social system, 2.Mutual Interest, 3.Ethics

Social System
Just as people have psychological needs; organisations also have social needs and status. Their behaviour is influenced by their group as well as by their individual drives. Infact two types of social system exist side by side in the organisation. One is the formal official social system and, the other is the informal social system.
 

The existence of the social system implies that organisational environment is one of dynamic change rather than static set of relations. All parts of the system are interdependent and each part is subject to influence by the other part.

Mutual Interest
Organisations need people, and people need organisations. Organisations have a human purpose. Organisations are formed and maintained on the basis of some mutuality of interest among the participants. Mutual interest provides a super ordinate goal one that can be attained only through integrated efforts of individuals and their employers.

Ethics
To succeed, organisation must treat employees in an ethical fashion; more firms are recognizing this need and are responding with a variety of program. Companies are establishing Codes of Ethics, Publicized statements of Ethical Values, Provide ethics training, and reward employees for notable ethical behaviour and set up internal procedure to handle misconduct.

Organisations have begun to recognize that organisational behaviour always involves people, ethical philosophy is involved in one way or the in each action they take. When the organisations goals and actions are ethical, mutually creates a triple reward system in which individual organisational and social objectives are met.

(Source: Organisational Behaviour - Stephen Robbins)