ORGANIZATIONAL BEHAVIOR

Course Leader: Dr. Berihun Muche

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Lecture- 1

Introduction to OB

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Chapter Learning Objectives
● After studying this chapter you should be able to:
o Demonstrate the importance of interpersonal skills in the
o workplace.
o Describe the manager’s functions
o Define organizational behavior (OB).
o Show the value to OB of systematic study.
o Identify the major behavioral science disciplines that
o contribute to OB.
o Demonstrate why few absolutes apply to OB.
o Identify the challenges and opportunities managers have in
o applying OB concepts.
o Compare the three levels of analysis in this book’s OB
o model.
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The Importance of Interpersonal Skills
● Understanding OB helps determine manager effectiveness
o Technical and quantitative skills are important
o But leadership and communication skills are CRITICAL
● Organizational benefits of skilled managers
o Lower turnover of quality employees
o Higher quality applications for recruitment
o Better financial performance

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What Managers Do
● They get things done through other people.
● Management Activities:
o Make decisions
o Allocate resources
o Direct activities of others to attain goals
● Work in an organization
o A consciously coordinated social unit composed of two or more
people that functions on a relatively continuous basis to
achieve a common goal or set of goals.

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 QUESTION TIME
2)..................... are defined as people who oversee the
activities of others and who are responsible for attaining
goals in organizations.
A) Assistants
B) Managers
C) Secretaries
D) Interns CREDITS: This presentation template was created by
E) ApprenticesSlidesgo, including icons by Flaticon, infographics &
images by Freepik

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Management Functions

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Mintzberg’s Managerial Roles
● Discovered ten managerial roles
● Separated into three groups:
o Interpersonal
o Informational
o Decisional

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Luthans’ Study of Managerial Activities
● Four types of managerial activity:
o Traditional Management
• Decision making, planning, and controlling
o Communication
• Exchanging routine information and processing paperwork
o Human Resource Management
• Motivating, disciplining, managing conflict, staffing and training
o Networking
• Socializing, politicking, and interacting with others

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Successful vs. Effective Allocation by Time
● Managers who promoted faster (were successful) did different things than
did effective managers (those who did their jobs well)

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Organizational Behavior
A field of study that investigates the impact that individuals, groups,
and structure have on behavior within organizations, for the purpose of
applying such knowledge toward improving an organization’s effectiveness.

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 QUESTION TIME
1. Which of the following best defines organizational behaviour?
A) It involves the study of groups of people coming together for collective
bargaining.
B) It involves the study of what people do in a company and how it affects
the company's output.
C) It involves analyzing different people in an industry with independent
CREDITS: This presentation template was created by
profit-centered
Slidesgo,motives.
including icons by Flaticon, infographics &
D) It involves developing exclusively
images the knowledge of managers and senior
by Freepik
-level employees.
E) It is a field which is not influenced by factors in the external world

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Intuition and Systematic Study

• Gut feelings
Intuition • Individual observation
• Common sense

• Looks at relationships
Systematic Study • Scientific evidence
• Predicts behaviors

● Study The two are complementary means of predicting

behavior.
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An Outgrowth of Systematic Study…
● Evidence-Based Management (EBM)
● Basing managerial decisions on the best available scientific evidence

● Must think like scientists:

Apply
relevant
Search for information
best to case
available
Pose a evidence
managerial
question 15
Managers Should Use All Three Approaches
● The trick is to know when to go with your gut.
o Jack Welsh

● Intuition is often based on inaccurate information

Faddism is prevalent in management
Systematic study can be time consuming
● Use evidence as much as possible to inform your intuition and experience.
That is the promise of OB.

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Contributing Disciplines
● Many behavioral sciences
● have contributed to the
● development of
● Organizational
● Behavior Psychology

Sociology

● Social
●Anthropology
Psychology

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Psychology
● The science that seeks to measure, explain, and
● sometimes change the behavior of humans and other
● animals.
● Unit of Analysis:
o Individual
● Contributions to OB:
o Learning, motivation, personality, emotions, perception
o Training, leadership effectiveness, job satisfaction
o Individual decision making, performance appraisal
attitude measurement
o Employee selection, work design, and work stress

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Social Psychology
● An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on one another.

● Unit of Analysis:
o – Group
● Contributions to OB:
o – Behavioral change
o – Attitude change
o – Communication
o – Group processes
o – Group decision making

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Sociology
● The study of people in relation to their fellow human beings.

● Unit of Analysis:
o Organizational System o Group

● Contributions to OB:
o Group dynamics o Formal organization theory
o Work teams o Organizational technology
o Communication o Organizational change
o Power o Organizational culture
o Conflict
o Intergroup behavior

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Anthropology
● The study of societies to learn about human beings and their activities.

● Unit of Analysis:
o Organizational System o Group

● Contributions to OB:
o Organizational culture o – Comparative values
o Organizational environment o – Comparative attitudes
o – Cross-cultural analysis

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Challenges and Opportunities for OB
● Responding to Economic Pressures
● Responding to Globalization
● Managing Workforce Diversity
● Improving Quality and Productivity
● Improving Customer Service
● Improving People Skills
● Stimulating Innovation and Change
● Coping with “Temporariness”
● Working in Networked Organizations
● Helping Employees Balance Work-Life Conflicts
● Creating a Positive Work Environment
● Improving Ethical Behavior

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Responding to Economic Pressures
● What do you do during difficult economic times?
o Effective management is critical during hard economic times.
o Managers need to handle difficult activities such as firing employees,
motivating employees to do more with less and working through the
stress employees feel when they are worrying about their future.
o OB focuses on issues such as stress, decision making, and coping during
difficult times.

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Responding to Globalization
● Increased foreign assignments
● Working with people from different cultures
● Overseeing movement of jobs to countries with low-cost labor

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Managing Workforce Diversity
● The people in organizations are becoming more heterogeneous
demographically
o Embracing diversity
o Channing demographics
o Changing management philosophy
o Recognizing and responding to differences
Disability

Domestic Gender
Partners

Race Age

Religion National
Origin
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Developing an OB Model
● A model is an abstraction of reality – a simplified representation of some
real-world phenomenon.
● Our OB model has three levels of analysis
o Each level is constructed on the prior level

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Few Absolutes in OB
● Situational factors that make the main relationship between two variables
change—e.g., the relationship may hold for one condition but not another.

Contingency Independent Dependent

Variable (Z) Variable (X) Variable (Y)

Boss Gives
In American Understand
Thumbs Up
Culture Complimenting
Sign

In Iranian or Boss Gives Understand as

Austrian Thumbs Up Insulting- Up
Cultures Sign Yours

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Interesting OB Dependent Variables
● Productivity
o Transforming inputs to outputs at lowest cost. Includes the concepts of
effectiveness (achievement of goals) and efficiency (meeting goals at a
low cost).
● Absenteeism
o Failure to report to work – a huge cost to employers.
● Turnover
o Voluntary and involuntary permanent withdrawal from an
organization.
● Deviant Workplace Behavior
o Voluntary behavior that violates significant organizational
norms and thereby threatens the well-being of the
organization and/or any of its members.

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More Interesting OB Dependent Variables
● Organizational Citizenship Behavior (OCB)
o Discretionary behavior that is not part of an employee’s formal job
requirements, but that nevertheless promotes the effective functioning of
the organization.
● Job Satisfaction
o A general attitude (not a behavior) toward one’s job; a positive feeling of
one's job resulting from an evaluation of its characteristics.

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The Independent Variables
● The independent variable (X) can be at any of these three levels in this model:
● Individual
o Biographical characteristics, personality and emotions, values and
attitudes, ability, perception, motivation, individual learning, and individual
decision making
● Group
o Communication, group decision making, leadership and trust, group
structure, conflict, power and politics, and work teams
● Organization System
o Organizational culture, human resource policies and
practices, and organizational structure and design

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Summary and Managerial Implications
● Managers need to develop their interpersonal skills to be effective.
● OB focuses on how to improve factors that make organizations more effective.
● The best predictions of behavior are made from a combination of systematic
study and intuition.
● Situational variables moderate cause-and-effect relationships, which is why OB
theories are contingent.
● There are many OB challenges and opportunities for managers today.
● The textbook is based on the contingent OB model.

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Discussion question

1. Identify and then elaborate the challenges and opportunities managers have in applying

OB concepts.

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DISCUSSION POINT
Identify and then elaborate the challenges and
opportunities managers have in applying OB concepts.

CREDITS: This presentation template was created by

Slidesgo, including icons by Flaticon, infographics &
images by Freepik
(Please discuss your thoughts on the LMS discussion board)

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ANY QUESTIONS

?
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THANK YOU!

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