ORGANIZATIONAL BEHAVIOUR

1) Fundamentals of Organizational Behavior

(OB)
2) Individual Behavior
3) Group Behavior
4) Organizational culture and Change
Management
5) Work stress and its Management
 Chapter 1: Fundamentals of OB
1.1 Overview of manager’s Job & Skills
Management functions:
•Planning-----------Goal: motivation
•Organizing ------ structure & task division
•Leading --- communication , motivation
•Controlling---- performance
Management Roles
•Interpersonal roles
•Informational roles
•Decisional roles
Management Skills
 Conceptual
 Human and
 Technical Skills
 1.1 Overview of manager Job….

Quality and quantity of performance

Promoted the fastest

 1.2 What Are Organizations?
• Organizations: are groups of people who work
interdependently towards some purpose.
• Organizations consist of people with a collective
sense of purpose.
• collections of social entities (such as teams and
work groups) that
• share broad goals, boundaries, & activity systems
and
• have sovereign powers granted by the state (i.e.,
are treated as unitary actors that make
transactions, can sue, & be sued).
 What is behavior?
• Baheviour is somethig that a person does that
can be observed, measured, and repeated.
• It is more described in terms of action?
 Definitions of OB

• OB is the study of what people think, feel, and do in

and around organizations.
• OB is a field of study that investigates the impact
that individuals, groups, and structures have on
behavior within organizations for the purpose of
applying such knowledge toward improving an
organization’s effectiveness.
• Thus, from this definition: OB: –
• Is a field of study
• Has applicable Knowledge of people behavior
• Has subject of study individuals, groups
• Aimed to boost organization’s effectiveness
1.3 Why Study Organizational Behavior?
• The fact is, everyone in the workforce needs to
understand, predict, and influence behavior (both
our own and that of others) in organizational
settings
Understanding
• Each of us has an inherent need to understand
and predict the world in which we live.
• Because much of our time is spent working in or
around organizations, OB theories are particularly
helpful in satisfying this innate drive to make
sense of the workplace.
Predicting
OB theories also give you the opportunity to
question and rebuild your personal mental models
that have developed through observation and
experience.
A casual or commonsense approach to reading
others can often lead to erroneous predictions.
You can improve your predictive ability by replacing
your intuitive opinions with a more systematic
approach.
Behavior is predictable if we know how the person
perceived the situation and what is important to him
or her.
• Complementing Intuition with Systematic
Study:
 Intuition: the “gut feeling” explanation of
behavior.
 Systematic study improves ability to
accurately predict behavior.
– Assumes behavior is not random.
– Fundamental consistencies underlie
behavior.
– These can be identified and modified to
reflect individual differences.
Influencing
Whether you are trying to introduce a new
marketing strategy, new information technology, or
negotiate more flexible work arrangements with
your boss, you’ll find that OB concepts play an
important role in performing your job and working
more effectively within organizations.
While people’s behavior may not appear to be
rational to an outsider, there is reason to believe it
usually is intended to be rational by the individual
and that they see their behavior as rational.
 1.4 Historical Background
• The Greek philosopher Plato - the essence of
leadership.
• Chinese philosopher Confucius in 500 BC- ethics
and leadership.
• In 1776 Adam Smith –the division of labor.
• German sociologist Max Weber - rational
organizations and initiated charismatic leadership.
• Taylor - introduced the systematic use of goal
setting and rewards to motivate employees.
• In the 1920s Elton Mayo and his colleagues -formal
and informal group dynamics in workplace.
• These resulted in a dramatic shift
towards the “human relations” school of
thought.
• And marked the beginning to influence
contemporary thinking.
1.5 Who Should Study OB?
 1.5 There Are Few Absolutes in OB
• There are few simple and universal principles
that explain organizational behavior.
• Human beings are complex: not alike, our ability
to make simple, accurate, and sweeping
generalizations is limited.
• That does not mean, of course, that we cannot
offer reasonably accurate explanations of human
behavior or make valid predictions.
• It does mean, however, that OB concepts must
reflect situational, or contingency, conditions.
• contingency variables
 OT vs. HRM vs. OB

Focuses on the  Focuses on the  Emphasis on

organization as the unit the scientific
application of
of analysis.
behavioral study of
Organizational attributes
knowledge in behavioral
such as goals,
selecting, phenomena at
technology and culture
placing, and
are the subject of study.
training personal individual and
Organizational theory  Level of analysis group level
often uses an across-  Level of
-
organizational approach
Micro/applicatio analysis
or macro perspective in
n oriented field -Micro/theory
gathering new
of study oriented
knowledge.
 1.6 Organizational Behavior Trends
1. Globalization: Economic, social, and cultural
connectivity (and interdependence) with poeple in
other parts of the world.
2. Workforce Diversity:
A. surface-level diversity/ primary:
•observable demographic or physiological
differences in people, like race, ethnicity, gender,
age, & physical disabilities.
•It is the most obvious and easiest-to measure
B. Deep-Level Diversity/secondary:
•In contrast to surface level diversity, deep-level
diversity represents differences in the
psychological characteristics of employees,
including personalities, beliefs, values, and
attitudes.
•We can’t directly see deep-level diversity, but it
is evident in a person’s decisions, statements,
and actions.
 Primary:-
ethnicity, race,
mental/physic
Secondary : religion,
education, income,
al qualities,
attitude, work style,
age, gender,
marital status, beliefs,
work experience,
parental status, first
language, life
experience, values,
geographic location.
• The primary dimensions influence deep-level
diversity:
• Religion and geographic location, for example,
influence a person’s personal values.
• Education and work experience shape a person’s
beliefs and attitudes on a variety of issues.
• An individual’s personal wealth (income), parental
status, and other factors influence personal needs
and preferences.
Consequences of Diversity
•Diversity presents opportunities & challenges.
•Diversity can become a competitive advantage by
improving decision making and team performance
on complex tasks.
•For many businesses a diverse workforce also
provides better customer service in a diverse
society.
•diverse employees usually take longer to become a
high-performing team.
•In deed, rgardless of merits/ demertis, surface-
level diversity is a moral and legal imperative.
3. Evolving Employment Relationships:
•Globalization and increasing workforce diversity
have produced two contrasting changes:
A.aligning the workplace with emerging workforce
expectations- work–life balance: minimizing conflict
between work and non-work demands.
B.increasing workforce flexibility to increase
organizational competitiveness- Increasing
Workforce Flexibility: employability which is an
employment r/ship in which people perform a
variety of work activities rather than hold specific
jobs.
4. Virtual Work:
•work practices whereby employees use information
technology to perform their jobs away from the
traditional physical workplace.
•Some research suggests that virtual work,
particularly telecommuting, potentially reduces
employee stress by offering better work–life balance
and dramatically reducing time lost through
commuting to the office.
•virtual teams -whose members operate across
space, time, and organizational boundaries, and who
are linked through information technologies to
achieve organizational goals.
5. Workplace Values and Ethics:
•values Stable, long-lasting beliefs about what is
important in a variety of situations, that guide our
decisions and actions.
•help define what is right or wrong, or good or bad,
in the world.
•Ethics -the study of moral principles or values that
determine whether actions are right or wrong and
outcomes are good or bad.
•However, these are becoming dynamic.
•Corporate Social Responsibility refers to an
organization’s moral obligation toward all of its
stakeholders.
 1.8 Contributing Disciplines
to the OB Field

Micro:
The
Individual

Macro:
Groups &
Organizations
Contributing Disciplines
Psychology seeks to Sociology studies
measure,explain, people in relation to their
and change fellow human beings
behavior

Social psychology
focuses on the
influence of people
on one another

Political science is the

Anthropology is the
study of the
study of societies
behavior of individuals
to learn about human
and groups within
beings and their activities
a political environment
1.9 Forces Affecting OB
 1.10 Basic OB Model
Model: An abstraction of reality, A simplified representation
of some real-world, phenomenon
 The
The Dependent
Dependent Variables
Variables
Dependent Variable
A response that is affected by an independent variable (what
organizational behavior researchers try to understand)

The Dependent Variables y

Productivity
Absenteeism
Turnover and
Job satisfaction

Deviant Workplace x
Behavior
Independent Variable: the presumed cause of some
change in the dependent variable; major determinants of a
dependent variable
Independent
Independent
Variables
VariablesCan
Can Be
Be

Individual-
Individual- Organization
Group-Level
Group-Level Organization
Level
Level System-Level
System-Level
Variables
Variables
Variables
Variables Variables
Variables
Age, gender,
personality, emotion, Norm, Organization
values, attitude, ability communicatio
al culture,
Perception, individual n, leadership,
decision making, HR practices
power, politics
learning, and motivation
THE
END