Introduction to the Field

of Organizational
Behavior
Chapter 1
  Meaning and importance of OB
 OB model
 Disciplines contributing to OB
Content  Critical issues comforting managers
 Implications of OB for managers
  The Field of Organizational Behavior
 Why Study Organizational Behavior?
Focus
  Organization is a deliberate
arrangement of people brought
Organization?
together to accomplish some
specific purpose.
Characteristics
of
Organization
• Distinct purpose, which is typically expressed in terms of a goal or set
of goals
• Purpose or goal can only be achieved with people
• People make decisions and engage in work activities to make the
goal(s) a reality
• Organizations develop a deliberate and systematic structure that
defines and limits the behavior of its members
  Way in which one acts or conducts
oneself, especially towards others

BEHAVIOR  Pattern of behavior includes person's

habit, voice, expression, feelings,
characters, thinking, actions and
orientations.
 • Organizations can’t exist without the people who
work within them
• Understanding the behaviour of people within
organizations is essential in the modern business
What is world
Organizational • Organizational Behaviour is the study of individual
Behaviour and group behaviour, and patterns of structure in
order to help improve organizational performance
and effectiveness
• Does NOT replace Management Theory, but has a
close relationship with it
  Systematic study and application of knowledge
about how individuals and groups act within the
organizations where they work.
ORGANIZATIO
NAL BEHAVIOR
 Field of study that investigates the impact that
(OB) individuals, groups and organizational structures
have on behavior within the organization/
improving an organizational effectiveness.
  OB is directly concerned with the
understanding, predicting &
controlling of human behavior in
ORGANIZATI organizations - Fred Luthans
ONAL
BEHAVIOR  Organizational behavior is the study of
(OB)- human Behavior in organizational settings,
DEFINITIONS the interface between human
Behavior and the organization
itself. – Griffin & Moorhead
  Organizational behavior is the systematic study of the
nature of organizations; how they begin, grow and
ORGANIZATI develop and their effect on individual
ONAL members. Constituent groups, other organizations and
BEHAVIOR larger institutions – Joe Killy

(OB)-  OB is the study & applications of knowledge

DEFINITIONS about how people act within an
organization. It is a human tool for human benefit”.
– Keith Davis & JW Newstrom
 Organizational behavior has certain fundamental concepts revolving
around the nature of people and organizations.
• Nature of people
• Nature of organization

Individual
Differences Social Systems
FOUNDATIONS OF
ORGANIZATIONAL Whole
BEHAVIOR Person
OB Mutuality of
Interests
Caused
Behaviour

Human Need for Holistic

Dignity Management Concept
 ‘Organizations are extremely complex
systems.
As one observes them they seem to be
composed of human activities on many
Why Study
different levels of analysis.
OB?
Personalities, small groups, intergroup,
norms, values, attitudes all seem to exist in
an extremely complex multidimensional
pattern.
 UNDERSTAND
BEHAVIOR

Why study
organisational
Why Study OB?
behaviour? OB IS FOR EVERYONE

INFLUENCE
BEHAVIOR PREDICT BEHAVIOR
 To Understand:
 The Behaviour of People
 The Process of Management
To Understand
 The Organizational Context
OB you need...
 The Organizational Processes and
Execution of Work
 Interactions with External Environment
  Provides a road map to behaviors in
organizations
 Help to understand and predict human
Importance of behaviour in organization
OB  Helps to influence organisational events
 Helps individual understand themselves
 Help manages HR effectively
 Helps organization maintain cordial industrial
relations and healthy environment
 Helps increase efficiency of the organization
  Mode of thinking: decision making process and level of analysis
Organizational  Human feeling orientation: individual feelings, attitudes, perceptions,
behavior goals, etc.

highlights on  Performance-oriented: at individual, group in an organization level.

 External environment: impacted by various environmental context
its several  Scientific method: crucial to understand the behavior at work scientifically
aspects:  Focused on Applications: providing useful/applicable answers to
management problems
 Multi-disciplinary: draws principles, theories, and models from various
disciplines.
 Enviroment

Human Behaviour in
Organizational Settings
Human Behaviour in
ORGANIZATIO Organizational Settings
NAL BEHAVIOR The individiual-Organizational interface

(OB) Human Behaviour in

MODEL Organizational Settings
The Organization

Enviroment
 OB model has three levels of analysis

ORGANIZATIO
NAL BEHAVIOR
(OB)
MODEL

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 The Management Context of
Organizational Behavior

The Enviromental Context

of Organizational Behavior

Indiviudal Processes Interpersonal Processes Organizational Processes

Foundations  G r o u p s a n d Te a m s Organizational Structure

ORGANIZATIO
 
 Motivation  Communication  Organizational Design
 Stress  Leadership and  Organizational Culture
Power Politics
NAL BEHAVIOR  Decision Making  Organizational Change
 Conflict and Negotiation

(OB)
MODEL
Individual-Level Group-Level Organizational-Level
Outcomes Outcomes Outcomes

 Productivity Productivity  Productivity

Performance  Performance
 Performance 
 Absenteeism  Turnover
 Norms 
 Attitudes Cohesion  Survival
Turnover  Stakeholder
 Group Satisfaction 
Stress  Satisfaction


Organizational Effectiveness

ORGANIZATIONAL BEHAVIOR 1st ed. (© Biswakarma, 2018) SHAMJHANA PUBLICATION,

KATHMANDU
ORGANIZATION
AL BEHAVIOR
(OB)
MODEL
Integrative Model
of
Organizational
Behavior
 The Environment:
 The affects can be:
 – Technological and scientific developments
 – Economic activity
 – Social and cultural influences
Influences on  – Governmental actions
OB  Relates to the management of opportunity and
risk
 Globalization means that organizations need to
respond to multiple markets and local
requirements
 The Individual:
 Work in Isolation or as part of a Group
 Respond to Organisation expectations or influences of
the external environment
Influences on  Incompatibility between individual needs and the
OB demands of the organisation, can lead to frustration
and conflict
 Management needs to balance satisfaction of
individual
 needs and the attainment of organizational goals
 The Group:
 Formal groups constructed by the organisation
 Informal groups arising from social needs
Influences on  Groups can develop own hierarchies and
OB leaders
 Group pressure on individual behaviour
 Complements our understanding of Individual
behaviour
 The Organisation:
 Creates structure through which management
can establish relationships between individuals
and groups
 A formal structure to achieve aims and
Influences on objectives
OB  Behaviour is affected by the formal structuring
of an organisation through their:
 – Technology usage
 – Styles of leadership
 – Systems of management
 – Process planning, direction and controls
Disciplines
contributing to
OB
  The study of human behaviour
within the individual and small
groups
The  Focus on the individual as a whole
Psychology of
person, in what can be termed the
OB
‘personality system’
 Interested in individual perceptions,
attitudes and motivations
  The study of social behaviour,
relationships among social groups and
The Sociology societies, and the maintenance of order
of OB  Focus of attention on social structures
and positions in those structures
 Interested in the relationship between
leaders and followers
  The study of humankind and human behaviour
as a whole
The  Focus on the cultural system, the beliefs,
Anthropology customs, ideas and values within a group or
society, and their comparisons between
of OB different cultures
 People depend on their culture for security and
stability, so changes in environment can lead to
adverse effects
The
Organizational
Iceberg
The
Organizational
Iceberg
 Critical issues comforting
Focus
managers
 Globalization
Critical issues Technological changes
comforting Workforce diversity
managers/Facing
Organizations Ethics
Emerging Employment
relationship
 Globalization
 Movement toward economic, financial, trade,
communication or cultural integration.
 Trend toward a unified global economy involving free trade
Contemporary and a free flow of capital among countries.
Developments  Opening of local and nationalistic prospective
Facing  Emphasizes the need to recognize the contingencies of
Organizations effective OB practice
 Application of organizational behavior will increase into the
future
 Work force diversity
 Composition of the workforce is changing
Critical issues  Similarities and differences among employees in work
comforting places (age, cultural background, physical abilities and
managers/Facing disabilities, race, religion, sex and sexual orientation).
Organizations  Managing employees from different backgrounds are more
challenging and risky

surface-level diversity

deep-level diversity
 Ethics
 Deals with what is good and bad and with moral duty and
obligation
Critical issues  Cultural influence ethical behavior (family, friends,
comforting neighbors, education, religion and media)
managers/Facing  Organizational influences (ethical codes, role models,
Organizations policies and practices and reward and punishment
systems)
 The factors determining ethical behavior are:
 Individuals and groups
 Cultural
 Organizational
 External environment
 Technology
 competitive advantages
 influences the behavior of the employees
Critical issues  responsible for organizational change,
comforting  widespread effect on the behavior of people in the
managers/Facing
Organizations organization.
 organization focuses on inherit the technology to its
employees, which includes of the dynamism of
organizational behaviour.
 New employment relationship
 significant area of environment changes,
 changes are of employment nature and
Critical issues relationship within the new format of employment
comforting relationship.
managers/Facing  temporary, contingency and outsourcing
Organizations
 complexity in managing these types of
employment relationship.
  Resist the inclination to rely on
generalizations; some provide valid
insights into human behavior, but
many are erroneous. Get to know the
Implications for OB person, and understand the context.
 Use metrics rather than hunches to
explain cause-and-effect relationships.
 Work on interpersonal skills to increase
leadership potential.
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  Improve technical skills and conceptual
skills through training and staying
current with OB trends like big data.
 OB can improve employees’ work quality
Implications for OB
and productivity by showing how to
empower employees, design and
implement change programs, improve
customer service, and help employees
balance work–life conflicts.

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Case: Difficult Transitions (A25)