ORGANIZATIONA

L BEHAVIOR

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MODULE CONTENTS
1. Management & Organizations
2. The Origin of Management Thought
3. Individual/Group/Organizational Behaviors
4. Motivation
5. Business Environment
6. Organization Effectiveness
7. Organization Design
8. Change & Conflict Management
9. Organizational Development
10. Organizational climate & Culture 2
COURSE OBJECTIVES
At the end of the Module, the students will:
Explain organizational behavior.
Know the basis for individual behavior in organizations.
Differentiate between groups in organizations.
Highlight the different approaches to motivation in work settings.
Know how to manage organization environments.
Distinguish between organization structure and design.
Be familiar with organization processes.
Know the basic concepts of organizational culture and development.
Highlight the strategies for managing change and conflict in
organizations.
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Unit 1

INTRODUCTION TO THE
STUDY OF
ORGANIZATIONS

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LEARNING OBJECTIVES
At the end of this chapter, you should be able to:
Examine the context of organizations
Know the classification of organizations
Describe the basic components of an organization
Explain management and its functions

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 HISTORY, DEFINITION &
CHARACTERISTICS
OF MANAGEMENT

History of Management
 The verb manage comes from the Italian maneggiare (to
handle — especially tools), which in turn derives from the
Latin manus (hand).

 The French word mesnagement (later ménagement)

influenced the development in meaning of the English word
management in the 17th and 18th centuries.

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 DEFINITIONS OF MANAGEMENT
 Management has been viewed by scholars as:
 a process,
 a discipline,
 a human activity, and
 a career

 Management has also been viewed as a system of

 inputs (resources and factors of production),
 processes (managerial tasks and activities), and
 outputs (products and/or services)
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MANAGEMENT AS A PROCESS
Management is a process involving certain functions and
activities that managers perform.
Management as a Discipline
Management as a discipline implies that it is body of
knowledge (principles, concepts, and theories) that can be
learned and practiced.
Management as a Human Activity
People are an org’s most important ASSET;
Orgs require mutually satisfying partnership b/n
management and the HR they manage.
Management as a Career
Managers associated with sequence of work related
experiences over the span of their lives 8
 DEFINITIONS…CONT’D
Def. 2
The process of getting things done, effectively and efficiently,
through and with other people
Process
represents the primary activities that managers
perform
Efficiency
• doing the task right
• the relationship between inputs and outputs
Effectiveness
 doing the right task
 attaining organizational objectives
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 FUNCTIONS OF MANAGEMENT

Planning
Select goals
& ways to
Controlling attain them
Organizing
Monitor Assign
activities & responsibility for
make tasks
corrections
Leading
Use influence to
motivate
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Robert
Robert Katz’s
Katz’s Management
Management Skills
Skills
Technical skills
The ability to apply specialized knowledge or
expertise.
Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.
Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
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Mintzberg’s
Mintzberg’s Managerial
Managerial Roles
Roles

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Managerial
Managerial Roles…Cont’d
Roles…Cont’d

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Managerial
Managerial Roles…Cont’d
Roles…Cont’d

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THE CONTEXT OF
ORGANIZATION
 The organization is a complex social system and
is the sum of many interrelated variables.
 Organizations exist in order to achieve objectives
and to provide satisfaction for their members.
 Organizations enable objectives to be achieved
that could not be achieved by the efforts of
individuals on their own.

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WHAT IS AN ORGANIZATION?

 A consciously coordinated social unit composed of

two or more people that functions on a relatively
continuous basis to achieve a common goal.

Or

 A collection of people working together to achieve a

common purpose, with that purpose being to produce
goods and /or services that satisfy the needs of the
customers.

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 FEATURES OF ORGANIZATION

Organizations are characterized as being:

Purposive - common objectives to

accomplish task

Peopled - cooperative efforts

Structured . hierarchal, rules &

regulations, communication
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 TYPES OF ORGANIZATIONS
 Service Organization (e.g., charities, public
schools, park, zoo, road, etc.).
 Economic Organization (e.g., co-operations,
proprietorships, partnerships, etc.).
 Religious Organization (e.g., Churches).
 Protective Organization (e.g., police, military,
fire department, etc.).
 Social Organization (e.g., clubs, teams, etc)
 Government Organization (e.g., Federal & 19

Regional States, cities, courts, etc.).

 DESIGNING ORG’AL
STRUCTURE
 Organizing:the process by which managers establish
working relationships among employees to achieve
goals.
 Organizational Structure: formal system of task & reporting
relationships showing how workers use resources.
 Organizational design: managers make specific choices resulting
in a given organizational structure.

 Successfulorganizational design depends on the

organization’s unique situation.

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WHAT IS ORGANIZATIONAL STRUCTURE?
 The manner in which an organization divides its
labor into specific tasks and achieves coordination
among these tasks.

 Each organization has structures that define the unique

ways that
 labor is divided,
 how specialized roles and functions are coordinated,
 how information flows among people and groups, and
 how the system of controls (task measurement, evaluation,
and change) is to work.
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Structure entails:

 VERTICAL DIVISION OF LABOUR

levels of the organization - who reports
to whom

 HORIZONTAL DIVISION OF LABOUR

groups the basic tasks to be performed
into jobs and then into departments so
organizational goals can be achieved.

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Structural Designs for Organizations

 DEPARTMENTATION / TEAM FORMATION –

grouping of jobs.
Functional Departmentalization
Product Departmentalization
Geographic Departmentalization
Market based Departmentalization
Process Team Formation
Matrix Departmentalization
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Functional Departmentalization
Function: people working together with similar skills, tools
or techniques to perform their jobs.

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 PRODUCT STRUCTURE

CE O
Corporation

Corporate
M anagers

W ashing M achine Lighting Television

Division Division Division

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GEOGRAPHIC STRUCTURE

CEO
Corporation

Corporate
M anagers

Northern W estern Southern Eastern

Region Region Region Region

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 MARKET/CUSTOMER BASED
STRUCTURE

CEO
Corporation

Corporate
M anagers

Large Business Sm all Business Educational Individual

Custom ers Custom ers Institutions Custom ers

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 PROCESS-BASED STRUCTURE

Generally two ideas underpin a process

structure. These are:
Organizationalunits are organized
around core processes.
Other processes are added to these
units minimizing the necessity of cross-
unit coordination.
Each process requires a number of
activities or tasks. 28
PROCESS-BASED…CONT’D

Process Structure:
 Have few levels but wide spans of control.
 Results in quick communications but can lead to overworked
managers.

 Empower staff with accountability

 Forms
Team who works together towards
common goal
 Requires generalists-multi-skilled staff
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MATRIX STRUCTURE
 Managers group people by function and product teams
simultaneously.
 Results in a complex network of reporting relationships.
 Very flexible and can respond rapidly to change.
 Each employee has two bosses which can cause
problems.
 Functional manager gives different directions than
product manager and employee may not satisfy both.

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MATRIX DEPARTMENTALIZATION

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Structural Characteristics of Organizations
 Span of control
 Hierarchy

 Specialization

 Standardization

 Formalization

 Centralization

 Complexity

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 Tall versus Flat Organizations
Chief
Chief
Executive
Executive
Tall Organization
hierarchy
Tallhierarchy
Tall

Chief
Chief Relatively narrow
Flat Organization Executive
Executive
hierarchy

span of control
Flathierarchy
Flat

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Relatively wide
span of control
 Overview of
Organizational
Behavior

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CONCEPTS
Organizational Behavior is defined as:
 The systematic study of the nature of organizations: how they
begin, grow, and develop, and their effect on individual
members, constituent groups, other organizations and large
institutions (Joe Kelly).

 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
towards improving an organization’s effectiveness (Robbins).

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CONCEPTS CONT’D ...
On the basis of the definitions, the following conclusion can
be drawn regarding the nature of OB:
Interdisciplinary Approach

Behavioral Approach to Management

Concern with Environment

Scientific Method

Contingency Approach

A Systems Approach

Value Centered

Utilizes two Kinds of Logic: objectivity & subjectivity

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 NEEDS FOR STUDY OF OB
 Ithelps an individual understand oneself. It is a study of the
actions & attitudes that people exhibit within organization.
 It
helps managers in getting the work done through effective
ways.
 Itemphasizes the interaction and relations between the
organization and individual behavior.
 It helps to develop work-related behavior & job satisfaction.
 It helps in building motivating climate.
 It helps in building cordial industrial relations.
 It implies effective management of human resource
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SKILLS & VALUES IN OB

OB contributes for development of the following skills &

values:
Self development & personality development
Creating effective organizational culture
Development of human values & ethical perspective
Managing stress & creative use of emotions
Creating learning individual & learning organization
Managing creativity, change & innovation
Motivation, morale & job satisfaction
Effective communication
Team building
Leadership 39
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CHALLENGES FOR ORGANIZATIONAL
BEHAVIOR

 TheChanging Social & Cultural

Environment
 The Evolving Global Environment
 Advancing Information Technology
 Shifting
Work & Employment
Relationship
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WHISH YOU SUCCESSFUL
ORGANIZATION!

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