Organization Behavior

Lets define Organization first..

Now lets define OB ….
Definition: The study of human behavior, attitudes,
●

and performance in organizations.

●Value of OB: Helps people attain the competencies

needed to become effective employees, team
leaders/members, or managers
History of Org Behavior

●Sumerians- Record Keeping

●Egyptians- Need for Planning and Control

●Moses- Shared Leadership, Delegation

●Hamurabi- First ______?

●Alexander the Great- Use of Staff

● Niccolo Machivelli- The ends _____ the

______.
GOALS OF ORGANISATION BEHAVIOR

explanatio
prediction control
n

●Explanation objective. It is probably the least important of the three goals because it occurs after the
fact. If we are to understand something, however, we must begin by trying to explain it.

●The goal of prediction focuses on future events to determine what outcomes will follow from a given
action. A manager can use this information when making decisions.

●The most controversial goal is using OB knowledge to control behavior. The idea that one person
should attempt to get others to behave in a certain way, while the subjects may not know that their
behavior is being manipulated, has been viewed in some circles as unethical and repugnant. While
OB offers ways to control the behavior of people, whether those methods should be used is a question
of ethics.
 Psychology

The Study of Sociology

Organizationa
Social Psychology
l
Behavior Anthropology

Political Science

Chapter 1 Chapter 1 *
● Psychology is the science that seeks to measure, explain, and modify human and
animal behavior. Psychologists study individual behavior. Those who have contributed
to OB are learning theorists, counseling psychologists, and industrial and
organizational psychologists.

● Sociology studies people in relation to their fellow human beings. Sociology’s

greatest contribution to OB has been in the areas of group behavior, work teams,
organizational culture, communication, power, status, and conflict.

● Social psychology blends the disciplines of sociology and psychology. This

discipline has contributed to OB in several ways: measuring, understanding, and
changing attitudes, communication patterns, and decision-making processes.

● Anthropology is the study of societies to learn about human behavior. Much of our
current understanding of organizational culture and differences between national
cultures is the result of the work of anthropologists.

● Political science is the study of behavior of groups and individuals within a political
Contributing Disciplines to the OB
Field
Contributing Disciplines to the OB
Field (cont’d)
Contributing Disciplines to the OB
Field (cont’d)
Contributing Disciplines to the OB
Field (cont’d)
Contributing Disciplines to the OB
Field (cont’d)
 Organizational
Level
•
• Productiv
Developing Effective
ity
Employees
• Global

Challenges • Competition

Facing Group
Level
today’s •
•
Working With
Others
Workforce Workpl
Diversity ace

Workplace
Individual
Level
• Job
• Satisfaction
• Empowerm
Behaving
ent
Ethically
PRODUCTIVITY
Productivity
●

A performance measure including effectiveness

●

and efficiency
Effectiveness
●

● Achievement of goals
Efficiency
●

●The ratio of effective work output to the input

required to produce the work
EFFECTIVE EMPLOYEES
Absenteeism
●

Failure to report to work

●

Turnover
●

●Voluntary and involuntary permanent withdrawal from

the organization
Organizational citizenship behaviour
●

Discretionary behaviour that is not part of an

●

employee’s formal job requirements, but is helpful to the

organization
MAIN TRENDS IN OB
Globalization :
●

■New organizational structures

■Different forms of communication
■More competition, change, mergers, downsizing, stress
■Need more sensitivity to cultural differences
● Changing Workforce:
■Primary and secondary diversity
■More women in workforce and professions
■Different needs of Gen-X, Gen-Y
Diversity has advantages, but firms need to adjust through:
■cultural awareness
■family-friendly
■empowerment
Main trends in OB cont…

● Changing workforce
■ Dynamic relationships
■ Contingent work :no explicit or implicit contract for
long-term employment
■ Telecommuting
■ Virtual team
● Empowerment
● Information technology
● Values & Ethics
ORGANIZATION BEHAVIOR IS A …..
Systematic study of actions and attitudes that people exhibit….
Three behavioral determinants of the performance of
employees are productivity, absenteeism, and turnover.
●Some of the dependent variables in OB

Job Satisfaction;
Productivity;
Absenteeism and Turnover
Organizational Identity
Organizational Involvement
Organizational Commitment
Organizational Citizenship Behavior
 Evolution of the 21st-Century Manager

Past Manager 21 century manager

Order giver, privileged elite, Facilitator, team member,
Primary manipulator, controller teacher, advocate, sponsor,
role coach.
Periodic learning, Continuous life-long learning,
Knowledge narrow specialist generalist with multiple
specialties
Compensat Time, effort, rank Skills, results
ion Criteria

Monocultural, monolingual Monocultural, monolingual

Culture
orientation

Prentice
Prentice Hall,Hall,
2000 2000 Chapter 7 Chapter 7 *
 Formal authority Knowledge/ technical
Primary source
of info
Potential problem Primary resource
View of people
Vertical Free flow
Communication
pattern Limited inputs Vast data of input
Decision making
style Afterthought Forethought
ethical
relations Competitive (win- cooperative
loose)
BASIC OB MODEL

What is a model????
●

An abstraction of reality.
Or
A simplified representation of real world
phenomena
OB Framework
●The environment
●Individual process

●Interpersonal and group process

●Organizational process

●Change process
 environment

Individual process

Interpersonal &
team process Organisational
process

Change process

OB Framework
 OB Framework
environment
Individual process
Personality
Perception
Values & attitude
Learning & Reinforcement
Work motivation
Work stress

Inter & Team process organizational process

Dynamic within Teams Organizational Culture
Dynamics betw team leaders Power & political behavior
Leadership Job Design
Communication Org Struc
Leadership & negotiation Decision Making

Change process
Nature of Planned org change
Approach to planned org change
ORGANIZATIONAL ENVIRONMENT
All elements existing outside the
boundary of the organization that
have the potential to affect the
organization
Organizational Environments Technological

Technological General
Environment

Soc
nal

io-C
Customers
natio

Labor Market

Competitors

ultu
Inter

es

ral
Cu
ye
Task
ltu
o
pl

re
Environment
Em

Management
Le
ga Suppliers
l/P ic
ol om Internal
iti
ca on Environment
l Ec

Suppliers
EXTERNAL ENVIRONMENT
●General environment – affects indirectly

●Task environment
●Affects directly
●Influences operations and performances

●Internal environment – elements within the

organization’s boundaries
General Environment
International dimension
●

● Provides New
●Customers
●Competitors
●Suppliers

● Shapes:
●Social trends
●Technological trends
●Economic trends
 General Environment cont…
● Technological Dimension
● Scientific and technological advances
● Specific industries
● Society at large
● Impact
● Competition
● Relationship with Customers
● Medical advances
● Nanotechnology advances
General Environment cont…

● Socio-Cultural Dimension
● Dimension of the general environment
● Demographic characteristics
● Norms
● Customs
● Values
● Economic Dimension
● General economic health
● Consumer purchasing power
● Unemployment rate
● Interest rates
● Recent Trends
●Frequency of mergers and acquisitions
●Small business sector vitality
TASK ENVIRONMENT

Sectors that have a direct working

relationship with the organization
●Customers
●Competitors

●Suppliers

●Labor Market
LABOR MARKET FORCES
Labor Market Forces Affecting Organizations
today
●Growing need for computer literate information
technology workers
●Necessity for ongoing investment in human

resources – recruitment, education, training

●Effects of international trading blocks, automation,

outsourcing, shifting facility locations upon labor

dislocations
Adopting to the Environment

●Boundary-spanning
●Inter-organizational

partnerships
●Mergers or joint ventures
INTERORGANIZATIONAL
PARTNERSHIPS
Shift in paradigm
●Trust, value added to both sides
●Equity, fair dealing, everyone profits

●E-business links to share information and conduct

digital transactions
●Close coordination; virtual teams and people on site

●Involvement in partner’s product design and

production
●Long-term contracts

●Business assistance goes beyond the contract

Internal Environment
●Culture
●Employee

●Management
Levels of Corporate Culture

Culture
that can
Visible
be seen at 1. Artifacts, such as dress, office
the layout, symbols, slogans,
surface ceremonies
level

Invisible
2. Expressed values, such as “The Deeper values
Penney Idea,” “The HP Way” and shared
understanding
3. Underlying assumptions and s held by
deep beliefs, such as “people are lazy organization
and can’t be trusted” members