Understanding

Self & Individual

Dynamics
 The Field of Organizational Behavior
• Organizational behavior studies the influence
that individuals, groups, and structure have on
behavior within organizations
•Its chief goal is to apply that knowledge
toward improving an organization’s
effectiveness

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 Focal Points of OB Our Focus
1. Motivation
2. Leader behavior and power
➢ Organization behaviour:
3. Interpersonal communication Individual level Context
4. Group structures and processes ➢ Personality
5. Attitude development and perception ➢ Values
6. Change processes ➢ Attitude & Job Satisfaction
➢ Creativity
7. Conflict and negotiation
➢ Motivation
8. Work design ➢ Self & Stress Management
➢ Emotions & Moods

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 Three Levels of Analysis -OB Model

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 Management Theories
• Started in the Industrial Revolution
• Needed to organize work for many
• Leverage better technology

• Management theories help

organizations
• Focus
• Communicate
• Evolve

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 Management Theories

Bureaucratic Human
Management Relations
Theory Theory

Administrative
Systems
Management
Theory
Theory

Scientific X&Y
Organizational
Management Management
Theory Behavior Theory

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 Early Management Theories (early 1900s)
• Scientific Management Theory (Taylor)
• Championed the efficient and effective completion of tasks
• Taylor argued each task should be completed as efficiently as possible. In addition, everyone
should be assigned a particular job based on their skills and abilities and must be evaluated
based on the quantity and quality of their work. Taylor did not think it was fair or cost
effective to pay every employee the same amount, regardless of their output. While this may
sound like common sense today, this was a groundbreaking idea in the early 1900s. Another
big component of scientific management theory is the idea of training and development.
Taylor argued it was extremely important to monitor and train your employees on the tasks
they are assigned to. By ensuring your employees are efficient at their work, the output will be
larger and of a higher quality.

• Administrative Management Theory Henri Fayol)

• Fourteen pillars for organizational strength and health

• Bureaucratic Management Theory (Weber)

• Encouraged detailed company objectives and division of labor

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 Early Management Theories (early 1900s)

• Bureaucratic Management Theory (Weber)

• Encouraged detailed company objectives and division of labor- Introduced Human
Emotion

• Weber argued it was extremely important to hire based on skill and, just as
importantly, personality. To ensure the safety and longevity of a company’s culture,
Weber believed hiring employees based on their personality was critical.

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 Later Management Theories (1920–1960)
• Human Relations Management Theory/The Hawthorne Effect
(Elton Mayo)
• Human interaction and management influences productivity
• The initial goal of the study was to determine how changing the
lighting would or would not affect employee productivity. They
began the study with a small group of employees who they
interacted with throughout the process.
• The study found that regardless of how they changed the lighting,
productivity increased. When they were unable to make a
connection as to why productivity improved, they began branching
out to other departments to see if the results were similar.

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 Later Management Theories (1920–1960)
• They realized that the lighting changes did not affect
productivity but instead the daily interactions with the
employees throughout the process motivated them to
work more efficiently and increase their output.
• They allowed employees to voice their opinions,
frustrations, and successes which in turn helped the
employees feel more valuable. In addition, since they
knew they were being monitored, they were more
motivated to perform on a higher level.
• This was a revolutionary discovery that put the spotlight
on human relations and highlighted the importance of
individual and group dynamics.

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 Later Management Theories (1920–1960)
• General Systems Theory (von Bertalanffy)
• The sum of an organization’s productivity is dependent on the health of all its parts

• His work shows that external factors can prove to be toxic to an environment. Although he
was referring to the human body, the same can be said for the workplace. Negativity and
other toxic outlooks can have a harmful effect on motivation and performance at all levels in
an organization. And, like his theory states, even when only one component of the
organization isn’t executing properly, it will have an undesirable effect on the rest of the
organization.

• X&Y Management Theory (McGregor)

• X management approach – employees are inherently lazy, hate work
• Y management approach – employees are internally motivated

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 Practice Question 1
In addition to advances in technology, ________ was a large motivation in the
development of management theory during The Industrial Revolution.

A. industry regulations
B. turnover
C. sustainability
D. productivity

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 The Covid-19 Pandemic- A Black Swan Event

VUCA World

BANI World

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 Contributing Disciplines to the OB Field

Micro:
The Individual
Psychology

Social Psychology

Sociology
Macro:
Groups &
Organizations Anthropology

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 Three Levels of Analysis in OB Model
• Inputs
• Variables like personality,
group structure, and
organizational culture that
lead to processes.
• Group structure, roles, and
team responsibilities are
typically assigned
immediately before or after a
group is formed.
• Organizational structure and
culture change over time.

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 Three Levels of Analysis of OB Model
• Processes
• If inputs are like the nouns
in organizational behavior,
processes are like verbs.
• Defined as actions that
individuals, groups, and
organizations engage in as
a result of inputs, and that
lead to certain outcomes.

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 Three Levels of Analysis of OB Model
• Outcomes
• Key variables that you want to
explain or predict, and that are
affected by some other
variables.

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 Outcome Variables (1 of 6)
• Attitudes and stress
• Employee attitudes are the evaluations employees make,
ranging from positive to negative, about objects, people,
or events.
• Stress is an unpleasant psychological process that occurs
in response to environmental pressures.

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Outcome Variables (2 of 6)
• Task performance
• The combination of effectiveness and efficiency at
doing your core job tasks is a reflection of your level of
task performance.
Outcome Variables (3 of 6)
• Organizational citizenship behavior
• The discretionary behavior that is not part of an
employee’s formal job requirements, and that contributes
to the psychological and social environment of the
workplace, is called organizational citizenship behavior.
Outcome Variables (4 of 6)
• Withdrawal behavior
• Withdrawal behavior is the set of actions that employees
take to separate themselves from the organization.
Outcome Variables (5 of 6)
• Group cohesion
• Group cohesion is the extent to which members of a
group support and validate one another at work.
• Group functioning
• Group functioning refers to the quantity and quality of
a group’s work output.
Outcome Variables (6 of 6)
• Productivity
• An organization is productive if it achieves its goals by
transforming inputs into outputs at the lowest cost. This
requires both effectiveness and efficiency.
• Survival
• The final outcome is organizational survival, which is
simply evidence that the organization is able to exist and
grow over the long term.
 Practice Question
What are the three levels of influence?

A. Individual, group, and organization

B. Logical, emotional, and cooperative
C. Informational, psychological, and biological
D. Private, public, and corporate

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