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ORGANIZATIONAL

BEHAVIOR
Organizational Behavior

• is the study and application of


knowledge about how people –as
individuals and as groups –act within
organizations.
• is a scientific discipline in which large
number or research studies and
conceptual developments are constantly
adding to its knowledge base.
Organizational Behavior

• it is also an applied science, in that


information about effective practices in
one organizations are being extended to
many others.
• provide a useful set of tools at many
levels of analysis
GOALS:
1. to describe – how people behave under a
variety of conditions
2. to understand – why people behave as they do.
3. to predict – which employees might be
dedicated and productive or which might be
absent, tardy or disruptive on a certain day
4. to control – motivate, reduce stress and improve
team effort
ELEMENTS:

PEOPLE STRUCTURE

TECHNOLOGY ENVIRONMENT
People:

• make up the internal social system of the organization.


• consists of individuals and groups.
• are the living, thinking, feeling beings who work in the
organization to achieve their objectives.
Structure

• Defines the formal relationship of people in organizations.


• Number of people working at different levels & performing
different jobs
• These relationships create complex problems of
cooperation, negotiation and decision-making.
Technology

• provides the resources with which people work and affects


the tasks that they perform.
• its great benefit is that it allows people to do more and better
work, but it also restricts people in various ways.
Environment

• An organization operate within an internal and an external


environment.
• A single organization does not exist alone.
• It influences the attitudes of people, affects working
conditions, and provides competition for resources and
power. It must be considered in the study of human
behavior in organizations.
KEY ELEMENTS IN
ORGANIZATIONAL BEHAVIOR

People

Organization

Structure Technology

Environment
FUNDAMENTAL CONCEPTS

• The nature of people • The nature of organizations


– Individual differences – Social system
– Perception – Mutual interest
– A whole person
– Motivated behavior
– Desire for involvement
– Value of the person
THE NATURE OF PEOPLE:
Individual differences
• every human is unique & different from the other, on
account of heredity (nature) and environment (nurture).
• managers cannot deal with all employees in the same way
and each must be handled differently.
THE NATURE OF PEOPLE:
Perception
• the unique way in which each person sees, organizes and
interprets things, perceptions differ in two individuals
because of differences in their personality, needs and
values.
• Selective perception is tendency to interpret what one
sees on basis of their interests, backgrounds, experiences
and attitudes.
THE NATURE OF PEOPLE:
A Whole Person
- impossible to separate home & family life of a person from
work life, or to separate physical characteristics of an
individual from his emotional characteristics.
- Employees play many more roles outside the work place,
what happens outside affects his performance at work.
THE NATURE OF PEOPLE:
Motivated Behavior
• human actions are intentional & purposeful, behavior has
causes which may be related to his needs or consequences.
• 2 basic ways in which managers can motivate:
– By showing employees how certain desirable behavior will be
rewarded
– By threatening employees that undesirable actions will be punished

THE NATURE OF PEOPLE:
Desire for Involvement
• employees have a strong desire to contribute to their
organization, they seek opportunities to utilize their
knowledge, talents & skills for success of organization, they
have a strong desire to share ideas & be involved in
decision making.
THE NATURE OF PEOPLE:
Value of the Person
• organizations must treat their employees with care, respect
& dignity, not as mere economic tools, human beings need
to be valued for their skills & abilities.
THE NATURE OF ORGANIZATION
Social Systems
• Sociology tells that organizations are social systems.
• Their behavior is influenced by their group as well as their
by their individual drives.
• Two types of social systems exist side by side in the
organization- the formal (official ) social system and the
informal social system- each influencing and getting
influenced by the other.
THE NATURE OF ORGANIZATION
Mutual Interest
• There is a mutuality of interest between the organization
and its employees.
• Organization needs employees to reach its objectives and
people need organizations to help them reach individual
objectives.
• Mutual interest provides a superordinate goal – one that can
be attained only through the integrated efforts of individuals
and their employees.
THE NATURE OF ORGANIZATION
Ethics
• is the use of moral principles and values to affect the
behavior of individuals and organizations with regard to
choices between what is right and wrong.
• When organization’s goals and actions are ethical,
individual, organizational and social objectives are more
likely to be met.
BASIC APPROACHES

• Human Resource Approach


• Contingency Approach
• Productivity Approach
• Systems Approach
BASIC APPROACHES
Human Resource Approach
• considers people as the most important resource, primary
focus is on growth & development, making people
competent, creative & fulfilled.
• this approach is supportive & hence also called Supportive
Approach.
BASIC APPROACHES
Contingency Approach
• This approach recognizes that each organization is unique
& so are its problems, hence different methods of behavioral
practices needs to be adopted for different situations.
BASIC APPROACHES
Productivity Approach
• Productivity is ratio of output to input, it is greater if an
organization is able to increase its output & reduce inputs
• OB wants to improve productivity & effectiveness, but OB
also takes into account human, social & economic inputs.
BASIC APPROACHES
System Approach
• All departments of an organization are interconnected and
interdependent parts of a larger system.
• this approach emphasizes that organization is a system of
many variables, each variable is affected by others, there
are many subsystems in a large system, every subsystem
requires some input & produces some output, systems have
the ability to produce positive & negative
results/consequences, these consequences may be
intended or unintended, there are long term and short term
effects of these outcomes.

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