ORGANIZATIONAL BEHAVIOR

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AFTER STUDYING THIS CHAPTER I HOPE THAT YOU WILL BE ABLE TO:

1. Define organizational behavior (OB).2. Describe what managers do.3. Explain the value of the systematic

study of OB.4. List the major challenges and

opportunities for managers to use OB concepts.

5. Identify the contributions made by major behavioral science disciplines to OB.

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6. Describe why managers require a knowledge of OB.

7. Explain the need for a contingency approach to the study of OB.

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Chapter Learning Objectives

Define organizational behavior.

Identify the functions that comprise the management process and relate them to organizational behavior.

Relate organizational behavior to basic managerial roles and skills.

Describe contemporary organizational behavior.

Discuss contextual perspectives on organizational behavior.

After studying this chapter you should be able to:

What Managers Do

Managerial Activities• Make decisions• Allocate resources• Direct activities of others to attain

goals

Managerial Activities• Make decisions• Allocate resources• Direct activities of others to attain

goals

Where Managers Work

Management Functions

ManagementFunctions

ManagementFunctions

PlanningPlanning OrganizingOrganizing

LeadingLeadingControllingControlling

Management Functions

Management Functions

Management Functions

Management Functions

Management Skills

The well-known industrialist of U.S.A late Andrew , when sold his famous 'United State Steel

Corporation', he showed his confidence in organization by

uttering the following words, ………"Take away our factories, …… …… take away our trade, …... …. our avenues of

transportation,… ….. our money,…… ……. leave nothing …… …..but in four

years, .... “we shall re-established

ourselves.”

Definitions of Organization

"Organization may be defined as a group of

individuals, large of small, that is cooperating under the direction of executive leadership in accomplishment of certain common object”.

- Keith Davis, "Organization is the process of identifying and

grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.”

- Louis A. Allen

Meaning of Organization: organization is the

structure or mechanism (machinery) that enables living things to work together.

In a static sense, an organization is a structure or machinery manned by group of individuals who are working together towards a common goal.

Organization as a Process: Organization as a Framework of Relationship:Organization as a Group of persons:Organization as a System:

In short, organizing is Determining, grouping and

arranging the various activities deemed necessary for the attainment of the objectives,

Assigning of people to those activities,

Providing suitable physical factors of

environment &

Indicating the relative authority delegated to each individual charged with the execution of each respective activity.

Organizational Behavior

Characteristics / Features of Organization

Outlining the Objectives: Identifying and Enumerating the

Activities:Assigning the Duties:Defining and Granting the

Authority:Creating Authority Relationship:

Importance / Need / Advantages / Significance of Organization

It Facilitated Administration and

management: It Help in the Growth of Enterprise: It Ensures Optimum Use of Human

Resources: It Stimulates Creativity: A Tool of Achieving Objectives: Prevents Corruption: Co-ordination in the Enterprises: Eliminates Overlapping and

Duplication or work: Sound or Good Organisation

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The Left Brain The left-side

of the brain is considered to be adept at tasks that involve logic, language and analytical thinking. The left-brain is often described as being better at:

Language Logic Critical thinking Numbers Reasoning

The Right Brain According to the left-brain, right-brain dominance theory, the right side of the brain is best at expressive and creative tasks. Some of the abilities that are popularly associated with the right side of the brain include:

Recognizing facesExpressing emotionsMusicReading emotions ColorImagesIntuitionCreativity

Ready to test yourExec u tive Atten tion capacity? Quick! say aloud what color you see in

every word,

Stoop Test: great Brain Teaser

What is Organizational Behaviour?

Organization:- A place where managers practice

the art of management. An Institution or sub-units of an institution working together for a common goal.

Organization Behavior: - It’s an study of human

behavior. The study is about the behavior of people in an organization. Knowledge about human behavior and its usefulness in improving an organizations effectiveness.

“OB is directly concerned with the understanding, predicting &controlling of human behavior in Organizations”

- Fred Luthaus.

Organization behavior encompasses a wide range of topics such as human behavior, change, leadership, teams etc.

OB is also a field of study. It studies 3 determinants of behavior in organizations:-

Individual. Group. Organization. To sum upOB is concerned with:- Study of what people do in the

organization. How behavior effects the performance of the

organization.

Organizational behaviour can be defined as –

“the study and application of knowledge about human behaviour related to other elements of an organization such as structure, technology and social systems

- LM Prasad. “Organizational behaviour as a

systematic study of the actions and attitudes that people exhibit within organizations.”

- Stephen P Robins

What is Organizational Behavior?

Organizational behavior (OB) is the study of:

Human behavior in organizational settings

The interface between human behavior and the organization

The organization itself

Why Study OB?

Studying organizational behavior can clarify factors that affect how managers manage by: Describing the complex human context of

organizations

Defining the associated opportunities, problems, challenges, and issues

Isolating important aspects of the manager’s job

Offering specific perspectives on the human side of management

Why Study OB? (cont’d)

Studying OB helps managers understand:

The behaviors of others in the organization

▪ Personal needs, motives, behaviors, feelings and career dynamics

▪ Attitudinal processes, individual differences, group dynamics, inter group dynamics, organization culture, power, and political behavior

Interactions with people outside of the organization and other organizations

The environment, technology, and global issues

KEY ELEMENTS OF OB: People Technology Structure Environment

FOUNDATIONS OF OB: Individual Differences Whole person Caused behavior Human dignity Organization as social

system Mutuality of Interest Holistic Concept Need for Management

Scope of OBIndividuals.Groups of Individualsorganisation as a whole

Need for study of OBHelps to understand self and others

better Effective management of peopleTackle human problems humanlyPredict the human behaviour Effective utilisation of human resources

The Nature of Organizational Behavior

The Importance of Organizational Behavior

Organizations can have a powerful influence on our lives: Most people are born and educated in

organizations

Most people acquire most of their material possessions from organizations

Most people die as members of organizations

Many of our activities are regulated by governmental organizations

Most people spend most of their lives in organizations

Organizational Behavior and the Management Process

Management Functions Planning Organizing Leading Controlling

Resources Used by Managers Human Financial Physical Information

Challenges and Opportunity for OB1. Responding to Globalization i) Increased foreign assignments ii) Working with People from different

cultures iii) Coping with anti capitalism backlash. iv) Overseeing movement of jobs to the

countries with low- cost labor v) Managing people during the war on

terror 2. Managing workforce Diversity I. Embracing diversity ii. Changing demographics 3. Improving quality and productivity 4. Improving customer service 5. Stimulating innovation and changes 6. Working in networked organizations 7. Creating a positive work environment 8. Improving ethical behaviour

Challenges and Opportunity for OB

Improving People Skills Empowering People Coping with

“Temporariness” Stimulation Innovation

and Change Helping Employees

Balance Work/Life Conflicts

Improving Ethical Behavior

Leader must be able to describe,

understand, predict and control individual behaviour in the organization. This is explained in the succeeding paragraphs.

(a) Describe: Study of organizational behaviour is based on scientific methods,

(b) Understand: Leaders must understand human behaviour as to why people behave in particular manner and try to identify reasons so that corrective actions can be taken.

(c) Predict: By frequent closer interaction, a leader is in a position to identify the nature of workers.

(d) Control: Managers in the organizations should train their subordinates continuously;& should know when to control where to control& how to control

BEHAVIOUR MODEL FOR ORGANIZATIONAL EFFICIENCY

Basic OB Model, Stage I

Autocratic - The basis of this model is power with a managerial orientation of “Authority”

Custodial - The basis of this model is economic resources with a managerial orientation of “Money”.

Supportive -The basis of this model is leadership with the managerial orientation of “support”.

Collegial - The basis of this model is partnership with the managerial orientation of “Team work”.

MODELS of OB:

Bases of Organizational Behaviour

1. Sociology: The study of group human behaviour

2. Psychology: The science or study of individual human behaviour

3. Social Psychology: Studies influences of people on one another

4. Anthropology: Study of the human race, and culture

5. Political Science: Behaviour of individuals in political environment.

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field

Contributing Disciplines to the OB Field

The Dependent Variables

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The Dependent Variables

The Dependent Variables

The Dependent Variables

The Dependent Variables

The Independent Variables

IndependentVariables

IndependentVariables

Individual-Level Variables

Individual-Level Variables

OrganizationSystem-Level

Variables

OrganizationSystem-Level

Variables

Group-LevelVariables

Group-LevelVariables

Functions of ManagementPlanning Determining an organization’s desired

future position and the best means of getting there

Organizing Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units

Leading Getting organizational members to work together toward the organization’s goals

Controlling Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals

Basic Managerial Functions

Organizational Behavior and the Manager’s Job

Basic Managerial Roles Interpersonal Informational Decision-Making

Wanna Be a Manager…. “B+ve”

look carefully & say what it is.......

“The Glass is half ______”

Thinking it all +ive

“The Glass is half EMPTY”

Thinking it all –ive

“The Glass is half FULL”

looks different in terms of attitude???

Important Managerial Roles

Henry Mintzberg’s Managerial Roles

Henry Mintzberg’s Managerial Roles

Henry Mintzberg’s Managerial Roles

Critical Managerial Skills

Technical Skills necessary to accomplish specific tasks within the organization

Interpersonal Skills used to communicate with, understand, and motivate individuals and groups

Conceptual Skills used in abstract thinking

Diagnostic Skills to understand cause-effect relationships and to recognize optimal solutions to problems

Managerial Skills at Different Organizational Levels

Effective Versus Successful Managerial Activities (Luthans)

1. Traditional management• Decision making, planning, and controlling

2. Communications• Exchanging routine information and processing

paperwork

3. Human resource management• Motivating, disciplining, managing conflict, staffing,

and training

4. Networking• Socializing, politicking, and Interacting with others

1. Traditional management• Decision making, planning, and controlling

2. Communications• Exchanging routine information and processing

paperwork

3. Human resource management• Motivating, disciplining, managing conflict, staffing,

and training

4. Networking• Socializing, politicking, and Interacting with others

Allocation of Activities by Time

Organizational Components that Need to be Managed

PeopleStructureTechnologyJobProcessesExternal Environment

Contemporary OrganizationalBehavior

Characteristics of the Field Interdisciplinary in focus

Descriptive in nature

Basic Concepts of the Field

1.Individual processes

2.Interpersonal processes

3.Organizational processes/characteristics

Contemporary Organizational Behavior

ContextualPerspectives

on Organizational Behavior

ContextualPerspectives

on Organizational Behavior

Systems Perspective

Systems Perspective

Situational PerspectiveSituational Perspective

ContingencyContingency

InteractionalInteractional

The Systems PerspectiveSystem

An interrelated set of elements that function as a whole—inputs are combined/transformed by managers into outputs from the system.

Value of the Systems Perspective Underscores the importance of an

organization’s environment Conceptualizes the flow and interaction

of various elements of the organization.

The Situational PerspectiveThe Situational Perspective

Recognizes that most organizational situations and outcomes are influenced by other variables

The Universal Model Presumes a direct cause-and-effect

linkage between variables Complexities of human behavior and

organizational settings make universal conclusions virtually impossible

The Systems Approach to Organizations

Universal Versus Situational Approach

Interactionalism: People and Situations

Interaction list Perspective

Focuses on how individuals and situations interact continuously to determine individuals’ behavior

Attempts to explain how people select, interpret, and change various situations.

The Interactionalism Perspective on Behavior in Organizations

Managing Effectiveness

Managers work toward accomplishing the various goals (outcomes) that exist at specific levels in an organization: Individual-level outcomes

Group-level outcomes

Organizational-level outcomes

Managing for Effectiveness

Organizational Behavior in Action

Based on your reading of the chapter opening case: Why is employee morale at Microsoft so

low despite excellent pay, benefits, and working conditions?

Which basic managerial roles and skills does Microsoft’s Lisa Brummel need to use to convince her fellow Microserfs that the organization really cares about them?

At which level in the Microsoft organization are the most critical problems occurring?

Survival Scenario

1. Break into teams of about 6 to 12 people.

2. A plane or boat has crashed and landed in a deserted location. Each member must make a list of the 12 most important items needed to survive.

3. Then rank the 12 items by importance. 4. Then the group must compare their lists

& come up with an agreed-upon list of 12 items.

TAG TEAM GAME

Objective: You can share with the group

about your individual strengths and positive traits that contribute to the overall success of the group.

U can analyze about u & ur friend It will guide u to identify about u & ur

friends good & bad traits You can think about other attributes

which you can process for ur empowerment.

The groups should make the "ultimate team member”-

CREATE A - A NEW PERSON By combining all your best traits into one

imaginary person. Name that "person” and also draw a picture of

him/her on the large sheet of paper with different

attributes labeled Then you have to write a story about that

person. The story should highlight all of the amazing

things about your imaginary person can do with all of the awesome characteristics he/she process as per you.

 

Discussion Prompts:1. If one person had all of your best traits

would he/she be much better than any one person in your group?

2. How can you as a group member contribute to the team?

3. How does working as a team make things easier for each person?

4. What can you do s a team than you can't do by yourself?

5. What other attributes do you think you have to contribute to the team that were not mentioned in your story?

6. What other attributes do others in your group have that were not mentioned in your story?