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Organizational Behavior Prof. Soofia Waleed

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Page 1: Inroduction to OB

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Organizational

Behavior Prof. Soofia Waleed

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Af ter this lecture you would be able to

: Define Organizational Behavior (OB)

Describe the three goals of OB

List how major challenges and

opportunities for managers use OB

concepts

Describe how OB concepts can help makeorganizations more productive

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What frequent or troublesome problems

managers face in their work 

life? 

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The Field of Organizational Behavior  The study of people is generally referred to

as the study of organizational behavior. So

we define Organizational behavior as:

³OB is the systematic study of the actions

and attitudes the people exhibit withinorganizations´ 

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Field of Organizational Behavior  The field of OB seeks to replace intuitive

explanations with systematic study: that is use of 

gathered under controlled conditions andmeasured and interpreted in a reasonably

rigorous manner to attribute cause and effect.

The objective is to draw conclusions. So the field

of OB ±its theories and conclusions²is based ona large number of systematically designed

research studies.

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What does OB systematically study? Productivity

 Absenteeism

Turnover 

Organizational Citizenship Behavior  OCB is discretionary behavior that is not part of 

employee¶s formal job requirements but that neverthelesspromotes the effective functioning of the organization. For e.g. helping others in work, volunteering extra job

activities, avoiding conflicts, making constructivestatements about one¶s work group and organization

Job Satisfaction

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Goals of Organizational Behavior 

Explanation

Prediction

Control

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Do you think managers have to face a lot 

of challenges and opportunities? 

If Yes, what could be those? 

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Challenges and Opportunities f or OB:

A Managerial Perspective Responding to Globalization

Managing Workforce Diversity

Improving Quality and Productivity

Improving People Skills

Improving Customer Service

Empowering People

Working in Networked Organizations

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Stimulating Change and Innovation

Coping with ³Temporariness´

Helping Employees Balance Work/Life

Conflicts

Declining Employee Loyalty

Improving Ethical Behavior 

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R esponding to Globalization Organizations are no longer constrained by

national borders. For example: Burger king,Pepsi, ExxonMobil, McDonald¶s etc.

World has become a global village. In the processthe manager¶s job is changing. Increased Foreign Assignments

Working with people from different cultures

Coping with Anti-capitalism Backlash Overseeing Movement of Jobs to Countries with low-cost

labor 

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Managing Work f orce Diversity Workforce Diversity means that organizations are

becoming a more heterogeneous mix of people

who are different in terms of gender, age, race

and ethnicity

Managers have to embrace diversity

Diversity, if positively managed, can increase

creativity and innovation in organizations as wellas improve decision making by providing different

perspectives on problems

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Improving Quality and Productivity Excess products & services translates into

increased competition and increased competitionis forcing managers to reduce costs while, at the

same time, improving their organization¶sproductivity and the quality of the products andservices they offer.

To achieve these ends, managers areimplementing programs such as QM ( Quality

Management and process reengineering²programs that require extensive employeeinvolvement.

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Cont. QM

It is driven by the constant attainment of 

customer satisfaction through the continuousimprovement of all organizational processes.

What is Quality Management?

1. Intense focus on the customer 

2 . C 

oncern for continual improvement 3. Improvement in the quality of everything the organization does

4. Accurate measurement 

5 . E mpowerment of employees

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Process Reengineering

It asks managers to reconsider how work would be done

and their organization structured if they were starting over.

Reengineering involves evaluating every process.

Inefficient processes are thrown out and entire new

systems are introduced.

It typically redefines jobs and requires most employees to

undergo training to learn new skills.

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Improving People Skills People skills are very important to managerial

effectiveness

OB help managers and potential managersdevelop these skills

Through various theories and concepts of OBmanagers explain and predict behavior.

They learn variety of ways to motivate people, to

be a better communicator and to create effectiveteams and much more.

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Improving Customer Service OB can contribute to an organization¶s performance by

showing managers how employee attitudes andbehavior are associated with a customer satisfaction.

Many organizations have failed because their employees failed to please the customer.

So management needs to create a customer-responsiveculture i.e. cultures in which employees are friendly,courteous, accessible, knowledgeable, prompt in

responding to customer needs and willing to do what¶snecessary to please the customer.

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Empowering People Decision making pushed to operating level

Workers are given the freedom to make

choices about schedules and proceduresand to solve work-related problems

Managers allowing employees full control

of their work What¶s going on?????

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Working in Networked Organizations Computerization and the Internet have linked

many organizations with other which could bethousand miles away.

The manager¶s job is different in a networkedorganization, especially when it comes tomanaging people.

For example: motivating and leading people andmaking collaborative decisions ³online´ requires

techniques different from those used withindividuals who are physically present in a singlelocation.

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Stimulating Innovation and Change Today¶s successful organizations must foster 

innovation and master the art of change or they¶llbecome candidates of extinction

 An organization¶s employees could be impetus for innovation and change or they can be a major stumbling block.

The challenge for managers is to stimulate

employee creativity and tolerance for change. OB provides a wealth of ideas and techniques to

aid in realizing these goals.

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Coping with ³

Temporariness´

Today¶s managers and employees must learn to

cope with temporariness.

Permanent employees are now being replaced bytemporary employees

The study of OB can provide important insights

into helping you better understand a work world of 

continual change, how to overcome resistance tochange, and how best to create an organization

culture that thrives on change.

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Helping Employees Balance

Work/Lif e Con

f licts

Employees are increasingly complaining that theline between work and non-work time has becomeblurred, creating personal conflicts and stress.

Globalization means that the world never sleeps.

Employees are increasingly recognizing that workid squeezing out personal lives and they are nothappy about it.

OB offers a number of suggestions to guidemanagers in designing workplaces and jobs thatcan help employees deal with work/life conflicts.

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DecliningE

mployee Loyalty Employee loyalty is declining sharply since 1980¶s

Employees perceive that their employees are less

committed to them and as a result employeesrespond by being less committed to their 

companies.

 An important OB challenge will be for managers

to devise ways to motivate workers who feel lesscommitted to their employers, while maintaining

their organization¶s global competitiveness.

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Improving

Ethical Behavior 

In an organizational world characterized bycutbacks, expectations of increasing worker productivity and tough competition in the

marketplace, its not altogether surprising thatmany employees feel pressured to cut corners,break rules and engage in other forms of questionable practices.

Managers and their organizations are respondingto this issue by writing and distributing codes of ethics to guide employees.

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Offering seminars, workshops and trainingprograms to try to improve ethical behaviors.

Today¶s managers need to create an ethically

healthy climate in which his or her employees cando their work productively and confront a minimaldegree of ambiguity regarding what constitutesright and wrong behaviors.

OB discusses the kind of actions managers can

take to create an ethically healthy climate and tohelp employees sort through ethically ambiguoussituations.