Organizational Behavior 1.

1/2020/Final

Introduction
❖ Organizational Behavior
Organizational behavior means to investigate the impact of that individuals, groups, and
structures have on behavior within organization. It is the part of pyramid structure and
behavioral part of the organization.
Employee is the most significant stakeholder for the organization, and a manager may learn
the employee behavior. To make an organization successful, a manager has to study OB
properly, because it helps to create satisfied customers as well as employees which gives
successful owners.
- ‘Impact of that individuals, groups, and structures’ means employees are individual. When
they are in home, they have different sort of behavior. When they are in the organization
in a particular group, they also have different behavior. When they are within the
organizational policy or in rules-regulations, then they have another sort of behavior and
want to explore in front of management. Their behavior is changing accordingly in
different way in individual options, in group options, in structure option in the organization.

❖ Purpose of Organizational Behavior

In terms of profitable business, non-profit organization or government, every manager in these
groups has different sort of objectives. Some organization set up their structure how to attain
more profits, some organization think about society. For example, government does not bother
about money. They bother how many people are employed. Because they care about
employment first, not about profit. On the other hand, if the organization is a philanthropy,
they find that how its contributing to society rather than the profit.
Whatever the objective is, the main responsibility of a manager is how effectively he is
attaining the profit as well as efficiently. So, the purpose of OB is basically applying the
knowledge toward improving organizations effectiveness. It means he is managing or
maintaining his employees in terms of attain the effectiveness.
As a manager, he drives his employees getting the success that means how much he inputs and
gets output. Because when an employee will be effective, he might be efficient. There are many
companies in industry that are doing goods. All companies are effective because they are
making profits but might not be efficient. Some companies have minimum resource but getting
more profits, they are both effective and efficient. They have to spend very less amount of
money to attain profit which means they have to beat the average cost; this is efficiency.
Manager should be devoted for more. They can use synergy where two activities come together
in same platform in which their output is going more. They are doing collaboration, merge,
acquisition. By this way, they are now attaining not only effectiveness and efficiency, but also
synergy. So, as a manager, his target should be applied knowledge for getting organization’s
effectiveness, efficiency and synergy.

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❖ Challenges and Opportunities of Organizational Behavior

What the opportunities and challenges a manager can force as organization behavior:
1. Responding to Globalization: Today’s world in fully globalized. We can easily collect
every information within a second. The point is that not only a single organization, but also
every organization is now getting in competitive advantage that means no one is above one
another. For example, IBM were the most giant company who worked with computer
technology. There were doing very good but never imagined that they were beaten by
someone. Asus, Dell, Acer beaten this giant company and they are one of the big
competitors of IBM. Because, there is no competitive advantage. Everyone has similar
platform to do business. If a person builds a company in Bangladesh, he can get the same
advantage as like US companies. Because, he can easily get all information.
✓ Increased foreign assignment (different employee need, aspiration, value).
✓ Work with people from different culture – there are many people in organization who
come from different culture even in own country’s different religion, communication
and geography. For example, 0.3 million people are migrating in Canada, UK, USA or
other European countries every year. So, there are the managers, they have to maintain
those third-world country’s migrant who are working in their organization.
✓ Overseeing movement of jobs to countries with low cost labor.
✓ Managing people in war on terror – manager’s capacity or leadership to influence
employee to go for anyplace rather than money. Some factors could be happened in
that situation such as security, less interest to go in abroad. To overcome from this, OB
people need leadership, motivation, communication that can help toward on fear about
terrorism.
2. Managing Workforce Diversity:
✓ Organizations are more heterogeneous in terms of race, sex, age, ethnicity. – Once,
there were only white people worked in different job sectors. At present, there are
different diversified pool which is a big challenge for manager. For example, in past,
age between 25 to 57, they mainly worked. Now, after 57, when they retired, they are
still working. So race is changing, their expectation is changing, their value is changing
and similarly, these age people’s values and expectations are changing than these. As
a manager, we have to maintain this diversified pool very rigorously.
✓ Embracing diversity – organization used to take a melting-pot approach – Once the
concept was that employees had to balance themselves with the environment of the
organization. Because, there were not much diversification. But now concept is
changed. For example, as an employee, if we work in our own way, in our language, in
our ethnic what we have adopted and learned from our family which we can apply in
our organization, we can give highest output from there. So, organization is now
realizing this and they are trying to bring diversified employees. As a manager, we are
not only trying to adopt organizational culture, but also employee’s culture. That
means, we are celebrating different sorts of employee’s culture. Such as, Eid, puja,
birthday etc. We are no longer in our organization’s culture. We are in flexible position.

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✓ On earlier concept, employees had to meet organization. But now concept is changed.
It tells us that people love to apply their culture, values, lifestyle in their workplace.
Now, organizations are coping with employees.
✓ Improving quality and productivity – Today’s market is very competitive. Managers
are approaching for change. We cannot expect a fixed need for customer. They try to
use different types of products. Such as, Nokia, they did not change accordingly with
the situation. They were adopting same strategy for long time. That’s why they did not
sustain in the market for long period. Businesses must follow re-engineering process.
As a manager, we need full effort for theses changes. If, we want continuous change in
our organization, we need to change our employees. If each and every employee of our
organization does not involve in change process, then we can’t change our
organization. For example, If the director of AIBA wants to change his organization,
he has to collect opinions from each of his employees. If his employees don’t need to
change, then it will not be taken place. Because, a conflict may arise that leads to
destroy the whole organization.
✓ Improving Customer Service – Most organizations are service oriented. There is no
running even though they are fully manufacturing products or services. It is essential
for a manager how he is so polite in front of his customer, how he is giving service to
his customer because of the finest service he is providing in terms of the customer
service.
Organizations need to be flexible, manufacturing unit. According to the customer,
managers have to change ambitions. Like, plastic. They need a very mindset changing
employees, that means, where they are coping employees, always changing employees.
So, OB must be needed here.
✓ Working in network organization – Most of the organizations are networked. They are
not doing any footprint. They are trying to do all the arranges connecting in internet.
They can easily arrange their conference meeting with foreign people via video
conferencing without visiting their country. No need to go physically there. Employee
behavior now is becoming result oriented rather than we are connecting or observing
the task oriented of the organization. No need to explain the whole situation to them.
Managers don’t bother about that. They just bother as long as employees are
completing their task or not. Employees may take 1 or 8 hours to complete the task. It
depends on them. Managers don’t care about that.
✓ Freely and positive work environment. Organization Citizenship Behavior means that
how much employees have helping attitude, how they cooperate with other. For that
reason, organization belongs to a new platform.

❖ Developing Organizational Behavior Model / How OB Model Develop?

There are some dependent and independent variables:
1. Dependent Variables: It is affected by some other factors that means the productivity,
absenteeism.
a) Productivity: Achieving goals by low cost. Here, achieving goals means meeting
client need which is known as effectiveness and low cost means efficiency. In terms of

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that if the productivity of an organization is well, then the behavior of employee is

positive, and vice-versa. Managers are mostly maintaining their OB in particular level.
They can accelerate this level.
b) Absenteeism: Managers may be confused with absenteeism. When employees are not
motivated, the rate of absenteeism is high and vice-versa. Absenteeism is two types:
voluntary and involuntary. Voluntary absenteeism rate is high is young people than
others. Old age people have involuntary absenteeism. Because, they often face physical
problem. Absenteeism is very significant. Because, if the organization’s employees
work in assembly line, in that situation absenteeism really hampered.
# How do you think as a manager when employees are approaching you to need
leave from his work? #
Sometimes, absenteeism is important. For example, a student has chicken pox and he
is continually attending his classes. As a teacher, he has to say his student that he needs
to stay at home and should not attend in class until fully recover. Because, there is a
risk on it that it might spread on other students. In this case absenteeism is very needed.
As a manager, he needs to understand which level of phase he is facing. He has to incur
such level of motivation in his employees so that he can not say any false thing for
taking leave. Because, they are, voluntarily or involuntarily, motivated towards his
organization rather than they stay in his organization.
c) Turnover: It means withdrawal from organization. It is two types: voluntary and
involuntary. When an employee goes another organization that means voluntary
turnover, and when an employee is forced to go another organization, then it is called
involuntary turnover. High turnover leads to more recruiting and selecting that means
training cost involved. If manager does not make proper job analysis, his employee
turnover will increase.
Job Analysis is to analyze each task of job which conditions, knowledge, skills,
activities an employee has to follow. For example, pion’s job.
By the help of job analysis, manager has to select proper employee for his vacant
position. Proper selection as well as proper training must be needed.
✓ Two reasons for higher turnover:
A. Management Behavior: Almost 75% employees leave their job only because
of management behavior. It is essential for a manager how he is treating, acting,
doing the job with his employees. Any bad situation can create a huge problem
between them.
B. Skill: It is very important for an employee to know how much he has skills to
do his task. If an employee has no idea or skills about his particular job task,
then it will lead him to turnover from the job. On the other hand, co-workers
are very politicians and they try to enter other colleagues in this game.
Sometimes other colleague cannot survive from that political issue that lead to
turnover from the job.
But sight or marginal turnover is good. Because, it helps management to recruit higher
skilled employee, adopt new technology. Normally, it is seen that new employee who

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are fresher also have modern knowledge on technology. It a manager wants this in his
organization, then he needs at least 10% turnover in his organization very frequently.
So, why we are giving this sort of example? These are the developing organization behavior
that means we can see any negative in a positive way, as a manager. How can we utilize it in
a positive way? We can make behavior model with a combination of positive and negative of
a particular point, like turnover or absenteeism. For example, Google, Apple have 50%
turnover rate and 50% recruitment rate. Because they are innovative organization. If they want
to survive in the market, they must have a combination on turnover and recruitment. Because,
their revenue is generating from innovation. They need young turnover people from different
organization as well as fresh graduate that give them different high in innovation. It is an
opportunity for our organization if we have good turnover rate, but not too much.
- Recently, two more variable added to this list:
a. Deviant Workplace Behavior: Behavior that violates significant organization norms.
For example, if someone insults others, this is not his average behavior. He is behaving
very badly and rudely than the average behavior. As an OB manager, we have to avoid
these sorts of deviant workplace behavior and we are trying to achieving organizational
citizenship behavior.
b. Organizational Citizenship Behavior: Need to have good citizenship behavior.
Positive behavior which is not part of job such as helping team, voluntary extra work.
2. Independent Variable: It is not dependent on any variables. We need to understand
individual variable very well.
a) Individual: Personal (age, gender, marital status), biographical status (value, attitudes,
personality, emotion). For example, we can’t say that age between 10 to 35, all of them
like cycling. As a manager, we can’t make any equation about our employee’s
behavior.
b) Group: Some person different in group and individual behavior. If a manager
recognizes that which employee should be better to do a particular job in a group and
set a rule, then he is bound to follow that rules. For example, 10% attendance in class.
As a manager, we have to utilize individual-level mechanism, group-level mechanism,
or some kinds of system mechanism in terms of our employees how we think to
motivate them. So, the main theme of OB is how we incept the firing in our employee’s
mind in terms of motivation.

❖ Individual Behavior
1. Ability: Individual’s capacity to perform different task or job. If employee gives his full
strength in a particular side, he will motivate his senior in that sense. As a manager, we
have to understand which employee has the ability in terms of that we can motivate theme
or we can assign theme in different sorts of job in terms their intellectual ability and
physical ability.
I. Intellectual Ability: It is used for thinking, reasoning and problem solving. For
example, a software programmer who always thinks about coding. Because of
coding, he can form a new mobile application. It is his intellectual capacity by
which he can create apps by his own styles and features.

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II. Physical Ability: Strength, speed, stamina. For example, construction workers.
They need strength to move instrument from different places.
2. Biographical Characteristics:
I. Age: We can see the relationship between age and job performance. Old people
have less turnover because they think about their future. On the other hand, young
people have high turnover rate, because they just don’t care about their future. In
statistics, it shows that old people have higher productivity rate and young people
have less.
II. Gender: Comparatively, women have higher workplace than men. They don’t
involve any bribery, or sort of stealing behavior within the activities. Men use to do
this because they are braver than women.
III. Race: There are different sort of groups within the religion. Each of them has
different behavior, different opinion. As a manager, we have to maintain OB here
properly to avoid such reflection in our organization, otherwise we will be in a big
trouble and conflict may arise from top to line management.
IV. Tenure: It is the relationship between seniority and job productivity. If we
understand that our organization productivity has to increase according to seniority
basis, then we are in good position, we will promote other on seniority basis.
V. Religion: There are different religious people work in an organization. For
example, Muslim pray 5 times salah, some of them have beard, and wear hijab. So,
the management converted smoking room into prayer room so that people can pray
salah during their work time. Here, OB manager thinks in different way and gave
the highest priority. Organizational Behavior is changing their structure of the
organization, because of religious issue.
VI. Sexual Orientation and Gender Identity: Recently, gay, lesbians are becoming
the important issue in the organization. It is established by parliament in first-world
country. Even though, there are number of companies in our country that are
recruiting gay and lesbian employees, specially in Dhaka. As a manager, we have
to adopt those cases, whether we have to consider those things or have to avoid
based on other employee’s behavior in our organization. Because, if we accept this
issue positively, other employees might not accept it positively. They will hesitate
to work with them. They will move on to other organization. We may honest with
this, but we will lose our best employees. So, we have to think from all side very
importantly.

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