OB unit 1

I. Concepts of Organizational Behavior

Organizational Behavior (OB) is a multidisciplinary field that explores how individuals and groups act
within organizations and how organizations themselves behave. Robbins and Judge (2021) define OB
as:
“A field of study that investigates the impact that individuals, groups, and structure have on behavior
within organizations, for the purpose of applying such knowledge toward improving an organization’s
effectiveness.”
OB seeks to understand, predict, and influence human behavior in a work context. It blends insights
from psychology, sociology, anthropology, economics, and political science, among
others.
Key Concepts of OB:
1. Human Behavior in Organizational Settings: OB studies behavior at three levels:
o Individual (e.g., personality, learning, motivation)
o Group (e.g., leadership, teamwork, conflict)
o Organizational System (e.g., structure, culture, processes)
2. Evidence-Based Management: OB emphasizes using data and research-backed practices to
make decisions rather than relying solely on intuition.
3. Organizational Effectiveness: The ultimate goal is to improve productivity, job
satisfaction, employee engagement, and organizational success.

II. Historical Evolution of Organizational Behavior

Understanding the history of OB helps trace how our knowledge of managing people has evolved over
time.
1. Classical Management (Late 19th – Early 20th Century)
• Focused on efficiency, standardization, and hierarchy.
• Frederick Taylor’s Scientific Management:
o Emphasized task optimization through time and motion studies.
o Treated employees as tools for productivity.
2. Human Relations Movement (1920s–1930s)
• Sparked by the Hawthorne Studies conducted by Elton Mayo at Western Electric.
• Key finding: Workers are influenced by social factors and attention from supervisors, not
just working conditions.
 • Introduced the concept that employee well-being and social relationships matter.
3. Behavioral Science Era (1940s–1970s)
• Integration of psychology, sociology, and anthropology.
• Important contributions:
o Maslow’s Hierarchy of Needs
o McGregor’s Theory X and Theory Y
o Herzberg’s Two-Factor Theory
o The role of motivation, leadership, and communication gained importance.
4. Contemporary Organizational Behavior (1980s–Present)
• Emergence of contingency thinking, recognizing there is no one-size-fits-all approach.
• Increased emphasis on:
o Organizational culture
o Diversity and inclusion
o Globalization and cross-cultural management
o Technology and remote work
o Emotional intelligence and psychological safety

III. Determinants of Organizational Behavior

Organizational Behavior is shaped by multiple interacting factors at different levels. Robbins and Judge
categorize them into three primary levels:

A. Individual-Level Determinants
These include attributes and behaviors that individuals bring into the organization:
1. Personality and Values
o Big Five Personality Traits: Openness, Conscientiousness, Extraversion,
Agreeableness, Neuroticism.
o Core values influence decision-making and ethics.
2. Perception and Attribution
o Individuals interpret situations differently based on their perceptions.
o Attribution theory explains how people assign causes to behavior.
3. Motivation
o Drives individual behavior. Key theories include:
▪ Maslow’s Hierarchy of Needs
▪ Herzberg’s Two-Factor Theory
 Expectancy Theory (Vroom)
▪
▪ Equity Theory
▪ Self-Determination Theory
4. Learning and Development
o Learning affects skill acquisition and behavior modification through reinforcement and
observation.

B. Group-Level Determinants
Group dynamics significantly influence individual behavior and organizational outcomes:
1. Team Behavior and Group Dynamics
o Norms, roles, status, size, and cohesion affect group performance.
2. Communication Patterns
o Effective communication builds trust and alignment.
o Barriers (e.g., noise, language, emotions) can distort messages.
3. Leadership and Power
o Leadership styles (e.g., transformational, transactional, servant leadership)
shape morale and productivity.
o Power dynamics and politics affect influence and decision-making.
4. Conflict and Negotiation
o Understanding how to manage functional vs. dysfunctional conflict is key for
group effectiveness.

C. Organizational-Level Determinants
1. Organizational Structure
o Defines roles, responsibilities, authority.
o Can be mechanistic (rigid) or organic (flexible).
2. Organizational Culture
o Shared values, beliefs, rituals, and symbols.
o Influences employee behavior, motivation, and identity.
o Edgar Schein’s model identifies three levels: artifacts, espoused values, and basic
assumptions.
3. Technology and Work Design
o Affects how work is performed.
o Includes job design, automation, and digital tools.
4. Change Management
o Organizations must adapt to internal and external pressures.
o Change models (e.g., Lewin’s Change Model, Kotter’s 8 Steps) help guide
transformation.
5. Globalization and Diversity
o Cross-cultural understanding is essential in global organizations.
o Managing diversity improves innovation and problem-solving.

Contributing Disciplines to Organizational Behavior

o Organizational Behavior is an interdisciplinary field. It draws insights from several
academic disciplines to understand how individuals and groups act within
organizational settings. According to Robbins & Judge (2021), these disciplines form
the foundation of OB, each contributing unique perspectives and tools.
o 1. Psychology

o Focus: Individual behavior.

o Contribution: Psychology has had the most significant impact on OB.
o Topics: Learning, perception, personality, emotions, motivation, job satisfaction,
individual decision-making, and leadership effectiveness.
o Application: For example, understanding employee motivation through Maslow’s or
Herzberg’s theories.

o 2. Social Psychology
o Focus: Influence of people on one another.
o Contribution: A blend of psychology and sociology; it studies how people influence
and are influenced by others in a group.
o Topics: Group behavior, communication, power and conflict, group decision-making,
and attitude change.
o Application: Helpful in improving teamwork, negotiation, and group dynamics.

o 3. Sociology
o Focus: Social systems and group behavior in formal and complex organizations.
o Contribution: Offers insight into how organizational structures affect behavior.
o Topics: Organizational culture, formal structure, organizational technology,
bureaucracy, communication patterns, and power relationships.
o Application: Used to understand the influence of culture and hierarchy in
organizations.

o 4. Anthropology
o Focus: Study of societies and cultures.
o Contribution: Helps understand organizational culture, values, rituals, and
environmental adaptation.
o Topics: Cultural values, cross-cultural differences, and organizational environment.
o Application: Crucial in multinational organizations where cultural sensitivity is
essential.

o 5. Political Science
o Focus: Behavior in political environments.
o Contribution: Offers insight into organizational politics, conflict resolution, and
power dynamics.
o Topics: Power, conflict, coalitions, and decision-making.
o Application: Helps managers navigate office politics and influence effectively.

o 6. Economics (Emerging Contribution)

o Focus: Allocation of resources and decision-making.
o Contribution: Contributes to understanding incentive structures, rational behavior,
and cost-benefit analysis.
o Application: Useful in compensation design and performance management.

1. Economic Pressures and Organizational Adaptability

o Economic volatility challenges organizations to remain adaptive while maintaining
employee morale and productivity. From the perspective of Contingency Theory,
organizations must adjust their structures and human resource practices according to
environmental uncertainties. OB must, therefore, find ways to balance operational
efficiency with human capital sustainability.
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o 2. Managing Workforce Diversity
o Diversity introduces a variety of values, perceptions, and communication styles into the
workplace. According to Social Identity Theory (Tajfel & Turner), individuals
categorize themselves and others into social groups, which may lead to in-group
favoritism and out-group bias. OB must develop frameworks for inclusive
leadership and diversity training to mitigate the risks of stereotyping and
discrimination.
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o 3. Globalization and Cross-Cultural Dynamics
o Global operations expose organizations to a multiplicity of cultural norms and
practices. Hofstede’s Cultural Dimensions Theory provides a framework to
understand differences in power distance, individualism vs. collectivism, uncertainty
avoidance, and more. These variations necessitate OB models that promote cross-
cultural competence, global leadership development, and transcultural
communication.
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o 4. Technological Change and Virtual Work
o The digital transformation of organizations has led to a shift from physical to virtual
workspaces. This challenges traditional OB theories centered on face-to-face
interactions, team cohesion, and managerial visibility. The emergence of
virtual teams requires re-evaluation of leadership theories and the development of
new constructs around trust-building, cyberloafing, and technostress.
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o 5. Employee Well-being and Work-Life Integration
o Increased workloads and blurred work-life boundaries have raised concerns about
occupational stress and burnout. Job Demands-Resources (JD-R) Theory
suggests that high demands paired with low resources result in burnout. OB must
develop holistic well-being programs that promote resilience, emotional intelligence,
and psychological safety.
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o 6. Ethical Conduct and Organizational Integrity
o Organizations today operate under intense scrutiny, and ethical failures can undermine
stakeholder trust. The Agency Theory and Stakeholder Theory highlight the
conflicts between corporate interests and ethical behavior. OB frameworks must
 emphasize ethical leadership, organizational justice, and codes of conduct to
institutionalize responsible behavior.
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o 7. Resistance to Organizational Change
o Change is often met with resistance due to fear, uncertainty, and habit. According to
Lewin’s Change Model, resistance is a natural part of the unfreezing stage. OB must
employ change management strategies that account for emotional responses and
involve participative decision-making to reduce resistance and foster engagement.
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o Theoretical Opportunities in Organizational Behavior
o Despite the challenges, OB provides numerous theoretical opportunities to enhance
organizational effectiveness, employee engagement, and innovation. These
opportunities are rooted in behavioral science and offer evidence-based solutions to
contemporary workplace issues.
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o 1. Diversity as a Source of Innovation
o When properly managed, diverse workforces offer a wealth of cognitive and
experiential perspectives. Cognitive Diversity Theory suggests that diversity of
thought contributes to enhanced problem-solving and creativity. OB theories on
inclusive leadership and psychological safety provide strategies to transform
diversity into a competitive advantage.
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o 2. Development of Positive Organizational Culture
o A strong and adaptive culture can enhance commitment, reduce turnover, and foster a
shared identity. Drawing from Schein’s Model of Organizational Culture, OB
facilitates the alignment of artifacts, espoused values, and basic assumptions.
Cultivating a positive culture enables organizations to achieve both performance and
human sustainability.
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o 3. Improved Employee Engagement and Job Satisfaction
o Theories such as Herzberg’s Two-Factor Theory and Self-Determination
Theory (SDT) highlight the role of intrinsic motivation in job satisfaction. OB enables
the design of motivational job roles, employee recognition programs, and participation
in decision-making processes to boost engagement.
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o 4. Leveraging Technology for Collaboration and Flexibility
o Technology provides tools to enhance collaboration, learning, and performance
monitoring. Sociotechnical Systems Theory emphasizes the alignment of
technological tools with human factors. OB offers strategies to integrate technology in
ways that preserve autonomy, reduce overload, and encourage innovation.
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o 5. Well-being as a Strategic Objective
o Modern OB incorporates principles of positive psychology, focusing on strengths,
resilience, and meaningful work. Initiatives such as employee assistance
programs, mindfulness training, and work-life balance policies reflect an
opportunity to foster holistic development and organizational loyalty.
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o 6. Ethical and Transformational Leadership
o OB recognizes leadership not just as a managerial function, but as a moral and
visionary force. Transformational Leadership Theory encourages leaders to
inspire, intellectually stimulate, and individually consider their followers. This creates
opportunities for ethical climate development and employee empowerment.
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o 7. Change as a Continuous Process for Growth
o Organizations that embrace change as a constant can achieve continuous improvement.
Kotter’s 8-Step Change Model and Learning Organization Theory (Senge)
offer models for creating agile, knowledge-driven workplaces. OB supports leaders in
crafting adaptive strategies and cultivating a change-ready mindset.
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