ORGANIZATIONAL BEHAVIOR
and development
         Mba551
    By: Mohammed M.
        (Asst. Prof.)
                Part I:
Foundations of Organizational Behavior
1.1 Overview of organizational behavior
LLEEAARRNNIINNGG OOBBJJEECCTTIIVVEESS
1. Describe what managers do.
2. Define organizational behavior (OB).
3. Describe why managers require a knowledge of OB.
4. Identify the contributions made by major behavioral science
   disciplines to OB.
5. Challenges and opportunities of OB
6. Model for OB
What
What Managers
     Managers Do
              Do
              Managerial
               ManagerialActivities
                         Activities
              ••Make
                Makedecisions
                     decisions
              ••Allocate
                 Allocateresources
                           resources
              ••Direct
                 Directactivities
                        activitiesof
                                   ofothers
                                      others
                to
                 toattain
                    attaingoals
                           goals
Where
WhereManagers
      ManagersWork
              Work??
• A consciously coordinated social unit
  composed of two or more people
  that functions on a relatively
  continuous basis to achieve a
  common goal.
• An organization     is   an      entity
  comprising multiple people, such as
  an institution or an association, that
  has a collective goal and is linked to
  an external environment.
• A group of people who work
  together in an organized way for a
  shared purpose.
Management
ManagementFunctions
           Functions
   Planning
   Planning                   Organizing
                              Organizing
                Management
                Management
                 Functions
                  Functions
  Controlling
  Controlling                  Leading
                                Leading
Management
ManagementFunctions
           Functions(cont’d)
                     (cont’d)
Management
ManagementFunctions
           Functions(cont’d)
                     (cont’d)
Management
ManagementSkills
           Skills
 Define
 Defineorganizational
        organizationalbehavior
                      behavior(OB).
                               (OB).
 Behavior is The way in which an animal or person
  behaves in response to a particular situation or
  stimulus.
 “Organizational behavior (often abbreviated OB) is 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 is a field of study, meaning that it is a distinct area
  of expertise with a common body of knowledge.
Cont’d……
Cont’d……
 OB is the study of human behavior in the workplace,          the
  interaction between people and the organization, and the
  organization itself.
 The goals of OB are to explain, predict, and control behavior.
 In addition, OB applies the knowledge gained about individuals,
  groups, and the effect of structure on behavior in order to make
  organizations work more effectively.
 What does it study? It studies three determinants of behavior in
  organizations: individuals, groups, and structure.
Cont’d….
Cont’d….
OB is the study of:
what people do in an organization
how their behavior affects the organization’s performance.
OB is concerned specifically with employment-related
situations, s/a:
    a) jobs, work,
    b) absenteeism,
    c) employment turnover,
    d) productivity,
    e) Human performance, and management.
Cont’d
Cont’d
Regardless of relative importance of each, OB includes
(Scope) the core topics of:
   Motivation,
   leader behavior and power,
   interpersonal communication,
   group structure and processes,
   learning,
   attitude development and perception,
   change processes and conflict,
   work design, and work stress.
Why
Whystudy
    studyOB?
         OB?
 Development of soft (interpersonal) skills
 Personal growth via insight into others
 Enhancement of individual and organizational effectiveness
 Sharpening and refining common sense (common sense is
  often wrong)
 Benefits
 BenefitsOf
          OfStudying
            StudyingOrganizational
                     OrganizationalBehavior
                                   Behavior
• Organizational behavior relates to the process—rather than
  the content—of conducting managerial work.
• 1. Skill Development
• An essential requirement for entering into, surviving, and
  succeeding in the modern workplace is to have appropriate
  skills.
• Soft skills generally refer to interpersonal skills such as:
   • motivating others,
   • communicating, and
   • adapting to people of different cultures.
• Hard skills generally refer to technical skills.
2.
2.Personal
   PersonalGrowth
           Growththrough
                  throughInsight
                          InsightInto
                                  IntoHuman
                                      HumanBehavior
                                            Behavior
 Understanding others leads to personal fulfillment, and can
  also lead to enhanced self-knowledge and self-insight.
 Insight is useful for such purposes as selecting people for jobs
  and assignments, communicating, and motivating.
 Enhancing
 EnhancingOrganizational
           Organizationaland
                         andIndividual
                             IndividualEffectiveness
                                       Effectiveness
 An important goal of organizational behavior is to improve
  organizational   effectiveness,   the   extent    to   which    an
  organization is productive and satisfies the demands of its
  interested parties.
 If a person develops knowledge about subject such as improved
  interpersonal    communication,     conflict     resolution,   and
  teamwork, he or she will become more effective.
 Sharpening
 Sharpeningand
            andRefining
               RefiningCommon
                        CommonSense
                              Sense
 Organizational behavior sharpens and enlarges the domain for
  common sense.
 Organizational behavior knowledge also refines common sense
  by challenging you to reexamine generally accepted ideas that
  may be only partially true, Such as
   – Inactivity reduces stress for everybody.
   – Delay in workplace results on poor performance of workers.
 Contributing
 ContributingDisciplines
              Disciplinesto
                          tothe
                             theOB
                                OBField
                                   Field
 Organizational behavior is an applied behavioral science built
  on contributions from a number of behavioral disciplines, mainly
  psychology and social psychology, sociology, and anthropology,
  political science.
 Psychology’s contributions have been mainly at the individual or
  micro level of analysis, while the other disciplines have
  contributed to our understanding of macro concepts such as
  group processes and organization.
Contributing
ContributingDisciplines
             Disciplinesto
                         tothe
                            theOB
                               OBField
                                  Field
Contributing
Contributing Disciplines
             Disciplines to
                          to the
                              the OB
                                  OB Field
                                     Field (cont’d)
                                            (cont’d)
 Sociology - It is the study of people in relation to their fellow
  human beings.
 It studies people in relation to their social environment or culture
 Sociologists have contributed to OB through their study of group
  behavior in organizations, particularly formal and complex
  organizations.
Contributing
ContributingDisciplines
             Disciplinesto
                         tothe
                            theOB
                               OBField
                                  Field(cont’d)
                                        (cont’d)
   Contributing
   ContributingDisciplines
                Disciplinesto
                            tothe
                               theOB
                                  OBField
                                     Field(cont’d)
                                           (cont’d)
• Anthropology is the study of societies to learn about human
  beings and their activities.
• Anthropologists’ work on cultures and environments has helped
  us understand differences in fundamental values, attitudes, and
  behavior between people in different countries and within
  different organizations.
Contributing
Contributing Disciplines
             Disciplines to
                          to the
                              the OB
                                  OB Field
                                     Field (cont’d)
                                            (cont’d)
Challenges and Opportunities for OB
Dramatic
Dramatic changes
         changes in
                  in organizations.
                     organizations.
 Global competition requires employees to become more
  flexible and cope with rapid change.
 Corporate downsizing and the heavy use of temporary workers
  are severing the bonds of loyalty that tied many employees to
  their employers;
 The global recession has brought the challenges of working with
  and managing people during uncertain times.
 In short, today’s challenges bring opportunities for managers to
  use OB concepts.
 Challenges
 ChallengesFacing
             FacingOrganizations
                   OrganizationsToday
                                 TodayThat
                                       ThatHave
                                           HaveMade
                                                MadeItIt
 Necessary
 NecessaryFor
            ForManagers
                ManagersToToStudy
                             StudyOB
                                  OB
 Responding to Globalization
   – Increased foreign assignments
   – Working with people from different cultures
   – Overseeing movement of jobs to countries with low-cost labor
 Managing Workforce Diversity
   – Embracing/acceptance diversity
   – Changing demographics
   – Recognizing and responding to differences
Challenges
Challengesand
           andOpportunities
              Opportunitiesfor
                            forOB
                               OB(cont’d)
                                  (cont’d)
 Responding to the Labor Shortage
   – Changing work force demographics
   – Fewer skilled laborers
 Improving Customer Service
   – Increased expectation of service quality
   – Customer-responsive cultures
 Improving Quality and Productivity
   – Quality management (QM)
   – Process reengineering
Improving
 ImprovingQuality
          Qualityand
                  andProductivity
                     Productivity
 Quality management (QM)
   – The constant attainment of customer satisfaction through
     the continuous improvement of all organizational
     processes.
   – Requires employees to rethink what they do and become
     more involved in workplace decisions.
 Process reengineering
   – Asks managers to reconsider how work would be done and
     their organization structured if they were starting over.
   – Instead of making incremental changes in processes,
     reengineering involves evaluating every process in terms of
     its contribution.
Developing an OB Model
 We conclude this chapter by presenting a general model that
  defines the field of OB, stakes out its parameters, and identifies
  inputs, processes, and outcomes.
 Model
• An abstraction of reality.
• A simplified representation of some real-world phenomenon.
• It proposes three types of variables (inputs, processes, and
  outcomes) at three levels of analysis (individual, group, and
  organizational).
Cont’d…..
Cont’d…..
• The model proceeds from left to right, with inputs leading to
  processes and processes leading to outcomes.
• Notice that the model also shows that outcomes can
  influence inputs in the future.
Basic
BasicOB
      OBModel,
        Model,
Inputs
Inputs are the variables like personality, group
structure, and organizational culture that lead to
processes. These variables set the stage for what will
occur in an organization later.
•Many are determined in advance of the employment
relationship.
•For example, individual diversity characteristics,
personality, and values are shaped by a combination of
an individual’s genetic inheritance and childhood
environment.
Cont’d……
Cont’d……
 Group structure, roles, and team responsibilities are typically
  assigned immediately before or after a group is formed.
 Finally, organizational structure and culture are usually the
  result of years of development and change as the organization
  adapts to its environment and builds up customs and norms.
 Processes
 If inputs are like the nouns in organizational behavior, processes
  are like verbs.
 Processes are actions that individuals, groups, and organizations
  engage in as a result of inputs and that lead to certain
  outcomes.
 At the individual level, processes include emotions and moods,
  motivation, perception, and decision making.
 At the group level, they include communication, leadership,
  power and politics, and conflict and negotiation.
 Finally, at the organizational level, processes include human
  resource management and change practices.
 Outcomes
 Outcomes are the key variables that you want to explain or
  predict, and that are affected by some other variables.
 What are the primary outcomes in OB?
 Scholars have emphasized individual-level outcomes like
 Attitudes and satisfaction, - Employee attitudes are the
  evaluations employees make, ranging from positive to
  negative, about objects, people, or events.
 Task performance - combination of effectiveness and efficiency
  at doing your core job tasks
Cont’d….
Cont’d….
 Citizenship behavior, The discretionary behavior that is not part
  of an employee’s formal job requirements,
 And withdrawal behavior - There are many forms of withdrawal,
  ranging from showing up late or failing to attend meetings to
  absenteeism and turnover.
 At the group level, cohesion, unity, consistency and functioning
  are the dependent variables.
 Finally, at the organizational level we look at overall
  profitability and survival.
The
TheDependent
    DependentVariables
             Variables(cont’d)
                       (cont’d)
Dependent variable
A response that is affected by an independent variable.
•Productivity
A performance measure that includes effectiveness and efficiency.
     • Effectiveness
       Achievement of goals.
     • Efficiency
       The ratio of effective output to the input required to
       achieve it.
•Absenteeism
     • The failure to report to work.
 The
 TheDependent
     DependentVariables
              Variables(cont’d)
                        (cont’d)
• Turnover
    • The voluntary and involuntary permanent
      withdrawal from an organization.
• Organizational citizenship behavior (OCB)
    • Discretionary behavior that is not part of an
      employee’s formal job requirements, but that
      nevertheless promotes the effective functioning of
      the organization.
• Job satisfaction
    • A general attitude toward one’s job, the difference
      between the amount of reward workers receive
      and the amount they believe they should receive.
The
TheIndependent
    IndependentVariables
               Variables
Independent variable
The presumed cause of some change in the dependent variable.
                         Independent
                          Independent
                           Variables
                            Variables
   Individual-Level      Group-Level          Organization
                                               Organization
    Individual-Level     Group-Level          System-Level
       Variables
       Variables          Variables
                           Variables           System-Level
                                                Variables
                                                 Variables
CHAPTER END