Rift Valley University

ORGANIZATIONAL BEHAVIOR
Course No. MBA-611

September, 2019
Addis Ababa
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 Chapter One
General Introduction
to Organizational
Behavior

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 Chapter one outline
 Introduction
◦ What is organization?
◦ What is Organizational Behavior?
◦ Why we study OB?
 What is management?
 Management duties
◦ Management function
◦ Management role
◦ Management skills
 Managerial Activities
 Basic Approaches of Organizational Behavior
 Challenges and Opportunities to OB
 Contributing Disciplines to the OB Field
 Scope of OB
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
What is organization?
 An organization is a collection of
people who work together to achieve
organizational goals
◦ Individuals
◦ Groups
◦ Organization/Structure

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What is …..
 Organizational Behavior is field of
study that investigates the
impact that individuals,
groups and structure have on
behavior within organization.

 It
is the study and application of
knowledge about how people act
within organizations.
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What is …..
 It
applies broadly to the behavior of
people in all types of organizations,
such as business, government,
schools and services organizations.

 It
covers three determinants of
Behavior in organizations:
individuals, groups, and structure

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Why we should study OB?

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Why we should study OB?

 Some of the main reasons for studying

OB are:
 Most of us work in organizations, thus

we need to understand, predict and

influence the behavior of others in
organizational settings

 Everyone needs organizational

behavior knowledge to address the
people issue that we face when trying
to apply marketing, computer science
and other ideas 8
Why we should study OB? …

 The study of OB can provide important

insight into helping you better
understand:
◦ a work world of continual change
◦ how to overcome resistance to change
◦ how best to create an organizational
culture that thrives on change

 To understand behavior of people in an

organization to improve productivity

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 Why we should study OB? …

 In
general Organizational
Behavior can help managers to:
 Understand the complexity of
human behavior within
organizations
 Identify organizational problems,
 Determine the best ways to
correct the problems
 Improve organizational
performance and etc. 10
 What is
Management?

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Management
 It refers to the functional process of
accomplishing the goals of the
organization through the help of others.

 Management is the process of

designing and maintaining an
environment for the purpose of
efficiently accomplishing organizational
objectives.

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Management…
 Managers carry out the functions of
planning, organizing, staffing,
leading and controlling.
 Managing is an essential activity at

all organizational level.

 The managerial skills required for an

organizational development
 Therefore, the managers’ should

have varies knowledge in

leading an organizing effectively
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Management…

A manager is an individual who

is given the responsibility for
achieving the goals assigned to him
or her as part of the overall goals of
the organization and who is expected
to get the job done.
 The can be only through people on

an organization.

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Management…
 The terms of top management,
lower management are frequently
used to indicate the hierarchical
levels of those who are engaged in
the process of getting the goals of
the organization accomplished.
 At all level of management, there are

a number of management duties.

 What are the management
duties?
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Management duties

 Management functions
◦ Planning
◦ Organizing
◦ Commanding
◦ Controlling

 Management roles
◦ Interpersonal roles
◦ Informational roles
◦ Decisional roles

 Management skills
◦ Technical skills
◦ Interpersonal skills
◦ Conceptual skills
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Management Functions

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading
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Management Functions
(cont’d)

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Management Functions
(cont’d)

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Management Functions
(cont’d)

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Management Functions
(cont’d)

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Management
Roles

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Mintzberg’s Managerial
Roles

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Mintzberg’s Managerial Roles
(cont’d)

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Mintzberg’s Managerial Roles
(cont’d)

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Management Skills

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Management Skills

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Managerial Activities

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 Managerial Activities (Luthans)
1.
1.Traditional
Traditionalmanagement
management
••Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
2.
2.Communications
Communications
••Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
3.
3.Human
Humanresource
resourcemanagement
management
••Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,
staffing,
staffing,and
andtraining
training
4.
4.Networking
Networking
••Socializing,
Socializing,and
andinteracting
interactingwith
withothers
others
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Allocation of Activities by
Time

1-2

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 Basic Approaches of
Organizational Behavior

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Basic Approaches of Organizational
Behavior
 An Interdisciplinary Approach:
 It is integrating many disciplines

 It
integrates social sciences and
other disciplines that can contribute
to the Organizational Behavior.

 It
draws from these disciplines any
ideas that will improve the
relationships between people and
organization.
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Basic Approaches …Cont’d
 Scientific Management Approach:

 One of the first approaches to the study

of management, popularized during the
early 1900s, was scientific management.

 Thefundamental concern of the

scientific management school was to
increase the efficiency of the
worker basically through good job
design and appropriate training of the
workers.
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Basic Approaches …Cont’d
 Scientific Management…..
 Taylor is the father of the scientific

management movement and he

developed many ides to increase
organizational efficiency.

 Taylorshowed that through proper job

design, worker selection, employee
training and incentives, productivity
can be increased
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Basic Approaches …Cont’d
 A Contingency Approach:

 Traditional
management relies on
one basic principle –there is one
best way of managing things and
these things can be applied across
the broad in all the instances.

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Basic Approaches …Cont’d
A Contingency Approach…
 The situational effect will be totally

ignored in the traditional management.

 Situations are much more complex

than first perceived and the different
variables may require different
behavior which means that different
environments required different
behavior for effectiveness
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Basic Approaches …Cont’d

 Contingency theorist argues that the

external environment and several
aspects of the internal environment
govern the structure of the
organization and the process of
management.

 Effectivemanagement will vary in

different situation

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Basic Approaches …Cont’d
 A Human Resources (Supportive)
Approach:
 It is developmental approach
concerned with the growth and
development of people toward
higher levels of competency,
creativity and fulfillment

 Because people are the central

resource in any organizations and
any society.
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Basic Approaches …Cont’d

 It
helps people grow in self - control
and responsibility and then it tries to
create a climate in which all
employees may contribute to the
limits of their improved abilities

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Basic Approaches …Cont’d
A Systems Approach
 System approaches implies that
organization consists of many inter
related and inter dependent
elements affecting one another in
order to achieve the overall results.

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Basic Approaches …Cont’d
 Systems theorists describe the
organization as “open to its external
environment”, receiving certain inputs
from the environment such as human
resources, raw materials etc, and engaging
various operations to transform those raw
materials into a finished products and
finally turning out the “outputs” in its final
form to be sent to the environment

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Basic Approaches …Cont’d
 This
input- transformation process -
output model with the feedback
mechanism

 Conceptually a system implies that

there are a multitude of
variables in organization and that
each of them affects all the others in
complex relationships.

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 Challenges and Opportunities of
OB

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Challenges and Opportunities
of OB
 Improving People Skills
 Improving Quality and Productivity
 Managing Workforce Diversity
 Responding To Globalization
 Empowering People
 Coping with ‘Temporariness”
 Stimulating Innovation and Change
 Emergence of the E- Organization
 Improving Ethical Behavior

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Challenges and …..
 Improving People Skills
 Technological changes, structural changes,
environmental changes are accelerated at
a faster rate in business field.
 Unless employees and executives are

equipped to possess the required skills to

adapt those changes, the achievement of
the targeted goals cannot be achieved in
time
 Two types of skills

◦ Technical skills
◦ Managerial skills

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Challenges and …..
 Improving People Skills..
 Some of the managerial skills include

◦ listening skills,
◦ motivating skills,
◦ Planning and organizing skills,
◦ leading skills, problem solving skill, decision
making skills etc.
 Implications for Managers:
◦ Designing an effective performance appraisal
system with built- in training facilities will help
upgrade the skills of the employees to cope up
the demands of the external environment.

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Challenges …..
 Improving Quality and Productivity
 Managers want to improve productivity of

goods and services they offer.

 To do so managers are expected to

implement programs such as total quality

management, and engineering programs
that require extensive employee
involvement.
 The challenge is managing diversity in a

work place decisions.

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Challenges …..
 Implications for Managers
 Today’s managers understand that any
efforts to improve quality and productivity
must influence their employees.
 These employees will not only be a major

force in carrying out changes, but

increasingly will participate actively in
planning those changes.

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Challenges …..
 Workforce diversity:
 A difference among people within a given
country
 Organizations are becoming more

heterogeneous in terms of gender, race,

ethnicity, religion and so on.
 The challenge is accommodating the

diverse groups of people by addressing

their difference in life style, family needs
and work styles.

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Challenges …..
 Responding To Globalization
 Today’s business is mostly market driven;

wherever the demands exist irrespective

of distance, locations, climatic conditions,
the business operations are expanded to
gain their market share and to remain in
the top rank etc.
 Business operations are no longer

restricted to a particular locality or region.

 Company’s products or services are

spreading across the nations using mass

communication, internet, faster
transportation
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Challenges …..
 Coping with ‘Temporariness”
 In recent times, the Product life cycles are
slimming, the methods of operations are
improving, and fashions are changing very
fast.
 In those days, the managers needed to

introduce major change programs once or

twice a decade.
 Today, change is an ongoing activity for

most managers.
 The concept of continuous improvement

implies constant change

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Challenges …..
 Empowering people
 Decisionmaking is being pushed
down to operating level, where
workers are given freedom to make
decisions.

 Indoing so managers are expected

to empower employees and make
them accountable for their decisions.

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Challenges …..
 Stimulating Innovation and Coping
with Changes:
 Change is an ongoing activity for most

managers.
 As a result workers needs continuously

update their knowledge and skills to

perform new job requirements.
 To cope up with change organization they

continuously reorganize their various

divisions.
 The challenge is to stimulate employee

innovation (creativity) and tolerance for

change
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Challenges …..
 Emergence of the E- Organization
 E- Commerce: It refers to the business

operations involving electronic mode of

transactions. It encompasses
presenting products on websites and
filling order

 E-business: It refers to the full breadth

of activities included in a successful
Internet based enterprise. As such, e-
commerce is a subset of e-business.
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Challenges …..
 Emergence of the E- Organization ….

 E-business includes developing

strategies for running Internet-based
companies, creating integrated
supply chains, collaborating with
partners to electronically coordinate
design and production, identifying a
different kind of leader to run a
‘virtual’ business
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Challenges …..
 Improving Ethical Behavior
 Ethical behavior is concern of all
organizations of the day.
 Workers are increasingly facing ethical

dilemmas because what is ethical for one

person is not ethical for the other person.
 The ground rules governing the

constituents of good ethical behavior has

not been clearly defined.
 Differentiating right things from wrong

behavior has become more blurred.

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 Contributing
Disciplines to
the OB Field

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Contributing Disciplines to the OB
Field
 Psychology: a science that seek to measure,
explain and sometimes change the behaviors
of human and other animals.
 Psychology focus on studying and understanding
individual behavior
 The contribution of psychology to the knowledge
OB are:
◦ Personality
◦ Attitudes
◦ Perception
◦ Training
◦ Needs and motivational forces
◦ Job satisfaction
◦ Work design
◦ Job stress… 58
Contributing Disciplines…
 Sociology
 A science that studies the social system in
which individuals fulfill their roles
 Sociology focus on the study of group

behavior in formal and complex

organization
 Contributions of sociology to OB are:

◦ Group dynamics
◦ Design of work teams
◦ Organizational culture
◦ Organization theory
◦ Communication
◦ Power and politics. 59
Contributing Disciplines…
 Social Psychology
 Blended concepts from both psychology
and sociology
 Focus on the influence of people on one

another
 Contribution to the knowledge of OB are:

◦ Behavioral change
◦ Attitude change
◦ Communication
◦ Group process
◦ Group decision making

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Contributing Disciplines…
 Anthropology
 The study of societies to learn about
human beings and their activities
 Focus on behavioral differences among

people in different countries and within

different organizations
 Contributions of anthropology to OB

are:
◦ Organizational culture
◦ Organizational environment
◦ Difference among national cultures
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Contributing Disciplines…

 Political Science: studies the behavior of

individuals and group with in a political
environment

 Contribution: structuring of conflict,

allocation of power

 Engineering: Contributed for our

understanding of design of work and
organization
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Contributing Disciplines…
 Medicine
 concerned with both physical and
psychological health of employees

 Management
 Emphasis the design, implementation,
management of various organizational
systems

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Scope of Organizational
Behavior

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Scope of Organizational Behavior

 Scope of Organizational
Behavior
 Components and topics that constitute the
subject area of OB are:
 Individual behaviors
◦ Learning,
◦ Personality,
◦ Perception,
◦ Attitude development,
◦ Stress,
◦ Values
◦ Motivation
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Scope of OB….Cont’d

 Group behavior
◦Group dynamics
◦Change process
◦Conflict
◦Work design
◦Power and politics
 Organizational behavior (structure)
◦Organizational communication
◦Organizational Conflict & Conflict Mgt
◦Organizational change management &
etc
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Basic OB Model, Stage I

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Summary
 Introduction
◦ What is organization?
◦ What is Organizational Behavior?
◦ Why we study OB?
 What is management?
 Management duties

◦ Management function
◦ Management role
◦ Management skills
 Challenges and Opportunities to OB
 Contributing Disciplines to the OB Field
 Scope of OB

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The End of chapter
One

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