ORGANIZATIONAL BEHAVIOR

OB- is the study and application of

knowledge & theories about how people
as individuals & as groups act within an
organization ( Newstrom & Davies ,
2007)

Major Goals of OB:

* To explain behavior
* To predict behavior
* To control behavior
4 KEY ADVANTAGES OF LEARNING OB

1. Skill development
2. Personal growth
3. Enhancement of organizational &
individual effectiveness
4. Sharpening & refinement of common
sense
Organizational Effectiveness - the extent to
which an organization is productive and
satisfies the demands of its interested
parties

Behavioral Approach to Management - the

belief that specific attention to workers’
needs creates greater satisfaction and
productivity
Scientific Management –the application of
scientific methods to increase workers’
productivity.

Administrative Management –a school of

management thought concerned primarily with
how organizations should be structured &
managed.
Hawthorne Effect – the tendency of people to
behave differently when they receive attention
because they respond to the demands of the
situation
Human Relations Movement- an approach to
dealing with workers based on the belief that
there is an important link among managerial
practices, morale, & productivity.

Contingency Management Approach to

Management- the viewpoint that there is no one
best way to manage people or work but that the
best way depends on certain situational factor
 Anthropology – it is the study of societies to
learn about human beings & their activities.
 Political Science – it is the study of the behavior
of individuals & groups within a political
environment.
 Engineering - it is the applied science of energy
& matter.
 Management- it is originally called
administrative science; it is the study of the
design & implementation of various
administrative & organizational systems.
 Medicine – it is an applied science in treatment
of diseases to enhance an individual’s health &
well-being.
Positive Organizational Behavior – the study and application
of human resource strengths & psychological capacities
that can be measured, developed, & managed for
performance management.

Activity:
1. Get together with a few classmates.
2. Develop a list of strengths of group members that you
think if further developed would be career assets, and
explain why these strengths might be assets.
An Organization is a structured social system
consisting of groups & individuals working together
to meet some agreed-upon objectives.

Based on the definition, OB is the field that seeks

knowledge of behavior in organizational settings by
systematically studying individual, group, &
organizational processes ( Greenberg & Baron,
2008).
I. Individual Performance - serves as the overall
gauge for organizational performance .
It is characterized by:
1. individual characteristics such as
attitudes, personality, perceptions, & values
2. rewards/punishment such as
promotions or disciplinary actions on the job
3. individual motivation which
includes various styles & techniques which
enhance performance
 II.Group Behavior – influences organizational
performance. It includes the dynamics of formal
groups created by top management teams &
informal groups formed through cliques, or
developed based on common interest &
friendship.

Group Behavior can be enhanced either by

cooperation or conflict.
 Friendly Competition can further strengthen
organizational goals because of challenging
tasks given to employees, but Conflicts may
arise out of stiff competition & erratic
promotion & administrative procedures

 Functional/Dysfunctional Effects of Conflicts

 Power & Politics have tremendous effects on
the organization
III. The Organization – is formally structured
through various departments or divisions.

Comprehensive job design enables managers

to specify the contents, methods, & relationships of
jobs as well as specific tasks & assignments for
each particular job.
4 Organizational Processes Contribute to sound &
effective organizational performance:
1. Leadership
2. Communication
3. Decision making
4. Organizational Change & development
VARIOUS FIELDS THAT CONTRIBUTE TO THE
VASTNESS OF OB AS A DISCIPLINE
 Psychology – it is the science that seeks
to measure & explain the behavior of
humans & other animals.
 Sociology – is the study of people in
relation to their fellow human beings.
 Social Psychology – it is an area of
psychology that blends the concepts
taken from psychology & sociology &
focuses on the influence of people on one
another.
 THE HISTORY OF OB
A. The Early Days: Scientific Management &
Hawthorne Studies
1. The earliest attempts to study
organizational behavior came out of a desire to
improve worker productivity.
2. This was a period of industrialization &
technological breakthroughs in the US.- Engineers
attempted to make efficient machines by making
people more efficient & productive.
3. Frederick W. Taylor
4. Taylor’s groundbreaking book Scientific
Management argued that the object of
management is to “secure the maximum
prosperity for the employer, coupled with the
maximum prosperity of each employee.
5. Despite Scientific Management’s important
contributions, it did not tackle the factors that
influence behavior on work settings.
6. Elton W. Mayo, an organizational scientist,
founded the human relations movement.
 a. He focused on the social factors influencing
the workplace.
b. He focused on the way employees were
treated by management & the relationships they
formed with one another.
7. The Hawthorne Studies begun in 1927
8. Western Electric Officials called Elton Mayo & his
team. Mayo recognized that organizations are
social systems.
B. Classical Organizational Theory
a. It focused on the effective structuring of
organizations in contrast to scientific management.
b. Henri Fayol, a French industrialist , attributed
managerial success with various principles
 C. MAX Weber, a German Sociologist, is the best
known classical organizational theorist. He proposed
an organizational structure called bureaucracy.

C. Late 20th Century: OB as a Social Science:

1941- the first doctoral in OB was
granted
1945- the first book in OB was released
Late 1970s – various researches were done in OB
The Ford Foundation sponsored a study of
business education in the US, w/c further
recommended that the study of management should
pay greater attention to the social sciences. This
greatly influenced the business school curricula,
thereby promoting OB as a course.
Mission Statement – identifies the reasons for
the company’s existence.

Vision Statement – indicates the company’s

“dream”, what it wants to become in a specific
period of time.

Goals – include the specific actions for a

particular period of time.

Corporate Philosophy & Values – it is projected

out of the organization; it simply states what the
company believes in.
 Legal &
Customers Political
Constraints

Organization

Social Technological

THE ORGANIZATIONAL ENVIRONMENT

CONTINUUM
 EXEMPLARY VALUES THAT SPELL SUCCESS:

LEVI STRAUSS (1800)

“We believe that business can drive profits
through principles , & that our values as a
company & as individuals give us a
competitive advantage”
Empathy – walking in other people’s shoes;
begins with paying close attention to the world
around us, listening & responding to the needs
of our customers, employees, & other
stakeholders.

Originality- being authentic and innovative; the

pioneering spirit that started in 1873 with the
very first pair of blue jeans still permeates all
aspects of our business; through innovative
products & practices, we break the mold.
Integrity – doing the right thing; means doing
right by our employees, brands, company, &
society as a whole; ethical conduct & social
responsibility characterize our way of doing
business.

Courage – standing up for what we believe; it

takes courage to be great; it is the
willingness to tell the truth & to challenge
hierarchy, accepted practice & conventional
wisdom; it means standing by our
convictions & acting on our beliefs.
SMC’S CORE VALUES:

1.Passion for Success

2.Teamwork
3.Respect for our people
4.Customer focus
5.Innovativeness
6.Integrity
7.Social responsibility