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