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AFTER STUDYING THIS CHAPTER AND LISTENING TO MY LECTUER,I HOPE THTAT

YOU WILL BE ABLE TO:1. Define organizational behavior (OB).2. Describe what managers do.3. Explain the value of the systematic study of OB.4. List the major challenges and opportunities for managers to

use OB concepts.5. Identify the contributions made by major behavioral science

disciplines to OB.

6. Describe why managers require a knowledge of OB.7. Explain the need for a contingency approach to the study

of OB.

What is the field of Organizational Behavior all about?

OB helps in understanding human behavior and helps inenhancing organizational effectiveness and individual well being

OB highlights four central characteristics of the field

First OB is firmly grounded in the scientific method

Second OB studies individuals groups and organizations

Third OB is interdisciplinary in nature

Fourth OB is used as he basis for enhancing effectiveness and

individual well-being

What is the field of Organizational Behavior all about?

OB is the study of what people think feel and do in and around

organizations

OB emerged as a distinct field around the 1940s-origin can be

traced much further

The Greek philosopher Plato wrote about the essence of

leadership

The writings of Chinese philosopher Confucius in 500 BC are

beginning to influence contemporary thinking about ethics and

leadership

In 1776 Adam advocated a new form of organizational structure

based on the division of labor

One hundred years later German sociologist Max Weber wrote

about rational organizations and initiated discussion on

charismatic leadership

Frederick Winslow Taylor introduced the systematic use of goal

setting and rewards to motivate employees

In the 1920s Elton Mayo and his colleagues discovered the

importance of formal and informal group dynamics

OB was organized into a unified discipline until World War II

Enter Organizational Behavior

Organizational behavior (OB)

Deals with human behavior in organizations. It is a multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes and organizational dynamics

What is Organizational behavior?

The Meaning of Organisational Behaviour (OB)

OB is the study of human attitudes, behaviour and performance. It is the studyof what people do in an organisation and how that behaviour affects theperformance of the organisation. As rightly indicated by J.W. Newstrom, OB isthe systematic study and careful application of knowledge about how people –as individuals and as groups – act within organisations. It is an action-orientedand goal-directed discipline. Its goals are to make managers more effective atdescribing, understanding, predicting, and controlling human behaviour.

Describe behaviour

Understand behaviour

Predict behaviour

Control behaviour

What is organizational behavior and why is it important?

Scientific thinking is important to OB because:– Process of data collection is controlled and systematic– Proposed explanations are carefully tested– Only explanations that can be scientifically verified are

accepted

Copyright © 2008 John Wiley & Sons, Inc. 1-8

Scientific methods models

• Scientific methods models– simplified views of reality that attempt to identify

major factors and forces underlying real-world phenomenon

• Link independent variables with dependent variables


OB uses scientific methods to develop test generalization about behavior in organization



OB applies the Scientific Method to Practical Managerial problems

Managers rely heavily on knowledge derived from OB research

For example researchers have shed light on such practical questions

How can goals be set to enhance people’s job performance?

How many jobs be designed so as to enhance employees feelings ofsatisfaction?

Under what conditions do individuals make better decisions than groups?

What can be done to improve the quality of organizational communication?

What steps can be taken to alleviate work related stress?

What do leaders do to enhance the effectiveness of their teams?

How can organizations be designed to make people highly productive?


OB applies the Scientific Method to Practical Managerialproblems

•OB through the scientific research and theory will answer to thequestions

•It is safe to say that the scientific and applied facets of OB notonly coexist but complements each other

•Just as knowledge about the properties of physics may be put touse by engineers and engineering data can be used to testtheories of basic physics

•Knowledge and practical applications are closely interwined inthe field of OB

What is the secret source that makes company the best place to work

the secret source that makes a company the best place to work for?

High and differentiated compensation

Innovative titles

Faster career progression plans

Meaningful growth avenues

More satisfying jobs

Overseas exposure

Opportunity to work on cutting-edge technologies and problems

Referral schemes etc. (many a time, employees may want a bit of all these and much more!)

What Managers Do

Managerial Activities

• Make decisions

• Allocate resources

• Direct activities of others to attain goals

Managers (or administrators)

Individuals who achieve goals through other people.

Where Managers Work

Organization

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

Management Functions

ManagementFunctions

Planning Organizing

LeadingControlling

Management Functions (cont’d)

Planning

A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.


Organizing

Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.


Leading

A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.


Controlling

Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Roles

Managerial Roles

Henry Mintzberg offered a view of the managing job that

throws considerable light on how managers perform their work.

Managers, according to Mintzberg, must fill many roles as they

carry out the management functions. These roles can be

grouped into three categories: interpersonal, informational and

decisional.

Mintzberg’s Managerial Roles

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

Roles

Interpersonal relationships essential to all managerial work

Managers team leaders should be able to develop maintain and

work well with wide variety of people-outside and inside the

organization

Work with task networks-(of specific job related contacts

Career networks(of career guidance and opportunity

resources)

Social networks(trustworthy friends and peers)

Mintzberg’s Managerial Roles (cont’d)

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

Mindset

•Recently Henry Mintzberg and his colleague Jonathan Gosling asked question

•What does it mean to think like a manager

•Complexity of managerial work

•To help managers develop attitudes and ways of thinking

that can improve their effectiveness

•Defined managerial mind set as an attitude a frame of mind

that opens up new vistas

Mindset

The five mind sets important to success in managerial work

The reflective mindset deals with being able to manage oneself

The analytic mindset deals with managing organizational operations and

decisions

The worldly mindset deals with managing in the global context

The collaborative mindset deals with managing relationships

The action mindset deals with managing change

All five mind sets must work together for managerial decisions

Skills

A skill is an ability to translate knowledge into action that results

in a desired performance

Skills

Managerial skills

Performing management functions and roles and achieving

competitive advantage are the principal characteristics of a

manager’s job. Merely understanding this fact, however, does not

guarantee success. Managers need a variety of skills to do these

things well. Skills here refer to specific abilities that result from

knowledge, information, practice and aptitude. Robert L. Katz has

identified three basic types of skills – technical, human and

conceptual – that he says are needed by all managers.

Management SkillsTechnical skillsThe ability to apply specialized knowledge or expertise.

Human skillsThe ability to work with, understand, and motivate other people, both individually and in groups.

Conceptual SkillsThe mental ability to analyze and diagnose complex situations.

Management Skills

Emotional intelligenceability to understand and deal with emotions• Self-awareness-ability to understand your own moods and

emotions• Self-regulation-ability to think before acting and control

disruptive impulses• Motivation-ability to work hard and persevere• Empathy-ability to understand the emotions of others• Social skill-ability to gain rapport with others and build good

relationships

2008 John Wiley & Sons, Inc.

Effective Versus Successful Managerial Activities (Luthans)

1. Traditional management• Decision making, planning, and controlling

2. Communication• Exchanging routine information and processing paperwork

3. Human resource management• Motivating, disciplining, managing conflict, staffing, and training

4. Networking• Socializing, politicking, and interacting with others

Allocation of Activities by Time

Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

Multidisciplinary Nature of OB

OB is multidisciplinary in nature. It is, in fact, an applied behavioural science that is built oncontributions from a wide variety of social science disciplines, such as psychology, sociology,social psychology, anthropology, political science, economics etc.

The Multidisciplinary Roots of OBDiscipline Relevant OB topics

Psychology -Perception and learning, personality, emotion and stress, attitudes,motivation, decision-making and creativity.

Sociology - Group dynamics, socialisation, communication, intergroup behaviour, power,conflict.

SocialPsychology - Intergroup collaboration, group decision-making, integration of individual

needs with group activities, effect of change on individuals.

Anthropology- Organisational culture, leadership, organisational empowerment

Economics - Decision-making, organisational power

Political Science - Conflict, intra-organisational politics, manipulating power forindividual self-interest.

Toward an OB Discipline

Contributing Disciplines to the OB Field

PsychologyThe science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Contributing Disciplines to the OB Field (cont’d)

SociologyThe study of people in relation to their fellow human beings.


Social PsychologyAn area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.


AnthropologyThe study of societies to learn about human beings and their activities.


Political ScienceThe study of the behavior of individuals and groups within a political environment.

Emerging fields from which organizational behavior knowledge is acquired

Discipline (traditional ) Relevant OB topics

Economics Decision making, negotiation , organizational power

Industrial engineering Job design, productivity, work measurement

Emerging disciplines

Communications Knowledge management, electronic mail, corporate culture , employee socialization

Information systems Team dynamics, decision making, knowledge management

Marketing Knowledge management, creativity, decision making

Women’s studies Organizational power,perception

Five anchors of Organizational Behavior

Multidisciplinary anchor OB should import knowledge from many disciplines

Systematic research anchor OB should study organizations using systematic research methods

Contingency anchor OB theory should recognize that the effects of actions often vary with the situation

Multiple levels of analysis anchor OB knowledge should include three levels of analysis:individual,team,and organization

Open system anchor OB should view organizations as open systems that interact with their environment

Open System view

InputsRMHR

InformationFinancial resource

equipment

SubsytemsTransforming inputs

to outcomes

OutputsProduct/services

Employee behaviorsProfits/losses

Waste/pollution

External Environment

-Subsystems such as process(communication and reward systems)-Task activities(Production, marketing)

-Social dynamics(informal groups, power dynamics)-Aid of technology(equipment ,work method and information)

These subsystems transform inputs into outputs

External Environment and stakeholders

•Successful organizations monitor their environments and are able to maintain a close fit with changing conditions

•Configure their outputs(new products and services, reducing waste)

•Transforming their processes

•Organizations need to adapt to changing environment

•Stakeholders represent a central part of the internal and external environment

•Stakeholders influence the firms access to inputs and ability to discharge outputs

•If leaders pay attention to only shareholders organization will be trouble

•Cannot ignore corporate social responsibility

There Are Few Absolutes in OB

•There are few if any simple and universal principles that explain OB

•Laws in the physical sciences-chemistry astronomy physics-that are consistent apply in a wide range of situations

•Scientists generalize –pull of gravity-confident about sending astronauts into space to repair satellites

•Human beings complex-not alike-our ability to make simple accurate and sweeping

generalization is limited

•Behavior changes in different situations

•Does not mean that reasonably accurate explanations of human behavior or make valid predictions

•OB concepts must reflect situational or contingency conditions

There Are Few Absolutes in OB

ContingencyVariablesx y

Contingency variables

Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation.

Challenges and Opportunities for OB

• Responding to Globalization– Increased foreign assignments– Working with people from different cultures– Coping with anti-capitalism backlash– Overseeing movement of jobs to countries with low-

cost labor• Managing Workforce Diversity

– Embracing diversity– Changing demographics– Implications for managers

• Recognizing and responding to differences

DomesticPartners

Major Workforce Diversity Categories

Race

NationalOrigin

Age

Disability

Gender

Challenges and Opportunities for OB (cont’d)

• Improving Quality and Productivity

– Quality management (QM)– Process reengineering

• Responding to the Labor Shortage

– Changing work force demographics– Fewer skilled laborers– Early retirements and older workers

• Improving Customer Service

– Increased expectation of service quality– Customer-responsive cultures

Improving Quality and 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.

Challenges and Opportunity for OB (cont’d)

• Improving People Skills• Empowering People• Stimulating Innovation and Change• Coping with “Temporariness”• Working in Networked Organizations• Helping Employees Balance Work/Life Conflicts• Improving Ethical Behavior

Models of OB

• OB ModelA model is a simplified presentation of some real-world phenomenon. The OB

model focuses attention on three distinct levels of analysis—individuals, groups

and organisations. It tries to look into the impact the individuals, groups and

organisations have on the behaviour of members working in an organisation. It

tries to utilise this knowledge with a view to improve organisational performance.

The model of OB is generally built around two sets of variables, namely dependent

variables (productivity, absenteeism, turnover, job satisfaction) and independent

variables (individual level variables, group level variables and organisation system

level variables). The basic objective of any model of OB is to make managers more

effective at describing, understanding, predicting and controlling human behaviour.

Basic OB Model

Model

An abstraction of reality.A simplified representation of some real-world phenomenon.

The Dependent Variables

x

yDependent variable

A response that is affected by an independent variable.

The Dependent Variables (cont’d)

ProductivityA performance measure that includes effectiveness and efficiency.

EffectivenessAchievement of goals.

EfficiencyThe ratio of effective output to the input required to achieve it.


Absenteeism

The failure to report to work.

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 Independent Variables

IndependentVariables

Individual-Level Variables

OrganizationSystem-Level

Variables

Group-LevelVariables

Independent variable

The presumed cause of some change in the dependent variable.

Cont….

Organisation Structure Organisational Culture, Creativity and InnovationHuman Resource Policies and Practices Organisational Change and DevelopmentInternational Organisational Behaviour

Group BehaviourTeams and TeamworkCommunication Leadership Power and PoliticsConflict and Negotiation

Organisation Level

Group Level Outcomes

Productivity

Absenteeism

Job Satisfaction

Turnover

PersonalityPerception and AttributionEthics and Social ResponsibilitiesValues, Attitudes and Job SatisfactionLearning and Behaviour ModificationBasic Concepts in MotivationJob Design, Empowerment and Work Scheduling

Individual Level

Resources

Basic OB Model

Basic OB Model

The model examines the variables influencing individual behavior

The knowledge obtained at the individual level will help usanalyse the behaviour at group level and organisational level.

Knowledge Management

• Googles chief financial officer George Reyes said that his company is a “learning organization”

• Any structured activity that improves an organization’s capacity to

- acquire- Share• Use knowledge in ways that improve its

survival and success

Knowledge Management

• Stock of knowledge that resides in an organization is called “intellectual capital”

• Intellectual capital is the sum of everything known in an organization that gives it competitive advantage

• including human capital• Structural capital• Relationship capital

Knowledge Management Process

• To maintain intellectual capital(stock of knowledge)

• Organizations depend on acquiring –sharing-use knowledge effectively

• This process is called organizational learning• Companies have established systems-

structures-organizational values that manage knowledge management


Strategies companies use to acquire –share use knowledge

• Knowledge acquisition• Knowledge sharing• Knowledge use

Knowledge Management ProcessOrganizational Memory

• Corporate leaders are the keepers of an organizational memory

• Storage and preservation of intellectual capital• Includes information employees possess • Knowledge embedded in the organization

systems and structures• To maintain organizational memory keep good

employees• Attract and retain by adopting employment

practices compatible with emerging workforce expectations-work life balance-egalitarian hi h t f i th k


Organizational Memory• Second organizational memory strategy –

systematically transfer knowledge before employees leave(Trade apprentice)

• Third approach to transfer knowledge into structural capital-this includes bringing out hidden knowledge –organizing and putting it in a form available to others

• Unlearn-Selectively forget certain knowledge• -Cast off routines and patterns of behavior

h l i

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