chapter 1: what is ob? lecturer: tasnuva chaudhury (tcy) mgt 321: organizational behavior
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CHAPTER 1: WHAT IS OB?
LECTURER: TASNUVA CHAUDHURY (TCY)
MGT 321: Organizational Behavior
LEARNING OBJECTIVES
Understand the importance of interpersonal skillsRoles of managers and management skillsDefine and understand organizational behaviorShow the value to OB of systematic study.Identify the major behavioral science disciplines that contribute
to OB.Identify the challenges and opportunities managers have in
applying OB concepts.Compare the three levels of analysis of the OB model.
Importance of Interpersonal Skills
Technical and Quantitative skills are important Leadership and communication skills are crucial to distinguish
managers
Organizational benefits of positive social relationshipsDeveloping manager’s interpersonal skills attract high performing
employeesLow turnover and low work stressStrong correlation to overall job satisfactionSuperior financial performance
Role of Managers
What do managers do?They get things done by other people to achieve organization’s goalsOversee activities of othersMake decisionsAllocate resources
What is an 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
Managers
- Define roles
- Establish strategy
- Develop plans to coordinate activities
Organize- What tasks to be
done
-Who should do them
-Who reports to whom
-Where decisions are to be made
Lead-Motivate
Employees
-Directing others
-Selecting most effective
communication channels
-Resolve conflict
-Monitor activities to ensure they are
as per plan
-Correct any deviations
Plan Control
Management Roles
Interpersonal Roles Figurehead, Leader, Liaison
Informational Roles Monitor, Disseminator, Spokesperson
Decisional Roles Entrepreneur, Disturbance handler,
Resource allocator, Negotiator
Management Skills
Technical Skills Specialized knowledge or expertise learned through extensive formal
education, training programs or on the job
Human Skills The ability to work with, understand, and motivate other people,
both individually and in groups
Conceptual Skills The mental ability to analyze and diagnose complex situations
Managerial Activities
Fred Luthans and his associates looked at 4 types of managerial activities from a somewhat different perspective.
Traditional Management Decision making, planning, and controlling
Communication Exchanging routine information and processing paperwork
Human Resource Management Motivating, disciplining, managing conflict, staffing, and training
Networking Socializing, politicking, and interacting with others
Effective vs. Successful Managerial activities
19%
20%
29%
32%
Average Managers
Networking
Human Resource Management
Communication
Traditional Man-agement
48%
11%
28%
13%
Successful Managers
Networking
Human Resource Management
Communication
Traditional Management
11%
26%
44%
19%
Effective Managers
Networking
Human Resource Man-agement
Communication
Traditional Management
Organizational Behavior
OB: 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.
Complementing intuition with systematic study
Intuition
•Gut feelings
•Individual observation
•Common sense
Systemat
ic Stud
y
•Looks at relationships
•Scientific evidence
•Predicts behaviors
Evidence Based Management
Evidence Based Management (EBM) Basing managerial decisions on the best available
scientific evidence Pose a managerial question Search for best available evidence Apply relevant information to case
Intuition
Intuition – “gut feeling”Intuition can be based on incomplete informationCompany can be ‘at the right place at the right time’ and
without reliance of any empirical evidenceSystematic study can be time consuming
Evidence should be used as much as possible to form intuition and experience
Other Disciplines
Psychology Social Psychology
Sociology Anthropology
Toward an OB Discipline
Exhibit 1-3
Challenges and Opportunities of OB
Challenges and Opportunities of OB: Responding to Economic Pressures Responding to Globalization Managing Workforce Diversity
Some other challenges and opportunities include: Improving Customer Service Improving People Skills Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees Balance Work-Life Conflicts Creating a Positive Work Environment Improving Ethical Behavior
Responding to Economic Pressures
Effective management is important during hard economic times.
Managing employees is difficult during hard times. Managers need to understand and handle how to reward,
satisfy and retain employees Managers also need to handle issues such as stress, decision
making, and coping during difficult times.
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 diversity Changing demographics Changing management philosophy Recognizing and responding to differences
Developing an OB Model
A model is an abstraction of reality – a simplified representation of some real-world phenomenon.
Our OB model has three levels of analysis
Types of Study Variables
Independent (X) Dependent (Y)
-The presumed cause of the change in the dependent variable (Y)
-This is the variable that OB researchers manipulate to observe the changes in Y
-This is the response to X
-It is what the OB researchers want to predict or explain
Dependent Variables in OB
Productivity Transforming inputs to outputs at lowest cost. Includes the concepts of
effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).
Absenteeism Failure to report to work – a huge cost to employers.
Turnover Voluntary and involuntary permanent withdrawal from an organization.
Deviant Workplace Behavior Voluntary behavior that violates significant organizational norms and
thereby threatens the well-being of the organization and/or any of its members.
Dependent Variable contd.
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 (not a behavior) toward one’s job; a positive
feeling of one's job resulting from an evaluation of its characteristics.
Independent Variable
The independent variable (X) can be at any of these three levels in this model:Individual Biographical characteristics, personality and emotions, values and
attitudes, ability, perception, motivation, individual learning, and individual decision making
Group Communication, group decision making, leadership and trust, group
structure, conflict, power and politics, and work teamsOrganization System Organizational culture, human resource policies and practices, and
organizational structure and design
OB Model (Exhibit 1-5)
Summary
Managers need to develop their interpersonal skills to be effective.
OB focuses on how to improve factors that make organizations more effective.
The best predictions of behavior are made from a combination of systematic study and intuition.
Situational variables moderate cause-and-effect relationships. There are many OB challenges and opportunities for managers
today.OB Model
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