Organizational Behavior - MGT502 VU
© Copyright Virtual University of Pakistan
An organization’s ethics are rules, beliefs, and values that outline ways in which managers and workers shouldbehave when confronted with a situation that may help or harm other people inside or outside an organization.Ethical behavior enhances the well-being (the happiness, health, and prosperity) of individuals, groups,organizations, and the organizational environment. Ethics establish the goals and behaviors appropriate to theorganization. Many organizations have the goal of making a profit, to be able to pay workers, suppliers, andshareholders. Ethics specifies what actions an organization should take to make a profit and what limits shouldbe put on organizations and their managers to prevent harm.The challenge of managing a diverse workforce increases as organizations expand their operationsinternationally. There are several issues that arise in the international arena. First, managers must understandcultural differences to interact with workers and associates in foreign countries. Understanding the differencesbetween national cultures is important in any attempt to manage behavior in global organizations to increaseperformance.Second, the management functions of planning, organizing, leading, and controlling become more complex ina global environment. Planning requires coordination between managers in the home country and thoseabroad. Organizing, the allocation of decision-making authority and responsibility between headquarters andthe foreign country is a significant function of global managers. Leading requires managers to tailor theirleadership styles to suit differences in the attitudes and values of foreign workers. Controlling involvesestablishing the evaluation, reward, and promotion policies of the organization and training and developing aglobally diverse workforce.
Why Do We Study OB?
Following are the reasons to study organizational behavior:•
To learn about yourself and how to deal with others•
You are part of an organization now, and will continue to be a part of various organizations•
Organizations are increasingly expecting individuals to be able to work in teams, at least someof the time•
Some of you may want to be managers or entrepreneurs
The importance of studying organizational behavior (OB)
OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior inorder to make organizations work more effectively. It is concerned with the study of what people do inan organization and how that behavior affects the performance of the organization. There is increasingagreement as to the components of OB, but there is still considerable debate as to the relativeimportance of each: motivation, leader behavior and power, interpersonal communication, groupstructure and processes, learning, attitude development and perception, change processes, conflict, work design, and work stress. It is also important because it focus on the following areas.•
OB is a way of thinking.•
OB is multidisciplinary.•
There is a distinctly humanistic orientation with OB.•
The field of OB is performance oriented.•
The external environment is seen as having significant impact on OB.
Contributing Disciplines to the OB Field
Organizational behavior is an applied behavioral science that is built upon contributions from a numberof behavioral disciplines. The predominant areas are psychology, sociology, social psychology,anthropology, and political science.