 Organizational Behavior (OB):

 The study of individual and group dynamics within an organization setting.

 Understand interactions
 Predict behavioral responses
 Manage outcomes
 Micro-level analysis

 Organization Theory (OT):

 analyzes the entire organization and is a macro perspective, since the organization is the
unit examined.
 Macro-level analysis
 Design (process of creating the structure)
 Structure (the form that controls and coordinates activities

 Organizational Culture: “shared assumptions” (has deep-seated values, norms, and

behaviors members share).
 It forms more slowly (more stable, resistant to change).
 Assumptions
 Values
 Behavioral norms
 Behavioral patterns
 Artifacts (symbols of culture)

 Organizational Climate: “shared perceptions” (mood or unique personality)

 Dynamic  easier to change in comparison to organizational culture
 Varies with context (ex. New leadership, economy)
 Leadership
 Openness of communication
 Participative management
 Role clarity
 Conflict resolution

 Organizational Design: is viewed as the formal arrangement of departments, divisions,

functions, and people interacting and linked together within an entity.
 The concept of organization design is the process of creating the structure and developing
the relationships to achieve an organization’s goals. (pg. 435 Organizational Behavior,
theory, and design)

 Cultural Competency: it is defined as “ongoing commitment or institutionalism of

appropriate practice and policies for diverse populations” (pg. 22)
 Culture refers to integrated patterns of human behavior that include the language,
thoughts, communications, actions, customs, beliefs, values, and institutions of racial,
ethnic, religious, or social groups.
 Competence implies having the capacity to function effectively as an individual and an
organization within the context of the cultural beliefs, behaviors, and needs presented by
consumers and their communities.
  Cultural competency requires:
 Congruent behaviors, attittudes, and policies
 Come together in a system, agency, or among professionals
 Enables effective work in cross-cultural situations

 Frederick Taylor (1911):

 He created the scientific management, or “Taylorism,” as it is now labeled.
 He believed that efficiency was achieved by creating jobs that economized time, human
energy, and other productive resources.
 Through his time-and-motion studies, Taylor scientifically divided manufacturing
processes into small, efficient units of work.

 Max Weber: considered to be the founding father of OT, developed a framework of

administrative characteristics that allowed large organizations to play a positive role in the
larger society by being “rational” and efficient.
 The 6 Key Characteristics of Weber’s Rational and Efficient Organization
(Bureacratic Organizational Structure):

 Hierarchy of Authority- Clear communication of supervision and subordination

positions
 Hiring (and Promoting) of Technically Qualified Workers- No favoritism.
Job/promotion received based on merit.
 Consistent System of Rules- Consistent and effective pursuit of organizational goals.
 Extensive Use of Written Documents- decisions are made and communicated
through writing and written rules.
 Functional Specialization and Division of Duties- ensuring each worker is carrying
a specific job based on their knowledge, training, and skills.
 Separation of Position from Worker- Ensuring that an individual worker does not
have “rights” to any aspect of their position. Eliminating the ability to pass the
position to friends or family once their contract ends.

 Henri Fayol: developed a set of rules for managers to follow to be successful.

 His set of rules consisted of three parts:
A. 6 Activities of management: interdependent, must work together
B. 14 Principles of management: flexible/adaptable, but adherence is key
C. 5 Elements of management: task oriented (Taylorism)
  Johari Window

FEEDBACK

1. Open Area: info about you is known and
open.
(behavior, knowledge, skills, attitudes, and
“public” history.) Generally described as
DISCLOSURE
2. Blind Area: information others know
about you. But, you don’t know about
yourself.
(Ex. your colleagues know that although

cocktail party information.
KNOWN TO SELF
KNOWN TO OTHERS
3. Hidden area: likes and dislikes you do
not want to share with others.
(your values, beliefs, fears, and past
experiences you do not reveal to
others)
KNOWN TO SELF
UNKNOWN TO OTHERS
you are a nice and caring person, you
chronically interrupt and talk over others in
conversation.)
UNKNOWN TO SELF
KNOWN TO OTHERS
4. Unknown area: things unknown to you
and unknown by others.
(area of potential growth or self-
actualization. This is all the things you have
never tried or experienced.
UNKNOWN TO SELF
UNKNOWN TO OTHERS

The Johari Window is a feedback process. Created by Joe Luft and Harry Ingram. The two
key concepts: (1) you can build trust with others by disclosing information about
yourself, and (2) with the help of feedback from others, you can learn about yourself
and come to terms with personal issues.

 Semantic Triangle

 Noise

 Sorting

 Naïve Realism

 Sapir–Whorf Hypothesis

 Nonverbal Communication:
 Proxemics
 Kinesics
 Paralanguage
 Facial/Eye Behavior

 Communication Flows
 Vertical
  Horizontal
 Diagonal
 Virtual

 Communication Networks:
 Chain
 Wheel
 Circle
 All-Channel

 Perception

 Attitude

 Cognitive Dissonance

 Fundamental Attribution Error

 Halo/Horn Effect

 Contrast Effect

 Projection

 Stereotyping

 Pygmalion/Galatea Effect

 Self-Efficacy

 Self-Actualization

 Agency

 Clayton Alderfer

 Abraham Maslow

 Learned helplessness

 Resilience

 Aggression

 Empowerment
 Paul Ekman

 Human Universals

Theories and Concepts:

 Components of an Organization’s formal structure (Kast and Rosenzweig, 1985):

 An organization’s formal structure is defined as:
1. Organization chart and job descriptions: The pattern of formal relationships and
duties.
2. Differentiation: The way in which the various activities or tasks are assigned to
different departments and/or people in the organization.
3. Integration: The way in which these separate activities or tasks are coordinated.
4. Authority System: The power, status, and hierarchical relationships within the
organization.
5. Administrative System: The planned and formalized policies, procedures, and
controls that guide the activities and relationships of people in the organization.

 Taylorism/Scientific Management: During the Industrial Revolution, managers were

concerned on “how to design and manage work in order to increase productivity and help
organizations attain maximum efficiency”. In 1911, Frederick Taylor created Taylorism. A
scientific management approach to economize time, human energy, and other productive
resource. He scientifically divided manufacturing processes into small efficient units of work
to improve productivity.
 Henry Ford developed his assembly line according to Taylorism.
 Taylor did attempt to address a human relations aspect in the workplace. Although Taylor
discussed a concern for workers within the scientific management approach, the human
relations or behavioral movement of management did not begin until after the landmark
Hawthorne Studies.
 Taylorism’s Four Basic Principles were:
1. Develop a science for the work of each person (ex. Muybridge and horses)
 Studying, experimenting, applying mathematical formulas
2. Select the best individual for the job
 Training, evaluating, rewarding for output
3. Ensure the work is done in the prescribed manner
 Cooperating with workers, rewarding for more output
 Exception principle: attend to workers whose established standards are not met
4. Divide the work
 Manager: planning, organizing, controlling
 Worker: doing their job

 Hawthorne Studies: Elton Mayo, Frederick Roethlisberger, and their colleagues from
Harvard Business School conducted several experiments from 1924 to 1933 at the
Hawthorne Plant of the Western Electric Company in Cicero, Illinois.
 Origination of human relations/ behavioral management movement
 These studies were important because the researchers demonstrated the important
influence of human factors on work productivity.
 There were four phases of the Hawthorne Study: Purpose of these phases was to
determine the effect of working conditions on productivity
1. Illumination Experiments: conducted to determine whether increasing or decreasing
lights would impact productivity.
 Researchers found that productivity improved with both the control (no light
change group) and the experimental group (lighting changed either brighter or
dimmer)
 Ultimately, researchers found that it was not lighting the improved productivity, it
was the attention received by the group.
2. Relay-assembly Group Experiments: a segregated group’s productivity was
observed as they were exposed to different working conditions. They were observed
for five years.
 First part of experiment: The working conditions were improved by increasing
rest periods, decreasing workday length, and providing them a “free day” and
lunches. Also, these workers were consulted because any change was made. The
workers also had the freedom to interact with one another. The researchers paid
attention to the worker’s opinions, hopes, and fears during the experiment. During
this period the worker’s productivity increased.
 Second part of experiment: The original work conditions were restored.
Researchers found that the productivity of the workers stayed the same as it was
at the improved conditions. This result is due to the group dynamics because the
group could develop socially with a common purpose.
3. Bank-wiring Observation-room Group Studies: this experiment results were
similar to the relay-assembly group experiment. A group of workers were segregated
so their productivity and group dynamics could be observed.
 The workers were paid with a piecework rate the reflected both group and
individual efforts. Researchers found that the wage incentive did NOT work. The
group created their own standard to what a “proper day’s work” was. The
productivity remained constant because they did not want management to know
they could work harder.
 If someone worked harder than the agreed upon level the group would influence
the worker to return to the normal level.
 If someone worked below the agreed upon level, the workers traded jobs to ensure
the constant level of work.
 The researchers concluded that there was no cause-and-effect relationship
between working conditions and productivity and that any increase or decrease
in productivity was attributed to group dynamics.
 Due to the bank-wiring experiment, researchers were interested in exploring
informal employee groups and the social functions that occur within the group
and that influence the behavior of the individual group members.
4. Interviewing Program: A major outcome of these interviews was that the
researchers discovered that workers were not isolated, unrelated individuals; they
were social beings and their attitudes toward change in the workplace were based
upon
  The personal social conditioning (values, hopes, fears, expectations, etc.) they
brought to the workplace, formed from their previous family or group associations
 The human satisfaction the employees derived from their social participation
with coworkers and supervisors.

 Theory X and Theory Y: Douglas McGregor proposed the theory that managers viewed
their employees by two theories. McGregor stated that Theory X managers were not effective
in the work place because they expected for a worker to solely need physiological concerns
and safety. But, research showed that workers needed more than just job security.

 Theory X (negative/pessimistic) Autocratic: states that employees are unintelligent and

lazy.
 Employees should be controlled closely because they have little desire for
responsibility.
 Little aptitude for creativity in solving organizational problems and will resist change
 The manager’s assumptions caused the staff’s “unmotivated” behavior.

 Theory Y (positive/optimistic) Participative: states that employees are creative and

competent
 They want meaningful work and want to contribute. They want to participate in
decision-making and leadership functions.
 McGregor stated that participative or Theory Y managers supported decentralization
and delegation of decision making, job enlargement, and participative management
because they allowed employees degrees of freedom to direct their own activities and
to assume responsibility, thereby satisfying their higher-level needs

 Characteristics of Weber’s Rational Organization: Max Weber (1864–1920), a German

sociologist considered to be the founding father of OT, developed a framework of
administrative characteristics that allowed large organizations to play a positive role in the
larger society by being “rational” and efficient.

 The Six Key Characteristics of Weber’s Rational and Efficient Organization

(Bureacratic Organizational Structure):

1. Hierarchy of Authority- Ensures clear communications of supervision and

subordination positions (ex. Designations)
2. Hiring (and Promoting) of Technically Qualified Workers- Ensuring that hiring
and promotions are contributed to merits and not favoritism. Also, those hired view
their positions as full-time careers.
3. Consistent System of Rules- Ensuring consistent and effective pursuit of
organizational goals.
4. Extensive Use of Written Documents- Ensuring that decisions are made and
communicated through writing and written rules.
 5. Functional Specialization and Division of Duties- Ensuring efficient operations and
that each worker is carrying a specific job based on their knowledge, training, and
skills.
6. Separation of Position from Worker- Ensuring that an individual worker does not
have “rights” to any aspect of their position. Eliminating the ability to pass the
position to friends or family once their contract ends.

 Fayol’s “set of rules” for managers: Henri Fayol (1949) developed a set of rules for
managers to follow to be successful.

 His set of rules consisted of three parts:

D. 6 Activities of management: interdependent, must work together
1) Technical (production, manufacturing, adaptation)
2) Commercial (buying, selling, exchange)
3) Financial (search for and optimum use of capital)
4) Security (protection of property and persons)
5) Accounting (stocktaking, balance sheet, statistics, cost)
6) Managerial (planning, organization, command, coordination, control)

E. 14 Principles of management: flexible/adaptable, but adherence is key

1) Division of work (specialization limits attention needed, increases quality and
quantity)
2) Authority and responsibility (derived from position + intelligence/experience.
Authority and responsibility must match)
3) Discipline (formal/informal: obedience, application, energy, behavior, respect.
Requires good managers, equitable agreements, due process)
4) Unity of command (one primary advisor, avoid dual command)
5) Unity of direction (coordination of effort, acts with same objective, single
manager and plan)
6) Subordination of individual interests (organization interest must take precedence,
can help with conflicts)
7) Remuneration of Personnel (fair and equitable, reward well-directed effort, not
exceed reason)
8) Centralization (vs. Decentralizaton) (optimal for particular concern)
9) Scalar Chain (Who is communicating with whom? Sometimes “gangplank” is
needed)
10) Order (a place for everything and everything in its’ place both materials and
people)
11) Equity (treat employees with kindness, justice. Elicit devotion and loyalty)
12) Stability of tenure and Personnel (time to settle into jobs, job security, personnel
planning)
13) Initiative (Freedom to create a plan and execute it. Linked to motivation and
satisfaction)
14) Espirit de Corps (Unity, harmony, 2-way dialogue. Reduce conflict. No divide
and conquer)
 F. 5 Elements of management: task oriented (Taylorism)
 Planning (Assessing the future and making provisions, developing a plan of
action)
 Organization (Developing org structure, allocating human resources, evaluation
of managers:
o Health and physical fitness
o Intelligence
o Moral qualities
o General education
o Management knowledge
o Knowledge of other fxns (technical, commercial, etc.)
o Specialized ability characteristics of the concern
 Command (Activates Org structure, knowing personnel thoroughly, setting a good
example, conducting audits, establishing unity of direction, fostering initiative,
loyalty)
 Coordination (Harmonizing the various activities in rightful proportions, ensuring
units know their roles and tasks, horizontal communication often is necessary)
 Control (Checking operational realities against plans, monitoring, correcting
deviations, shod be impartial and objective)

In general; no need to know every rule. However, know what 3 principles are the most
important

 Katz and Kahn’s Open-Systems Theory

 Particularly the 5 subsystems
 The Meaning of Meaning
 Particularly Richards’ suggested remedies for miscommunication
 Argyle’s Equilibrium Theory
 Nonverbal Expectancy Violations Theory
 Attribution Theory
 Generally, what is an attribution?
 Kelley’s 3 components that help managers make decisions about employees
 Attribution Styles
 Tri-Component Model
 Content vs. Process Theories of Motivation
 Hierarchy of Needs
 ERG Theory
 The 3 levels and the Frustration–Regression Principle
 Two-Factor Theory
 What is job content vs. job context?
 Job Characteristics Model
 What are the 5 core job characteristics?
 Three-Needs Theory
 What are the 3 types of motivations?
 Expectancy (VIE) Theory
 Equity Theory
 Goal-Setting Theory
 Satisfaction–Performance Motivation Model

Possible Essay Questions:

1. Why did the Hawthorne Studies have an impact on the study of OB?
2. Describe Kelley’s Attribution Theory Model and explain how it “allows” managers to
justify workers’ behaviors.
3. How does Satisfaction–Performance relate to Expectancy and Equity theories?
4. How can goals be determined under Goal-Setting Theory? What are management’s
responsibilities?
5. Why is Reinforcement Theory included in discussion about motivation?