Organizational

Behavior

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 O + B = OB

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 People Are an
Organization’s Most
Important Assets

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 What is an Organization?

 Organizations are simply groups with

two or more people that share a certain
set of goals and meet at regular times.

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 Behavior
 This behavior occurs in organizations.

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 What is an Organization?
An organization is a
collection of people
who work together
to achieve individual
and organizational
goals.

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What is Organizational Behavior?
Organizational behavior
(OB) is the study of
factors that affect how
individuals and groups act
in organizations and how
organizations manage their
environments.

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 What is Organizational Behavior?

 Definition: The study of human

behavior, attitudes, and performance
in organizations.
 Value of OB: Helps people attain the competencies needed to become effective
employees, team leaders/members, or managers
 Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge
needed by an individual to be effective in most professional and managerial
positions

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What is Organizational Behavior?

 Organizational Behavior is the study of

human behavior in the workplace, the
interaction between people and the
organization with the intent to
understand and predict human behavior.

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 What is OB?
 The study of human behavior in the workplace
 The investigation of the impact that individuals, groups and
structure have on behaviour within organizations, for the
purpose of applying such knowledge toward improving an
organization’s effectiveness
 OB theories have widespread applications – among other
things, knowing these theories can help you to:
 Promote the well-being of employees
 Evaluate solutions proposed by consultants and managers
 Predict what will happen in your organization
 Influence the direction of your organization

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 Organizational Behaviour
 . . . a field of study that investigates the
impact that individuals, groups and
structure have on behaviour within
organizations, for the purpose of applying
such knowledge toward improving an
organization’s effectiveness.

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 Why Do We Study OB?
 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 some of the time
 Some of you may want to be managers or
entrepreneurs

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WHY OB

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4

Insert Figure 1.1 here

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 Characteristics
 Goal-Oriented

 Levels of analysis

 Human tool

 Satisfaction of employees need

 A total systems approach 15

 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 people during the war on terror
 Managing Workforce Diversity
 Embracing diversity
 Changing U.S. demographics
 Implications for managers
 Recognizing and responding to differences

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Major Workforce Diversity
Categories
Gender
National
Disability Origin

Age
Non-Christian
Race

Domestic
Partners

E X H I B I T 1–4

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 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

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 Today’s Challenges in the
Canadian Workplace
 Challenges at the Individual Level
 Job Satisfaction
 Empowerment

 Behaving Ethically

 Challenges at the Group Level

 Working With Others
 Workforce Diversity

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 Today’s Challenges in the
Canadian Workplace
 Challenges at the Organizational Level
 Productivity
 Developing Effective Employees
 Absenteeism
 Turnover

 Organizational Citizenship

 Competition From the Global Environment

 Managing and Working in a Global Village

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 Productivity
 Productivity
 A performance measure including effectiveness and
efficiency
 Effectiveness
 Achievement of goals
 Efficiency
 The ratio of effective work output to the input
required to produce the work

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 Effective Employees
 Absenteeism
 Failure to report to work
 Turnover
 Voluntary and involuntary permanent withdrawal from the
organization
 Organizational citizenship behaviour
 Discretionary behaviour that is not part of an employee’s
formal job requirements, but is helpful to the organization

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 Exhibit 1-2
Toward an OB Discipline
Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual

Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology
Formal organization theory Study of
Organizational technology Group Organizational
Organizational change Behaviour
Organizational culture

Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational culture
Organizational environment

Conflict
Political science Intraorganizational politics
Power

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 The Rigour of OB
 OB looks at consistencies
 What is common about behaviour, and helps
predictability?
 OB is more than common sense
 Systematic study, based on scientific evidence
 OB has few absolutes
 OB takes a contingency approach
 Considers behaviour in context

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 Beyond Common Sense
 Systematic Study
 Looking at relationships, attempting to attribute
causes and effects and drawing conclusions based on
scientific evidence
 Behaviour is generally predictable
 There are differences between individuals
 There are fundamental consistencies
 There are rules (written & unwritten) in almost every
setting

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Exhibit 1-1 Challenges Facing the
Workplace
Organizational Level
• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village

Group Level
• Working With Others
• Workforce Diversity Workplace

Individual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically

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 Exhibit 1-3
Basic OB Model, Stage I

Organization systems level

Group level

Individual level

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 Exhibit 1-4
Basic OB Model, Stage II
Human resource
policies and
practices

Organization Work design

Organizational
structure and
culture
and design technology

Organization
Systems Level

Change and Group

Leadership
stress decision making

Group Work
Communication Productivity
structure teams

Absence

Turnover
Other Power and
Conflict Human
groups politics
Group Level output
Satisfaction

Organizational
commitment

Biographical
characteristics
Workplace
interaction

Personality Perception

Motivation Individual
Values and
attitudes decision making

Human Individual
Ability Differences
input
Individual Level
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 Exhibit 1-5
Competing Values Framework
Flexibility
Internal Focus

External Focus
Control
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 Competing Values Framework
 Internal-External Dimension
 Inwardly toward employee needs and concerns and/or production processes and
internal systems
or
 Outwardly, toward such factors as the marketplace, government regulations, and
the changing social, environmental, and technological conditions of the future
 Flexibility-Control Dimension
 Flexible and dynamic, allowing more teamwork and participation; seeking new
opportunities for products and services
or
 Controlling or stable, maintaining the status quo and exhibiting less change

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 Basic OB Model
Organization systems level

Group level

Individual level
Independent Variables
Individual-Level Variables (Leadership, Power, Attitudes)
Group-Level Variables (Diversity, Groups, Teams, Conflict)
Organizational Systems-Level Variables (Culture, Structure, Design,
Change)

Dependent Variables
Productivity Absenteeism Turnover Job Satisfaction
Motivation Well-being Safety Effectiveness
Efficiency Ethics

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 Summary & Implications
 OB is a field of study that investigates the impact of
individuals, groups, and structure on behaviour within an
organization.
 OB focuses on improving productivity, by understanding
employees and why they behave in the ways they do.
 Behavior of organizations, groups, & individuals can be
predicted, but you have to understand the circumstances.
 To study OB, one needs to move from an intuition and
common sense approach to a systematic study.
 OB uses systematic study to improve predictions of
behaviour.

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 Why Study
Organizational Behavior?
 Success isn’t a destination – it’s a process. And the margin
between successes is often small. Learn the principles of
defining and achieving success in your own life and begin the
journey today.
 This journey begins with understanding the behaviors between
the leader, the followers, and the organization.
 This is also a leadership course of study. To be successful leader,
one needs to understand the behaviors of people, organizations,
and the situation.

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 Levels of Analysis
 Organization level
 Group level
 Individual level

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 Basic OB Model
 Dependent Variables
 Independent Variables

Organizational Level PRODUCTIVITY

ABSENTEESIM
Group Level

TURNOVER
Individual Level
JOB SATISFACTION

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 Elements of ob
People
.Individuals
.Group

Environment
.Government Structure
.Competition .Jobs OB
.Social .Relationship

Technology
.Machinery
.Copm. hard & soft.

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5

Insert Figure 1.2 here

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Contribution to various
disciplines of ob

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 Contributing Disciplines to the
OB Field
 Psychology
 Sociology
 Social Psychology
 Anthropology
 Political Science

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 Perception
Personality
Motivation
Psychology Training Individual
PA
Job Satisfact.

Group ,Team
Sociology Communi.
Conflict
Org.change,
structure

Social Attit.& beh. Group Study of OB

Psychology Change
Group process &
decision making

Anthropology
Indi.Org.culture &
Env.

Organizations
Political science Org. Power
Politics
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 ORIGINS OF ORGANIZATIONAL
BEHAVIOR
 Psychology. Psychological theories have helped
us explain and predict individual behavior.
Many of the theories dealing with personality,
attitude, learning, motivation, and stress
have been applied in Organizational Behavior to
understand work-related phenomena such as job
satisfaction, commitment, absenteeism,
turnover, and worker well-being.

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 Sociology
 Sociologists, studying the structure and function of small
groups within a society have contributed greatly to a more
complete understanding of behavior within organizations.
Taking their cue from Sociologists, scholars in the field of
Organizational Behavior have studied the effects of the
structure and function of work organization on the behavior
of groups, as well as the individuals within those groups.
 Many of the concepts and theories about groups and the
processes of communication, decision making, conflict,
and politics used in Organizational Behavior, are rooted in
the field of Social Psychology.

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Contributing Disciplines to the OB Field (cont’d)

Sociology
The study of people in relation to their fellow human
beings

E X H I B I T 1–3 (cont’d)

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Contributing Disciplines to the OB Field (cont’d)

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

E X H I B I T 1–3 (cont’d)

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 Political Science
 The field of Political Science has helped us
understand how differences in preferences and
interests lead to conflict and power struggles
between groups within organizations.

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 Anthropology
 Organizational Behavior draws on the field of
Anthropology for lessons about how cultures (
corporate culture) and belief systems develop.

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Contributing Disciplines to the OB Field (cont’d)
Anthropology
The study of societies to learn about human beings and
their activities

E X H I B I T 1–3 (cont’d)

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8

Managerial Roles
 Manager: Any person who supervises one or more
subordinates.
 Role: A set of behaviors or tasks a person is
expected to perform because of the position he or
she holds in a group or organization.
 Managerial roles identified by Mintzberg (see
Table 1.1):
Figurehead Leader
Liaison Monitor
Disseminator Spokesperson
Entrepreneur Disturbance handler
Resource allocator Negotiator
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9

Managerial Skills
 Conceptual Skills: The
ability to analyze and diagnose
a situation and distinguish
between cause and effect.
 Human Skills: The ability to
understand, work with, lead,
and control the behavior of
other people and groups.
 Technical Skills: Job-specific
knowledge and techniques.

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10

Challenges for Organizational Behavior

and Management
❶ Using new information technology to enhance
creativity and organizational learning.
❷ Managing human resources to increase
competitive advantage.
❸ Developing organizational ethics and well-being.
❹ Managing a diverse work force.
❺ Managing the global environment.

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personality

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 Nature of Personality

 Personality traits

 Reflects individuals differences

 Personality can change

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 determinants
Individual
personality

Family &
Biological Cultural
Social

Situational Others

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 biological

 Heredity

 Brain

 Physical features

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Cultural factors

Situational factors

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 Family & Social Factors

Home & Family environment

Social group

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 Others

Interest

Motives

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Big Five Traits of Personality

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 Agreeableness

 Extroversion

 Emotional stability

 Conscientiousness

 Openness

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 agreeableness
 Agreeableness

High Low

Agreeableness- Cooperative, warm, caring,

good-natured, trusting

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 Extroversion
 Extroversion

Extroversion Introversion

Extroversion- Social, outgoing, talkative,

assertive, forgiving, understanding

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 Emotional stability
 Emotional

High Low

Emotional stability- happy, unworried,

secure, calm

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 Conscientiousness
 Conscientiousness

High Low

Conscientiousness- Dependable, hardworking,

organized, self-disciplined,
responsible

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 Openness
 Openness

More Less

Openness- Creative, Cultured, Flexible,

imaginative

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perception

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 Human being are constantly attacked by
numerous sensory including noise, sight,
smell, taste etc.

 The critical question is the study of

perception is “why the same universe is
viewed differently by different persons?”

 The answer is the perception. Different

people perceive the universe differently.

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 Perception is the process through which
the information from outside environment
is selected, received, organize and
interpreted to make it meaningful to us.

 Acc. To the Joseph Reitz:

perception includes all those

processes by which an individual receive
information about his environment –
seeing, hearing, feeling, tasting and
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 process

Perceptual Inputs Perceptual Mechanisms Perceptual

Outputs

Receiving Selecting
Individual Actions

Organizing Interpreting

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 Figure and Group-Figure is perceived to
dominate and more attention is paid to it,
while ground is given less attention and is
kept in the background.

 Simplification- Whenever people is

overloaded with the information, they try
to simplify it to make it more meaningful
and understandable. Perceiver subtract less
salient information and concentrate on
more important one.

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 action
 The last phase of perceptual process is
that acting in relation to what has been
perceived. This action may be covert or
overt.

 Covert- Change in attitude, opinions,

feeling, values and impression formation
resulting from the perceptual input.

 Overt- The overt action may be in the 70

 Factors that influence the
perception
Factors in situation

Social setting,
Organizational setting

Factors in perceiver

Needs and Motives,

Experience, Current
Perception
psychological state

Factors in target

Status, Size,
Contrast,

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 Internal factors
 Needs and Motives- People’s perception is
determined by their inner needs. A feeling of
tension and discomfort when one thinks he is
missing something or requires something.
Similarly people with different needs selects
different items to respond.

 Experience- It have a constant bearing on

perception. Successful experience boost the
perception ability whereas failure erodes self- 72
 Current psychological state- The
emotional and psychological states of an
individual are likely to influence how
things are perceived. If a person is
depressed, he is likely to perceive the same
situation differently than if he is elated.

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 External factors

 Status- Perception is also influenced by

the status of the perceiver. High status
people can exert influence on perception
of employees than low status people. For
example if we introduce the CEO or the
peon of the organization then w
remember only the name of the CEO.

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 Contrast- Stimuli contrast with the
surrounding environment. A contrasting
effects can be caused by color or any other
factor that is unusual.

 Size- The bigger size of the perceived

stimulus, the higher is the probability that
it is perceived. Size attracts the attention
of an individual.
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