ORGANIZATIONAL BEHAVIOR

Unit – 1:Introduction

Course Instructor:
Dr. Narendra Kumar Shrestha Tribhuwan University
 UNIT – 1 : TOPIC BREAKDOWN
 Concept of Organizational Behavior;

 Foundations of Organizational Behavior;

 Contextual Perspective of OB - HR Approach, Productivity

Approach, Interactionalism Approach, Contingency
Approach, System Approach;

 Environmental Context of OB - Globalization, Diversity and

Ethics;

 Theoretical Frameworks - Cognitive Framework, Behaviorist

Framework, Social Cognitive Framework
 Objectives of the Course
• It‟s main objective is to maintain higher
quality of work life balance, productivity,
adaptability, and effectiveness of human
begins.
• It accomplishes these by changing
attitudes, behaviors, values, strategies,
procedures, and structures, so
organizations can adapt to competitive
actions, technological advances, and the
fast pace (speed) of change within the
environment at the organization.
 Objectives of the Course
• It enables us to build better relationship
by achieving human objectives,
organizational objectives and social
objectives. It includes:
Organization Behavior as a Tools

Insert Figure 1.1 here

Organization Behavior as a Tools

Insert Figure 1.1 here

 What is Organization?

Organizations are social entities that are goal-oriented; they

are designed as deliberately structured and coordinated
activity systems, and are linked to the external environment.

 All organizations have a management structure that

determines relationships between the different activities
and the members, and subdivides and assigns roles,
responsibilities, and authority to carry out different
tasks. Organizations are open systems-they are
affected by their environment.
 Behavior
• Behavior is a series of activities that a person does. It is
the sum total of human activities that could be observed
by others.

• The productivity of all the resources are dependent on

productivity of human resources.

• Manager can acquire, change other resources as per

their desire, but this is not possible in case of human
resources.

• Managers need to educate, train and motivate them and

develop their interpersonal skills if they are going to be
effective in their jobs/ working station.
 Interpersonal Skills

These key skills:

• Communication
• Presentation
• Critical thinking
• Collaboration (team work)
 Organizational Behavior (OB)
• Organizational behavior
(OB) is a field of study that
investigates the impact that
individuals, groups, and
structure have on behavior
within an organization, and
it applies that knowledge to
make organizations work
more effectively.
• OB is the study and
application of human side
of management .
• OB is concerned with the
study of human behavior at
work.
 Cont…
• OB represents the behavioral approach to
management , not the whole management.
• OB is concerned with people‟s thought,
feelings, emotions and actions in a work
setting.
• Specifically, OB focuses on how to
improve productivity, reduce, absenteeism,
turnover, and unusual workplace behavior
and increase organizational citizenship
behavior and job satisfaction.
 Cont…
• Organizational behavior is the study and
application of knowledge about how
people act within organization.
• It involves many activities which is
essential for improving job performance,
increasing job satisfaction, promoting
innovation, and encouraging leadership.
• It provides insights to improve people
skills of managers.
• Finally, OB can offer managers guidance
in creating an ethically healthy work
climate
 Important Definitions of OB

• F. Luthans, “ Organizational behavior is directly

concerned with the understanding , prediction,
and control of human behavior in organizations”.

• McShane&Glinow,“ Organizational behavior is

the study what people think, feel, and do in and
around organizations.”

• Stephen P. Robbins , “ Organizational Behavior is

the field of study that investigates the impact that
individuals, groups and structures have on
behavior within organization for the purpose of
applying such knowledge towards improving an
organization’s effectiveness.”
 Cont…

• Moorhead and Griffin, “ OB is the study of

human behavior in organizational setting , the
interface between human behavior and the
organization, and the organization itself”.

• L. L. Cummings,“ Organizational behavior is the

study and application of knowledge about how
people act within organization. It is a human tool
for human benefit. It applies broadly to the
behavior of people in all types of organizations
such as business, government, schools and service
organizations. Wherever organizations are , there
is a need to understand organizational behavior.”
 Cont…
Keith Devis, “Organizational behavior is the study
and application of knowledge about human
behavior in organizations as it relates to other
system element, such as structure, technology and
the external social system”.

J. Ivancevich and M.Matteson, “The study of human

behavior, attitudes and performance within an
organizational setting; drawing on theory, methods,
and principles from such disciplines as psychology,
sociology, and cultural anthropology to learn about
individual perception, values, learning capabilities, and
actions while working with groups and within the total
organization; analyzing the external environment’s
effect on the organization and its human resources,
missions, objectives and strategies.’’
Foundations of OB
Historical Evolution/ Development Perspective
Stage 1: Historical origins (Pre-Scientific Management Era):
(i) Robert Own: Welsh Factory Owner-1800 AD
• Emphasis Human Needs of Employees
• Refuse to Employ Young Children
• Improve Neatness , Cleanliness and Working Environment
• Called “Father of Personnel Administration”.
(ii)Andrew Ure:
Published “The Philosophy of Manufacture in 1835 AD”.
• Recognize about Human Factor
• Provide hot tea, Medical Treatment, Sickness Payment and
Fan Apparatus (Equipments) for Ventilation
• Treat to Workers as Human Beings as against the Slavery
System which Increases the Industrial Productivity &
Employees Job Satisfaction
Historical Evolution/ Development Perspective

Stage 2: Scientific Management Era (Early 1900s)

• FW Taylor in US: Called “Father of Scientific
Management”.
• Advocate about Behavior Aspects of
Management & Contributed a lot of the Well-
Beings of Employees.
• Give Right Workers for Right Jobs.
• Sufficient Training to do Jobs.
• Standardization of Equipment.
• Applying Piece Rate System of Remuneration.
Historical Evolution/ Development Perspective

Stage 3: Howthorne Studies Era-(1924-1932):

• Elton Mayo & His Harvard Associates Conducted a Study in
the area of Human Behavior at Work. The Study was
conducted at Western Electric Company, Howthorne Plant.
• 7 Years to Complete it.
• Increase Productivity by Humanizing the Organizational
through Behavior Experimental.
• Conducted for Separate Experiments of Behavior Studies:
(i) Illumition (Lighting) Experiment ( 1927-1028): To Find
out the Effect of Illumition (Lighting) on workers‟
Productivity.
(ii) Ralay Assembly Test Room Experiments (1927-1028):
• Effects of Changes in Number of Working Hours &
Related Working Condition on Workers Productivity.
Historical Evolution/ Development Perspective

Stage 3: Howthorne Studies Era-(1924-1932):

(iii) The Interview of Workers ( 1928-1932): To Find Out
Attitudes & Sentiments towards Work.
(iv) Bank Wiring Room Experiments (1993-1932): To Find
Out The Social System (Functioning of Group) in the
organizations.
• Called “Father of Human Relations”.
Historical Evolution/ Development Perspective

Stage 4: Human Relations Movement Era (1950):

(Elton Mayo & his Associates): Find Out Foundation of
Human Relations Movement.
Howthorne Study:
• Understand the Human Side of Organization.
• Social Forces to Improve Human Climate in
Organization (like Trade Union, Minority Group).
• Make Best Working Environment for Its Effective
Operation (eg. Group size, Technology Upgrading,
Specialization etc.)
Historical Evolution/ Development Perspective

Stage 5: Theory X and Theory Y (1957):

Douglas McGregor’s Theory X and Theory Y published
in 1957.
Theory X:
• Explain about traditional autocratic assumptions
about people.
• Persons dislike work and will avoid it if possible.
• Persons lacks responsibility, little ambition & stress
security.
• Coerce/ Force, controlled and threaten with
punishment to get them to work,
Historical Evolution/ Development Perspective

Stage 5: Theory X and Theory Y (1957):

Douglas McGregor’s Theory X and Theory Y published
in 1957.
Theory Y:
• More behaviorally based assumptions about people.
• Positive, participating and democratic.
• Work is as natural as play or rest.
• Self-direction & control to achieve objectives.
• Learn to accepts & seek responsibility.
• Committed, imaginary, and creativity power.
Historical Evolution/ Development Perspective

Stage 6: OB in Modern Era (Today):

• Systematic study of human/ organizational behavior.
• Study of structure, technology, people and external
environment.
• Understand, predict, and manage the behavior of
people in real work life.
• Analyze the behavior of people at different levels i.e.
individual, group, & organizations.
• Apply aspects of organizational behavior in HRM .
• Study of social science such as sociology, psychology,
anthropology, economics, political science and
industrial engineering.
• Test book published in 1944 AD and mature field of
study in the late 1950s -1960s.
Foundation of OB/ Basic Assumptions of OB

BO has certain basic foundations revolving

around the nature of people and nature of
the organization. The basic foundations of
OB are :
A. Nature of People
1. Individual Difference
2. Selective Perception
3. A Whole Person
4. Motivated Behavior
5. Desire for involvement
6. Value of the Person (Human Dignity)
 Foundation of OB

B. Nature of Organization
1. Social System
2. Mutuality of Interest
3. Ethical Treatment
 A. Nature of People
1. Individual Difference:
Each and every person in the world is
individual different; it‟s experiences also
different. Each person‟s DNA profile is
different. From the day of birth, each
person is unique. There is no one
standard way of dealing with employees.
Management should consider carefully
the law of individual difference.
 A. Nature of People

2. Selective Perception:
People look at the world and see things
differently. Two people may view the
same object in two different ways. They
may differ in their personalities needs,
demographic factors (Age, Gender,
Education, Religion, Income Status,
Marital status), past experience and so
on. Each person has a unique way to see
organize and interpret things.
 A. Nature of People

3. A whole Person:
OB cares about the effect of job on the
whole person. Home life is not totally
separate from their work life. Similarly,
emotional conditions are not separate
from physical conditions. Management
needs to care about the whole person.
Authority should organize them inside
and outside of firm.
 A. Nature of People

4. Motivated Behavior:
An organization with sophisticated
technology and equipment can‟t work if
the human resources aren‟t motivated
and guided properly. So the authority
should inspire or more motive the human
resources by providing different kinds of
facilities.
 A. Nature of People

5.Desirefor Involvement
Today many employees are actively
seeking opportunities at work to become
involved in relevant decisions. They
want to make a contribution by their
talents and ideas for the organization. So
organization needs to provide
opportunities for their meaningful
improvement.
 A. Nature of People

6. Value of the Person (Human Dignity):

People deserve to be treated differently
from other factors of productions ( Land,
Capital, and Technology) because they
are of higher order in the universe. They
want to be treated with caring, respect
and dignity. They want to be valued for
their skills, knowledge and abilities.
Organization should provide
opportunities to the worker to develop
themselves.
 B. Nature of Organization

1. Social System:
Organizations are social system. People
have psychological needs; they also have
social roles and status. Their behavior is
influenced by their group as well as by
their individual drives. The idea of social
system provides a frame work for
analyzing organizational behavior issues.
It helps to make organizational behavior
problems understandable and
manageable.
 B. Nature of Organization

2. Mutuality of Interest:
Organization needs people and people
need organization to fulfill common
mutual interest. It facilitates integrated
efforts of employees and employer to
achieve organizational goal through
mutual cooperation.
 B. Nature of Organization

3. Ethical Treatment:
Ethical treatment of employees are
necessary to succeed for organization. It
deals with right or wrong behavior of
employees. Organizations have
established their own code of conduct of
ethics, statement of ethical values,
provide ethical training, rewarded
employees for notable ethical behavior
and so on.
Key Elements of Organizational Behavior

• Four key elements OB viz., people,

structure, technology and external
environment, First three elements are
related with internal environment of
OB.
Cont…
 Cont…
1. People :
• Without people, there can not be organization.
• They make up the internal social system of the
organization.
• People consist of individuals and groups.
• Groups may be formal or informal, small or
large, interrelated and complex.
• People are dynamic in nature as they interact
with each other and also influence each other.
• Groups may form, change and disband (break
up) .
• Organizations are established to serve the
people.
 Cont…
2. Structure :
• Everything in the world has a structure.
• For example, human body, tree, house and even the
book you are reading now has its own types of
structure.
• In the organization, structure defines the roles and
relationship of people.
• It leads to division of work .
• Some may be executives; others may be
supervisors, assistants, persons and workers.
• All of these people are related to each other to
accomplish the objectives in a coordinated manner .
• The structure clarifies the authority responsibility
relationships
 Cont…
3. Technology :
• Without technology, work would be either
difficult or even impossible.
• It provides the economic and physical
resources to make peoples job easy.
• The people are given assistance of machines,
tools, methods, and resources.
• The nature of technology is contingent/
dependent upon the nature of organizational
tasks and scale of operations.
• Technology may put restrictions on the
freedom of people.
 Cont…
4. External Environment :
• An organization operates in a large social system- the
external environment.
• Organizations are influenced by external environment
which includes socio- culture, economic, political,
legal, technological, and geographical forces.
• These forces influence people‟s altitudes, motives and
working conditions in an organization in many ways.
• Similarly, the organization also has an influence over
the environment but the degree of influence is less.
• The organization imports inputs from the environment
and exports its outputs to the environment.

Source: Davis, 1993: 3-4.

 Descriptions

The definition has three main elements;

• First ,organizational behavior is an
investigative study of individuals and
groups.
• Second, the impact of organizational
structure on human behavior.
• Third, the application of knowledge to
achieve organizational effectiveness.
These factors are interactive in nature and
the impact of such behavior is applied to
various systems so that the goals are
achieved.
 Descriptions

• The value system, emotional intelligence,

organizational culture, job design and the
work environment are important causal
agents in determining human behavior and
its impact on productivity.
• An appropriate organizational culture can
modify individual behavior.
• It also involves encouragement a team
spirit and motivation so that the
organizational objectives are achieved.
 Characteristics of OB

• Interdisciplinary
• Complex Study
• Goal Oriented
• System and Level-wise Study
• Dynamic
Organization Behaviour System
Goals of Organization
 Cont…

• Describe
• Understand
• Predict
• Control
Knowledge of OB should enable you
to explain and predict human behavior
in organizations and even control it if
appropriate.
 Foundations of
Organizational Behavior
The main contributors in the field of OB

• F.W. Taylor and Scientific Management

• Mary Parker Follett Students’ work: Check the

extra word file mailed to
you on these four OB
• Hawthorne Studies contributory concepts, go
through the concepts, and
come prepared for class
• Theory X and Y demonstration.
Disciplines that Contribute to the Field of
Organizational Behavior

Organizational Behavior is an applied

behavioral science and involves
integration of studies undertaken in
behavioral disciplines such as
psychology, sociology, anthropology,
social-psychology and political
science.
Disciplines that Contribute to the Field of
Organizational Behavior
1. Psychology- “Psychology is the science that
seeks to measure, explain, and sometimes
change the behavior of humans and other
animals.” The study of human behavior, mental
and emotional processes.
2. Sociology- “Sociology studies people in
relation to their fellow human being.” The study
of the structure and development of human
society.
3. Anthropology- “ Anthropology is the study of
societies to learn human begins and their
activities.” It is the study of human society &
its origins , development, customs and beliefs
Disciplines that Contribute to the Field of
Organizational Behavior
4. Social Psychology- “Social psychology helps
understanding inter-personal behavior.” It is a blend of the
concepts from psychology and sociology. The branch of
psychology that deals with investigating the behavior of
individuals in society i.e. people‟s thoughts, feelings, and
behaviors are influenced by the actual imagined, or implied
by the others.
5. Political Science- “Political science studies the behavior
of individuals and groups within a political environment.” It
is the social science which deals with system of governance,
and the analysis of political activities, political thoughts,
ideology and political behavior. It extensively with the
theory and practices of politics which is commonly thoughts
of as determining of the distributions of power and
resources.
Disciplines Contribute to the Field of OB
 The Importance of the study of
Organizational Behavior

• Road map to our lives in organizations

• Helps us understand and predict organizational
life
• Influences events in organizations
• Helps understand self and others better
• Helps a manager get things done better
• Helps maintain cordial relations
• Highly useful in the field of marketing
 The Importance . . . (contd.]

• Helps in career planning and development

• Helps sustain the temp of economic growth

• Helps in controlling and directing behavior

• Effective leadership

• Interpersonal dynamics have been evaluated by OB

• Organizational climate takes system perspective

• Organizational adaptation or perceived changes

Levels of Organizational Behavior (OB) Analysis
Organizational behavior (OB) analyze the
behavior of people at three levels.
1.Individual Level Analysis:
• The major contributing discipline at this
level is psychology.
• The individual level analysis includes the
characteristics and behaviors of employees
as well as the thought processes that are
attributed to them, such as motivation,
perceptions, personalities, attitudes, and
values.
 Cont…
2.Group (Team) Level Analysis:
• Major contributing disciplines at this
levels are sociology, social psychology
and anthropology.
• Group level analysis focuses at the way
people interact. This level includes
group dynamics, decisions, power,
organizational politics, conflict,
leadership, communication etc.
 Cont…
3. Organization System Level Analysis:
• Major contributing discipline at this levels
are sociology, anthropology, and political
science.
• The focus of analysis at this level is on how
people structure their working relationships
as well as on how organizations interact with
their external environment forces.
• Major variables for analysis are
organizational structure , culture, power and
politics, and change and development.
 Emerging Trends in ON
• Human Focus
• Use of Model
• Considerations to Different Ideas
• Mutual Goal
• Self Control
• Employee & Management Development
• Competent Managers
Challenges and Opportunities for OB
Critical behavior Issues Confronting the
Managers:
Organizational behavior provides solution
as well as insight towards solution to many
challenges & opportunities, which are
faced by the organizations. Some of the
important roles performed by
organizational behavior in management of
business are as follows:-
Challenges and Opportunities for OB/ Critical Behavioral
Issues Confronting the Managers
1. Globalization
2. Managing Work Force Diversity-
3. Improving Quality and Productivity-
4. Improving Customer Service
5. Improving People Skills-
6. Innovation and Change-
7. Work Life Balance-
8.Promoting/ Improving Ethical Behavior
9. Creating a Positive Work Environment
 Cont…
1.Globalization:-
Due to globalization, organizations is no longer
confined to one particular country. The Manager‟s
job is changing with the expansion of the
organizations across the national borders.
Example, Volkswagen builds its cars in Mexico,
Mercedes and BMW in South Africa, Honda
Motor in Japan etc. Due to globalization, the
management has to deal with the problems of
unfamiliar languages, laws, work ethics,
management styles etc. The functions of hiring,
training, etc must acquire a global perspective. OB
helps the management to become flexible and
proactive and enables it to execute the
organization on a global scale.
 Cont…
2. Managing Work Force Diversity:-
Organizations are a heterogeneous mix of
people in terms of age, gender, race etc.
Managing the workforce diversity has become
a global concern. Managers have to deal with
individuals and groups belonging to different
ethnic cultures. They have to exercise control
and channelize behavior in the desired
direction. OB helps the managers to
effectively deal with work force diversity by
promoting its awareness, increasing diversity
skills, encouraging culture and gender
diversity.
 Cont…
3. Improving Quality and Productivity:-
Industries are facing the problem of excess
supply. This has increased competition largely.
Almost every manager is confronting the same
problem of improving the productivity, quality
of the goods and services their organization is
providing. Programs such as business process
reengineering, and total quality management are
being implemented to achieve these ends. OB
helps the managers to empower their employees,
as they are the major forces for implementing
this change.
 Cont…
4. Improving Customer Service:-
Most of the employees work in service sector.
The jobs in the service sector, is very
demanding. It requires continuous interaction
with the organizations clients i.e. the
customers. Management has to ensure that the
employees do everything to satisfy the
customers of the organization. The attitude and
behavior of an employee affects the customer
satisfaction. OB helps the managers to improve
customer service and organizational
performance.
 Cont…
5. Improving People Skills:-
Organizational behavior helps in better
management of business as it helps in
improving the knowledge & skills of the
people. It provides insight into the skills
that the employees can use on the job such
as designing jobs and creating effective
teams.
 Cont…
6. Innovation and Change:-
Organizational needs to constantly innovate to succeed.
Innovation is about making things better, faster or cheaper
than your competition. It drives ongoing improvements
and may help unleash a new idea that change the rules and
changing processes or creating more effective processes.
It can change business model and adapting to change in
working environment to deliver better products or
services. So that organizational behavior help to apply
this techniques to promote innovation and change by
improving employees‟ creativity.
 Cont…
7. Work Life Balance:-
Organizations that do not help employees to
achieve work life balance which will not be
able to retain their most talented employees.
Only organizational behavior helps by
designing flexible jobs, which can help
employees deal with work life balance
issues.
 Cont…
8.Promoting Ethical Behavior:-
Sometimes organizations are unable to
define right and wrong in the situation of
ethical dilemma. But OB helps an important
role to the management for creating best
working environment, which are ethically
healthy and increase work productivity, job
satisfaction, job environment and
organizational citizenship behavior.
 Cont…
9. Creating a Positive Work
Environment:-
OB helps to change positive attitude with
respect, trust, patience and encouragement for
the employees in the organization which give
positive reinforcement, gratitude, spread
happiness, motivate to others, encourage
positive thinking, change the way of response
to the customer and making peaceful working
environment in today‟s business.
MODELS OF ORGANIZATIONAL BEHAVIOUR
• Models are the techniques which help us to understand
complex things and ideas in a clear manner. they are
frameworks or possible explanations why do people behave as
they do at work. There are so many models as many are
organizations. Varying results across the organizations are
substantially caused by differences in the models of
organizational behavior. All the models of organizational
behavior are broadly classified into four types: Autocratic,
Custodial, Supportive and Collegial. O.B. is the study of
human behavior in organizations, the interface between
human behavior and the organization and the organization
itself. The following models are:
MODELS OF ORGANIZATIONAL BEHAVIOUR
1. Autocratic Model
2. The Custodial Model
3. The Supportive Model
4. The Collegial Model
5. System model
 1. The Autocratic Model
• The basis of this model is power with a managerial
orientation of authority.
• The employees in turn are oriented towards obedience
and dependence on the boss.
• In case of an autocratic model, the managerial
orientation is doctorial.
• The managers exercise their commands over
employees.
• The managers give orders and the employees have to
obey the orders.
• Thus, the employees orientation towards the
managers/bosses is obedience.
 2. The Custodial Model
• The basis of this model is economic resources with a
managerial orientation of money.
• The employees in turn are oriented towards security
and benefits and dependence on the organization
• The employees need that is met is security.
Performance result is passive cooperation.
• Under this model, the managers think how to develop
better employee satisfaction and security.
• This model is partnership with a managerial
orientation of teamwork.
• The employees are oriented towards responsible
behavior and self-discipline.
• It brings security, satisfaction& employees productivity
 3. The Supportive Model
• The basis of this model is leadership with a managerial
orientation of support.
• The employees in turn are oriented towards job performance
and participation.
• The employee need that is met is status and recognition.
• This model is based on leadership, not on money or authority.
• It is the managerial leadership style that provides an
atmosphere to help employees grow and accomplish their
tasks successfully.
• The managers believe that employees become ready to share
their innovative ideas, creativity, positivity & responsibility,
to develop attitude for contributing their effort themselves.
• Thus, under this approach, the management's orientation is to
support the employee's job performance for meeting both
organizational and individual goals.
 4. The Collegial Model
• The collegial model is an extension of the
supportive model.
• The word collegial drives from the word 'college„
which means a group of persons having the
common purpose, it relates to a team work concept.
• Under this model, management are ready to build a
feeling of partnership among with employees for
improving better working environment in an
organization.
• In this model, employees feel, managers as joint
contributors to organizational success rather than as
bosses.
 5. System model
• The final OB model is referred to as the system model. It is
most contemporary model of the five models.
• In the system model, the organization looks at the overall
structure and working team & environment, and considers that
individuals have different goals, talents and potential therefore,
managers are ready to fulfill the competent personality in the
appropriate position to achieve organizational as well as
individual goals.
• The intent of the system model is to try and balance the goals
of the individual with the goals of the organization.
• Individual obviously wants good pay, promotion, positive work
environment, job security and self steam where the
organization adds value to the community and/or its customers.
 The Contextual Perspectives of OB
Several contextual perspective have increasingly influenced OB. The
approaches are given bellow;
1. HR approach
2. The contingency approach
3. The productivity approach
4. System approach
5. Interactionism approach
The Contextual Perspectives of OB

Human Resource Approach

• People are central resource

• To develop high level of competency

• People contribute to the success of the

organization

• It’s also called supportive approach

The Contextual Perspectives of OB
 The Contextual Perspectives of OB
Productivity approach :
The ratio of output to input is measured of an organization
effectiveness. Productivity measured in terms of economic
inputs and outputs.
 The Contextual Perspectives of OB
Systems Approach to Organizations :
System is a set of interrelated components. This approach
gives manager a way of looking at the organization in totality
or as a whole individual, group and social system.
 The Contextual Perspectives of OB

Interactionist approach :

Individuals, groups, and the

organization are presumed
to interact continuously
with the situation at a
given point of time.
 The Environmental Context of OB
Globalization and OB

What is Globalization?

 Globalization is the free movement of goods,

services and people across the world in a seamless
and integrated manner.
 Globalization means to increase their base of
operations, expand their workforce with minimum
investments, and provide new services to a broad
range of consumers.
 The Environmental Context of OB

Globalization in Organizational Behavior

 As organizations have become more global, their

work force has become culturally diverse.

 Globalization has created a large shift in

organizational behavior as increasing diversity
has brought together people of different
backgrounds with different values, cultures and
beliefs all working together for common objective.
 The Environmental Context of OB
Cultural Diversity and Organizational Behavior

 Cultural diversity involves the

differences in the composition of
members of an organization in terms of
nationality, race, color, gender, creed,
religion or age --- in other words, an
array of culture found among people
from diverse backgrounds.

 The positive influence of cultural diversity facilitates members of the

organization to build relationships and acknowledge each other
regardless of their differences of origin and background.
 The Environmental Context of OB
Factors associated with Cultural Diversity in OB
 The Environmental Context of OB
Identify and Establish Cultural Diversity
 A typical organization has an extensive range of people who
have cultural and personal differences.
 A small business interested in fostering cultural diversity
among its employees endeavors to create mutual respect
for the different cultures, along with enabling personnel to
reach their full potential.
 Acknowledging diverse cultures enables the organization to
positively influence the organizational behavior that, in turn,
enhances the performance and image of the organization.
 The business should portray the cultural diversity aspect of
the organization in the mission statement.
 The Environmental Context of OB
Transforming Organizational Behavior towards
Cultural Diversity
 The patterns of behavior in the organization are influenced
by the nature of interactions and degree of diversity within
the organization.
 The business, therefore, should seek to create an organi-
zational culture that not only enhances the diversity of its
workforce composition but also boosts individual
performance.
 The positive influences of cultural diversity not only enable
the organization to increase the scope of its reach --- the
business also receives favorable exposure from every
sector of the population due to its multicultural approach.
 The Environmental Context of OB
Ethics and Organizational Behavior

Ethical behavior:
 Behavior judged as good, just, right, and honorable based on
principles, rules, or guides from a specific ethics theory, character
traits, or social values; varies from person to person, and country to
country.
The Environmental Context of OB
Factors That Affect Ethical and Unethical Behavior
The Environmental Context of OB
Four views of Ethical Behavior
The Environmental Context of OB
What factors guide Ethical Behavior in managers?
Theoretical Frameworks in OB
 Cognitive Framework
 Behavioristic Framework
 Social Cognitive Framework
 Theoretical Frameworks in OB
Cognitive Framework
 Cognitive approach emphasizes the positive and freewill
aspects of human behavior and uses concepts such as
expectancy, demand, and intention.

 Cognition can be simply defined as the act of knowing an

item of information.

 In cognitive framework, cognitions precede behavior and

constitute input into the person’s thinking, perception,
problem solving, and information processing.
 Theoretical Frameworks in OB
Cognitive Framework (contd…)
 The work of Edward Tolman can be used to represent the cognitive
theoretical approach. According to Tolman, learning consists of
the expectancy that a particular event will lead to a particular
consequence.

 This cognitive concept of expectancy implies that organism is

thinking about, or is conscious or aware of the goal and result of a
behavior exhibited by it. It means that a person desires a goal and
also knows the behavior that will lead to achievement of the goals.

 In the subject of organizational behavior, cognitive approach

dominates the units of analysis such as perception, personality
and attitudes, motivation, behavioral decision making and goal
setting.
 Theoretical Frameworks in OB
Behavioristic Framework
 Pioneer behaviorists Ivan Pavlov and Jon B. Watson stressed the
importance of studying observable behaviors instead of the elusive
mind.

 They advocated that behavior could be best understood in terms of

stimulus and response (S-R). They examined the impact of stimulus
and felt that learning occurred when the S-R connection was made.

 Modern behaviorism, that marks its beginning with B.F. Skinner,

advocates that behavior in response to a stimulus is contingent on
environmental consequences.

 Thus, it is important to note that behaviortistic approach is based on

observable behavior and environmental variables (which are also
observable).
 Theoretical Frameworks in OB
Behavioristic Framework (contd…)

Pavlov’s Dog Experiment B. F. Skinner’s Rat Experiment

Students’ work: Study these two famous experiments on behavioral theory

through internet search, and come prepared for class demonstration.
 Theoretical Frameworks in OB
Social Cognitive Framework
 Social learning theory takes the position that behavior can best be
explained in terms of a continuous reciprocal interaction among
cognitive, behavioral, and environmental determinants.

 The person and the environmental situation do not function as

independent units but, in conjunction with behavior itself,
reciprocally interact to determine behavior.

 It means that cognitive variables and environmental variables are

relevant, but the experiences generated by previous behavior also
partly determine what a person becomes and can do, which, in turn,
affects subsequently behavior.

 A person’s cognition or understanding changes according to the

experience of consequences of past behavior.
 Theoretical Frameworks in OB
Social Cognitive Framework (contd…)

Students’ work: Study the famous SCT concept as introduced by BANDURA

through internet search, and come prepared for class demonstration.
For your kind listening