Organizational behavior – is the study and application of knowledge and theories about how people act

within an organization.

Organization –is structured social system consisting groups and individuals worki9ng together to meet
some agreed-upon objectives.

3 levels of OB – Individuals, Groups, and Entire Organizations.

Individual Performance – serves as the overall gauge for organizational performance.

Group Behavior – influences the organizational performance.

4 Elements of OB

o People – Internal social system of organization.

o (Organizational) Structure- define the line of authority, duties, and responsibility.
o Technology –provides and economical facilities and resources that lend to ease and facilitate
performance of jobs.
o External Environment- highly influenced the operation of the organizations. (social, cultural,
political, and economic)

4 ORGANIZATIONAL PROCESSES

 Leadership – sets direction where the company going and consist of behaviors and traits of
individual who can manage the organization.
 Communication –Links the organization to its employee and to the environment where it
operates.
 Decision-Making –Provides Techniques how to derive at good decisions.
 Organizational Change and Development –Implements the concept of change, how it is handled
and how change improves organizational performance.

Major Contribution of OB

 Psychology – science seek to measure and explain the behavior of humans.

 Sociology –the study of people relation to its fellow human beings.
 Social Psychology –Psychology and Sociology and focuses on the influence of people to
other one.
 Anthropology –Study of societies to learn about human beings and their activities.
 Political Sciences –study of behaviors of individuals and groups within in political
environment.
 Engineering – applied science of energy and matter.
 Management –originally called Administrative Science, the study of the design and
implementation of various administrative and organizational systems.
 Medicine –applied science of treatment of diseases to enhance individual’s health and
wellbeing.
OB encompasses several aspects.

1st. Application oriented – provides useful answers to several management problems (in 3 levels
of OB)
2nd. Humanistic oriented – emphasizes the feelings, attitudes, perceptions, visions, and goal are
important in organization.
3rd. Provides explanations on the impact of the external environment on OB.
4th. It’s substantiates the role of scientific method in OB research.
5th. OB is Multi-disciplinary –draws principles from several disciplines (Psychology , sociology ,
anthropology)

Levis Strauss – A well known brand of jeans.

Jacob Davis – a tailor in 1870s 1st fashioned heavy cloth (most popular clothing in the world – blue jeans)

4 Core Values

 Empathy – walking in other people’s shoes.

 Originality –being authentic and Innovative.
 Integrity –Doing the right thing.
 Courage –standing up for what we believe.

Criteria for organizational effectiveness

 Quality
 Productivity
 Efficiency
 Satisfaction
 Development
 Adaptiveness
-Goal Approach –oldest and widely used approach to measure effectiveness.
-System Theory Approach – emphasizes that managers must deal with the internal and external
aspect of OB.

History of OB

A. THE EARLY DAYS:

B. CLASSICAL ORGANIZATIONAL THEORY

C. LATE 20TH CENTURY: OB as SOCIAL SCIENCE
D. OB TODAY: THE INFORMATION TECHNOLOGY AGE

ORGANIZATION MISSION/VISION STATEMENTS

Mission statement – exist for a purpose – identifies the reasons for company’s existence.

Vision statement – indicates the company’s “dreams”, - what the company want to become in a specific
period of time.
Organizational environment – in response to the needs of the society, the management of an
organization respond to the changing environment.

Business Principles

Standard of Conduct

Obeying the Law

Employees

Consumers

Shareholders

Business Partners

Community Involvement

Public Activities

The Environment

Innovation

Competition

Business Integrity

Conflicts of Interests

Complaince – Monitoring – Repoerting