Organizational
Behavior |MGT 104
INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
WHAT IS ORGANIZATIONAL BEHAVIOR?
 A systematic study and application of knowledge
about how individuals and groups act within the
organizations where they work
 aims to learn how an organization operates through
the behavior of its members
 takes a more psychological approach instead of a
taking a strictly numerical approach
 intended to explain behavior and make behavioral
predictions based on observations
 interdisciplinary
EVOLUTION OF ORGANIZATIONAL BEHAVIOR
 organizational behavior has grown to incorporate
components of management, psychology,
leadership, personality traits, motivation, etc.
THREE LEVELS OF INFLUENCE
 The three levels of influence are the individual, the
group, and the organization
 they are interconnected
THE INDIVIDUAL
 includes each individual person within an
organization
 each individual acts differently which affects group
dynamics and the organization as a whole
 it is important for a company to create a code of
conduct, establishing policy and procedure
guidelines, and by developing incentives and
consequences that will attract employees with
desirable behaviors
THE GROUP
 includes any groups within an organization
 range in size from a couple people working together,
to a large group with dozens or hundreds of
members
THE ORGANIZATION
 incorporates the organization as a whole
 the organization impacts the individual and group
behavior and that individual and group behavior
impacts an organization.
WHY ORGANIZATIONAL BEHAVIOR MATTERS
 it is all about things you care about
 employers care about OB
 organizations care about OB
 Research shows that successful organizations have
a number of things in common, such as providing
employment security, engaging in selective hiring,
utilizing self-managed teams, being decentralized,
paying well, training employees, reducing status
differences, and sharing information
A MODEL OF ORGANIZATIONAL BEHAVIOR
AND MANAGEMENT
 the major responsibility of managers is to make
organizations operate effectively
 the management of organizational behavior is
central to the management task—a task that
involves the capacity to understand the behavior
patterns of individuals, groups, and organizations, to
predict what behavioral responses will be elicited by
various managerial actions, and finally to use this
understanding and these predictions to achieve
control.
 Micro- organizational behavior is primarily concerned
with the behavior of individuals and groups, while
macro- organizational behavior (also referred to as
organization theory) is concerned with organization-
 wide issues, such as organization design and the
relations between an organization and its
environment.
BUILDING BLOCKS OF ORGANIZATIONS
 first part of the model is the simple recognition of
organizational inputs and outcomes
o organizations receive inputs from the external
environment in the form of capital, raw
materials, labor, community or government
support, and so forth
o organizations experience or produce certain
outcomes, including (1) organizational goal
attainment, (2) group performance and
effectiveness, and (3) individual performance
and effectiveness
o receiving and transforming inputs from the
environment and returning those transformed
inputs in the form of finished goods and
services, return on stockholders’ equity, salaries
that are paid to employees, and so forth.
o dynamic system
 second aspect of the model is the organization itself
and all of its parts; set of building blocks
o Individuals and groups
 individuals and groups working to pursue
common objectives
 various backgrounds and have varying
abilities and skills, differing motivational
levels, and different ambitions
 people must communicate, make decisions,
show leadership, and handle power and
organizational politics as they carry out their
assigned activities
o Tasks and technology
 variations in the technology of the
workplace
 Technology includes both the actual design
of jobs and the tools and techniques used
in manufacture (e.g., robotics and expert
systems).
o Organization design
 Putting together these factors—individuals
and groups and tasks—is the subject of
organization design
o Organizational processes
 must recognize a series of organizational
processes, such as leadership,
communication, decision-making, power
and politics, and so forth
 largely determine the nature and quality of
interpersonal and intergroup relations within
the workplace and
 influence ultimate organizational
performance
o Management
 the glue that holds these building blocks
together is the character of management
ETHICAL CHALLENGES
 Business ethics refers to applying ethical principles
to situations that arise at work.
 The challenge is to continue to think about business
ethics on a day-to-day basis and institute cultures
that support ethical decision making
LACK OF EMPLOYEE ENGAGEMENT
 Employee engagement is a concept that is generally
viewed as managing discretionary effort, that is,
when employees have choices, they will act in a way
that furthers their organization’s interests
 Engaged employee is a person who is fully involved
in and enthusiastic about their work; who are
performing at the top of their abilities and happy
about it.
TECHNOLOGY
 Technology has transformed the way work gets done
and has created many great opportunities.
FLATTENING WORLD
 the Internet has “flattened” the world and created an
environment in which there is a more level playing
field in terms of access to information
 access to information has led to an increase in
innovation, as knowledge can be shared instantly
across time zones and cultures
 also created intense competition, as the speed of
business is growing faster and faster all the time
SUSTAINABILITY AND GREEN BUSINESS
PRACTICES
 triple bottom line
o believe that beyond economic viability,
businesses need to perform well socially and
environmentally.
 Greenwashing
o refers to the marketing of products or processes
as green to gain customers without truly
engaging in sustainable business practices
 Sustainable business practices are those that
meet the present needs without compromising the
needs of future generations.
THE GLOBAL MARKETPLACE FOR STAFFING:  has a more “work to live” mentality and value their
OUTSOURCING life outside of the workplace
 a good work ethic, their work-life balance is of
 Outsourcing
highest importance to them
o refers to having someone outside the formal
 “most relevant generation of modern times”
ongoing organization doing work previously
 they are optimist towards change
handled in-house
 performs more than the expectation
o involve temporary employees, consultants, or
 they are unimpressed by authority
even offshoring workers
 they expect their competence and skills to be
 Offshoring means sending jobs previously done in
respected
one country to another country
 they are flexible workers
 they are rule changers
WORKFORCE GENERATIONS
 Generational differences can include lifestyle GENERATION Y
differences, motivational differences, etc.
 born between 1982-1997
 also known as Millennials
GREATEST GENERATION
 youngest members of the current workforce
 born between 1901-1924 (ages 98-121)  typically grew up with two working parents and a to-
do list constantly on display throughout their
 The greatest depression
childhood
 World War II
 has the ability to multitask and also values work-life
 Traditionalists (76-99)
balance
 loyal to the organization
 need to accomplish things on their to-do list in order
 long term commitment
to enjoy their free time
 respects authority and the hierarchical system
 tends to be very goal oriented and efficient
 linear and follows rules
 they are technology natives
 they expect collaboration
SILENT GENERATION
 they require a seat at the table
 born between 1925-1945
 from the great depression and World War II GENERATION Z
 silent = seen but not heard
 born between 1997-2010
 they are hardworking
 never known a world before technology
 they have will power
 have grown up in an “always on” world where
 they are loyal employees
technology is readily available and used on a regular
 they respect authority basis
 they are traditional  extremely tech savvy but has also changed behavior
 they are thrifty and lifestyle
 they are traditional  starting to enter into the workforce with the oldest
 they are technologically challenged members turning 23-years-old in 2020
 most ethnically and racially diverse generation
BABY BOOMERS  diversity is their norm
 first digital natives
 born between 1946-1964 (ages 69-77)
 pragmatic and financially minded
 “Baby Boom” post war spike
 loneliest generation
 been working the longest and have extensive
knowledge and experience
GENERATION ALPHA
 they want and oftentimes expect others to value their
input and opinions  born between 2010-2024
 believe that hard work equates to long hours and  first generation to be born in the 21st century
that integrity in the workforce should be top priority;  most diverse and educated generation
first generation of “workaholics”
 prepared to thrive in our tech-enabled workplace
 “live to work” and place extreme value on career
 shared learning; highly collaborative
advancement and promotion; work centric
 enjoy working in a team environment and are said to
have created meeting culture

GENERATION X

 born between 1965-1981

 been through a roller-coaster of economic events
 Organizational
Behavior |MGT 104
INDIVIDUAL BEHAVIOR AND DIFFERENCES

MENTAL ABILITIES  two important areas from a managerial standpoint:

o leadership style and decision-making
 Mental abilities are an individual’s intellectual
PHYSICAL ABILITIES
capabilities and are closely linked to how a person
makes decisions and processes information  basic physical abilities (for example, strength)
o verbal comprehension – the ability to o dynamic strength
understand the meanings of words and their o trunk strength
relations to each other. o static strength
o word fluency – the ability to name object or use o explosive strength
words to form sentences that express an idea o extent flexibility
o number aptitude – the ability to make numerical
o dynamic flexibility
calculations speedily and accurately
o gross body coordination
o inductive reasoning – the ability to discover a
o equilibrium
rule or principle and apply it to the solution of a
o stamina
problem
 psychomotor abilities (such as manual dexterity,
o memory – the ability to remember lists of words
eye-hand coordination, and manipulation skills)
and numbers and other associations
o control precision
o spatial aptitude – the ability to perceive fixed
o multilimb coordination
geometric figures and their relations with other
geometric figures o response orientation
o perceptual speed – the ability to perceive visual o rate control
details quickly and accurately o manual dexterity
 key aspect of mental ability is cognitive complexity o finger dexterity
 Cognitive complexity represents a person’s o arm-hand steadiness
capacity to acquire and sort through various pieces o reaction time
of information from the environment and organize o aiming
them in such a way that they make sense.
o People with high cognitive complexity tend to DEMOGRAPHIC DIVERSITY
use more information—and to see the
 Diversity refers to the ways in which people are
relationships between aspects of this
similar or different from each other
information—than people with low cognitive
o any characteristic that varies within a particular
complexity
o People with low cognitive complexity typically work unit such as gender, race, age, education,
tenure, or functional background
exhibit the following characteristics:
 They tend to be categorical and
Benefits of Diversity
stereotypical. Cognitive structures that
depend upon simple fixed rules of
 Higher Creativity in Decision Making
integration tend to reduce the possibility of
o When thinking about a problem, team members
thinking in terms of degrees.
may identify novel solutions.
 Internal conflict appears to be minimized
o having a diverse workforce may have a direct
with simple structures. Since few alternative
impact on a company’s bottom line by
relationships are generated, closure is
increasing creativity in decision making
quick.
 Behavior is apparently anchored in external
Better Understanding and Services of Customers
conditions. There is less personal
contribution in simple structures.
 may create products or services that appeal to a
 Fewer rules cover a wider range of
broader customer base
phenomena. There is less distinction
 may understand the needs of particular groups of
between separate situations.
customers better, and customers may feel more at
o People with high levels of cognitive complexity
ease when they are dealing with a company that
are typically characterized by the following:
understands their needs.
 Their cognitive system is less deterministic.
Numerous alternative relationships are
More Satisfied Workforce
generated and considered.
 The environment is tracked in numerous  When employees feel that they are fairly treated,
ways. There is less compartmentalization of they tend to be more satisfied
the environment.
 Organizations where employees are satisfied often
 The individual utilizes more internal
have lower turnover.
processes. The self as an individual
operates on the process.

Higher Stock Prices
 often rewarded in the stock market, indicating that
investors use this information to judge how well a
company is being managed.
Lower Litigation Expenses
 Companies doing a particularly bad job in diversity
management face costly litigations
 effective management of diversity can lead to big
cost savings by decreasing the probability of facing
costly and embarrassing lawsuits
Higher Company Performance
 companies that manage diversity more effectively
tend to outperform others
Similarity-Attraction Phenomenon
 One of the commonly observed phenomena in
human interactions is the tendency for individuals to
be attracted to similar individuals
 Individuals who are different from their team
members are more likely to report perceptions of
unfairness and feel that their contributions are
ignored
 similarity-attraction phenomenon may explain
some of the potentially unfair treatment based on
demographic traits
o similarity-attraction may prevent some highly
qualified women, minorities, or persons with
disabilities from being hired
 Demographic traits are part of what makes up
surface-level diversity
o includes traits that are highly visible to us and
those around us, such as race, gender, and
age.
o Researchers believe that people pay attention to
surface diversity because they are assumed to
be related to deep-level diversity, which
includes values, beliefs, and attitudes
Faultlines
 an attribute along which a group is split into
subgroups
 Faultlines are more likely toemerge in diverse teams,
but not all diverse teams have faultlines
Stereotypes
 generalizations about a particular group of people
 often lead to unfair and inaccurate decision making
Specific Diversity Issues
Gender Diversity in the Workplace
earnings gap and the glass ceiling are two of the key
problems women may experience in the workplace
 Earning Gaps
o men and women have somewhat different
preferences in job attributes
 women valuing characteristics such as
good hours, an easy commute,
interpersonal relationships, helping others,
and opportunities to make friends more
than men do
 men seem to value promotion opportunities,
freedom, challenge, leadership, and power
more than women do
o negotiation differences among women are often
cited as a potential reason for the earnings gap
 Glass Ceiling
o women may be represented in lower-level
positions, they are less likely to be seen in
higher management and executive suites of
companies.
o favoring men in managerial positions
Race Diversity in the Workplace
 Studies indicate that ethnic minorities are less likely
to experience a satisfying work environment
Age Diversity in the Workplace
 age is correlated with a number of positive
workplace behaviors, including higher levels of
citizenship behaviors such as volunteering, higher
compliance with safety rules, lower work injuries,
lower counterproductive behaviors, and lower rates
of tardiness or absenteeism
Religious Diversity in the Workplace
 Religious discrimination often occurs because the
religion necessitates modifying the employee’s
schedule
 require companies to relax their dress code to take
into account religious practices
Employees with Disabilities in the Workplace
 prohibits discrimination in employment against
individuals with physical as well as mental disabilities
if these individuals are otherwise qualified to do their
jobs with or without reasonable accommodation
 Organizations that offer flexible work hours may also
make it easier for employees with disabilities to be
more effective

Sexual Orientation Diversity in the Workplace

 disclosure of sexual identity in the workplace

 those employees who fear that full disclosure would
lead to negative reactions experience lower job
satisfaction, reduced organizational commitment,
and higher intentions to leave their jobs

Suggestions for Managing Demographic

Diversity
 Build a Culture of Respecting Diversity
 Make Managers Accountable for Diversity
 Diversity Training Programs
 Review Recruitment Practices
 Affirmative Action Programs
o Policies designed to recruit, promote, train, and
retain employees belonging to a protected class
are referred to as affirmative action
 Simple elimination of discrimination
 Targeted recruitment
 Tie-breaker
 Preferential treatment

The Perceptual Process

 perception – making sense out of the environment
 perceptual selectivity – multitude of objects that vie
for attention are first selected or screened by
individuals
 perceptual organization – make sense out of it by
organizing or categorizing it according to their unique
frame of reference and their needs
 perceptual selectivity – process by which
individuals select objects in the environment for
attention