UNDERSTANDING ORGANIZATIONAL
BEHAVIOR
Organizational Behavior
• is the study and application of knowledge
about how people (as individuals and as
groups) act within organizations.
• It strives to identify ways in which people
can act more effectively.
• It is a scientific discipline in which a large
number of research studies and conceptual
developments are constantly adding to its
knowledge base.
• It is also applied science.
USEFUL SET OF TOOLS
• It helps managers look at the behavior of
individuals within an organization.
• It aids their understanding of the
complexities involved in interpersonal
relations when two people (two coworkers
or a superior-subordinate pair) interact.
• Valuable for examining the dynamics of
relationships within small groups, both
formal teams, and informal groups. When
two or more groups need to coordinate
their efforts, such as engineering and sales,
managers become interested in the inter-
group relations that emerge.
• Organizations can also be viewed and
managed as whole systems that have inter-
organizational relationships (e.g., mergers
and joint ventures)
ENVIRONMENTAL FORCES REDESIGNING
MANAGEMENT PRACTICES
1. Power of human resources
2. Globalization
3. Multiculturalism (cultural diversity)
4. Rapidity of change
5. Psychological contract
6. Technology
7. Service economy
8. Teamwork
Power of human resources
• is the capability to get things completed in
the manner one wants them to be done.
Globalization
• The interconnection among nations in
transportation, distribution,
communication, and economic networks.
Multiculturalism (cultural diversity)
• The huge assortment of differences
produced by cultural trends like history,
characteristics, economics, and conditions.
personality characteristics, language,
norms, and more.
Rapidity of change
• The rate at which change occurs in
technology, demographics, globalization,
and new products and services. reduction
Psychological
• the unwritten set of expectations of the
employment relationship which details
what each party looks forward to giving
and receiving.
Technology
• contract the process that transforms raw
materials or intellectual capital into
products and services.
Service economy
• Transportation, communication, wholesale
and retail, finance, insurance, real estate,
and the government is growing. This
growth necessitates high-quality
interactions between service providers and
customers such as healthcare workers and
patients which must be addressed with
greater understanding and appreciation.
Teamwork
• provides a better approach to quality goods
and services.
• requires that individuals in the organization
must work together harmoniously.
The eight environmental forces mentioned provide
challenges to managers. Failure to cope and deal
with these forces shall give room to job
dissatisfaction, poor performance, poor
morale, conflict, stress, poor judgment, and a
lot of unhealthy results.
FOUNDATIONS AND BASIC ASSUMPTIONS
OF OB
1. The uniqueness of an individual
2. A total person
3. Attribution
4. Ethics and dignity
5. Organizations as social systems
6. Mutuality of interest
7. Holistic benefit
Uniqueness of an individual
• No two persons react to the same stimulus.
Each person has their own individuality
which could be in the form of trait,
intelligence, physique, body language, or
verbal language. And this uniqueness is
usually substantial rather than meaningless.
A total person
• When a certain person is hired for a job, the
organization accepts him in his totality with
his attitude, aptitude, skill and knowledge
plus his emotions.
Attribution
• It is important to disclose the root cause of
a certain employee’s disturbing behavior.
This involves knowing the reason for his
abnormal looks and overt reactions to
normal.
Ethics and dignity
• Managers must be warned not to treat
subordinates as slaves because this manner
deprives them of their dignity. People are to
be treated differently from other factors of
production because they are of a higher
order in the universe. It recognizes that
because people are of a higher order they
want to be treated with respect and dignity
- and should be treated this way.
Organizations as social systems
• Individual behavior is governed by
psychology which must be acceptable to
society. Group behavior is ruled by
sociology.
Two types of social systems
1. Formal (official) social system
2. Informal social system
Mutuality of interest
• Under normal conditions, the individual tries
his best to work for the organization. In
return, the organization makes him a
capable person through the opportunities
given to him. Each employee must also
support each other in their personal growth
and should maintain their friendly relations.
People see organizations as a means to help
them reach their goals, while organizations
need people to help reach organizational
objectives Conflicts must be avoided to
avoid erosion of mutual interests.
Holistic benefit
• These mentioned six concepts when
practiced within groups create the synergy
that brings holistic advantage.
IMPORTANCE OF OB
1. Effective confronting
2. OB is a science
3. OB enhances conviction
4. OB improves perceptual skills
5. OB helps motivate people
6. OB makes better employer-employee
relation
7. OB teaches managers about consumer
behavior
8. OB makes managers experts in people skills
Effective confronting
• An individual with proactive thinking about
approaching troubles and bottlenecks can
work without pressures and plan ahead in
dealing with difficult situations
OB is a science
• Though OB is probabilistic in nature it is
based on validated facts. Therefore, a
person aware of this fact can make
decision-based on the probability of
success.
OB enhances conviction
• OB can provide confidence in making things
happen. Even in tough situations, a person
with OB knowledge can encourage people
better
OB improves perceptual skills
• With enhanced self-perception and
perception of others through OB, in terms
of personality, attitudes, transactional
analysis, conflict resolution, and negotiation,
a person can become successful
OB helps motivate people
• A person can use the knowledge in
motivation theory and its application to
delegate authority and inspire people.
Makes better employer-employee relation
• OB through conflict resolution and
negotiation can help achieve better
industrial relations. makes better
employer-employee relation OB through
conflict resolution and negotiation can help
achieve better industrial relations.
Teaches managers about consumer behavior
• OB can be extended to understand
consumers better. Success in marketing can
be attained through improved relations with
suppliers and customers in the supply chain.
Makes managers experts in people skills
• It is expected that managers must be skillful
in dealing with people which could be
learned from OB.
CHALLENGES OF OB
• Overpowering ethnic and cultural
multiplicity among employees
• Finding ways to motivate employees as a
way to improve activity
• Hiring the correct employees for the
company
• How to run a productive company
ORGANIZATIONAL BEHAVIOUR ANCHOR
1. Multidisciplinary anchor
2. Systematic research anchor
3. Contingency anchor
4. Multi-levels of analysis anchor
5. Open Systems Anchor
Multidisciplinary anchor
• the concept of OB has been developed from
the diversity of knowledge of other fields
not just from its own isolated research
foundation.
Systematic research anchor
• It is critical that OB must be based on
systematic research which consists of
forming research questions, data collection,
and hypothesis testing. This results to
 evidence-based management that utilizes
research evidence in decision-making.
Contingency anchor
• Since people and the work environment are
multifaceted, a particular action could have
different consequences in different
circumstances. The field of OB recognizes
that there is no single solution is best for all
situations. Although OB also would want to
be simpler by applying "one best way"
theories that will give identical results in
every situation. Thus, OB experts always
search for simpler theories but still doubtful
on assured recommendations. It is
important that when confronted with a
problem or opportunity, understand and
diagnose the situation and choose the
appropriate strategy must be done.
Multi-levels of analysis anchor
• The study of OB concerns the individual,
team, and organization. Under the individual
level are topics like attribution, motivation,
perception, personality attitudes, and
values. The team level on the other hand
includes team dynamics, decision-making,
power, politics, conflict, and leadership. At
the organizational level, the focus is on
working relationships, organizational
interaction, and the working environment.
WORKPLACE DIVERSITY
DIVERSITY
• characteristic of a group of people inside
the organization where differences exist on
one or more relevant dimensions like
gender, age, religion, race, social class,
sexual orientation, personality, functional
experience or geographical background.
DIMENSIONS OF WORKPLACE DIVERSITY
Experts in diversity have identified three
dimensions of diversity that often represent the
types of differences that are represented,
particularly in the workplace. These dimensions of
diversity are also the lenses and filters that a
person uses and others use to identify people.
These dimensions could help discover the
important ways in which people inside the
organization differ. The primary dimensions of
diversity are those human differences that are
inborn and/or that exert an important force on the
early socialization and continue to have a powerful,
sustained impact on the individual's experiences,
values, assumptions and expectations throughout
every stage of life. These six differences are age,
race, ethnicity, gender, physical abilities and
sexual/affectional orientation which are sometimes
referred to as the core dimensions of diversity.
They shape the basic self-image of a person.
BENEFITS OF DIVERSITY IN THE
WORKPLACE
1. Higher Creativity in Decision Making
• A diverse workforce that feels comfortable
communicating varying perspectives
provides a larger pool of ideas and
experiences.
2. Better Understanding and Service of
Customers
• A company with a diverse workforce may
create products or services that appeal to a
broader customer base.
3. More Satisfied Workforce
• When employees feel that they are fairly
treated, they are likely to be more satisfied.
On the other hand, when employees
observe that they are being discriminated
against, they tend to be less attached to the
company, less satisfied with their jobs, and
feel more stress at work.
4. Higher Stock Prices
• Companies that do a better job of managing
a diverse workforce are often rewarded in
the stock market, signaling that investors
employ this information to evaluate how
well a company is being managed.
5. Lower Litigation Expenses
• Companies doing a particularly bad job in
diversity management face costly litigations.
6. Increased Adaptability
• Organizations making use of a diverse
workforce can convey a greater range of
solutions to problems in service, sourcing,
and allocation of resources.
7. Broader Service Range
• A diverse collection of skills and experiences
permits a company to offer service to
customers on a global basis.
8. Higher Company Performance
• As a result of all these potential benefits,
companies that administer diversity more
effectively tend to do better than others.
Companies that promote diversity in the
workplace encourage all of their employees
to perform to their highest ability.
ROADBLOCK TO WORKPLACE DIVERSITY
Six diversity roadblocks
1. Prejudice and Discrimination
2. Stereotyping
3. Differences in Social Identity
4. Power Differentials
5. Poor Structural Integration
6. Communication Problems
Prejudice and Discrimination
• Prejudice is the irrational, inflexible
opinion based on limited and insufficient
information and unfair negative attitudes
individuals hold about other people who
belong to social or cultural groups different
from their own.
• Discrimination is a behavior that results
to unequal treatment of individuals based
on group membership. Treatment may vary
because of race, age, gender, social class,
sexual orientation, or any number of other
dimensions of diversity.
Stereotyping
• is a generalized set of beliefs about the
characteristics of a group of individuals.
• Stereotypes are unrealistic, non-factual
and most of the times are negative.
Stereotyping is difficult to stop due to the
following reasons:
• It is not easy to dismiss
- When discovered that a trait is in
congruent with the stereotype, people often
ignore discrepancy and regard the individual
as "exception to the rule".
• Stereotypes guide what information
people look for, process and remember
- The trait stereotyped in a group served as
the guide on the processing of information
about a certain person based on his
membership to a group even not actually
seen but just "remembered".
• Stereotypes seem to be an enduring
human quality
- Everyone hold stereotypes. It provides
predictability if one knows the character of
the group where a person belongs. So
knowing the information enables prediction
of the individual's behavior and what
response should be made.
Differences in Social Identity
• Social identity is a person's knowledge
that he fits in to a certain social group,
where fitting in to those groups has
emotional importance.
Power Differentials
• In the organization, power is not always
equally distributed among individuals and
groups. Sources of power could be
legitimate, coercive, expert, reward,
connection or referent. Without any
connection with work life, people can be
awarded or deprived of power. In the
society, people can have ascribed power.
Poor Structural Integration
Poor integration of women and minorities can give
several roadblocks to creating a diverse workplace.
Here are the reasons:
1. Poor integration creates power and status
differentials which can then link to gender or race
2. Poor integration fosters negative stereotypes
3. Poor integration when overall make use of
"exception rule
4. Poor integration may bring the feeling of being
impossible to rise to the top for most women and
minorities
Communication Problems
A potential problem occurs when everyone speaks
a particular language fluently and people who are
less fluent may no longer contribute to the
conversation. People who speak the same language
may exclude the one who do not speak the
language. Many misunderstandings happen due to
language differences.
The differences of the appropriate norms may lead
to communication problem among different
cultures.
Common disagreements among different
cultures in the workplace are:
1. Willingness to openly disagree
2. The importance of maintaining dignity
3. The way agreement is defined
4. The amount of time for building relationships
Communication Problems
5. Willingness to speak aggressively
6. Mode of communication whether verbal or
written
7. Personal space and non-verbal communication