organizational behavior

o Organisation Behaviour: Unit-1

o Definition
o Concept
o Challenges and Opportunities

reserved.
© 2005 Prentice Hall Inc. All rights
o Dependent and Independent variables of OB

o Models of OB
o Autocratic
o Custodial
o Supportive
1–2
o Collegial
o System
OBJECTIVES
AFTER STUDYING THIS CHAPTER,
YOU SHOULD BE ABLE TO:
1. Define organizational behavior (OB).
2. Describe what managers do.
LEARNING

3. Explain the value of the systematic study of OB.

4. List the major challenges and opportunities for
managers to use OB concepts.
5. Identify the contributions made by major behavioral
science disciplines to OB.
O B J E C T I V E S (cont’d)
AFTER STUDYING THIS CHAPTER,
YOU SHOULD BE ABLE TO:
6. Describe why managers require a knowledge of OB.
7. Explain the need for a contingency approach to the
study of OB.
8. Identify the three levels of analysis in this book’s OB
model.
LEARNING
WHAT MANAGERS DO
Managers (or administrators)
Individuals who achieve goals through other people.

Managerial
ManagerialActivities
Activities

Make
Makedecisions
decisions

Allocate
Allocateresources
resources

Direct
Directactivities
activitiesof
ofothers
others
to
toattain
attaingoals
goals
WHERE MANAGERS WORK
Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on a relatively continuous
basis to achieve a common goal or
set of goals.
MANAGEMENT FUNCTIONS

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading
MANAGEMENT SKILLS
Technical skills
The ability to apply specialized
knowledge or expertise.

Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
EFFECTIVE VERSUS SUCCESSFUL
MANAGERIAL ACTIVITIES (LUTHANS)

1.
1.Traditional
Traditionalmanagement
management
Decision making, planning, and controlling
Decision making, planning, and controlling
2.
2.Communication
Communication
Exchanging routine information and processing
Exchanging routine information and processing
paperwork
paperwork
3.
3.Human
Humanresource
resourcemanagement
management
Motivating, disciplining, managing conflict, staffing,
Motivating, disciplining, managing conflict, staffing,
and
andtraining
training
4.
4.Networking
Networking
Socializing, politicking, and interacting with others
Socializing, politicking, and interacting with others
ALLOCATION OF ACTIVITIES BY TIME

Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz,

Real Managers (Cambridge, MA: Ballinger, 1988).
ENTER ORGANIZATIONAL BEHAVIOR
Organizational behavior
(OB)
A field of study that
investigates the impact that
individuals, groups, and
structure have on behavior
within organizations, for the
purpose of applying such
knowledge toward
improving an
organization’s
effectiveness.
REPLACING INTUITION WITH
SYSTEMATIC STUDY
Intuition
A feeling not necessarily supported by research.

Systematic study
Looking at relationships, attempting to attribute
causes and effects, and drawing conclusions based
on scientific evidence.
Provides a means to predict behaviors.
FUNDAMENTAL CONCEPTS OF ORGANIZATIONAL
BEHAVIOR

INDIVIDUAL
DIFFERENCE SOCIAL SYSTEM

WHOLE PERSON

Mutuality
of Interests

Motivated
Behaviour

HOLISTIC
Value of the CONCEPT and
Person ETHICS
FOUNDATION OF OB
 INDIVIDUAL DIFFERENCE: Each person in the world
is different from all others.

 A WHOLE PERSON: Management strive harder not

only to develop a better employee out of a worker, but
also a better person in terms of growth and fulfillment.

 MOTIVATED BEHAVIOUR: The behaviour of

employees is directed towards his/her interest.
FOUNDATION OF OB
 VALUE OF THE PERSON: The concept of human dignity
or the value, rejects the old idea of using employees as an
economic tools.

 ORGANIZATIONS ARE SOCIAL SYSTEMS:

Organizations are social systems implying that their activities
are governed by social and psychological laws.

 MUTUALITY OF INTERSTS: There should be mutuality

of interests between both the parties.
 HOLISTIC CONCEPT AND ETHICS: Holistic concept
means that people-organization relationships are
expressed in terms of whole person, whole group, whole
organization and the social system. Organizations should
treat employees ethically.
 There is a three party win-win-win result in which
there are no losers
TOWARD AN OB DISCIPLINE
© 2005 Prentice Hall Inc. All rights
1–18

reserved.
CONTRIBUTING DISCIPLINES

Many behavioral sciences

1-19
have contributed to the Psychology
development of
Organizational
Behavior
Social
Psychology

Sociology Anthropology

See E X H I B I T 1–3 for details

See E X H I B I T 1–3 for details
PSYCHOLOGY
The science that seeks to measure, explain, and

1-20
sometimes change the behavior of humans and other
animals.

Unit of Analysis:
 Individual

Contributions to OB:
 Learning, motivation, personality, emotions, perception
 Training, leadership effectiveness, job satisfaction
 Individual decision making, performance appraisal, attitude
measurement
 Employee selection, work design, and work stress
SOCIAL PSYCHOLOGY
An area within psychology that blends concepts from

1-21
psychology and sociology and that focuses on the
influence of people on one another.

Unit of Analysis:
 Group

Contributions to OB:
 Behavioral change
 Attitude change
 Communication
 Group processes
 Group decision making
SOCIOLOGY
The study of people in relation to their fellow human

1-22
beings.

Unit of Analysis:
 -- Organizational System
 -- Group
 Contributions to OB:
 Group dynamics  Formal organization theory
 Work teams  Organizational technology
 Communication  Organizational change
 Power  Organizational culture
 Conflict
 Intergroup behavior
ANTHROPOLOGY
The study of societies to learn about human beings and

1-23
their activities.

Unit of Analysis:
 -- Organizational System
 -- Group
 Contributions to OB:
 Organizational culture  Comparative values
 Organizational environment  Comparative attitudes
 Cross-cultural analysis
FEW ABSOLUTES IN OB
Situational factors that make the main relationship
between two variables change—e.g., the relationship

1-24
may hold for one condition but not another.

Contingency Independent Dependent

Variable (Z) Variable (X) Variable (Y)

In American Boss Gives

Understood as
“Thumbs Up”
Culture Sign
Complimenting

In Iranian or Boss Gives Understood as

Australian “Thumbs Up” Insulting - “Up
Sign Yours!”
Cultures
CHALLENGES AND OPPORTUNITIES FOR
OB
The major challenges and opportunities are:

1-25
 Responding to Economic Pressures
 Responding to Globalization
 Managing Workforce Diversity

Some other challenges and

opportunities include:
 Improving Customer Service
 Improving People Skills
 Stimulating Innovation and Change
 Coping with “Temporariness”
 Working in Networked Organizations
 Helping Employees Balance Work-Life Conflicts
 Creating a Positive Work Environment
 Improving Ethical Behavior
RESPONDING TO ECONOMIC
PRESSURES
 What do you do during difficult
economic times?

1-26
 Effective management is critical
during hard economic times.
 Managers need to handle difficult
activities such as firing
employees, motivating employees
to do more with less, and working
through the stress employees feel
when they are worrying about
their future.
 OB focuses on issues such as
stress, decision making, and
coping during difficult times.
RESPONDING TO GLOBALIZATION
 Increased foreign assignments

1-27
 Working with people from
different cultures

 Overseeing movement of jobs

to countries with low-cost
labor
MANAGING WORKFORCE DIVERSITY
 The people in organizations are becoming more
heterogeneous demographically

1-28
 Embracing diversity
 Changing demographics
 Changing management philosophy
 Recognizing and responding to differences

Disability

Domestic
Gender
Partners

Race Age

National
Religion
Origin
DEVELOPING AN OB MODEL
 A model is an abstraction of reality – a simplified
representation of some real-world phenomenon.

1-29
 Our OB model has three levels of analysis
 Each level is constructed on the prior level

E X H I B I T 1-4
E X H I B I T 1-4
TYPES OF STUDY VARIABLES
Independent (X)
 The presumed cause of the
change in the dependent
variable (Y).
 This is the variable that OB
researchers manipulate to
observe the changes in Y.
X Y
Dependent (Y)
1-30
 This is the response to X (the
independent variable).
 It is what the OB researchers
want to predict or explain.
 The interesting variable!
Predictive Ability
INTERESTING OB DEPENDENT
VARIABLES
 Productivity

1-31
 Transforming inputs to outputs at lowest cost. Includes the
concepts of effectiveness (achievement of goals) and
efficiency (meeting goals at a low cost).
 Absenteeism
 Failure to report to work – a huge cost to employers.
 Turnover
 Voluntary and involuntary permanent withdrawal from an
organization.
 Deviant Workplace Behavior
 Voluntary behavior that violates significant organizational
norms and thereby threatens the well-being of the
organization and/or any of its members.
MORE INTERESTING OB DEPENDENT
VARIABLES
 Organizational Citizenship Behavior (OCB)
 Discretionary behavior that is not part of an employee’s formal

1-32
job requirements, but that nevertheless promotes the effective
functioning of the organization.
 Job Satisfaction
 A general attitude (not a behavior) toward one’s job; a positive
feeling of one's job resulting from an evaluation of its
characteristics.
THE INDEPENDENT VARIABLES
The independent variable (X) can be at any of these three

1-33
levels in this model:
Individual
 Biographical characteristics, personality and emotions,
values and attitudes, ability, perception, motivation,
individual learning, and individual decision making
Group
 Communication, group decision making, leadership and trust,
group structure, conflict, power and politics, and work teams
Organization System
 Organizational culture, human resource policies and
practices, and organizational structure and design
OB MODEL
Dependent
Variables (Y)

1-34
Three Levels

Independent
Variables (X)

E X H I B I T 1–5
E X H I B I T 1–5
SUMMARY AND MANAGERIAL
IMPLICATIONS
 Managers need to develop their interpersonal skills to be

1-35
effective.
 OB focuses on how to improve factors that make
organizations more effective.
 The best predictions of behavior are made from a
combination of systematic study and intuition.
 Situational variables moderate cause-and-effect
relationships, which is why OB theories are contingent.
 There are many OB challenges and opportunities for
managers today.
 The textbook is based on the contingent OB model.
CONTRIBUTING DISCIPLINES TO THE
OB FIELD
Psychology
The science that seeks to measure, explain, and sometimes
change the behavior of humans and other animals.
CONTRIBUTING DISCIPLINES TO THE
OB FIELD (CONT’D)
Sociology
The study of people in relation to their fellow human beings.

reserved.
© 2005 Prentice Hall Inc. All rights
1–37
E X H I B I T 1–3 (cont’d)
E X H I B I T 1–3 (cont’d)
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.
CONTRIBUTING DISCIPLINES TO THE
OB FIELD (CONT’D)
Anthropology
The study of societies to learn about human beings and their
activities.
CONTRIBUTING DISCIPLINES TO THE
OB FIELD (CONT’D)
Political Science
The study of the behavior of individuals and groups
within a political environment.
THERE ARE FEW ABSOLUTES IN OB
Contingency variables
Situational factors: variables that moderate
the relationship between two or more other
variables and improve the correlation.

x Contingency
Variables y
CHALLENGES AND OPPORTUNITIES FOR
OB
 Responding to Globalization
 Increasedforeign assignments
 Working with people from different cultures
 Overseeing movement of jobs to countries with low-cost
labor
 Managing Workforce Diversity
 Embracing diversity
 Changing U.S. demographics
 Implications for managers
 Recognizing and responding to differences
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

 Increasedexpectation of service quality
 Customer-responsive cultures

1–43
CHALLENGES AND OPPORTUNITY FOR
OB (CONT’D)
 Improving People Skills
 Empowering People

 Stimulating Innovation and Change

 Coping with “Temporariness”

 Working in Networked Organizations

 Helping Employees Balance Work/Life Conflicts

 Improving Ethical Behavior

BASIC OB MODEL, STAGE I
Model
An abstraction of reality.
A simplified representation
of some real-world
phenomenon.
THE DEPENDENT VARIABLES
Dependent variable
A response that is affected by an independent variable.

x
THE DEPENDENT VARIABLES (CONT’D)
Productivity
A performance measure that includes
effectiveness and efficiency.

Effectiveness
Achievement of goals.

Efficiency
The ratio of effective
output to the input
required to achieve it.
THE DEPENDENT VARIABLES (CONT’D)

Absenteeism
The failure to report to work.

Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.
THE DEPENDENT VARIABLES (CONT’D)
Organizational citizenship
behavior (OCB)
Discretionary behavior that is not
part of an employee’s formal job
requirements, but that nevertheless
promotes the effective functioning
of the organization.
THE DEPENDENT VARIABLES (CONT’D)
Job satisfaction
A general attitude toward one’s job, the difference
between the amount of reward workers receive and
the amount they believe they should receive.
THE INDEPENDENT VARIABLES
Independent variable
The presumed cause of some change in the dependent
variable.

Independent
Independent
Variables
Variables

Individual-Level Group-Level Organization

Organization
Individual-Level Group-Level System-Level
Variables
Variables Variables
Variables System-Level
Variables
Variables
1–51
BASIC OB
MODEL,
STAGE II
QUESTIONS WOULD ALWAYS CLEAR YOUR
CONCEPTS AND HELP IN LONG TERM
LEARNING…….
ASK ?????

1–53
IS IT CLEAR? GOOD!!!!…..
KEEP LEARNING…..
GOD BLESS US!!!!