An Introduction to

Organizational Behavior
Teacher: Beverly B. Bicar
Research Director
Bukidnon State University
ORGANIZATION:

Itis a collection of people who

work together to achieve a wide
variety of goals.
ORGANIZATIONAL BEHAVIOR
OB is defined as the actions (e.g.,
organizing/reorganizing groups, modifying
compensation structure, deciding who gets what) and
attitudes (positive, negative)of people in
organizations.
It covers the body of knowledge derived from these
actions and attitudes.
It is the academic study of how people interact in a
group.
It includes improving job performance, increasing job
satisfaction, promoting innovation, and encouraging
leadership.
The Meaning of Organizational
Behavior
OB is the study of human behavior
in organizational settings, how
human behavior interacts with the
organization itself.
 IMPORTANCE OF OB
It can help managers :
◦ understand the complexity within
organizations;
◦ identify problems;
◦ determine the best ways to correct
them; and
◦ establish whether the changes would
make a significant difference.
The Nature of Organizational Behavior

Individual
Human
Behavior

The
The
Individual-
Organization
Organization
Itself
Interface
HISTORICAL ROOTS OF
ORGANIZATIONAL BEHAVIOR
Scientific Management (1900s)
by Fredric Taylor
◦ Efficiency and productivity
◦ His observed phenomenon:
“soldiering”- ignoring jobs and
responsibilities caused by natural
laziness, resulting to decreased
production.
Scientific Management cont’d…
Jobs were scientifically studied
Standardized method for performing
each job was developed
A piece-rate pay was installed
Payment was for the amount of work
completed during the workday rather
than the time spent on the job.
Result: SM facilitated job
specialization and mass production
Classical Organization Theory
◦ Concerned with structuring
organizations effectively;
◦ Focused on how large number of
workers and managers could be
most effectively organized into an
overall structure
◦ Proponents: Henri Fayol; Lyndall
Urwick and Max Weber
Lyndall Urwick
◦ Objective – purpose
◦ Specialization – Single function
◦ Coordination – encourage unity of
effort
◦ Authority – clear line of authority
Lyndall Urwick cont’d…
◦ Responsibility lines
◦ Definition of duties and responsibility
◦ Correspondence of authority and
responsibility
◦ Span of Control (max of 5
subordinates)
◦ Balance
◦ Continuity
Max Weber
A formal hierarchical structure
Management by rules
Organization by functional specialty
An “up-focused” or “in-focused
mission
Purposely impersonal
Employment based on technical
qualifications
Henri Fayol’s 14 Principles
◦ Division of Work
◦ Authority and Responsibility
◦ Discipline
◦ Unity of Command
◦ Unity of Direction
◦ Subordination of Individual Interest
◦ Remuneration
Henri Fayol cont’d…
◦ The degree of centralization
◦ Scalar chain
◦ Order
◦ Equity
◦ Stability of Tenure of Personnel
◦ Initiative
◦ Esprit de Corps
The Emergence of Organizational
Behavior
The central themes of both
scientific management and
classical organization theory:
◦ Rationality
◦ Efficiency
◦ Standardization
Precursors of Organizational Behavior
Robert Owen – attempted to improve the
working conditions, raised minimum
wages, introduced meals for employees
and shortened working hours.
Hugo Munsterberg- argued that the field
of psychology could provide insights to
areas such as motivation of employees;
Mary Parker Follett- management should
become more democratic
Hawthorne Studies
Conducted by Western Electric’s Hawthorne
plant near Chicago (Mayo, Roethlisberger
and Dickson)
Studied the effect of different levels of
lighting on productivity
A piecework incentive system was
established
Productivity increase simply because
workers were singled out for special
treatment
Human Relations Movement
People respond primarily to their social
environment; that motivation depends
more on social need than economic needs,
and that satisfied employees work harder
than unsatisfied employees.
Douglas McGregor
Theory X Assumptions Theory Y Assumptions
People do not like to People do not naturally
work and try to avoid it dislike work; work is a
natural part of their lives
Managers have to People are internally
control, direct, coerce, motivated to reach
and threaten employees objectives to which they
to get them to work are committed
toward organizational
goals
Douglas McGregor
Theory X Assumptions Theory Y Assumptions
People prefer to be People are committed to
directed, to avoid goals to the degree that
responsibility, to want they receive personal
security; they have little rewards when they reach
ambition. their objectives
People seek and accept
responsibility under
favorable conditions
Douglas McGregor
Theory X Assumptions Theory Y Assumptions
People have the capacity
to be innovative in
solving organizational
problems
People are bright, but
under most
organizational
conditions their
potentials are
underutilized
Abraham Maslow
The Value of Organizational Behavior
OB isolates important aspects of
the manager’s job and offers
specific perspectives on the
human side of management:
◦ People as organizations
◦ People as resources
◦ People as people
Points for Reflection!!!

Which aspects of the theories are still

applicable today? Discuss in groups and
share.