Organizational

Behavior
People are Organization’s
Most Important Assets
What is an organization?

 Organizations are simply groups with two or more

people that share a certain set of goals and meet at
regular times.
 An organization is a collection of people who work
together to achieve individual and organizational
goals.
What is Organizational Behavior?
 Organizational Behavior (OB) is the study of factors that
affect how individuals and groups act in organizations
manage their environments.
 The study of human behavior, attitudes and performance
in organization.
 OB is the study of human behavior in workplace, the
interaction between people and the organization with the
intent to understand and predict human behavior.
 The investigation of the impact that individual, groups and
structure have on behavior within organizations, for the
purpose of applying such knowledge toward improving an
organization’s effectiveness.
 Value of OB: Helps people attain the competencies
needed to become effective employees, team
leaders/members, or managers
 Competency: An interrelated set of abilities, behaviors,
attitudes and knowledge needed by an individual to be
effective in most professional and managerial
Why do we Study OB?
 OB theories have widespread applications – among many
things, knowing these theories can help you to:
 Promote the Well being of employees
 To learn about yourself and how to deal with others
 Evaluate solutions proposed by consultants and managers
 Predict what will happen in your organization
 Influence the direction of your organization
 Organizational Behavior
Provides a set of tools that
allow:

Managers to improve, enhance or

People to understand, analyze change work behaviors so that
and describe behavior in individuals, groups and the whole
organizations organization can achieve their
goals.
Elements/components of OB

People

Organization Structure

External Environment

Organization

Technology
Elements/Components….

 People……… Human Resource ( Employees)

 Org. Structure……Official relationship among the employees on the basis
of their Authority, Responsibility, Acconutability
 Technology….Development of advance technology.
 External Environment……External Environmental factors
 Political Environment
 Economic Environment
 Social and cultural Environment
 Technology Development
 Levels of OB
 Human Behavior can be studied or analyzed in three level, because their
behavior can be different:
 Individual level: it includes:- perception, personality, attitude,
motivation, values, norms, expectations and level of satisfaction.
 Group level: it includes:- group dynamics, power and politics, conflict,
leadership, communication,
 formal group ( official group)
 informal group ( unofficial group )
 Organizational level: it includes:- organizational design,
organizational structure, org. change and development, culture,
 Assumptions Of OB
 Individual difference
 Caused behavior
 A whole person
 Selective perception
 Value of the person
 Organizations are social system
 Mutuality of interest between people and management.
( org.need people and people need organizations.)
Characteristics of OB:

 Goal Oriented
 Level of analysis
 Human Tool
 Satisfaction of employees need
 A total systems approach
Critical Behavioural Issues Confronting by the
Modern Managers
 Globalization
 Workforce diversity
 Increasing Org productivity
 Quality of products and services
 Empowerment of Employees
 Improving peoples skill
 Improving Ethical Behaviour
 Managing Org. change